Risks
Economic Cyclicality: The hospitality industry is highly sensitive to economic downturns, which can reduce travel demand, corporate spending, and consumer confidence.
Intense Competition: High competition from both domestic and international players can lead to pricing pressures and impact occupancy rates and profitability.
High Fixed Costs: Hotels typically have high fixed costs (property taxes, staff salaries, maintenance), making them vulnerable during periods of low occupancy.
Regulatory & Policy Changes: Changes in government regulations, taxation (e.g., GST on hotel services), and licensing policies can impact operational costs and business viability.
Geopolitical Events & Pandemics: Unforeseen events like pandemics, political instability, or natural disasters can severely disrupt travel and tourism.
Real Estate Market Fluctuations: As a developer-owner, the company is exposed to risks associated with land acquisition costs and construction delays.