In a remarkable display of financial recovery, a prominent North Indian hospitality company has seen its stock soar by 60% over the past week, including hitting today’s upper circuit of 5%. This surge follows the company’s announcement of completely settling its loan obligations, with VSJ Investments marking a significant milestone in its debt reduction strategy.
Share Price Movement
The share price of Asian Hotels (North) Limited hit an upper circuit of 5 percent to Rs. 353.30 per share on Thursday, an increase from its previous close of Rs. 336.50 per share. The market capitalisation now stands at approximately Rs. 629.60 crore as of January 02, 2025.
Share Price Surge: Why?
Asian Hotels (North) Limited has fully repaid its secured loan with VSJ Investments Pvt. Ltd. on December 31, 2024, settling all related claims and dues.Asian Hotels (North) Limited has fully repaid its secured loan with VSJ Investments Pvt. Ltd. on December 31, 2024, settling all related claims and dues.
Financial Highlights
According to its recent filing, in the quarter ending September 2024, Asian Hotels (North)’s consolidated revenue from operations has increased by 5.4 percent YOY from Rs. 74 crore in Q2 FY24 to Rs. 78 crore in Q2 FY25 and increased by 25.80 percent QoQ from Rs. 62 crore in Q4 FY24.
The company’s consolidated net loss has increased YoY from a loss of Rs. 23 crore in Q2 FY24 to a loss of Rs. 52 crore in Q2 FY25.
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Market Outlook
India’s hospitality industry is set to grow significantly, doubling from USD 247.31 billion in 2024 to USD 475.37 billion by 2029, with a CAGR of 13.96%. This growth is driven by increasing tourism, geopolitical stability, improved infrastructure, and staycation trends.
A rise in hotel projects and enhanced cruise tourism hubs further bolster the sector. With expanding hotel brands and robust demand, especially in Tier-3 and -4 cities, India’s hospitality market showcases resilience and promising potential for long-term expansion.
Shareholding Pattern
As of the September 2024 shareholding pattern, Asian Hotels (North) Limited is primarily held by the public at 87.83 percent, foreign institutional investors hold 5.26 percent, and the promoters with 3.17 percent.
About Company
Asian Hotels (North) Limited, founded in 1980 and based in New Delhi, is a prominent figure in India’s luxury hospitality industry, known for operating the five-star deluxe Hyatt Regency Delhi with its 508 rooms and exceptional services for both leisure and business travellers.
The company’s ventures span hospitality, power generation, and real estate, showcasing its commitment to innovation and sustainability; however, it faces challenges like declining promoter holdings and low equity returns. Under the leadership of Managing Director Amritesh Jatia, the company, which is part of the Jatia Group with over 59% ownership, continues to modernise its facilities and explore new markets, maintaining its status as a leader in the hospitality and allied sectors.
Written By Fazal Ul Vahab C H
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