An Analysis Of Kamat Hotels Ltd Tourism Essay

Kamat Hotels (India) Ltd. (KHIL), a company promoted by Mr. Vithal Kamat, is engaged in the business of hospitality and allied businesses, and its activities may be broadly categorized into (i) operation of hotels owned by the Company, (ii) management of hotels owned by other parties under contract (iii) catering services and (iv) timeshare.

KHIL has firmly established four hotel brands viz. The Orchid – An Ecotel Hotel in the 5-Star segment and VITS Luxury Business Hotel in the 4-Star segment, Gadh Hotels and Lotus Resorts. The focus of the Company is in positioning its hotels to the business segment in the upscale , full service category. In addition, the Company consciously follows the policy of environment conservation in the operation of its hotels in all aspects viz. design, construction and operations. This environment positioning gives a dual advantage to the Company in terms of marketing & visibility coupled with lower cost of operations.

Key Management personnel

The directors of the company are:

Name

Role

Mr. Vithal Venkatesh Kamat

Executive Chairman & Managing Director

Mr. Ramesh N. Shanbhag

Whole -Time Director

Mr. Vikram V. Kamat

Executive Director

Mr. S. S. Thakur

Director

Mr. Ved Prakash Khurana

Director

Mrs. Rajyalakshmi Rao

Director

Mr. T. M. Mohan Nambiar

Director

VISION & MISSION:-

To make Kamat Hotels (India) Ltd one of the top three listed hotel companies by earnings by 2015 in India

Plan to achieve this?

Expansion of brands through self-owned and Management/Franchisee routes Grow in virgin territories where the level of competition is low and market is not tapped to its potential. Merge with smaller hotel chains and grow through acquisition.

The man behind the vision:

From a humble beginning as a small time restaurant owner to a Chairman and Managing Director, Vithal Kamat’s journey has definitely been long and arduous. When thirty-five years back, a young lad barely in his teens joined the family restaurant business, not many would have predicted the phenomenal rise of this easy-going man. His rustic charm along with his street-smart acumen and a drive to succeed has made him achieve what he has set out to and is a guiding force.

Mr. Vithal V. Kamat

He is a visiting faculty of various catering colleges and management institutes like NMIMS, Symbiosis etc.

With a 4th degree black belt in Karate, Mr. Vithal V. Kamat is the President of the All India Karate Federation and also refereed many matches.

He was felicitated as the best CEO and received a special Indian Express Editors Choice Award for promoting eco-tourism and supporting the healthy cause of environment.

A book in Marathi was authored by him based on his entrepreneurial experiences called “Idli, Orchid Ani Mee”, which is already in its 21st edition. The book has also been published in English, Gujarati, Hindi and Urdu and is being translated in 16 different languages.

Growth Pattern

Executive Summary | Company Overview | Growth Pattern   

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1958 : Satkar Restaurant (*), opposite Churchgate Station at Mumbai was the first Restaurant started. The success of Satkar Restaurant and increasing demand for fast-food prompted the group to launch Samrat Restaurant (*) at Churchgate in 1972 and a host of eateries and catering businesses in western India. (*) Not part of the KHIL Group now.

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1986 : The Company KAMAT HOTELS (INDIA) LIMITED was incorporated on 21st March, 1986. It took over its first residential hotel in Vapi – Shalimar Hotel. The group also purchased a Residential Hotel at Khandala, a Hill Resort, between Mumbai and Pune. In the same year, Kamat Super Snacks was also started at Nana Chowk, Mumbai with 69 covers.

1988 : The group built a Three Star Hotel with 32 rooms in first phase with provision for another 60 rooms at Silvassa, a Union Territory, about kms from Mumbai.

1990 : Plaza Hotel which was a four star Hotel in operation with 81 rooms situated near Domestic Airport was purchased. The Hotel was remodelled and a Family Club with discotheque ‘Go Bananas’ was started.

1994 : The Group went public through an IPO.

1995 : Inception of the Kamats Catering Institute at Goregaon. Kamats Tours & Travels established. In September same year the Management of Kamats Plaza decided to upgrade and reopen the property as a Five Star Hotel.

1996 : Hotel Siddharth (Nasik) – 32 rooms – 3 star hotel with permit room & a turnover of Rs. 76 lakhs in 2000/01, was taken over under a management contract for 35 years.

