Hotel Leela

Hotel Industry in india is going through a phase in which everybody is trying to scale up the number of room , but demand is outpacing every effort causing huge shortage of rooms , specially in business oriented cities like mumbai bangalore and Delhi. This Huge shortage is the reason of room rates rising continuously to become one of the costliest in the world and still rising. Hotel Leela awarded one of the best hotels in corporate class and luxury is cashing big on this and buying out properties which in future would not be in reach to Hotel owners. This kind of property is the best thing that can happen to a Hotel company. Hotel Leela is also ramping up its room capacity and demand a higher premium than its competitor because of its quality. I wont go too detail into valuations, but after this major correction , it is awailable at approx 45 % discount to its all time high and 40 % off its recent highs. According to me its a decent buy for the long term investor , my significant percentage of portfolio is filled with Hotel Leela only.