[T.S.R:16862] Oriental Hotels-Pseudo Real Estate Will Get Hammered

Oriental Hotels-Pseudo Real Estate Will Get Hammered

The Oriental Hotels chain, part owned by the Tata's Indian Hotels, which operates 7 hotels in Mangalore, Chennai and Vizag is facing severe headwinds as the Rich avoid fancy properties like The Fisherman's Cove, and the middle level executive down trades even lower for cheaper properties to stay. It seems obvious, that in the age of Video Conferencing and better tele-conferencing facilities the 5 Star hotel segment will soon reduce to just glorified Bars and Restaurants that offer lodging facilities also. Banqueting and Food will become main stay of such properties, in what the West world accepts as a failed business model that comprised travel and leisure. Now look at Oriental's numbers-first 9 month FY11 earnings are just about 0.30 paise per share. How on earth this scrip is fetching a majestic PE devoid of dwindling business prospects beats me. The stock can halve from here in a month from now to about Rs 15 per share.
 

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.

 

Nothing in this article is, or should be construed as, investment advice.

 

 

 

 

 

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