Company the Byke Hospitality Ltd. Industry Hotels CMP 156.6 MCAP 627.93 Cr FV 10 MDA Ranking (1-5) 4 Growth Outlook Ranking(1-5) 3.5

Company The Byke Hospitality Ltd. Industry Hotels CMP 156.6 MCAP 627.93 cr FV 10 MDA ranking (1-5) 4 Growth Outlook ranking(1-5) 3.5

Particulars FY11 FY12 FY13 FY14 Net Sales 332.40 490.60 1009.40 1557.10 Growth % #VALUE! 48% 106% 54% EBITDA 41.20 52.21 181.20 287.40 PAT 21.50 24.00 77.60 158.90 EPS 1.71 1.26 3.87 7.93 Eq. Share Cap 125.50 190.50 200.50 200.50 Reserves 435.30 470.00 524.10 647.80 Book Value 34.69 24.67 26.14 32.31 Total Debt 1.80 173.40 198.70 145.50 Gross Block 164.70 511.10 812.30 923.60 Cash 10.30 20.00 10.50 19.80 Capital Employed 437.10 643.40 722.80 793.30 CFO 3.80 27.70 156.80 199.90 EBITDA % 12% 11% 18% 18% PAT % 6% 5% 8% 10% ROE % 5% 5% 15% 25% ROCE % 5% 4% 11% 20% P/E 91.41 124.30 40.46 19.76 Debt / Equity (x) 0.00 0.26 0.27 0.17 Net Sales/ Gross Block (x) 2.02 0.96 1.24 1.69

No. of Rooms 182 425 465 465 2,802 1,771 3,330 5,138 -37% 88% 54%

Industry: The Government has allocated ` 1,573 crores to the Tourism Ministry for 2015-16, compared to ` 1,183 crores for the previous fiscal. The visa-on-arrival enabled electronic travel authorisation for 43 countries further invited more tourists. The domestic tourist spending is projected to touch 85% by 2024 on the back of India’s emerging middle class and rising discretionary spend.

About the Company: The Byke Hospitality Ltd is a fast emerging name in the hospitality sector with luxury resorts boutique hotels under its banner. The business can be broadly classified into two segments: Owned & Leased (O&L) and Room Chartering (RC).

Currently the group has a bouquet of 8 luxurious properties:- 1 The Byke Old Anchor South Goa Lavish resort with 240 guest rooms spread across 19 acres of land. 2 restaurants, 2 lawns/banquets, 3 conference halls. 2 The Byke Hidden Paradsise North Goa Boutique resort with 40 guest rooms. 1 restaurant 3 The Byke Sunflower North Goa 22 rooms, 1 restaurant 4 The Byke Heritage Matheran Boutique resort with 80 guest rooms. 2 restaurants, 2 conference halls 5 The Byke Redwood Matheran 25 rooms, 1 restaurant. 6 The Byke Paawana Mandawa Rajasthan Spread over 3000 sq Mts area with 18 well equipped old traditional rooms. 7 The Byke Grassfield Jaipur 54 rooms, 3 restaurants, 3 lawns/banquets, 3 conference halls 8 The Byke Neelkanth Manali Boutique hotel of 40 rooms, 1 restaurant. New. 9 The Byke Suraj Plaza Thane 122 rooms, 3 restaurants, 3 conference halls. (Operational from first half of 2016)

We operate eight hotel properties in Maharashtra, Rajasthan, Goa and Himachal Pradesh of which two are owned and the rest six are on a long-term lease. We follow a unique asset-light business model, which allows us to leverage high profitability from a low capital base As on March 2015, we have 519 rooms under management, of which 102 are owned. As the resorts are taken on lease, we utilise the resources for modernisation and renovation of acquired properties, which in turn helps increase occupancies and ARRs.

Room Chartering Model We started our room chartering business in 2010-11. Under this model, we buy room nights of mid-budget hotels in bulk across leisure tourist and religious destinations during off-peak seasons. In the peak seasons we sell those room nights. Strong network of around 208 active agents present across 47 cities While there is no capital cost involved, the profits earned directly boost the bottom-line In 2015, the Company sold 373,250 room nights, compared to 345,000 in 2014 across almost 50 cities in India.

