Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Sayaji Hotels -Barbeque Nation

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Sayaji Hotels owns two hotels, one each in Indore and Baroda and is also the parent company of a chain of restaurants, ¡Barbeque Nation¢.

Dominant market share in Indore

Flagship Indore property with 210 rooms has a 75% market share in the three star segment with a room capacity equivalent to the combined capacity of the nearest four hotels

Its second property is in Baroda with 53 rooms

The company has the highest turnover of all non metro and Goa hotels in the country coupled with the largest per person banqueting capacity in the country of 1,400/365 days.

Average Room Revenues (ARRs) for the company were about Rs2,200 in FY07; expected to increase by about 27% in FY08

Food & Beverage (F&B) is an area of expertise; Room revenues to F&B ratio at 1:2 as compared to 1: 0.6 for the industry.

 
o commission a four star property in Pune

Company to commission a 247 room four star category property in Pune along with a club and banquet hall by December 2008

Funding requirements of Rs1.4bn already tied up through FCCB and preferential issue in 2006 and debt

Pune hotel expected to have operating margins of about 55% Scaling up ¡Barbeque Nation¢

The company, through its 100% owned subsidiary Sanchi Hotels, owns "destination restaurants" under the brand name of ¡Barbeque Nation¢ Investment by parent company to remain at Rs250mn in the restaurant subsidiary Currently it operates five outlets: Mumbai, Bangalore (2), Hyderabad and Gurgaon; by end of FY08, it plans to take the total to 14
Company plans to open a restaurant every three months and targets 100 such restaurants by FY10 which would then provide it with economies of scale and even a likely hive off

Restaurants to drive growth

Although restaurants are lower margin business as compared to hotels, but lower gestation period (3 months) as compared to a hotel (2 years) imply that company can build brand visibility faster All its restaurants would have identical set up and ambience providing
a similar experience in all the locations

The company may look to the franchisee model once it achieves a certain critical mass with its restaurants Payback period for restaurants seen at about 2.5 years.

 

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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