SlideShare a Scribd company logo
1
Asset light model in asset
intensive business. 8% lease
expense. Acquisitions only if
cost < 25% of annual revenue.
No debt or equity dilution for
growth. Low capital expenditure
leading to high return ratios
(30%+ RoCE) and high cash flow.
Tie-up with 300+ travel agents
and growing. Strong presence in
B2B chartering business. Enable
occupancy optimization in both
segments.
Value
Proposition
2
B2B Room chartering is a
low margin trading like
business. Margins are
shared with agents and it
is high working capital
intensive.
Room rentals, Event
Hosting and F&B are high
margin businesses.
Branding, presence in
multiple locations,
corporate networking are
key.
Room chartering helps in
understanding the industry
better. It enables
networking with hotel
owners for negotiating
lease. It helps efficient
deployment of cash till a
deal is made.
Business
Model
Room Rentals Event Hosting Food &
Beverages Room Chartering
Franchise Model Online Aggregator
3
Growth
Drivers
4
Growth
5
The company maintains
amazing financial
discipline. Their growth is
funded by cash flow. It
never depends on debt or
equity dilution to fund its
growth.
Though there is
opportunity for increasing
the working capital and
growing RC business, it
avoids debt.
Company is cautious of not
over paying. Maintains
lease cost < 8%. The
business model also helps
in effective usage of
working capital.
Financials
6
Modest background
Cost Effectiveness
Vendor to Owner
Focused Business
Increasing Confidence
Has Walked the Talk
Management
7
Opportunity
Size
8
Projections
9
Valuation
10
GST
11
Who is
Buying?
12
Who is
Buying?
13
Exits
Exits like
would dent growth.
Scalability
Scalability beyond a level
might not be possible.
Branding Failure
Trip advisor ratings doesn’t
seem too good. Brand
value might not be high
enough to start franchise
model.
Risks
14
Competition
“OYO” kind of aggregators
posing a competition.
15
Management
Quality
Financials
Growth
Prospects
Moat Special
Situation
Neal Creative | click & Learn moreNeal Creative ©
THANK YOU
cashflowbuddy@gmail.com
https://twitter.com/cashflowbuddy
https://www.facebook.com/cashflowbuddy/

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The Byke Hospitality

  • 1. 1
  • 2. Asset light model in asset intensive business. 8% lease expense. Acquisitions only if cost < 25% of annual revenue. No debt or equity dilution for growth. Low capital expenditure leading to high return ratios (30%+ RoCE) and high cash flow. Tie-up with 300+ travel agents and growing. Strong presence in B2B chartering business. Enable occupancy optimization in both segments. Value Proposition 2
  • 3. B2B Room chartering is a low margin trading like business. Margins are shared with agents and it is high working capital intensive. Room rentals, Event Hosting and F&B are high margin businesses. Branding, presence in multiple locations, corporate networking are key. Room chartering helps in understanding the industry better. It enables networking with hotel owners for negotiating lease. It helps efficient deployment of cash till a deal is made. Business Model Room Rentals Event Hosting Food & Beverages Room Chartering Franchise Model Online Aggregator 3
  • 6. The company maintains amazing financial discipline. Their growth is funded by cash flow. It never depends on debt or equity dilution to fund its growth. Though there is opportunity for increasing the working capital and growing RC business, it avoids debt. Company is cautious of not over paying. Maintains lease cost < 8%. The business model also helps in effective usage of working capital. Financials 6
  • 7. Modest background Cost Effectiveness Vendor to Owner Focused Business Increasing Confidence Has Walked the Talk Management 7
  • 14. Exits Exits like would dent growth. Scalability Scalability beyond a level might not be possible. Branding Failure Trip advisor ratings doesn’t seem too good. Brand value might not be high enough to start franchise model. Risks 14 Competition “OYO” kind of aggregators posing a competition.
  • 16. Neal Creative | click & Learn moreNeal Creative © THANK YOU cashflowbuddy@gmail.com https://twitter.com/cashflowbuddy https://www.facebook.com/cashflowbuddy/

Editor's Notes

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