This hotel stock zoomed 77% in 9 days; hit multi-year high on Jan 1

Shares of Asian Hotels (North) were locked in the upper circuit for the 7th straight trading day, up 5 per cent at Rs 334.35 on the BSE in Wednesday's intra-day trade.

Shares of Asian Hotels (North) were locked in the upper circuit for the seventh straight trading day, up 5 per cent at Rs 334.35 on the BSE in Wednesday’s intra-day trade. The stock today hit a multi-year high, surpassing its earlier peak of Rs 318.45 touched in January 2018. It had hit a record high of Rs 899.50 on February 5, 2007.

 

In the past 9 trading days, the market price of Asian Hotels (North) zoomed 77 per cent from a level of Rs 188.55 on December 18, 2024.

 

Currently, the stock trades under ‘T’ or Trade-for-Trade (T) group. The T group is a surveillance measure that requires securities to be settled on a trade-to-trade basis.

 

 

Asian Hotels (North) operates Hyatt Regency Delhi, a five-star deluxe hotel strategically located in the commercial hub of New Delhi. The company is part of the Jatia Group, led by Shiv Kumar Jatia and Amritesh Jatia, along with entities such as Fineline Holdings Ltd., Yans Enterprises (H.K.) Ltd., and Asian Holdings Pvt. Ltd., collectively owning and controlling various operating companies in the hospitality sector.

 

For the first half (April to September) of the financial year 2024-25 (H1FY25), the company posted a loss of Rs 48.66 crore, compared to Rs 43.14 crore in H1FY24. Revenue from operations grew 1.8 per cent at Rs 140.22 crore against Rs 137.74 crore in the corresponding period of last fiscal.

 

On November 11, 2024, Asian Hotels (North) informed the stock exchanges that the company and its lenders i.e. J. C. Flowers Asset Reconstruction Private Limited (JCF ARC), Punjab National Bank (PNB) and Standard Capital Markets Limited (SCML) mutually decided to settle the outstanding financial obligations on part of the company on mutually agreed terms and conditions.

 

As on September 30, 2024, Asian Hotels (North) had a total 19.45 million outstanding equity shares, of which promoters held 3.17 per cent stake. The remaining 96.83 per cent holding held by non resident Indians (NRIs) (54.76 per cent), resident individual investors (21.75 per cent) and bodies corporate (9.86 per cent), shareholding pattern data shows.

 

According to Asian Hotels (North), India witnessed a promising recovery in the tourism sector, with a notable rise in Foreign Tourist Arrivals (FTAs) from various countries. The top states in terms of domestic visits in India were Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka, and Gujarat.

 

The Indian hospitality industry is primarily fueled by strong domestic demand and the Indian government’s renewed focus on expanding the tourism sector. Recognizing the sector’s potential as a major employment generator, the government actively promotes it through public-private partnerships and a mission-oriented approach involving all stakeholders. 

 

The government plans to revive 50 additional airports, heliports, and water aerodromes to enhance regional air connectivity. It also aims to develop fifty tourism destinations as comprehensive packages for domestic and international tourists. The government’s continued emphasis on infrastructure development, including significant railways and last-mile connectivity investments, is expected to benefit the sector.

 

The Ministry of Tourism has undertaken a revitalization of its Swadesh Darshan Scheme as Swadesh Darshan 2.0 (SD2.0) and introduced the National Integrated Database of Hospitality Industry (NIDHI) to facilitate digitalization and ease of doing business in the hospitality and tourism sector. This initiative, now upgraded as NIDHI+, aims to include not only Accommodation Units but also Travel Agents, Tour Operators, Tourist Transport Operators, Food & Beverage Units, Online Travel Aggregators, Convention Centres, and Tourist Facilitators.

 

Meanwhile, on December 20, 2024, Brickwork Ratings said it reaffirmed the ratings for the bank loan facilities of Rs 416.24 crore of Asian Hotels (North) based on best available information, as the issuer did not cooperate. CLICK HERE FOR DETAILS