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Bharat Hotels Limited - JG (1)

Bharat Hotels Limited - JG (1) - BHL Annual Surveillance...

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BHL Annual Surveillance FY12 Sep ----- Surveillance Note for Internal Rating Committee Meeting Bharat Hotels Limited Rating of Bank facilities/Instruments of Rs.798.4cr*  Name of the company Bharat Hotels Limited Mandate IDs – Existing instrument 1858/2216/4961 & 7208 Mandate ID – New instrument (if any) Date of last surveillance Oct’10 Date of receipt of substantial information Sep 18, 2011 Review period FY11 audited Wilful defaulter as per CIBIL N * Details in Annexure I A. BRIEF PROFILE Sr. No. Particulars Details 1. Chairperson Mrs. Jyotsna Suri 2. Incorporation 1981 3. Constitution Public Limited 4. Group Bharat Hotels 5. Nature of Business Hospitality 6. Controlling Office New Delhi 7. Hotel Location Eight operational properties at Delhi, Mumbai, Goa , Bangalore, Srinagar, Udaipur, Khajurao & Kerela 8. Tangible Net worth Rs.734cr as on March 31, 2011 9. Status of defaults/delays No delay and default as per letter dt. Sep 3, 2011 10. Auditor M/s SR Batliboi & Co., Gurgaon (Haryana) 11. Outstanding rating Long Term Fund based facilities CARE A+ NCD CARE A+ Short Term non fund based facilities CARE A1+ Commercial Paper CARE A1+ Ratings of other agencies NA A1.LINKED RATINGS - NA 1
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BHL Annual Surveillance FY12 Sep ----- B. BACKGROUND: Bharat Hotels Ltd (BHL) incorporated in 1981 was founded by Late Mr. Lalit Suri and his family members. Presently the operations of the company are managed by Mrs. Jyotsna Suri. The company owns and operates 7 five star hotels at Delhi, Mumbai, Bangalore, Udaipur, Goa, Khajurao and Srinagar and a spa cum resort located at Bekal (Kerela). The total room inventory as on March 31, 2011 was 1404. The properties located in Delhi, Goa, Bangalore, Mumbai, Srinagar, Khajuraho and Bekal are owned by BHL and that located at Udaipur is under a subsidiary company Udaipur Hotels Limited. C. FACTORS CONSIDERED AT THE TIME OF LAST RATING AND CURRENT STATUS Factors considered at the time of last rating Comments on the changes Promoter’s vast experience in the hotel industry, presence at multiple locations Continues to be so, BHL has 7 five star hotels located across India. The Bekal (Kerala) is a spa cum resort, was operationalzed from May’10. Comfortable gearing and coverage ratios Gearing level has remained moderate though deteriorated to 0.91x at the end of FY11 from 0.80x at the end of FY10 due to increase in long term debt to fund the ongoing expansions/ renovations. The gearing is expected to remain at the same level at the end of FY12 owing to ongoing debt funded expansion. The interest coverage also declined to 1.54x during FY11 from 1.70 during FY10, due to increasing interest cost and stagnant accruals. The DSCR is below unity during FY12 to FY14, due to bunching up of debt repayment and commencement of NCD redemption. However, the DSCR derives comfort from the existing cash balance of Rs.116cr as on March 31, 2011 and realization from the sale of assets during FY12.
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Bharat Hotels Limited - JG (1) - BHL Annual Surveillance...

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