Asian Hotels (N) Management Discussions

Pursuant to Para B of Schedule V to the Listing Regulations, the Management Discussion and Analysis Report is given below:


The Indian economy is expected to grow at 5.9% during the year 2023-24, while the global growth is estimated to be 3.0% in 2023 and 2024 according to a report by the International Monetary Fund.

The Indian hospitality sector is expected to witness high growth over the long term. Domestic travel, high disposable income and the advent of better locations are expected to drive this growth. India is expected to have 1,00,000 start-ups by the year 2025 which will not only create employment for millions of people, but also provide an impetus to business travel and related events. The travel market in India is projected to reach US$ 125 billions by FY 2027 from an estimated US$ 75 billion in FY 2020. International tourist arrivals are expected to reach 30.5 million by 2028.

The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among the services sector in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Another factor is Indias emergence as a destination to avail world class medical facilities at competitive cost.

Tourism is also a potentially large employment generator besides being a significant source of foreign exchange for the country.

The deepening penetration of internet usage and smart phones in India has led to increased booking of hotels through online portals and applications in recent times. This is also expected to significantly enlarge the size of the Indian online hotel industry in the coming years.

Travel and tourism are two of the largest industries in India, with a total contribution of about US$ 178 billion to the countrys GDP.

The hotel industry in India is significantly under-served. Various policies are being introduced to promote the tourism and hospitality sectors to meet the demand of new tourists in the coming years. US$ 2.1 billion is allocated to Ministry of Tourism in budget 2023-24 as the sector holds huge opportunities for jobs and entrepreneurship for youth. Under the Union Budget 2023-24, an outlay of US$ 170.85 million has been allocated for the Swadesh Darshan Scheme. 68 destinations/sites have been identified in 30 States/UTs for development under the PRASHAD Scheme as on March 31, 2022.

According to World Travel and Toursim Council (WTTC), India is ranked 10th among 185 countries in terms of travel & tourisms total contribution to GDP in 2019. During 2019, contribution of travel & tourism to GDP was 6.8% of the total economy, Rs. 1,368,100 crore (US$ 194.30 billion). In 2020, the Indian tourism sector accounted for 39 million jobs, which was 8% of the total employment in the country.

In 2021, the travel & tourism industrys contribution to the GDP was US$ 178 billion; this is expected to reach US$ 512 billion by 2028. In India, the industrys direct contribution to the GDP is expected to record an annual growth rate of 7-9% between 2019 and 2030. In 2020, the travel & tourism industrys contribution to the GDP was US$ 121.9 billion.

The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20. The Indian airline travel market was estimated at US$ 20 billion and is projected to double in size by FY27 due to improving airport infrastructure and growing access to passports. The Indian hotel market including domestic, inbound and outbound was estimated at US$ 32 billion in FY20 and is expected to reach US$ 52 billion by FY27, driven by the surging demand from travellers and sustained efforts of travel agents to boost the market.

By 2028, international tourist arrivals are expected to reach 30.5 billion and generate revenue over US$ 59 billion. However, domestic tourists are expected to drive the growth, post pandemic. International hotel chains are increasing their presence in the country, and it will account for around 47% share in the tourism and hospitality sector of India by 2020 and 50% by 2022.

As per the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) in February 2023 were 865,779 with a positive growth rate of 259.4% as compared to 240,896 in February 2022.

FTAs during the period January-February 2023 were 1,733,939 as compared to 442,442 in January-February, 2022.

The percentage share of Foreign Tourist Arrivals in India during February 2023 among the top 15 source countries was highest from Bangladesh (20.3%) followed by the USA (16.4%), UK (11.1%), Canada (5.8%), Australia (3.7%), Malaysia (3.0%), Sri Lanka (2.8%), Russian Federation (2.7%), Germany (2.5%), France (2.4%), Nepal (1.9%), Thailand (1.7%), Singapore (1.5%), Italy (1.2%) and Japan (1.2%).


Rapidly changing customer demands and a boom in guest-facing connected technologies are among the factors changing the risk landscape for hospitality companies. Travel and hospitality is a lucrative industry. Over the years, the industry witnessed a tremendous rise in business. However, despite the gains, inevitable challenges in the accommodation sector make running hotel businesses a little more difficult.

Talent management is a major challenge for the hospitality sector. Every hotel requires quality staff on all fronts; be it administration, maintenance, kitchen, housekeeping, or frontdesk. Lack of skill in the educated youths graduating from education houses is also proving to be a major challenge in the hotel industry.

Price inflation of daily use products, eatables, and other supplies has risen steeply in the last few years. While that has affected all industries, it takes a huge portion of the issues and challenges faced by the tourism and hospitality industry.

Another increased threat in the Industry is the Security threat. While our data security methods have advanced considerably, so have the possibilities of data leaks and virus attacks. Threats of digital data theft and confidential data leaks are a matter of concern for hoteliers globally.

These days, more and more property owners are renting out their rooms or property occasionally. Homestays and vacation rentals promise an authentic local experience besides being convenient. Owing to this, travelers prefer to choose those homestays over hotels and resorts. Other than that, new hotels are entering the market every day. This growing number of homestays and competition is one of the challenges in the hospitality industry.

Every industry is prone to challenges and pitfalls, and the hospitality industry is no exception.

The last couple of years is accurate proof of it. But that same period is also proof that theres nothing the industry cant overcome. The way the industry has got back on its feet is indeed commendable.


For the sustained growth of an organization, it is imperative that the Company keeps exploring newer opportunities of growth either through expansion or venturing into new projects. Few of the major focus and attention is on the following:

• Confirmation of minimum one head of state for the G20 summit in September along with other high paying delegations from GCC Countries.

• Identification of EMC/PCOs to be targeted for Pharma/Automobile/Medical/Sports associations events in Quarter 3 & 4 2023 as per city calendar.

• Target on Tourism Boards / Airline/Cruise events for Q4 and Q1 next year.

• Continued focus on Diplomatic community and Ministry to capture future visits and delegation - Confirmed business from Ministries, Embassies, other corporate group. Pipeline from World Health Organization and International Labour Organization.

• Focus to increase on PSU accounts, Gurgaon market. Touch base with all LNR contracted companies for next year.

• Identification of Wedding planners across PAN India, targeting higher APC by selling at minimum revenue. Focus to be on Residential weddings on all auspicious dates. We are working on intercultural weddings on non Saya dates.

• High focus to increase penetration from OTAs through online presence at an optimum price mix data.

• Identification of long staying and regular accounts of Competition hotels, to focus on immediate basis.


The Company achieved aggregate revenue of Rs. 25,577.99 lakhs from operations for the year ended 31st March, 2023. The said revenue in the prior year was Rs. 13,052.54 lakhs. Detailed discussions are given under Financial Results & the State of Companys Affairs herein-above.


Key financial ratios for the year under review vis-a-vis prior year are as under:

Key Financial Ratio FY 2022-23 FY 2021-22
Operating Profit Margin (%) 21.27 4.60
Net Profit Margin (%) (32.95) (92.72)
Debtors Turnover 23.00 18.16
Inventory Turnover 34.51 23.31
Current Ratio 0.10 0.07
Debt Equity Ratio 6.66 4.32
Interest Coverage Ratio 0.14 0.02
Return on Net Worth (%) (52.23) (50.50)