Bharat Hotels Unlisted Share

Established in 1981, Bharat Hotels Limited is a leading hospitality enterprise in India renowned for its luxurious accommodations and impeccable service under the esteemed brand name of "The Lalit".

1. Properties: Manages 12 luxurious hotels, palaces, and resorts across India
2. Total Rooms: Offers a total of 2,261 rooms
3. Mid-Market Segment: Operates two hotels under The Lalit Traveler brand, catering to mid-market clientele
4. Dining: Boasts a portfolio of 45 restaurants, bars, and bakery outlets, including renowned names like 24/7, Baluchi, and Kitty Su
5. Event Facilities: Provides 50 banquet and conference halls for various events and gatherings
6. Services Beyond Hospitality: Offers outdoor catering services, education and training programs for hospitality professionals, and aircraft charter services.

Product Portfolio

Hotel Operations: 

1. Sale of rooms and apartments
2. Food and beverages (e.g., 24/7, Baluchi, OKO Restaurant, The LaLiT Boulangerie) 
3. Banquet rentals
4. Telecommunication services
5. Laundry services
6. Business center facilities
7. Health center services
8. Other related services (e.g., Kitty Su nightclubs, The LaLiT Food Truck Company)

Subsidiary/Associate

Awards & Recognitions

Consolidated Financial Highlights:

• The company achieved a commendable 7.79% growth in revenue, reaching ₹862.34 crores from ₹800.05 crores last year. This steady increase reflects their strong market presence and effective business strategies
• A standout achievement is the 71.08% surge in net profit, climbing to ₹84.80 crores from ₹49.57 crores. This remarkable improvement underscores their operational efficiency and ability to generate significant returns.

₹ in crore

During the fiscal year 2022-23, Bharat Hotels Limited experienced a gradual improvement in business during the first six months, followed by a substantial revival in the second half, driven by successful vaccination programs, border reopening, and removal of travel restrictions. The company achieved one of its best revenue figures, reflected in its revenue and EBITDA numbers, although recovery from COVID-19 losses will take time. Additionally, the company raised funds through the issuance of 1,10,000 Non-Convertible Debentures via private placement, utilizing the proceeds to repay existing debt and clearing all loans from financial institutions.

Revenue Breakup

₹ in crore

Hotel Industry Overview

The hotel industry in India stands as a vibrant and dynamic sector, deeply intertwined with the nation’s cultural richness, economic vitality, and burgeoning tourism landscape. With a diverse tapestry of landscapes ranging from majestic mountains to pristine beaches, and a heritage that spans millennia, India beckons travelers from across the globe. The hotel industry in India is poised for significant growth, driven by several key factors such as increasing tourism, rising disposable incomes, and evolving consumer preferences. By 2024, the Indian hotel market is expected to reach a revenue value of US$9.13 billion, with a projected compound annual growth rate (CAGR) of 5.41% from 2024 to 2028.

Market Dynamics

1. Steady Revenue Growth: Fueled by domestic and international tourism, the hotel market experiences continuous revenue growth, driven by increasing business travel and leisure tourism.

2. User Base Expansion: Anticipated growth in the hotel market's user base to 64.74 million by 2028 mirrors the rising trend of travel and accommodation usage among Indian consumers.

3. Shift to Online Bookings: The rise of online travel agencies (OTAs) sees a significant shift towards online bookings, projected to constitute 61% of total revenue by 2028, owing to their convenience and accessibility.

4. Average Revenue per User (ARPU): Forecasted ARPU of US$167.80 signifies the average annual spending per user on hotel accommodations, reflecting sustained consumer demand.

5. Growing Tourism: India's economic growth and increasing disposable incomes stimulate domestic travel, alongside its rising popularity as a global tourist destination.

6. Business Travel: Major cities like Mumbai, Delhi, Bangalore, and Hyderabad witness a surge in business travel, bolstering demand for premium hotel services.

7. Urbanization: Rapid urbanization prompts hotel establishment not only in metropolitan cities but also in emerging Tier-II and Tier-III cities, catering to diverse traveler preferences.

8. Technology Integration: Integration of technology, such as online booking platforms and smart room amenities, enhances guest experiences and operational efficiency.

9. Focus on Sustainability: With a growing emphasis on eco-friendly practices, many hotels adopt green initiatives to reduce environmental impact, reflecting an industry-wide commitment to sustainability.

Bharat Hotels: Key Strenghts 

1. Long Track Record in the Hotel Industry.
2. Financial and Operational Improvement.
3. Robust Financial Structure.
4. Geographical Diversification.

Bharat Hotels: Key Weaknesses

1. High debt and leveraged capital structure.
2. Vulnerability of revenues to inherent industry cyclicality, economic cycles and exogenous events.
3. Regional trends in tourism and competition risk.

Peer Comparison

₹ in crore

ESOP

In an effort to incentivize and retain key employees, Bharat Hotels Limited introduced the “Bharat Hotels Employees Stock Option Scheme 2017.” This scheme is designed to reward employees and align their interests with the long-term success of the organization. During the year 2018, the company granted a total of 700,600 stock options to eligible employees. This initiative reflects Bharat Hotels Limited’s commitment to recognizing and rewarding the contributions of its employees, thereby fostering a culture of ownership and accountability within the organization.

Dividend

In view of business losses and the imperative to preserve cash, Bharat Hotels Limited has opted not to propose any dividend to the shareholders for the Financial Year 2022-23.

IPO Plans

Bharat Hotels Limited filed a DRHP for an initial public offering (IPO) with the market regulator, SEBI, on June 28, 2018, but has yet to proceed with the IPO as of 2024. The company had aimed to raise approximately Rs. 1,200 crore through a new issue at that time. However, it appears that the IPO plans have been delayed or put on hold. As of now, there has been no indication from the company regarding any re-filing of the DRHP or a potential timeline for the IPO.

Bharat Hotels Annual Report 2023-24

Bharat Hotels Annual Report 2022-23

Bharat Hotels Annual Report 2021-22

Bharat Hotels Annual Report 2020-21