Operational efficacy and Performance of select Hotels listed on the Bombay Stock Exchange (BSE) of India.

Abstract

Globally, India ranked 8th in terms of GDP for the service sector. In India, the service part is a huge contributor with Gross Value Added evaluated at 96.54 lakh crore INR in 2020-21. This paper attempts to study the liquidity conditions and also examine the relationship between liquidity and profitability of 4 selected hotels, resorts & restaurants from BSE based on net profit, viz. Mahindra Holidays, Indian Hotels, EIH (East India Hotel), and Westlife Development for 4 financial years using accounting ratios (Current ratio, ROE, ROA and Net profit ratio) and Correlation analysis. Furthermore, a descriptive statistical tool is applied. In terms of liquidity analysis for the selected companies, Motaal’s ultimate rank test for testing liquidity is employed.  The study concludes that, more or less, the liquidity positions of selected companies are maintained and there exists a positive relationship between liquidity and profitability positions of the hotels undertaken in the present study.