Porinju Veliyath & Ashish Chugh recommend buy of Hotel Stocks Like Royal Orchid, Indian Hotels

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Pee Vee
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Porinju Veliyath & Ashish Chugh recommend buy of Hotel Stocks Like Royal Orchid, Indian Hotels

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Porinju Veliyath has recommended a buy of hotel stocks like Royal Orchid and Indian Hotels on twitter.

"3&4 Star hotel operators are in a sweet spot. F&B at 5% GST. Room rates are mostly below Rs.7500 (18% GST). Margins to go up. Advantage at the expense of 5 Stars. Few listed companies in the space look attractive. Am I missing something?"

The industry is turning around after a decade, despite disruptive @Airbnb etc. High cost and crack down on black money could moderate supply going forward. Lower GST is tailwind for 3&4 Stars

Ashish Chugh has also made same recommendation:

Industry has seen a down cycle followed by multi year consolidation - leading to a a leaner structure & cost rationalisation. Case of operating leverage with higher occupancy.

It is imp.to have open mind in Investing.Invstrs shunned airline stocks 4 yrs-only Argumt-Warren Buffett doesn't like them&they never delvrd in past-w/o realising what was happening to single biggest cost in sector.Worst assumptn-what's not happened in past can't happen in future

Royal Orchid was recommended by Porinju on moneycontrol.com

"There could be companies like the Royal Orchid. It is in a very good expansion mode and a very clean company. It is mostly into management of the hotels, Oriental Hotels. That segment is to be looked at. The sentiment has been bad on the industry for last many years, so these companies are available at a very attractive valuations. That is why I would like to talk about these. And after many years in spite of the fact that too many hotels have come up, too many properties are happening, still there is like shortage of hotel rooms in the five star and four star segments, mostly during seasonal time. So, that is very positive for the profit margins for these companies can go up."

http://rakesh-jhunjhunwala.in/porinju-v ... t-reforms/
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