Byke Hospitality Ltd. · NSE:BYKE
Byke Hospitality — The Byke Hospitality — Investor Presentation (February 2016)
36 slides from Byke Hospitality's investor presentation, February 2016
Slide 1: Investor Presentation
Strictly Confidential Investor Presentation February 2016
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by The Byke Hospitality Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 3: Content
Content 1 Company Overview 2 Key Business Strengths 3 Annual Financial Highlights 4 Key Updates Q3FY16 5 “The Byke” Hotel Portfolio 3
Slide 4: Company Overview
Company Overview The Byke Old Anchor – South Goa
Slide 5: The Byke: Asset Light Business Model
The Byke : Asset Light Business Model … “The Byke” Portfolio Room Chartering Hotel under brand name “The Byke” Third-party hotel rooms chartered at strategically identified locations across India Focus on Domestic Middle Class Leisure Tourism Asset Light approach to Hospitality Business 8
Slide 6: Evolved from Standalone Hotel Property
Evolved from Standalone Hotel Property … 2004-07 2010-11 2012-15 Current Hospitality services Mr. Anil Patodia takes Acquired 3 hotels on Acquired properties started with the operational charge & Long Term Lease at on Long Term Lease: acquisition of one rebranded as “The Thane, Shimla and Puri hotel
Slide 7: Key Business Strengths
Key Business Strengths The Byke Hidden Paradise – North Goa
Slide 8: Key Business Strengths
Key Business Strengths 1 Domestic Middle Class Leisure tourism set to grow at faster pace 2 Leased Model : low cost & faster rollout of hotel properties 3 Charter Model : Highly scalable with geography & seasons diversification 4 Strong marketing / distribution network of agents 5 Experienced manage
Slide 9: Domestic Tourism to Grow at a Faster Pace
1 Domestic Tourism to Grow at a Faster Pace US$80 bn tourist expenditure (2013) US$157 bn tourist expenditure (2024) Foreign Foreign Tourist Tourist 19% 15% Domestic Domestic Tourist Tourist 81% 85% … target market for “The Byke” Source: World Travel & Tourism Council’s Economic Impact 2014, Aranca
Slide 10: Rising Middle Class and Increasing Discretionary Spend
Rising Middle Class and Increasing Discretionary Spend Along with growing mix of middle class Increasing Discretionary spend… to benefit tourism industry 1% % CAGR 7% 12% 13% 20% Affluent 16 18% Class 14 12 12 12 32% 43% 10 10 51% 59% Middle Class 6 4 54% 36% 24% 17% 10% 3% Total Consumer Essential
Slide 11: Lease Model
2 Lease Model… No. of rooms & properties Currently present in 5 cities 5 6 7 7 8 10 Expanded no. of rooms by a CAGR of 31% over FY11-16 Focus to grow the Lease portfolio aggressively by leasing distressed 595 properties and turning around quickly 417 363 363 323 Chartering Business through p
Slide 12: Successfully Turning Around Properties
Successfully Turning Around Properties… Lower capital requirement for hotel lease The Byke Old Anchor, Goa Leasing low-yield for property owner Before Renovation After Renovation Unlocks resources for modernization of properties Renovation of the property, one of the key success factors Re
Slide 13: Consistent Revenue Growth
Consistent Revenue Growth… Revenue from “The Byke” properties Properties Lease Amount (Major cost) 63% 151% 39% 14% 6% 7% 5% 6% 917 53 806 42 39 580 231 13 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Total Revenue in Rs. Mn Revenue Growth Lease Cost* in Rs. Mn % of Hotel Revenue … and low fixed cost get
