Lemon Tree Hotels: GST 5% Boosts Demand, Offsets ITC Loss for 50% Rooms | Patanjali G Keswani - video Dailymotion

ET NOW

🌍 Welcome to Global News Hub – your trusted source for fast and reliable updates from 🇺🇸 USA, 🇮🇳 India, and 🌐 worldwide. From 🔥 breaking news and 🏛️ politics to 💼 business, 💻 technology, 🎬 entertainment, and more, we bring you daily updates ⏰. Follow now to stay informed anytime, anywhere 📲.

Transcript

00:00impact and I have with me an important guest for the same Patanjali Ji

00:04Keswani, Chairman and Managing Director Lemon Tree Hotels. Welcome to ET now. My first question

00:11to you is with GSD on rooms under 7,500 now reduced to 5% but it is without ITC. What is

00:20the net impact on your room pricing and margins across your portfolio after this move?

00:24So that's difficult to estimate. So there is obviously a loss of input tax credit and there

00:34is a gain of a lower price and therefore higher demand. Our broadly about half our demand is

00:45at below 7,500. So in those hotels and those markets obviously we will lose the ITC but

00:54we expect to see a fairly decent improvement in demand and obviously the expectation is

01:02that the improvement in demand should offset the loss due to ITC.

01:07Mr. Keswani, good to be speaking with you. This is Nehi also joining in and that's exactly

01:12what we wanted to understand. What percentage of your portfolio falls below that 7,500 mark?

01:17Thanks for that clarification. But also talk to us about your upcoming Aureka project. That's

01:23Aureka Nehru Place. That's going to be one of Delhi's largest hotels with 500 plus keys. How do you see this

01:28property shaping your brand positioning in the upper upscale segment and NCR market?

01:35So, you know, when you look at NCR market, it's all over the place. But South Delhi or New Delhi is always

01:45the most difficult market to crack into because land is not available here. And where it's available,

01:51it is extremely expensive. And lastly, the land is completely controlled by the Delhi Development

01:56Authority. So unlike other cities and across India, for building a hotel in New Delhi, you specifically

02:05need land allotted by DDA or optioned by DDA. So for us, it's hopefully going to be a kind of a game

02:14changer for us. It will show the capital city what Aureka is all about. It's, as you said,

02:21one of the largest hotels, maybe the largest hotel in Delhi. And it should add 150 to 200 crores to our

02:29EBITDA when it's operational after about four years.

02:34Right. And talking about your recent signings of multiple license agreements across Nashik,

02:42Pench, Deradun, Pushkar, Ajmer in Bodhgaya, help us understand how do these deals align with your

02:48asset light expansion strategy? There have been so many that we've seen in the recent one month itself.

02:53How many more are in the pipeline at present? See, about 80-85% of India's discretionary consumption

03:02occurs in the urban areas. And in the, and mostly, so it's operatorially, mostly in the 180 to 200 cities.

03:12All right. Um, uh, also tell us, uh, what are your expectations, uh, from the festive season?

03:29All right. I, I think we seem to have,

Lemon Tree Hotels: GST 5% Boosts Demand, Offsets ITC Loss for 50% Rooms | Patanjali G Keswani

Category

Transcript

Be the first to comment

Recommended