Grand Continent Hotels Ltd IPO

Lowest Entry Cost per Key: Over the years, the Company has perfected its model to set up rooms at the lowest cost in a timely manner, managing approximately 40 to 100 rooms per hotel.

High Occupancy Rates: The Company collaborates with a wide range of marketing partners and establishes direct relationships with corporate clients, leading to high occupancy rates and reasonable per-room profitability.

Cost Control on Room Operating Expenses: The Company has developed a unique model to ensure low costs for operating and servicing rooms and restaurants, while maintaining guest comfort and convenience.

The company has issued Equity Shares during the preceding twelve months at a price which may be below the Offer Price.

Majority of its properties are on long lease or license. If the company is unable to comply with the terms of the lease or license agreements, renew its agreements or enter into new agreements on favorable terms, the company business, results of operations and financial condition and cash flows may be adversely affected.

Some of its agreements may be under stamped or inadequately stamped or unregistered and if any financial or judicial implication arises out of the same it may have an adverse effect on the Companys business and reputation.

A majority of its properties are operating under Sarovar Brands /Royal Orchid Brands pursuant to the franchise/ trademark license agreements with the Sarovar/Royal Orchid, and the company is subject to risks, including non-renewal, termination and disputes, associated with such contracts.

Its franchise/ trademark license agreements with the Sarovar/Royal Orchid are non-exclusive.

As on September 30, 2024, a significant portion of its hotel keys and revenue from operations is derived from hotels properties concentrated in the city of Bengaluru (Karnataka) and Tirupati (Andhra Pradesh) out of the portfolio of 16 operational hotel properties, and any adverse developments affecting these hotels or the regions in which they operate, could have an adverse effect on its business, results of operation, cash flows and financial condition.

The company is subject to extensive government regulation with respect to safety, health, environment, real estate, food, excise, property tax and labor laws. Any non-compliance with or changes in regulations applicable to it or failures to obtain, maintain or renew the company statutory and regulatory licenses, permits and approvals required to operate its business may adversely affect the company business, results of operations, cash flows and financial condition.

Negative customer experiences or negative publicity surrounding its hotel properties could have an impact on ability to source customers. Thus, the company may also incur higher expenses towards business promotion in the future, to source more customers which may have an adverse impact on its business and financial condition.

Certain of its Joint Ventures, Group Company and Promoter Group entities incorporated in India or outside India have common pursuits as they are engaged in similar business or industry segments and may compete with the company.

Changes in travellers preferences due to cost of travel, spending habits, competition from alternative accommodation, and other factors may adversely affect the demand for hotel rooms, thereby adversely impacting its business, results of operations, financial condition, and cash flows.