1997 : The Orchid, An Ecotel Hotel, Asia’s first Eco Friendly Five Star Hotel, was opened to Public on 27th September, 1997.

2001 : The Company ventured, abroad by opening two of its branches to begin with in San Francisco, USA in the name of “Vithal Kamat” on Management Contract basis, further expansion is in the pipeline. In the same year ‘Vits Luxury Business Hotel at Mumbai’ was opened.

2007 : Clear Water Capital Partners funding for the New Projects. Also the First Heritage Hotel “Fort Jadhav Gadh” was opened.

2008 : VITS successfully rolls out across 5 major cities in India , Pune , Nagpur , Aurangabad , Nasik 2008 : Lotus Resorts launched and roll out across Goa, Murud Dapoli Beach, Udaipur, Silvassa, Aronda Backwaters.

2009 : Fort Mahodadhi commences 1st phase of operations.

2009 : Lotus Konark Commences operations.

2010 : Lotus Karwar commences operations 2010 VITS Delhi & Bhubhaneshwar to commence operations 2010 Orchid Mumbai Expansion to commence operations 2010 Vithal Kamat, Honourable CMD wins PATWA award at Berlin for his achievements in Hospitality Industry.

Future Plans

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Having pioneered the Ecotel revolution in the country, Mr. Vithal V. Kamat is all set to transform the hospitality industry in the country with his future projects and is eyeing international markets.

PROJECTS UNDER IMPLEMENTATION:-

Existing Hotels :

Refurbishing of The Orchid, Mumbai

The third phase of refurbishing of balance 58 guest rooms and suites in the Company’s flagship hotel “The Orchid” at Mumbai has been completed.

Fort Jadhav Gadh, Pune

The Company has added swimming pool, spa, open air restaurant and 12 tent rooms to Fort Jadhav Gadh, a Gadh Heritage Hotel at Saswad, Pune. 

Upgrading of “VITS” Nagpur

Simultaneously, the Company has refurbished the first two floors of its leased hotel property Hotel Sunny International at Nagpur and upgraded it to business class hotel, namely, VITS. There are plans to refurbish the third and fourth floors rooms during the coming year.

Refurbishing of Kamats Hotel Sidharth, Nashik

The Company is adding two conference rooms to the existing hotel property at Nashik. This will result in increase in the hotel revenues.

Expansion Projects:

“The Orchid Expansion” Mumbai

The construction work of Orchid Expansion Hotel Project at Mumbai, addition of 128 hotel rooms to the Company’s existing five star Ecotel Hotel “The Orchid” has started in October, 2008 at an estimated cost of Rs.136 Crores, This project is likely to be fully completed by August 2010.

“VITS” Bhubaneshwar

The Company has acquired an existing hotel with 80 rooms and facilities at Bhubaneshwar, Orissa State. Currently this property is under refurbishing and will be operational by November end, 2009.

Long Term Agreements with OTDC

The Company has signed two lease agreements with Orissa Tourism Development Corporation (OTDC) during the year, on completion of successful bidding process and took possession of Mahodadhi Niwas at Puri and Eco Resort at Ramchandi, near Sun Temple at Konark. The project work is in progress and likely to be completed soon.

Lease Agreement for Palace at Parikud, Orissa

The Company has also acquired, on long term lease basis, Parikud Palace in Orissa for eco- tourism and environmental study for Chilika Lake. 

MANAGEMENT CONTRACTS

The Company has entered into management contracts and arrangements for providing technical consultancy. The new contracts includes

Lotus Lakeview Resort, Udaipur 80 rooms

Lotus Beachside Resort, Karwar Karnataka, 60 rooms

VITS- Luxury Business Hotel, NCR Delhi, 150 rooms

JOINT VENTURE/SUBSIDIARY COMPANY

The Company increased its stake in BW Highway Star Pvt. Ltd. from 17% to 75% by acquiring equity shares from other members/shareholders.

As a result of increase in the stake of the Company, BW Highway Star Pvt. Ltd., has become a subsidiary of the Company.

OTHER PROPERTIES

The Company is holding immovable properties at Baddi, Raipur, Nagpur, Coimbatore,  Kottayam-Kerala and Amravati for the purpose of developing hotels and restaurants at the appropriate time in view of great potential  for tourism in the coming years. These hotel projects will be taken up at the appropriate time.