Hotel Leela (HOTLEE) - ICICI Direct

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Exhibit 2: Trends in foreign tourist arrivalsGrowth in foreign tourist arrivals (FTAs) for the quarterended March 2013 continued to remain lower at ~2.3%YoY vs. growth of 14% reported last year('000)8007006005004003002001000538Jan-11692507Mar-11417369396498402401563May-11Jul-11Sep-11637715681677623Nov-11Jan-12Mar-12452372432525456415576May-12Jul-12Sep-12690750699688640Nov-12Jan-13Mar-1350.040.030.020.010.00.0-10.0-20.0-30.0-40.0FTA (LHS)YoY Growth (RHS)Source: MoT, ICICIdirect.com ResearchExhibit 3: Industry occupancy trend across company’s main operating regionsAverage occupancy level across business destinations(Delhi, Bangalore and Mumbai) improved marginally ~80bps YoY. Among leisure destinations, occupancy levelsalso remained flat vs. last year%857565554574678371726660 6657 58564449 455359556461736676 7565708274736335Jan-12Feb-12Mar-12Apr-12May-12Jun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Business destinations*Leisure destinations**Source: ICICIdirect.com Research* Includes Mumbai, Delhi, Chennai and Bangalore. ** Includes Goa, Jaipur & KochiExhibit 4: Industry ARR trends across company’s main operating regions12000During Q4FY13, the ARR across business destinations(such as Mumbai, Delhi and Bangalore) declined ~3%YoY due to lower occupancy. ARR in leisure destinationGoa also remained subdued during this quarter1000080006000400020007538972480658924774077417023668867335171660446926522453964034604630145697382656374507313737871887189793874007263696369250Jan-12Feb-12Mar-12Apr-12May-12Jun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Business destinations*leisure destinations**Source: Industry reports, ICICIdirect.com Research* Includes Mumbai, Delhi, Chennai and Bangalore. ** Includes Goa, Jaipur & KochiICICI Securities Ltd | Retail Equity Research Page 2
Exhibit 5: Quarterly trends in sales and net profitSales for Q4FY13 grew ~16.6% YoY mainly due toaddition in room inventory as growth in the revenue perroom remain muted|. crore250200150100500-50-100-150172Exceptional gain on accountof sale of property10112-26128-65159-100139210Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13Sales138Net Profit-97132-92183-97201-142Source: Company, ICICIdirect.com ResearchExhibit 6: Trends in operating margins60Operating margins for the quarter declined due to higheroperating costs led by new room additions in Chennai(%)40200-20-4039.525.427.715.415.418.09.711.67.5Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13-35.0EBITDA Margin (%)Source: Company, ICICIdirect.com ResearchSells IT park to RIL for | 170 crore, further sale of non-core assets on cardsDuring the quarter, the company sold its non-core assets (IT park inChennai) to RIL for | 170 crore. The company is also looking at selling itsexisting hotel properties (In Chennai, Bangalore, etc) and retaining rights tomanage them in order to pare down its debt. The company is also shelvingits plan for further development of its 3.85 acre property in Hyderabad,which could fetch up to | 125 crore. Similarly, in Pune, Leela has shelvedits plan to build a luxury hotel. We believe any developments with regardsto the sale of land or property remain an upside risk to our call in futureExhibit 7: AssumptionsHotels Rooms FY12 FY13 FY14E FY15EOwned 1457 1607 1607 1607Mang cont 412 595 651 651Total Room Count 1869 2202 2258 2258RevPAR FY12 FY13 FY14E FY15EARR (| per room) 11400 11570 12068 12369Occupancy (%) 61.0 62.0 63.0 65.0Source: Company, ICICIdirect.com ResearchICICI Securities Ltd | Retail Equity Research Page 3
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