Royal Orchid Hotels –
Q1 Concall and results highlights –
Revenues – 78 vs 73 cr
EBITDA – 21 vs 23 cr
PAT – 9 vs 11 cr
Breakup of revenues –
Room rentals – 41 vs 40 cr
F&B – 27 vs 27 cr
Other services – 2.5 vs 2.6 cr
Management fee ( received from management contracts ) – 8.6 vs 6.8 cr
Property wise breakup of revenues –
Owned – 26 vs 20 cr
Leased – 30 vs 28 cr
JV / Associates – 13 vs 21 cr
Managed – 8.6 vs 6.8 cr
Segment wise distribution of rooms ( owned, leased, managed, in JV with Royal Orchid ) –
Owned – 268 + 130 ( 5 star + 4 star ) = 398
Leased – 396 + 67 + 142 + 83 ( 4 star + service apartment + Resort + 3 star ) = 688
JV – 139 + 54 ( 5 star + Heritage ) = 193
Managed / Franchise – 2547 + 71 + 803 + 1715 ( 4 Star + service apartments + heritage / resort + 3 star ) = 5116
Grand total = 6395 rooms / keys
Upcoming hotels – 24 + with 1900 + rooms / keys. Out of these, 02 hotels in Gurugram and Mumbai are leased. All others are managed. The Gurugram hotel is going to be a 124 room hotel with 02 Banquet halls
Q1 was a difficult Qtr as the business got affected due to heat waves and elections across India
Company’s 300 room Mumbai hotel ( leased ) is expected to open by Q1 FY 26 ( currently under construction ). Company expects the ADRR @ 9.5-10.5k for this property
Company is seeing a descent pick up in business in Q2 after a subdued Q1.( aprox a 6-8 pc increase in ARRs across the board )
Guiding for a topline of 378-380 cr, 500 cr for FY 25, 26 with a PAT of aprox 55 cr and 70 cr respectively
Company expects the Mumbai hotel to do revenues of aprox 100 cr for its first year of operation ( ie FY 26 ). This hotel is near T-2, has 300 rooms, 02 Banquet halls, multiple F&B outlets. This should also improve the brand visibility of the company because of its prominent location
Company expects to derive revenues of > 100 cr alone from managed properties in next 3-4 yrs. EBITDA margins in managed properties are around 45 pc
The upcoming Gurugram hotel has a revenue potential of 25-30 cr
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
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