EIH Q4 highlights – YoY
Consol sales – 663 vs 316 cr, up 110 pc
EBITDA – 231 vs 34 cr, up 562 pc
Avg occupancy – 80 pc vs 56 pc vs 62 pc ( in FY 20’s Q4 )
F&B revenues – 221 vs 143 cr ( in Q4 FY 20 )
Flight catering – 82 vs 41 cr ( in Q4 FY 20 )
For FY 23 vs 22 vs 21 vs 20 vs 19 –
Sales – 2096 vs 1044 vs 547 vs 1675 vs 1880 cr
EBITDA – 675 vs 57 vs (-) 230 vs 368 vs 475 cr
Net Cash position – 129 vs (-)61 vs (-)217 vs (-)192 vs (-)271 cr
RoE for FY 23 –
Oberoi Hotels – 45 pc
Trident Hotels – 22 pc
Future expansions –
FY 23,24 –
Bay Club,Mumbai – opened Nov 22
Restaurant in Mumbai – wef Jun 23
FY 25 –
Oberoi Raigarh palace, 48 keys
Oberoi Bandhavgarh, 24 keys
Oberoi Bardia, 18 keys
FY 26 –
Oberoi Kathmandu (managed)- 84 keys
Trident Tirupati – 100 keys
Oberoi Wadi Safar, Saudi Arabia – 60 keys
FY 27 –
Oberoi Goa – 90 keys
Trident Goa – 150 keys
Oberoi Al Zorah (managed) – 174 keys
Current properties –
Owned – Oberoi Hotels – 15
Managed – Oberoi Hotels – 07, Trident – 08
Other brands – 03 hotels
Number of Keys-
2020 keys under Oberoi brand (India + International)
2172 keys under Trident brand
Valuations at 40X profits
Can assume 300 cr+ profits plus some descent growth going fwd for atleast next 2-3 yrs (before any new meaningful capacity comes up)
Management Comments –
ARRs and Occupancies softened in Mar vs Jan,Feb. Have been improving post March
Corporate travel is back to pre covid levels
Over and above the pipeline of hotels put up above, there are 11 more proposed hotels in the pipeline
Exploring Andaman, Nicobar Islands for setting up a new hotel. Nothing concrete yet
Company has 13 acres land near Sohana in Gurugram. No plans finalised wrt sale or development of that land parcel in Gurugram
Mumbai Club ( Cuckoo ), launched last yr – doing well
If it does well in future as well, company looking to scale up this concept
Company believes, there is considerable upside in ARRs and occupancy going fwd. Their Gurugram hotel used to do Rs 20,000 ARR in 2009-10. Its at similar levels today.The upside in ARRs can be substantial
As foreign travel into India picks up, it should further push up the ARRs
One an avg, a new hotel takes 3-5 yrs to start making profits … depending on location to location
Company has razor sharp focus on customer experience and quality of stay
That’s why they don’t go aggressively for managed hotels. However, they r not averse to it if a right opportunity arises
EIH is largely positioned above Indian Hotels, Marriot wrt Luxury, customer experience and hence command a premium over them
Company being a net cash company, has the room avlb for speedy expansion in number of properties
Airport + Flight catering business operates at 20-25 pc EBITDA. Margins likely to trend up due demand of air traffic outpacing the supply of caterers
Foreign hotels ( total 07 ) are making money at EBITDA levels. Should turn profitable at PAT levels soon. EIH foreign hotels are debt free
Indians increasing affluence & propensity to take short breaks across the year is bringing the seasonality down in a significant way
New govt regulations wrt upfront tax deduction should help the domestic industry
Indian 5 star hotels are really really underpriced vs the trends across the globe
Reliance Industries and ITC are major shareholders in the company
Disc: holding, biased
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