Key Takeaways: During the year, we added a property in Jaipur called Byke Grassfield, which has 54 rooms, three restaurants, three lawns/ banquets and three conference rooms. The Jaipur hotel has become a popular wedding destination in the city. We also added Byke Suraj Plaza, Thane to our O&L portfolio in May, 2015. The property is likely to be operational in the first half of 2016. The Thane hotel with 122 rooms is right across Suraj Water Park, a theme water park. We plan to expand our O&L, as well as RC portfolio in the next three years. We are planning to add three new properties at Thane, Shimla and Puri to our O&L portfolio. They will be operational by the end of 2015-16. With this addition, the bouquet of rooms will be 697 from 519. In the next leg of our growth, the Company aims to increase its presence in 8 holiday destinations We are developing an online portal, ‘tripdeal.com’ to provide a fillip to room chartering. We are planning to extend our presence across eight popular tourist destinations, including Lonavala, Mahabaleshwar, Chandigarh,Dalhousie,Jodhpur, Udaipur, Darjeeling and Gangtok by 2016-17.

The average occupancy in O&L business has been competently increasing from 61% in 2012 to 70% in 2014. Although it declined to 67% in 2015, primarily due to the launch of the new Byke Grassfield at Jaipur. The ARR saw an increase of ~8-10% in all the hotels, leading to an overall ARR of ` 3,769 in 2015, a rise of 4% over the previous year’s ARR of ` 3,617.

In the RC business, the ARR increased from ` 2,175 in 2014 to ` 2,404 in 2015, registering a growth of 10%. The occupancy increased from 92% in 2014 to 94% in 2015. The room chartering business faces geographic threats arising out of seasonal lack of demand or natural calamities. However, due to pan- India presence, individual risks get mitigated.

( Rs Mn) FY15 H1FY16 CAGR 1814.20 935.50 53% 17% 39% Porters 5 forces 373.70 199.60 74% Buyers Power - 200.30 95.50 75% Suppliers Power - 9.99 2.38 Threat of new Entrant - 200.50 401.00 Threat of Substitute - 599.60 695.00 Industry Rivalry - 29.91 17.33 -4% 124.10 98.00 Online Model status 1031.90 Breakup of operating performance of each of the segment 22.80 9.90 Lot of plans made but delay in execution. What abt sunhine Goa? 723.70 793.00 Chartering business - need to understand how does this work? 164.40 Why buying land and building own property - when lease busines is working well 21% 21% Capex plan - do they plan to raise money for expansion 11% 10% What is the arrangement for the lease model - share of revenue/profit to the owner? 33% 14% How much time does its take for a property to achieve breakeven? 28% 12% What is the operating margin of Byke Heritage Matheran ? Is this the highest? 15.68 65.76 Hotel wise margin breakup 0.16 0.09 1.76 #DIV/0!

519 697 Chartering 0.4406417112 5,363 4,118 Owned 0.5593582888 4% -23%

1,573 crores to the Tourism Ministry for 2015-16, compared to ` 1,183 crores for the previous fiscal. The visa-on-arrival enabled electronic travel authorisation for 43 countries further invited more tourists. domestic tourist spending is projected to touch 85% by 2024 on the back of India’s emerging middle class and rising discretionary spend.

The Byke Hospitality Ltd is a fast emerging name in the hospitality sector with luxury resorts boutique hotels under its banner. Owned & Leased (O&L) and Room Chartering (RC). Lavish resort with 240 guest rooms spread across 19 acres of land. 2 restaurants, 2 lawns/banquets, 3 conference halls. Boutique resort with 40 guest rooms. 1 restaurant 22 rooms, 1 restaurant Boutique resort with 80 guest rooms. 2 restaurants, 2 conference halls 25 rooms, 1 restaurant. Spread over 3000 sq Mts area with 18 well equipped old traditional rooms. 54 rooms, 3 restaurants, 3 lawns/banquets, 3 conference halls Boutique hotel of 40 rooms, 1 restaurant. 122 rooms, 3 restaurants, 3 conference halls. (Operational from first half of 2016)

eight hotel properties in Maharashtra, Rajasthan, Goa and Himachal Pradesh of which two are owned and the rest six are on a long-term lease. which allows us to leverage high profitability from a low capital base 519 rooms under management, of which 102 are owned. we utilise the resources for modernisation and renovation of acquired properties, which in turn helps increase occupancies and ARRs.

