Oriental Hotels Ltd. share price target

Efficiency to yield better results post end of pandemic Tata Group companies hold ~39.1% stake in OHL while the company is an associate of IHCL (28.6% stake). Apart from the ownership, the company...

IHCL has a stake in OHL both in terms of ownership and management of operations of properties by way of operating agreement. All properties are operated under the brands owned by IHCL (Taj, SeleQtions, Vivanta, Gateway) and offer high level of standardisation in services, experience and products specific to the category under which the particular hotel belongs. Historically, OHL's balance sheet was heavily levered with net debt/EBITDA touching ~7x in FY17. In line with Aspiration 2022 of the IHCL group, the company sold its Vizag property and garnered | 120 crore in 2018. The...

Historically, the company's balance sheet was heavily levered with net Debt/EBITDA touching ~7x in FY17. In line with Aspiration 2022 of the IHCL group, the company has been working to reduce its debt by divesting few assets and also rationalise its costs. In 2018, OHL sold its Vizag property and garnered | 120 crore. From April 1, 2019, the company's operating agreement for the Trivandrum property expired and OHL received back the deposit that was made in FY20. The proceeds from the sale of the Vizag property were utilised to retire some portion of the debt in FY19. OHL had...