We see in excess of 6000 ARR in Q4: Kurian Chandy, Kamat Hotels India Ltd

Kurian Chandy, CFO, Kamat Hotels India Ltd., to talk about restructuring of Kamat Hotels. Excerpts:-


ET Now: What is the rationale behind the merger of Kamat Holiday Resorts, Kamat Restaurants and Kamat Holiday Resorts of Silvassa?

Kurian Chandy: These are all profit making units, which were held by the promoter group and as a matter of better governance, we are getting all the profit making units, which has zeroed at into the Kamat Hotels, the listed entity.

ET Now: Could you just run us through the synergies that will be derived from this exercise?

Kurian Chandy: These companies have a huge amount of bottom line, which at the moment KHIL requires. Kamat Restaurants Pvt. Ltd. is a restaurant chain where we have close to 40 restaurants in the group. This will add to the bottom line and better cash flows for Kamat Hotels and the other two properties are debt free, profit making companies, which will definitely help to boost the profitability of KHIL.

ET Now: Could just run us through the shareholding pattern for the company as well as for Clearwater Capital?

Kurian Chandy: This is a very good news for the shareholders of Kamat Hotels that at the time when the FCCBs are facing difficulties of redemption, our investors Clearwater has decided to convert their debt into equity. With this conversion, Clearwater will hold 32% of the Kamat Hotels shares. This is a pre-merger situation and the promoters would be at 51%. Post merger, which has already been approved by the high court, Clearwater will hold 28% and the promoters would hold 58% of the shares.

ET Now: What occupancies have looked like and have you seen a pickup in revenues on account of the rupee depreciation and on account of foreign tourist inflows?

Kurian Chandy: We have seen an appreciation on account of better occupancy and better realisation. ARRs have increased. Also the occupancy has increased by at least 10%, so that’s very good.

ET Now: What’s average occupancy?

Kurian Chandy: In excess of 80%.

ET Now: You had indicated that you are looking to raise close to Rs 40-50 crores via a land bank monetisation. What’s the update on that front?

Kurian Chandy: We have started the process. One or two pieces of property have been sold. The others are in the pipeline, which we expect to realise soon.

ET Now: Which are the ones that have been sold so far?

Kurian Chandy: At Amravati.

ET Now: With respect to your average room rates also if you could just tell us how they are panning out, what can be expect for the third quarter and are you looking at any hike in prices?

Kurian Chandy: The price hike is a situation of demand and supply and we definitely see increase of ARRs by at least another 5% from this current quarter, so going forward we see excess of 6000 ARR in Q4.