. Under this model, we buy room nights of mid-budget hotels in bulk across leisure tourist and religious destinations during off-peak seasons. In the peak seasons we sell those room nights.

While there is no capital cost involved, the profits earned directly boost the bottom-line 345,000 in 2014 across almost 50 cities in India.

we added a property in Jaipur called Byke Grassfield, which has 54 rooms, three restaurants, three lawns/ banquets and three conference rooms. popular wedding destination in the city. added Byke Suraj Plaza, Thane to our O&L portfolio in May, 2015. The property is likely to be operational in the first half of 2016. across Suraj Water Park, a theme water park. RC portfolio in the next three years. add three new properties at Thane, Shimla and Puri to our O&L portfolio. With this addition, the bouquet of rooms will be 697 from 519. aims to increase its presence in 8 holiday destinations to provide a fillip to room chartering. eight popular tourist destinations, including Lonavala, Mahabaleshwar, Chandigarh,Dalhousie,Jodhpur, Udaipur, Darjeeling and Gangtok by 2016-17. increasing from 61% in 2012 to 70% in 2014. launch of the new Byke Grassfield at Jaipur. , leading to an overall ARR of ` 3,769 in 2015, a rise of 4% over the previous year’s ARR of ` 3,617.

ARR increased from ` 2,175 in 2014 to ` 2,404 in 2015, registering a growth of 10%. room chartering business faces geographic threats arising out of seasonal lack of demand or natural calamities.

9595.388

1440.50 7618.871

Breakup of operating performance of each of the segment Lot of plans made but delay in execution. What abt sunhine Goa? Chartering business - need to understand how does this work? Why buying land and building own property - when lease busines is working well Capex plan - do they plan to raise money for expansion What is the arrangement for the lease model - share of revenue/profit to the owner? How much time does its take for a property to achieve breakeven? What is the operating margin of Byke Heritage Matheran ? Is this the highest? Hotel wise margin breakup

India’s emerging middle class and rising discretionary spend. Lavish resort with 240 guest rooms spread across 19 acres of land. 2 restaurants, 2 lawns/banquets, 3 conference halls.

six are on a long-term lease.

which in turn helps increase occupancies and ARRs.

we buy room nights of mid-budget hotels in bulk across leisure tourist and religious destinations during off-peak seasons. In the peak seasons we sell those room nights.

54 rooms, three restaurants, three lawns/ banquets and three conference rooms.

eight popular tourist destinations, including Lonavala, Mahabaleshwar, Chandigarh,Dalhousie,Jodhpur, Udaipur, Darjeeling and Gangtok by 2016-17.

4% over the previous year’s ARR of ` 3,617.

religious destinations during off-peak seasons. In the peak seasons we sell those room nights.

Annual Report 2009 Earlier Name : Suave Hotels Limited Dec Jan is the peak season for all the hotels of the company Worst year due to slowdown and terrorist Attack US$11bn is planned to be spend over the next 2 years and there is a total shortage of 1,50,000 rooms in 2010 of which 100,000 will be in buget categories

Annual Report 2010 Hotel Industry is expected to grew at 8.8% over the next five years Travel and Tourism accounts for 6.4% of total employment in India and it is estimated to grow to 10% by 2014 7.5mn shares were issued as convertible warrants for expansion plan and company is looking at new or existing properties in Maha-Goa region The warrants were issued for Rs44/share for 18 month period. Total money raised was Rs33cr Sep 2009 - acquired 38700 sq meters at Dist. Sindhudurga, Maha for the purpose of developing medical tourism in India Market size of medical tourism is US$2.4bn and it is growing at 27% annually. Total 1.1mn tourist visited in India for medical purpose a growth of 17%

Annual Report 2011 New management was inducted during the year. Mr. Sharma (chairman) was replaced with Mr. Patodia (new one) M/s Hotels Relax Private Ltd in concert with Mr. Anil Patodia, Mr Kamal Poddar and Mrs Vinita Patodia took over the company followed by an open offer to Suave Hotel Limited

Travel and Tourism accounts for 8.4% of total employment in India Decided to expand and open new hotel under the brand name The Byke Mr. Sharma - Made the MD of the company

