Credit rating agency, CARE has reaffirmed ‘A-’rating to Asian Hotels’ (North) long-term bank facilities worth Rs 200 crore. The rating agency has also reaffirmed ‘A1’ rating of company’s short term bank facilities worth Rs 25 crore.
The company has received the said rating on the back of its experienced promoters and long track record of operations, favorable location of the hotel, moderate operating performance amid weak industry scenario and long-term marketing tie-up with Hyatt International. However, the ratings are constrained on account of the large exposure to weak group entities funded through debt, which coupled with the ongoing debt-funded capex has led to high repayment liabilities.
Asian Hotels is engaged in the business of running 5 star deluxe hotels under the name Hyatt Regency. The company set up Hyatt Regency Delhi in 1982 for the purpose of Asian Games. But later hotel started full-fledged commercial operation by 1983.
| Company Name | CMP |
|---|---|
| Indian Hotel | 659.55 |
| ITC Hotels | 162.45 |
| EIH | 321.55 |
| Chalet Hotels | 778.90 |
| Mahindra Holi.&Resor | 272.70 |
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