Slide 14: Chartering Business
3 Chartering Business Key strengths of model Room Nights Sold (in lacs) Chartering rooms at strategically identified 3.73 locations with partial / full advance payments 3.45 Synergistic model increasing occupancy of the leased properties of “The Byke” Strong marketing & agent network Better
Slide 15: Highly Scalable
Highly Scalable…. Chartering Revenue Gross Profit* & Margin 2,096 2,131 2,175 2,404 13% 14% 14% 16% 143 897 750 107 429 60 259 35 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Chartering Revenue in Rs.… ARR in Rs. Gross Profit in Rs. Mn Gross Profit Margin … and generates strong margins *Gross Profit calc
Slide 16: Strong Network of Agents
4 Strong Network of Agents Room Chartering Locations No. of Cities 54 48 41 32 FY13 FY14 FY15 Q3FY16 No. of Agents 294 208 182 134 Cities FY13 FY14 FY15 Q3FY16 … expands reach to customers to get the booking across India 16
Slide 17: Experienced Professional Team
5 Experienced Professional Team… Mr. Anil Patodia Has provided strong and dynamic leadership to “The Byke” since 2011 Has sharp analytical acumen with respect to the various avenues of investment in this industry A career Hotelier with an extensive experience in the Hospitality industry His
Slide 18: Annual Financial Highlights
Annual Financial Highlights The Byke Grassfield – Jaipur
Slide 19: Annual Income Statement
Annual Income Statement Rs. Mn FY15 FY14 Y-o-Y % Hotel Revenue 917 806 13.80% Chartering Revenue 897 751 19.40% Revenue 1,814 1,557 16.50% Lease, Chartering and SG&A 1,025 911 12.60% Employee Expense 38 32 19.70% Operating and Other expense 378 329 15.10% Total Cost 1,441 1,272 13.40% EBITDA 373 285
Slide 20: Balance Sheet
Balance Sheet Rs. Mn FY15 FY14 Share Capital 401 200 Reserve and Surplus 600 648 Net Worth 1001 848 Total Debt 98 121 Deferred tax net 50 49 Source of Fund 1,149 1,018 Net Block + CWIP 806 820 Non-Current Assets 71 16 Inventories 60 60 Debtors 140 107 Cash and bank 22 20 Other Current Assets 1 2 Loa
Slide 21: Lease Business
Lease Business No. of Rooms Occupancy 519 465 465 70% 425 68% 67% 61% FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 No. of Rooms Occupancy % ARR Revenue 3,617 3,769 (Rs. Mn) 3,431 58% CAGR 2,676 452 378 240 82 428 466 340 149 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 ARR in Rs. Rooms Food & Beverage/ Others
Slide 22: Non-rooms Revenue Segment to Grow Significantly
Non-rooms Revenue Segment to Grow Significantly No. of Restaurants No. of Lawns/Banquets and Conference Halls 1,100 1,100 1,400 1,750 16 13 17 12 7 7 9 9 FY13 FY14 FY15 FY16E FY13 FY14 FY15 FY16E No. of Restaurants Restaurant Capacity No. of Lawns/Banquets and Conference Halls Food & Beverages/ othe
Slide 23: Chartering Business
Chartering Business No. of Room Nights Purchased Occupancy 94% 3.75 3.98 92% 2.25 89% 1.40 88% FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 No. of Room Nights Purchased Occupancy % ARR Revenue 51% CAGR 897 2,404 750 2,175 2,096 2,131 429 259 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 ARR in Rs. Revenue in R
Slide 24: Overall Financials
Overall Financials Revenue Lease and Charter Revenue Mix 55% CAGR 1,814 1,556 53% 43% 48% 49% 1,009 491 47% 57% 52% 51% FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Total Revenue in Rs. Mn Lease Chartering EBITDA & EBITDA Margin PAT & PAT Margin 11% 17% 18% 21% 5% 8% 10% 11% 373 200 287 159 176 78 51 25