The Indian Travel and Tourism Industry estimated at Rs. 1,970 billion in F.Y. 2010 contributed 6% to the overall GDP and is expected to reach Rs. 6,211 billion by 2020, growing at a CAGR of 12% per annum. The Travel and Tourism Industry is the largest contributor to employment generation and accounts for about 8.4% of the total employment. The hotel industry in India is looking at investing USD 10.3 billion by 2015, which will create 60,000 rooms and 2,000 new jobs. The statistic say that the hotel industry is looking over USD 10 billion worth of investment in India over the next five years creating over 80,000 jobs

The company ventured into Hotel and Tourism industry in the year 2002.

Under the new leadership focus is to have presence in all the segment of Travel and Tourism. The company currently has four hotel in 3 location - Goa, Matheran and Mandawa.

Sunshine Beach Resort Goa - Baga Beach Sunflower Beach Resort Goa - Baga Beach The Byke - Pride of Matheran Hotel Paawana - Mandawa Rajasthan - Jhunjhnus

Road Ahead - Properties identified in Goa, Maharastra, Gujarat and Rajasthan - aspiration is to go pan India. Looking at acquisition of existing properties Focus more on Goa Maha - Mahableshwar, Lavasa, Alibaug and Lonavala Gujarat - Vadodara and Daman Rajasthan - Jaipur and Jodhpur

Online Travel Portal - Online services through a separate website

Preferential allotment of share 6.5mn (on conversion of warrants) which results in an increase in capital from Rs12.55cr to Rs19.05cr During the year company took the contract for managing - The Byke - Hotel Retreat Matheran The name changed to Byke Hospitality Limited

The company started room charting business in FY11. Wherein it buys in bulk the complete inventory of room which are across religious & leisure tourist destinations during the off-peak season and sells them during the peak-season. Last 2 years its has sold 90% of the room nights purchased at a gross margin of 14%

Annual Report 2012 The company during the year has entered into several contracts which includes: The Byke - Old Anchor, Goa, The Byke - Redwood, Matheran - added during the year The Byke - Neelkanth, Manali and The Byke, Shimla will commence their operation in 2012-13 The company is looking for franchise/management contracts in various other parts of the country - The Byke - Aronda Goa, Khopoli - Maharastra, Kudal - Maharastra, Jodhpur - Rajasthan, Lavasa - Maha in cmg years

Currently, the company owns and operates hotel in seven locations: The Byke-Heritage and The Byke- Redwood, Matheran, The Byke- Old Anchor, Hotel Sunflower, Hotel Sunshine, Hotel Goan, Goa and The Byke- Paawana, Shekhawati. Remaining 1mn share were also converted into equity shares

The Byke-Heritage The Byke- Redwood, Matheran - 25 room The Byke- Old Anchor, Hotel Sunflower Hotel Sunshine, Hotel Goan, Goa and The Byke- Paawana, Shekhawati - 18 rooms

The Byke - Neelkanth, Manali - 50 rooms The Byke, Shimla

In the coming years The Byke - Aronda Goa, Khopoli - Maharastra - 75 rooms Kudal - Maharastra - 60 rooms Jodhpur - Rajasthan - 60 rooms Lavasa - Maha - 75 rooms

Annual Report 2013 Achieved a turn over of Rs100cr during the year Niche in the Pure Veg segment The current capacity of the company with respect to rooms stand at 465 rooms. Over the next 2 years target is to double this capacity Two new properties as a part of lease contract. The company’s steps to start its new operations with “The Byke - Neelkanth, Manali” with 40 guest rooms and “The Byke – Hidden Paradise Goa “,with 40 guest rooms in first year of operation, have been very successful and achieved high occupancy ratio.

