Viceroy Hotels Overview
Viceroy Hotels as the name suggests is in Hospitality business. As per company website Viceroy Hotels Limited is presently owning 297 Room Hotel under the Brand of Marriott 120 Room Hotel under the Brand of Courtyard Marriott in Hyderabad and 56 Room Hotel in Himayatnagar, Hyderabad.
Viceroy Hotels Limited is also a Holding company of Cafe D Lake Private Limited which owns Fine Dine Restaurants in the name and style of Minerva Coffee Shop and Fine Dine Bars in the name and Style of Bluefox.
The Company is presently owning Fine Dine Restaurants and Bars in Hyderabad and Vijayawada. Note during 2003, Viceroy Hotels Limited entered into an agreement with Marriott International Inc, USA. for franchise, marketing and operations under the brand of “Marriott” for a period of 20years.
Viceroy Hotels Stock Performance
Below graph shows price performance of Viceroy hotels from IPO days. This will give you an idea how well the company has performed over the years for investors.
Looking at above chart you can see that Viceroy hotel is a wealth destruction company. It debuted on stock exchanges at around 90 mark and soon zoomed close to 130 mark. This time frame was excellent for the company and investors.
But after that initial hype during the 2008 crisis the stock price fell close to 20 mark. The company recovered from that mark and reached near 50 in year 2010.
But since then it has only moved down every year a slope manner. Now it is trading below 10 mark. So for IPO investor in these past 10 years this company has only given loss. Based on the price performance the company will be treated as not recommended category.
Viceroy Hotels My Opinion
Hotels and Hospitality sector has not performed well over the years. Viceroy hotel was once in portfolio of Rakesh Jhunjhunwala. This stock shows that even great investors like him can make a mistake in investment.
So you should not stick to one or two stock and keep on adding them .It is better to exit from those if they are not performing for quite sometime. This one is classic example of investment going wrong.
Some top investors of India have Hotels stocks in their portfolio. So you can look at portfolio of them before making a decision about investment in this sector. I am not convinced with Viceroy hotels due to their past performance and concentrated business in and around Hyderabad only.
Conclusion
As mentioned above Hotel and Hospitality sector has not performed well over the years compared to other sectors. Viceroy hotels have given too negative returns and from my opinion it should be avoided. There should not be effort to do bottom fishing.
In case one is interested then they should dive deep into financials and other stuff before making a decision.