Best Eastern Hotels Ltd Management Discussions

Industry Structure, Developments and Outlook

The hospitality and tourism industry has witnessed strong recovery and expansion post-pandemic, driven by rising domestic and international travel demand. The sector has benefited from government initiatives, including infrastructure development, visa relaxations, and tourism promotion campaigns.

> Luxury and premium hotel chains have reported double-digit revenue growth, with occupancy rates exceeding prepandemic levels.

> Budget and mid-scale hotels have seen higher demand, particularly in tier-2 and tier-3 cities, fueled by affordable travel options and digital booking platforms.

> Sustainable tourism and eco-friendly hospitality have gained traction, with companies investing in green initiatives and carbon-neutral operations.

Economic Overview

Global Economy

The global economy has shown moderate growth, with inflation stabilizing and interest rates easing in major economies. Key trends include:

> GDP growth in advanced economies remains steady, with consumer spending driving recovery.

> Emerging markets, particularly India and Southeast Asia, have seen strong economic expansion, supported by manufacturing, services, and tourism.

> Geopolitical tensions and supply chain disruptions continue to pose challenges, but resilient demand in hospitality and travel has mitigated risks.

Indian Economy

India remains one of the fastest-growing economies, with GDP growth projected at 7% for FY 2024-25. Key factors influencing the hospitality sector:

> Rising disposable income and urbanization have boosted domestic travel.

> Government policies, such as GST rationalization and tourism incentives, have supported industry expansion.

> Foreign tourist arrivals have rebounded, with business and leisure travel driving demand.

Hospitality and Tourism Sector Performance

The hospitality sector has experienced record-breaking financial performance, with major hotel chains reporting strong revenue growth.

Key trends:

> Luxury hotels have expanded their footprint, with new openings and acquisitions.

> Budget hotels have leveraged technology-driven solutions to enhance customer experience.

> MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism has seen significant growth, with corporate events and weddings driving occupancy rates.

Outlook for the Matheran Hotel

Our Matheran hotel is well-positioned for continued success, benefiting from Matherans rising popularity as a premier holiday destination. With approximately two lakh passengers using the toy train in 2023-24, and many more tourist arriving by other means of transport (including the new e-rickshaws), we are set to attract a diverse range of visitors. Government initiatives like ‘Swadesh Darshan and ‘PRASHAD are enhancing tourism infrastructure, creating a favorable environment for growth. Our investment in advanced amenities and flexible booking options will cater to the growing demand and enhance the guest experience.

Future Prospects Based on Market Research

Looking ahead, the future prospects for our Matheran hotel are bright. Government-led initiatives such as improved infrastructure projects and the electronic visa system are expected to boost tourism significantly. As international and domestic travel recovers, our hotels modern offerings, align with industry trends towards technological integration and enhanced guest safety. Increased tourism and government support will drive growth, positioning our hotel as a key player in Matherans evolving hospitality landscape.

Indias hospitality sector is poised for growth with a resurgence in international travel, major events, and government support. The sector will benefit from increased MICE and corporate bookings, improved infrastructure, and rising demand for branded accommodations. Trends include a focus on wellness, sustainability, and technological integration.

Financial and Operating Performance

The Company has achieved total revenue of Rs.637.60 lakhs, an increase of 2.49% as compared to total revenue of Rs. 622.09 lakhsrecorded in the previous year. However, the Profit before Tax was reduced to Rs.0.34lakhs, as compared to profit before tax of Rs.22.17lakhsin the previous year. One of the main reasons for decrease in profit was mainly to higher input cost. The Company continues to be largely engaged in hospitality and related businesses.

The financial statement is in confirmation with provisions of the Companies Act, 2013 and applicable accounting standard recommended by the Institute of Chartered Accountants of India. The financial statement reflects the genuine desire for the transparency and best judgment for the estimates made on prudent and reasonable bases to correctly reflect the true and fair affairs of the company

Internal Control Mechanism and Adequacy

The Company has a proper and adequate system of internal control to ensure that all assets are safeguarded and protected against any loss from unauthorized use or disposition and that transaction are authorized, recorded, and reported correctly. The Companys internal control systems are periodically reviewed by the management together with the Audit Committee of the Board. The emphasis of internal control prevails across functions and processes, covering the entire gamut of activities.

Internal Financial Controls (IFC)

The Directors have devised a framework for Internal Financial Controls to be followed by the Company that conforms to the requirements of Section 134(5)(e) of the Companies Act, 2013 and incorporates measures that ensure adequate and continuing operating effectiveness of internal financial controls. Furthermore, in accordance with Section 149(8), read with the Code for Independent Directors laid down under Schedule IV, Clause II (3) of the Companies Act, 2013, the Independent Directors have satisfied themselves on the integrity of financial information and have ensured that Financial Controls and systems of Risk Management are robust and secure. To enable the Directors to meet these responsibilities, the Board has devised the necessary systems, frameworks and mechanisms within the Company. The Board has empowered the Audit Committee to periodically review and confirm that the mechanism remains effective and fulfill the objectives for which they have been created.

HUMAN RESOURCES DEVELOPMENT/INDUSTRIAL RELATIONS:

The Company recognizes the need for continuous growth and development of its employees to provide greater job satisfaction and also to equip them to meet growing organizational challenges. Industrial relations have continued to be harmonious at all units throughout the year. Measures for safety of employees, Welfare and development continue to receive top priorities.

CAUTIONARY STATEMENT:

Statements in this report on Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking statements within the meaning of applicable security laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results could however differ materially from those expressed or implied. The Company assumes no responsibility in respect of forwarded looking statements herein which may undergo changes in future based on subsequent developments, information or events of the Company.

The Board takes this opportunity to thank all employees for their commitment, dedication and co-operation.

For and on behalf of the Board

Place: Mumbai Date: 17^th July, 2025

Sd/-	Sd/-
Vinaychand Kothari	Dilip V Kothari
Chairman & Managing Director	Jt. Managing Director & CFO
DIN:00010974	DIN:00011043