The Byke-Heritage - Matheran The Byke- Redwood, Matheran - 25 room The Byke- Old Anchor, Goa - 240 rooms The Byke – Hidden Paradise, Goa The Byke - Sunflower, Goa The Byke - Neelkanth, Manali The Byke- Paawana, Shekhawati - 18 rooms

Looking at managing state owned properties under Joint brand name. The company expects to start its operations of the Hotels under the brand “The Byke” at Shimla (Himachal Pradesh), Navi Mumbai & Mahablashewa Goa, Kollam Kerala, Hampi Karnataka and Jodhpur Rajasthan

Foraying into the room charter business which has a higher margin profile and is looking at launching a unique customized web portal to drive new business

Renovation - The Byke - Old Anchor, Goa - Pool side Bar and a discotheque Number of rooms increased from 152 to 240

MICE - Meeting, Incentive, Conf and Exhibition is also the focus are of The Byke

The company which does charter bookings is also looking at taking comission from the third party hotel operators for room bookings

AnnualReport 2014

The Company has a plan to increase its presence gradually to 17 locations over the next two years. Accordingly, it has already acquired land at three locations: 3.75 acres land near proposed Navi Mumbai airport for Business class Hotel. 10 acres land at Aronda on the banks of Sindhudurg river in Maharashtra for a premium spa rejuvenation center cum resort. 2 acres land near Ashtamudi lake at Kollam, Kerala for premium beach view resort

Currently, Byke operates hotels at popular holiday destinations with average occupancy level of around 69% This business has grown by 4.8 times in just three years and the company reported a revenue of `807 mn in FY14 from these 8 hotels comprising 539 rooms. The Company has one of the widest sales and marketing network, reaching out to the target audience through its 27 owned sales offices and 350 registered Travel Agents We have a unique third party marketing tie-up through which we are present at 8000 locations. The management of the company is actively discussing with various state tourism depts for operational management of its 150 prime properties hereby enhancing its capacity by additional 6,000 rooms. US$11bn is planned to be spend over the next 2 years and there is a total shortage of 1,50,000 rooms in 2010 of which 100,000 will be in buget categories

Travel and Tourism accounts for 6.4% of total employment in India and it is estimated to grow to 10% by 2014 7.5mn shares were issued as convertible warrants for expansion plan and company is looking at new or existing properties in Maha-Goa region The warrants were issued for Rs44/share for 18 month period. Total money raised was Rs33cr Sep 2009 - acquired 38700 sq meters at Dist. Sindhudurga, Maha for the purpose of developing medical tourism in India Market size of medical tourism is US$2.4bn and it is growing at 27% annually. Total 1.1mn tourist visited in India for medical purpose a growth of 17%

New management was inducted during the year. Mr. Sharma (chairman) was replaced with Mr. Patodia (new one) M/s Hotels Relax Private Ltd in concert with Mr. Anil Patodia, Mr Kamal Poddar and Mrs Vinita Patodia took over the company followed by an open offer to Suave Hotel Limited

Under the new leadership focus is to have presence in all the segment of Travel and Tourism. The company currently has four hotel in 3 location - Goa, Matheran and Mandawa.

Road Ahead - Properties identified in Goa, Maharastra, Gujarat and Rajasthan - aspiration is to go pan India. Looking at acquisition of existing properties

The Byke - Neelkanth, Manali and The Byke, Shimla will commence their operation in 2012-13 The company is looking for franchise/management contracts in various other parts of the country - The Byke - Aronda Goa, Khopoli - Maharastra, Kudal - Maharastra, Jodhpur - Rajasthan, Lavasa - Maha in cmg years

The Byke-Heritage and The Byke- Redwood, Matheran, The Byke- Old Anchor, Hotel Sunflower, Hotel Sunshine, Hotel Goan, Goa and The Byke- Paawana, Shekhawati.

The current capacity of the company with respect to rooms stand at 465 rooms. Over the next 2 years target is to double this capacity Two new properties as a part of lease contract. The company’s steps to start its new operations with “The Byke - Neelkanth, Manali” with 40 guest rooms and “The Byke – Hidden Paradise Goa “,with 40 guest rooms in first year of operation, have been very successful and achieved high occupancy ratio. The company expects to start its operations of the Hotels under the brand “The Byke” at Shimla (Himachal Pradesh), Navi Mumbai & Mahablashewa

Foraying into the room charter business which has a higher margin profile and is looking at launching a unique customized web portal to drive new business

The company which does charter bookings is also looking at taking comission from the third party hotel operators for room bookings

plan to increase its presence gradually to 17 locations over the next two years.

