ORCHID HOTEL- AN INTRODUCTION

The Orchid - An Ecotel Hotel in Mumbai is Asia's first certified eco-friendly five-star hotel. This 372- room hotel is strategically located adjacent to the domestic airport making it a convenient place for the business traveler to stay. Everything is designed so as to be unobtrusive. Like The Club Privet room, an exclusive club floor with a private lounge and butler service. Or the well-appointed business and conference center to take care of your business needs in Mumbai. The 79 International Awards reiterate the efforts of The Orchid of being a pioneer amongst environment friendly hotels.

EFFECTS ON SALES, PAT AND DIVIDENDS

The companies EBIT margin showed a great fall as compared to the industries as can be seen the EBIT of the company from 08-09 felled by 13% but the EBIT of the industry felled only by 7% so the EBIT of orchid felled more as compared to the industry Also the PAT margin of the company felled more as compared to the industry. Which can be seen as the PAT margin of the company felled by almost 14% as compared to 5% of industry All the performance ratio are low because the companys asset are those which yelled return in longer period of time Also it has been seen that the PAT has felled by 79% The dividend percent and the EPS has also felled in 2009 i.e. the dividend percent of the company in 2008 was 30 and in 2009 it fell to 12 %. Also the EPS i.e. Earnings per share fell which was 20.77 % in 2008 and 4.29% in 2009

CAUSES OF THIS FALL IN SALES, PAT AND DIVIDENDS The major cause of this down fall in sales was the slowdown in the US and ENGLISH
economy as the major chunk of customer of the hotel were from these countries Another reason for this loss in sale was the Mumbai attacks Domestic customer base cannot pick up the sale because they only want budget room which were not available in orchid The downfall in sales affected the PAT, DIVIDENTS and EPS. As they are dependent on each other. The condition of the PAT and EPS would have been more worst had the income from other source not improved.