Question 1 : What is the overview of the company ?

Grand Continent Hotels Limited operates in the mid-scale hotel sector, catering to Indian middle-class guests and business travelers with a value-for-money proposition. As of September 30, 2024, it has 16 hotel properties with 753 keys across Karnataka, Tamil Nadu, Goa, Andhra Pradesh, and Telangana.

The company follows an asset-light model, with most properties under direct lease and two owned. Its hotels are categorized into economy (ADR below INR 3,000), mid-priced (ADR between INR 3,000-3,750), and upper mid-priced (ADR between INR 3,750-5,000), offering amenities like Wi-Fi, fitness centers, breakfast buffets, room service, banquet facilities, and swimming pools. It operates under its own “Grand Continent” brand or co-branded with Sarovar Hotels and Royal Orchid through franchise agreements.

Currently, the company has a presence in cities like Bengaluru, Mysuru, Hosur, Anjuna, Tirupati, and Secunderabad, strategically targeting commercial hubs and key tourist locations. With an occupancy rate of 67.69% for the six months ending September 2024 and a peak of 73.92% in FY 2023, the company aims to expand to over 2,000 keys by FY 2026. This growth will be driven by IPO proceeds, internal accruals, and debt funding, focusing on new developments and acquisitions while maintaining an asset-light strategy for scalability and efficiency.

Operational Hotel Properties

Category Wise Operational Data :

Proposed Hotel Properties through IPO proceeds:

The Company intend to set up 5 new hotels on lease in different locations i.e Chennai, kanchipuram, Hyderabad and Goa.

Question 2 : Who are the promoter of the company ?

Ramesh Shiva – Chairman & Managing Director

• Over 21 years of experience in the hospitality industry.
• Holds a Diploma in Hotel Management and Catering Technology.
• Has played a key role in expanding Grand Continent Hotels through an asset-light model and strategic franchise partnerships.

Vidya Ramesh – Whole-Time Director

• More than 12 years of experience in hotel management.
• Actively involved in operations, guest services, and brand management for the company.
• Has contributed to the company’s focus on standardized service quality and customer satisfaction.

Question 3 : How company performed in the past ?

Question 4: How much money is the company raising and why?

In the IPO, the company is offering 65.89 Lakh shares, priced at INR 107-113 per share, aggregating to total of INR 74.46 Cr. with a lot size of 1200 shares. For the purpose of

Repayment of borrowings – INR 34.08 Cr.

Expansion of Hotel propertires- INR 16.79 Cr.

General Corporate Purposes

Question 5: Valuation of the company and comparison with other companies

IPO’s Strength

• Luxury hospitality services within the price range.
• Prime locations of strategic property areas.
• A proven history of value addition is a powerful statement.
• Well-placed to capitalize from stringh, also through aggressive asset.
• Managed by professionals and experienced with the tailwinds of the industry.

IPO’s Weekness

• Lease agreements are entered into by GCH for the sites of its hotels. Not being able to renew the leases at all, or on favourable terms would have unfavourable consequences for the operational capacity and the financial results of the company.
• GCH has concentrated revenue in certain geographic locations. The economic downturn combined with non-economic natural disasters, or any other detrimental events in these listed locations, could be harmful to the entire functioning of the company.
• GCH has considerable competition in the mid-scale segment of the hospitality industry in India from a large pool of competitors. GCH’s market share can be improved only with the introduction of differentiated products and services coupled with higher levels of customer satisfaction.
• The hospitality industry is one of the most sensitive to the economic cycle and experiences harsh periods like slow economies, government changes, or political instability, which reduces travel and sightseeing activities, which in turn will adversely affect GCH occupancy levels and profit margins.

COMPANY CONTACT INFORMATION

Grand Continent Hotels Limited
S No. 245/1A/1B, Venpursham Village,
Veeralapakkam, Thiruporur, Chengalpattu,
Mamallapuram, Kanchipuram, Tirukalikundram-603110
Phone: 080 4165 6491
Email: cs@grandcontinenthotels.com
Website: https://grandcontinenthotels.com/

REGISTRAR AND TRANSFER AGENT

Grand Continent Hotels Limited has appointed Link Intime India Private Ltd. as its Registrar and Transfer Agent (RTA) for the upcoming Initial Public Offering (IPO).

Contact Details for Link Intime India Private Ltd.:

• Address: C-101, 1st Floor, 247 Park, Lal Bahadur Shashtri Marg, Vikhroli (West), Mumbai, Maharashtra – 400083
• Phone: +91 8108114949
• Website: linkintime.co.in

FAQs

1. What is Grand Continent Hotels Limited?
Grand Continent Hotels Limited is a mid-scale hotel chain catering to business and leisure travelers. It operates 16 properties with 753 rooms across Karnataka, Tamil Nadu, Goa, Andhra Pradesh, and Telangana, following an asset-light model.

2. Who are the promoters of the company?
The promoters are Ramesh Shiva (Chairman & Managing Director) and Vidya Ramesh (Whole-Time Director), both of whom have extensive experience in the hospitality industry.

3. What is the business model of Grand Continent Hotels?
The company operates under an asset-light model, primarily leasing properties and partnering with hotel brands like Sarovar Hotels and Royal Orchid through franchise agreements.

4. Where are the company’s hotels located?
Grand Continent Hotels has properties in Bengaluru, Mysuru, Hosur, Anjuna, Tirupati, and Secunderabad, targeting commercial hubs and key tourist destinations.

5. What amenities do Grand Continent Hotels provide?
Hotels offer Wi-Fi, fitness centers, breakfast buffets, room service, banquet facilities, and swimming pools, catering to both business and leisure travelers.

6. What are the company’s expansion plans?
The company aims to increase its presence in Tier-1 and Tier-2 cities and expand to over 2,000 keys by FY 2026 through IPO proceeds, internal accruals, and debt funding.

7. Who is the Registrar and Transfer Agent (RTA) for the IPO?
The RTA for the IPO is Link Intime India Private Ltd., based in Mumbai.

8. How can I contact Grand Continent Hotels Limited?

• Registered Office: No. 3, 80 Feet Road, Opp. Indoor Stadium, Koramangala 8th Block, Bengaluru, Karnataka – 560095
• Phone: +91 8041656491
• Email: infoblr@grandcontinenthotels.com
• Website: www.grandcontinenthotels.com

9. How can I open a Demat account for IPO investments?
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