HOTELS - WHY THE LIGHTS ARE GOING OUT
Article Abstract:
Hotels in India are subject to a sales tax of 20 percent - the highest, compared to the tax levied on other industries. Hotels, which charge over Rs2,000 per day, have to pay a 10 percent expenditure tax. The decline in the hotels business in India is due to the recession in the Indian economy. The currencies in south-east Asian countries have depreciated more than the Indian rupee. Hence, tourist destinations in south- east Asian countries have become cheaper and more attractive than the one in India. The Government of India, instead of encouraging the hotel industry (the second largest forex earner), continues to tax it heavily hampering its growth. Hotels and restaurants in India contribute 1.1 percent of the GDP. The tourism industry in India employs 21.4 million people, which accounts for only 2.4 percent of the Indian population. In 1997, India received 2.2 million tourists, compared to China's 23 million tourists. (gs) --------------------------------------------------------- Financial results of hotels in 1996-97 (Rs in million) --------------------------------------------------------- Particulars A B C D --------------------------------------------------------- Net sales 6,133.30 4,404.00 1,754.60 1,309.00 --------------------------------------------------------- Operating profit 2,864.40 1,821.44 973.80 666.26 --------------------------------------------------------- Net profit 3,268.90 2,582.56 780.80 642.74 --------------------------------------------------------- Assets 9,796.70 8,280.29 2,016.30 3,224.63 --------------------------------------------------------- Equity 451.20 524.00 228.00 627.23 --------------------------------------------------------- Net worth 7,169.80 8,113.46 1,685.70 1,892.41 --------------------------------------------------------- Borrowings 2,137.30 801.17 - 1,342.32 --------------------------------------------------------- EPS (Rs) 39.92 26.36 34.25 7.31 --------------------------------------------------------- Book value (Rs) 158.91 154.84 73.93 30.17 --------------------------------------------------------- A: Indian Hotels Corporation Ltd; B: East India Hotels Ltd; C: Asian Hotels Ltd; D: Hotel Leela Venture ---------------------------------------------------------
Comment:
India: Government, instead of encouraging the hotel industry, continues to tax it heavily hampering its growth
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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ITC HOTELS
Article Abstract:
ITC Hotels (IH) had made a rights issue of partly convertible debentures in April 1993 to net Rs500 million. The proceeds of the issue were used to fund acquisition of the hotel in Jaipur from ITC and expansion of the one in Bangalore. It has added 100 rooms to its Bangalore hotel. IH also owns 7 licensed hotels and runs 6 hotels under contract. It owns the Windsor Manor Sheraton in Bangalore and the Rajaputana Palace Sheraton in Jaipur. (gs) --------------------------------------------------------- Financial results of ITC Hotels --------------------------------------------------------- Particulars Period ended June (Rs in million) 1998 1997 --------------------------------------------------------- Operating income 250.70 258.40 --------------------------------------------------------- Operating profit 35.80 47.40 --------------------------------------------------------- Pre-tax profit 7.60 20.40 --------------------------------------------------------- Net profit 6.60 18.20 --------------------------------------------------------- Equity 302.10 302.10 --------------------------------------------------------- EPS (Rs) 0.90 2.40 ---------------------------------------------------------
Comment:
Posts decrease in net profit to Rs6.60 mil for period ended 6/98 vs net profit of Rs18.20 mil for year ended 6/97
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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INDIAN HOTELS
Article Abstract:
Indian Hotels Corporation Limited (IHCL), India's largest hotel company, manages 41 hotels in India and 14 hotels abroad. It owns 14 luxury hotels and operates 27 hotels. (gs) --------------------------------------------------------- Financial results of Indian Hotels Corporation Limited --------------------------------------------------------- Particulars Period ended June (Rs in million) 1998 1997 --------------------------------------------------------- Operating income 1,315.3 1,257.8 --------------------------------------------------------- Operating profit 410.7 391.5 --------------------------------------------------------- Pre-tax profit 280.6 264.3 --------------------------------------------------------- Net profit 240.6 226.8 --------------------------------------------------------- Equity 451.2 451.2 --------------------------------------------------------- EPS (Rs) 21.3 20.1 ---------------------------------------------------------
Comment:
Posts increase in net profit to Rs240.6 mil for period ended 6/98 vs net profit of Rs226.8 mil for period ended 6/97
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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