Royal Orchid Hotels -
Q3 Concall highlights -
Revenues - 87 vs 76 cr
EBITDA - 29 vs 28 cr
PAT - 15.7 vs 15.2 cr
Revenue break up ( segment wise ) -
Room rent - 46 vs 43 cr
F&B - 33 vs 28 cr
Other services - 3.6 vs 2.8 cr
Management fees - 8 vs 6 cr
Revenue break up ( model wise ) -
Owned hotels - 30 vs 24 cr
Leased / revenue share hotels - 34 vs 27 cr
JVs / Associates - 18 vs 23 cr
Management fees - 8 vs 6 cr
Added 05 hotels with 210 rooms in Q3. Added 20 hotels with 1030 rooms in 9M FY 24
Company held 51 pc stake in a 130 room hotel in Bangalore. Acquired additional 49 pc stake by paying 34 cr in Q3. The money was paid via internal cash generation
Out of a total of 100 hotels that the company is operating, around 80 odd hotels are just being managed by the company. Here, the company gets a management fees of around 3 pc of the property’s revenue. For Q3, total revenue received by the company from management contracts is 8 cr for managing 80 hotels. That amounts to roughly 3.5 lakh / month / hotel. Company makes an EBITDA of around 50 pc on these properties
Expecting to do a topline of 340 cr this yr and 390 cr for next FY ( both - including the Jaipur hotel ). Expecting an EBITDA of 120 cr for next FY
Company intends to add 38-40 more hotels in next FY - adding the room inventory by around 2500 rooms. Out of these, 03 hotels will be on the lease / revenue share model - which gives a bigger kick to the top/bottom line
ARRs for Q3 at Rs 5600
Post Mar 25, company shall focus on larger hotels on revenue share models. Company’s aim was to expand aggressively in FY23-25 period so as to establish its brand name. Once that is done, company can get hold of a lot more leased / revenue share hotels ( otherwise, ppl were not taking them as seriously )
Hotel industry is undergoing a boom similar to 2003-08. Bank financing rates have also fallen while extending loans to Hotel industry
Company intends to re-work their branding architecture so as to clearly differentiate between their 5 star vs 3 star offerings
Expecting an ARR hike of 6-8 pc for next FY
Company is expanding the room capacity at their owned hotels at Goa ( adding 44 rooms ), Bengaluru ( adding 28 rooms )
Company is expanding the room capacity at their owned hotels at Goa ( adding 44 rooms ), Bengaluru ( adding 28 rooms )
At present, company is not planning to open up at Ayodhya or Lakshadweep as the company doesn’t want to do any Greenfield capex right now
Disc: holding, biased, not SEBI registered
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