Kamat Hotels (I) · risk themes across the available quarters.
Bear-case history
For the second consecutive year, Manali road flooding has severely impacted the hotel's performance. This has been a recurring issue affecting both summers, with operations functioning but traction remaining below expectations.
With 2,500 rooms of new supply entering Vashi/Navi Mumbai, management acknowledged that ADR will systematically plateau though occupancies may hold due to MICE demand from Jio Convention Center and NESCO.
Hotels in Derdun, Gualiar, Nashik, and Bhagar have been delayed by 2-9 months due to owner-related issues and external factors. Management admitted they have hired staff and incurred capex/opex for properties not yet open, creating drag.
An investor who visited the property questioned underperformance during peak season, noting peer hotels were fully occupied. Management responded defensively, citing adult-only policy (no children under 15) as deliberate positioning with 80% foreign clientele.