10 acres land at Aronda on the banks of Sindhudurg river in Maharashtra for a premium spa rejuvenation center cum resort. 2 acres land near Ashtamudi lake at Kollam, Kerala for premium beach view resort average occupancy level of around 69% and the company reported a revenue of `807 mn in FY14 from these 8 hotels comprising 539 rooms. reaching out to the target audience through its 27 owned sales offices and 350 registered Travel Agents present at 8000 locations. The management of the company is actively discussing with various state tourism depts for operational management of its 150 prime properties hereby enhancing its capacity by additional 6,000 rooms. Room Charting servcies

Under the new leadership focus is to have presence in all the segment of Travel and Tourism. The company currently has four hotel in 3 location - Goa, Matheran and Mandawa. The company started room charting business in FY11. Wherein it buys in bulk the complete inventory of room which are across religious & leisure tourist destinations during the off-peak season

The company is looking for franchise/management contracts in various other parts of the country - The Byke - Aronda Goa, Khopoli - Maharastra, Kudal - Maharastra, Jodhpur - Rajasthan, Lavasa - Maha in cmg years 27 owned sales offices and 350 registered Travel Agents enhancing its capacity by additional 6,000 rooms. Call Details (21st January, 2016)

The business can be broadly classified into two segments: Owned & Leased (O&L) and Room Chartering (RC). Revenue share is 50:50 Total revenue Rs180 cr Lease amount < 12% of potential revenue Ideally maintained between 8-10%

Thane property started operations from Q2FY2016 Simla and Puri will be operational from Q1FY2017 8 new properties under scanner. Each property involves a Capex of approx Rs.4 - 5 crores.

Owned & Leased Model Lease is usually taken for a period of 15-20 years with a 3 year lock-in period Lease amount is paid on a monthly basis. No revenue sharing with the lessor.

The Byke Old Anchor, South Goa (240 guest rooms) 40-45% of entire revenue from this property. Average room rent Rs.3500-4000 Lease amount : Rs3.5cr/annum. Revised by 15% every 3 years. Byke spent Rs.12-15cr for refurbishing on acquistion

Byke has acquired land at three locations: 3.75 acres land near proposed Navi Mumbai airport for Business class Hotel. 10 acres land at Aronda on the banks of Sindhudurg river in Maharashtra for a premium spa rejuvenation center cum resort. 2 acres land near Ashtamudi lake at Kollam, Kerala for premium beach view resort All development plans for the above mentioned properties have been scrapped for the time being. Amount invested Rs7 - 10 crores

Revenue is split in the ratio of 1:1 between Hotel and F&B services The Hotel Business has an EBITDA margin of approx 25% F&B has a higher margin compared to Hotle rooms. Hence, Thane and Jaipur hotels contribute to higher margins compared to others.

Room Chartering Model Buy room nights of mid-budget hotels in bulk across leisure tourist and religious destinations during off-peak seasons(3-4 months in Advance). In the peak seasons, sell those room nights. All payments are made to the hotels in advance. Chartering done via travel agents only. 250 such activce agents ARR of chartering business is Rs2000 - 2500. Tie up with mainly small/single owner hotels who donot have an online platform for booking. Regular tie up with approx 50 hotels. Strategic move inorder to survey the markets in those tourist destinations. Rooms are acquired at 30% discounted price. This is the GP margin for Byke. 10% is the Agents commission 5% Inventory Loss This is a high ROC model

Stock Holdings Jupiter Holdings (FII) bought 20 lakh shares QIC holds 4-5% stake United India Assurance holds 5% stake Owned & Leased (O&L) and Room Chartering (RC).

8 new properties under scanner. Each property involves a Capex of approx Rs.4 - 5 crores.

15-20 years with a 3 year lock-in period

3.75 acres land near proposed Navi Mumbai airport for Business class Hotel. 10 acres land at Aronda on the banks of Sindhudurg river in Maharashtra for a premium spa rejuvenation center cum resort. 2 acres land near Ashtamudi lake at Kollam, Kerala for premium beach view resort All development plans for the above mentioned properties have been scrapped for the time being.

Thane and Jaipur hotels contribute to higher margins compared to others.

across leisure tourist and religious destinations during off-peak seasons(3-4 months in Advance).

Tie up with mainly small/single owner hotels who donot have an online platform for booking. GP margin for Byke.