The Reliance Industries; which is India’s largest listed company by market value, has surprised its investors yet again. "On Monday the industry announced that it had acquired a 14.12% stake in the Indian hotel chain EIH for $216.97 million in its second foray into a new line of business this year." This gain shows that despite the economies recession, some hotel industries and businesses are still managing to do well.
Oberoi and Trident hotel brands which are operated by EIH, saw their stock price rise much as 20% since the market’s close on Monday. For EIH, having an investor like Reliance Industries is definitely an advantage. "It’s a good deal for the shareholders of the company, whose Trident hotel in Mumbai was attacked by terrorists in November 2008, with the offer from Reliance amounting to roughly $3.9 a share, 22% higher than EIH’s closing price on Monday."
"As investments go, hotels are a pretty good place to be." According to GDP stock prices for hotels, trade, telecom and transport together grew 12.2 percent over the previous year. This increase in prices marks a major turn-around for the better in the hotel industry.
Recently I believe people have been taking vacations more often, therefore staying at hotels more and contributing to the increase in that industry. Also, despite the economy, people are still buying timeshares in hotels giving them the ability to stay free at that hotel anywhere in the world. I know this because my family just recently bought a timeshare in Aruba. In conclusion, if people keep contributing to the increase hotel industry, we should see great advances and positive progress in the next few years.
http://blogs.wsj.com/indiarealtime/2010/08/31/reliances-surprise-entry-into-hotels/?KEYWORDS=hotels
Chris, have people been taking vacations more often or is the rate climbing back to a normal, pre-recession rate? Also, your family is not the majority, be weary of generalizations.
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