EIH Q1 concall highlights -
Sales- 498 vs 394 cr
EBITDA- 155 vs 97 cr ( margins at 31 vs 25 pc )
PAT- 106 vs 66 cr
Q1 occupancy rates at 70 pc. Corporate segment doing well
F&B revenues - 169 vs 163 cr
Flight catering and airport lounge revenues - 87 vs 45 cr
Net Cash position at 540 cr
Current corporate structure -
International Hotels- 07 ( All Oberoi Hotels, 05 owned, 02 managed )
Domestic Managed hotels by EIH- 06
Domestic Oberoi hotels- 06
Domestic Trident hotels- 03
EIH associated Hotels- 02 Oberoi + 07 Trident - all managed
Expansion plans for FY 24 - 02 hotels - 01 Vilas Hotel in MP ( 20 rooms ), 01 Rajgarh Palace also in MP ( 65 rooms )
LY - ROCE was 35 pc for owned Hotels, that’s where company’s focus continues to be
Currently do not have a beach front Hotel in India
As per capita income rises, will open the same. Also have a Site avlb with the company in Goa
Most of company’s overseas hotels are on the beachfront
Company gets a lot of its revenues from Intl travellers which often happens in Q3,Q4
Corporate ARRs are up 10 pc yoy
Have opened a new standalone restaurant and club. Initial response for both has been very strong
Company to soon share its detailed growth plan blueprint till 2030
Unlikely to take Debt/Equity beyond 0.2 to fund all expansions
ARRs in India for luxury hotels are a fraction vs international rates. As affluence in India grows, ARRs can only head higher. This shall also reduce seasonality as dependence on foreign tourists comes down
Company believes, the upcycle in Hospitality industry can last > 4-5 Yrs
One example-Oberoi New Delhi operates at ARR of around $200-250/night. Any comparable hotel in the west is not avlb at ARR< $ 1500-1800/night. Hence the headroom for ARRs in Indian luxury space is humungous
Imagine what will happen to profitability if ARR crosses $ 300/night !!!
Even Intl Oberoi hotels are averaging >$ 500 ARR/night
F&B revenues in Q1 were flattish as Oberoi Nariman Point drives a lot of banquet sales & most of its banquet rooms were under renovation. Will open in Nov 23
Moto GP Noida, World Cup, G-20 meet should add to demand this yr
Flight catering is shaping up well, growth prospects are strong
Company believes,there is enough space for growth in ultra luxury segment. Hence, not planning to venture into premium space by launching a new brand etc
Plus there is lesser competition here vs plain 5 star hotels
Disc: holding both EIH, EIH associated hotels. Biased
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