Ranvir’s Portfolio

EIH –

Q3 FY 24 results and concall highlights –

Revenues – 770 vs 603 cr
EBITDA – 353 vs 226 cr
PAT – 230 vs 151 cr

Net Cash ( after subtracting debt ) @ 684 vs 256 cr YoY

Performance of Flight Catering business –

Revenues – 107 vs 70 cr
EBITDA – 37 vs 15 cr ( margins @ 35 vs 15 pc !!! )

Current Portfolio of Hotels –

Owned / Leased –

06 Oberoi Hotels – Domestic
02 Trident Hotels – Domestic
05 Oberoi Hotels – International
Maidens Hotel – Delhi
Total – 14

Managed Hotels –

03 Oberoi Hotels – Domestic
02 Oberoi Hotels – International
Wildflower Hotel – Shimla
Total – 06

Hotels under EIH Associated – managed by EIH Ltd –

02 Oberoi Hotels – Domestic
06 Trident Hotels – Domestic
Total – 08

Q3 occupancy @ 79 vs 77 pc YoY ( very healthy )
Q3 ARR – 19.9 k vs 16.7 k YoY

New Hotels announced after Q2’s concall – Trident @ Tirupati ( 125 rooms ) , Vizag ( 125 rooms ) and Oberoi Hotel at Gandikota (30-35 rooms) – all three hotels to go live inside 4 yrs

Company – on track and confident of adding 50 new ( big and small ) hotels and 4500 new rooms by 2030. Will be opening smaller hotels at Leisure locations ( avg of 40-50 rooms per hotel ) and bigger hotels at City locations ( avg of 200 rooms per hotel ). Will be adding more Hotels at Leisure locations

Hotels in MENA region adversely affected by the conflict in Gaza in Q3 – specially for the hotels in Egypt

RIL continues to hold 19 pc, ITC continues to hold 14 pc stake in EIH

Company is confident of sustaining 29 -30 pc EBITDA margins on an annual basis for next 2-3 yrs

Current ARRs in India are at around Rs 20k / room / night for a Oberoi level 5-Star hotel. In the International mkts, similar hotels fetch an ARR of aprox 85-90k / room / night. Therefore, the company believes that there is significant headroom for ARRs to grow in India

Current number of 5 star and above rooms avlb in India @ 1.65 lakh. New supply coming on stream till FY 28 @ 0.55 lakh. Basically the demand – supply dynamics look good for next 5 yrs !!!

Company is expecting strong demand scenario to continue in the premium segment and that is where the company operates. See ARRs / Occupancies to remain firm

Airline catering that the company is doing is primarily focussed on International routes. They do operate on select domestic routes as well. Continue to be bullish on that business. This business has a lot of Operating leverage that can kick in going forward

Disc: holding, will add if it dips > 5-10 pc, biased, not SEBI registered. Also holding EIH Associated hotels