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Hope to add 12,000 beds in Meininger in 3 yrs: Cox Kings

Cox & Kings-owned Meininger has announced new hotel in Berlin. In an interview to CNBC-TV18, CFO Anil Khandelwal discusses the company’s future plans.

Cox & Kings -owned Meininger has announced new hotel in Berlin. In an interview to CNBC-TV18, CFO Anil Khandelwal discusses the company’s future plans.

Below is the transcript of Anil Khandelwal’s interview with Reema Tendulkar & Mangalam Maloo on CNBC-TV18.

Mangalam: You have announced a new hotel in Germany. What are the internal targets for revenues you are looking at from this property?

A: We announced the fifth hotel in Berlin yesterday, which effectively takes us from a tally of 16 hotels existing in Meininger to 17 hotels. We already have 7,000 beds in Meininger and hope to add 12,000 beds in the next three years. Therefore, from a growth rate perspective we are doubling the bed capacities in the next three years for Meininger.

Reema: How many more hotels would you like from the current 17?

A: As I mentioned from the existing 7,000 beds we expect to add around 12,000 beds in the next three years which will take our bed tally to 20,000 beds,

Reema: What would be the expected financials from – what is the time that it takes for you to break even? How much are you hoping to reckon from these near 19,000-20,000 beds in three years?

A: Meininger – the hotel chain which we have, we already have 60 hotels in Europe. It’s a completely opex model, we do not own any of the properties of the 60 hotels. We take it on long-term lease from the owners and the developers and they give it us on a turnkey basis, so whilst the management and the brand is ours, we pay a long-term lease to them, so it’s a completely opex model and from a breakeven perspective each and every hotel starts making profit from the first year or operation itself given the fact that almost 50 percent of the traffic for the hotel is coming from our student business and the balance 50 percent come from the leisure and the corporate travelers. We are running 92 percent occupancy on overall basis, so from a profitability perspective each and every hotel starts making profit from the first year of operations itself.

Cox & Kings stock price

On March 20, 2015, at 15:10 hrs Cox & Kings was quoting at Rs 326.25, up Rs 1.40, or 0.43 percent. The 52-week high of the share was Rs 366.30 and the 52-week low was Rs 145.25.


The company’s trailing 12-month (TTM) EPS was at Rs 7.75 per share as per the quarter ended December 2014. The stock’s price-to-earnings (P/E) ratio was 42.1. The latest book value of the company is Rs 73.61 per share. At current value, the price-to-book value of the company is 4.43.

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