Slide 25: Improving Return Ratio Given Asset Light Model
Improving Return Ratio Given Asset Light Model Margin Improvement with growth in …better capital utilization given asset business… light model 11% 1.49 1.55 10% 8% 1.05 5% 0.56 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Net Profit Margin Asset Turnover Ratio Led to improvement in return ratio Consisten
Slide 26: Key Updates of Q3FY16
Key Updates of Q3FY16 The Byke Old Anchor – South Goa
Slide 27: Total Rooms Portfolio of ~700 Across 10 Properties
Total Rooms Portfolio of ~700 Across 10 Properties No. of rooms & properties 5 6 7 7 8 10 697 74 Shimla & Puri 623 519 425 465 465 182 No. of properties FY11 FY12 FY13 FY14 FY15 FY16E* Shimla and Puri properties to be operational in Q1FY17 Shimla Property taken on long term lease Puri Property t
Slide 28: Identified 8 Locations for the Next Phase of Growth
Identified 8 Locations for the Next Phase of Growth Lonavala Mahabaleshwar Chandigarh Dalhousie Jodhpur Udaipur Current Presence New Locations Darjeeling Gangtok Targeting tourist locations across India in line with current presence
Slide 29: Thane Property Commenced Operations in FY16
Thane Property Commenced Operations in FY16 The Byke Suraj Plaza, Thane, strategically located at high density area Property taken on long term lease of 15 years Has 122 Rooms, 4 Banquet Halls, 3 Conference Rooms,1 Restaurant and 1 Bar Lounge Targets high density residential population of Than
Slide 30: Income Statement
Income Statement Rs. Mn Q3 FY16 Q3 FY15 Y-o-Y Growth 9M FY16 9M FY15 Y-o-Y Growth Hotel Revenue 352 291 20.7% 764 597 27.9% Chartering Revenue 348 279 24.8% 871 647 34.6% Revenue 700 570 22.7% 1635 1245 31.4% Lease, Chartering and SG&A 367 304 20.8% 909 699 30.0% Employee Expense 19 13 40.1% 44 29 4
Slide 31: Lease Business – Q3FY16 Performance
Lease Business – Q3FY16 Performance No. of Rooms Occupancy % 623 75% 519 69% Q3FY15 Q3FY16 Q3FY15 Q3FY16 ARR (Rs) Revenue (Rs Mn) 352 4,132 4,150 291 188 147 144 163 Q3FY15 Q3FY16 Q3FY15 Q3FY16 Rooms Food & Beverage/ Others 31
Slide 32: Chartering Business – Q3FY16 Performance
Chartering Business – Q3FY16 Performance No. of Room Nights Sold (in lacs) Occupancy % 94% 95% 1.48 1.19 Q3FY15 Q3FY16 Q3FY15 Q3FY16 ARR (Rs) Revenue (Rs Mn) 348 279 2,340 2,354 Q3FY15 Q3FY16 Q3FY15 Q3FY16 32
Slide 33: “The Byke” Hotel Portfolio
“The Byke” Hotel Portfolio The Byke Old Anchor – South Goa
Slide 34: “The Byke” Hotel Portfolio
“The Byke” Hotel Portfolio The Byke Old Anchor, Goa The Byke Grassfield, Jaipur No. of Rooms 240 No. of Rooms 54 Type Leased Type Leased Facilities 2 Restaurants, 2 Lawns/Banquets, Facilities 3 Restaurants, 3 Lawns/Banquets, 3 Conference Halls 3 Conference Halls The Byke Heritage, Matheran The Byke
Slide 35: “The Byke” Hotel Portfolio
“The Byke” Hotel Portfolio The Byke Neelkanth, Manali The Byke Hidden Paradise, Goa No. of Rooms 40 No. of Rooms 40 Type Leased Type Leased Facilities 1 Restaurant Facilities 1 Restaurant The Byke Redwood, Matheran The Byke Sunflower, Goa No. of Rooms 25 No. of Rooms 22 Type Leased Type Owned Facili
Slide 36: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : The Byke Hospitality Ltd. Stellar IR Advisors Pvt. Ltd. CIN: L67190MH1990PLC056009 CIN: U74900MH2014PTC259212 Swati Gupta Pooja Dokania Swati.gupta@thebyke.com dpooja@stellar-ir.com www.thebyke.com www.stellar-ir.com 36
The Byke Hospitality — Investor Presentation (February 2016) on 6ix