It gives me great pleasure to invite you to the 52na Annual GeneralMeeting of the company. With stable governments both at the center and the state theeconomy is expected to be on a growth path.
Inspite of positive atmosphere prevailing in the country various developments such asdemonetization and introduction of GST had resulted in the stunted growth. There are manyheadwinds the economy is facing. As a I result the hotel industry which is dependent onthe overall economy is subject to heavy fluctuations in the business. Our hotel industryin India is heavily dependent upon the corporate business as the business through tourismcomprises a negligible percentage. The overall business sentiment is not what it ought tobe.
Inspite of the problems faced by the economy the expectation of the domestic as well asinternational investors are very high. Even today peoplefeel thatthe Indian economywill beone of the strongest in the world.
It is heartening to note that the state of Telangana is in the forefront of economicdevelopment under the dynamic leadership of Sri.K.Chandrasekhar Rao Hon'ble ChiefMinister of the State is recognized as number one state in many important parameters.RecentlyTelangana State was adjudged by CNBC as the most promising state in the country.Prime Minister of India survey had given Sri K. Chandrashekar Rao asthe best ChiefMinister in the country. Many innovative and progressive measures are undertaken by theState Governmentwhich will improve business in Hyderabad exponentially.
Performance of the Company for FY 2016-17
The standalone performance of the Company in FY 2016-17 we have gross revenueof Rs.86.84 Crores as against Rs.84.80 Crores in the previous year and consolidatedgross revenue is Rs.128.30 Crores as against Rs.124.74 Crores in the previous year.
The Hotel Industry across the country had suffered very badly due to the economicslowdown and the hotel industry in Hyderabad suffered most due to prolonged Telanganaagitation. Now thatthe problem of separation of State of Andhra Pradesh is no longerthereand uncertainties are no longer felt by the people the city of Hyderabad has come back toits original glory and in the recent past we have witnessed a steady growth in occupancylevels as well as the room revenues. With Marriott Hyderabad and Courtyard Hyderabadput together we have 500 rooms and the large convention and meeting spaces. Now thatHyderabad is a preferred destination for its central location best infrastructure etc.many national and international conferences are being planned in the future. That is agood news for the Hotel Industry as convention means more room occupancy and more sales ofF&B. As all of you aware we have divested Renaissance Hotel Project Bangalore to aSPV Viceroy Bangalore Hotels Ltd where J.P Morgan is our partner. This hotel will befully operational by October 2017.
Through the sale of Chennai Project the company's debt had been substantially reducedand we are striving hard to further reduce the debt. This measure shall help Company tostrengthen its position. Our company is planning to expand its F&B business in a bigway by opening F&B outlets in Hyderabad and other Metros. F&B business will beless capital intensive and can generate more revenues and profits in the nearfuture.
Our Companies core competence is in the operating Restaurant chains in the name ofMinerva and Bluefox. The revenue of Restaurants forthe year under review is Rs.41.34Crores. We expectto increase the revenue from F&B outlets in the coming years.
Before I conclude on behalf of the Board of Directors of your Company I wish toconvey earnest thanks to the valued Shareholders for yourcontinuedsupportandtrustinus.
I take this opportunity to thank the Government of India for its support to HospitalityIndustry. I also acknowledge the support extended by the State Governments and allotherauthorities and regulatory agencies.
I would like to thank my colleagues on the Board for their valuable guidance andcontribution in steering the Company at all levels of achievement. I would also like tothank customers suppliers bankers financial institutions and all our shareholders.
Above all I would like to place on record the commendable efforts and commitmentsshown by our employees who have always contributed their bestforthe Company.
Thank you for sparing your valuable time.
With best wishes
P. PRABHAKAR REDDY