Grand Continent Hotels Limited

1. Lowest Entry Cost per Key: Over the years, the Company has perfected its model to set up rooms at the lowest cost in a timely manner, managing approximately 40 to 100 rooms per hotel.

2. High Occupancy Rates: The Company collaborates with a wide range of marketing partners and establishes direct relationships with corporate clients, leading to high occupancy rates and reasonable per-room profitability.

3. Cost Control on Room Operating Expenses: The Company has developed a unique model to ensure low costs for operating and servicing rooms and restaurants, while maintaining guest comfort and convenience.

1. We have issued Equity Shares during the preceding twelve months at a price which may be below the Offer Price.

2. Majority of our properties are on long lease or license. If we are unable to comply with the terms of the lease or license agreements, renew our agreements or enter into new agreements on favorable terms, our business, results of operations and financial condition and cash flows may be adversely affected.

3. Some of our agreements may be under stamped or inadequately stamped or unregistered and if any financial or judicial implication arises out of the same it may have an adverse effect on the Company's business and reputation.

4. A majority of our properties are operating under Sarovar Brands /Royal Orchid Brands pursuant to the franchise/ trademark license agreements with the Sarovar/Royal Orchid, and we are subject to risks, including non-renewal, termination and disputes, associated with such contracts

5. Our franchise/ trademark license agreements with the Sarovar/Royal Orchid are non-exclusive.

6. As on September 30, 2024, a significant portion of our hotel keys and revenue from operations is derived from hotels properties concentrated in the city of Bengaluru (Karnataka) and Tirupati (Andhra Pradesh) out of the portfolio of 16 operational hotel properties, and any adverse developments affecting these hotels or the regions in which they operate, could have an adverse effect on our business, results of operation, cash flows and financial condition.

7. We are subject to extensive government regulation with respect to safety, health, environment, real estate, food, excise, property tax and labor laws. Any non-compliance with or changes in regulations applicable to us or failure to obtain, maintain or renew our statutory and regulatory licenses, permits and approvals required to operate our business may adversely affect our business, results of operations, cash flows and financial condition.

8. Negative customer experiences or negative publicity surrounding our hotel properties could have an impact on ability to source customers. Thus, we may also incur higher expenses towards business promotion in the future, to source more customers which may have an adverse impact on our business and financial condition.

9. Certain of our Joint Ventures, Group Company and Promoter Group entities incorporated in India or outside India have common pursuits as they are engaged in similar business or industry segments and may compete with us.

10. Changes in travellers' preferences due to cost of travel, spending habits, competition from alternative accommodation, and other factors may adversely affect the demand for hotel rooms, thereby adversely impacting our business, results of operations, financial condition, and cash flows.