EIH Limited (NSE: EIHOTEL) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Unidentified Speaker
Vikramjit Oberoi — Managing Director and the Chief Executive Officer
Vineet Kapur — Chief Financial Officer
Analysts:
Unidentified Participant
Abhishek — Analyst
Amit Agarwal — Analyst
Raghav Malik — Analyst
Dinesh — Analyst
Vaishnavi — Analyst
Amit Agarwal — Analyst
Amit Kadamit — Analyst
Presentation:
operator
. Good morning ladies and gentlemen, and thank you for attending this virtual meeting. I’m pleased to welcome you on behalf of EIH Limited and SKP securities to EIH Limited’s F1FY26 earnings webinar. We have with us Mr. Vikram Oberoi, MD, CEO and Mr. Vineet Kapoor, C CFO Friends, this virtual meeting is being recorded for compliance reason and during the discussion there may be certain forward looking statements. These must be viewed in conjunction with the risk that the company faces. We’ll have the opening remarks from I, Mr. Obero, followed by a presentation and then a Q and a session.
Thank you. And over to you, Vikram.
Vikramjit Oberoi — Managing Director and the Chief Executive Officer
Thank you so much. Good morning ladies and gentlemen, and a warm welcome. You know, we just had our Q1 results and unfortunately the hospitality industry, and we’re no exception to that, were impacted by operations Hindu the tension between India and Pakistan and also the geopolitical developments in particular between the U.S. india, Iran and Israel. But despite those ruffles, we had a strong ebitda performance for Q1. It would have been better had it not been for that. What we see overall in Q1 is still strong demand over the previous quarter of last year and we again remain optimistic.
One of the things that I’ve been mentioning for some time is our endeavor to drive ARR and that obviously is easier when you have strong demand, typically in the summer months. Our industry does face a softening in demand. But despite that, you’ll see from the investor presentation that has been loaded on for you to review, we’ve been able to take average room rates up and as a result revpar up as well. But a strong increase in average room rates and our endeavor would be to continue to drive rates. One of the key advantages of driving ARR is that the flow through to EBITDA is much stronger than a if it was just an increase in occupancy.
So that is our endeavor. We have world quality, world class hotels in our country, us and our competitors. They are the finest hotels probably in the world. And certainly our approach is to drive ARR to reflect the quality of our hotels and the quality of service we offer. So with that I’ll pass it over to Vineet for the quick run through our presentation and then we can open it up to questions and answers. Thank you very much.
Vineet Kapur — Chief Financial Officer
Thank you Vikram and good morning everybody. We’ll start with the Indian hotel sector first. For the outlook perspective we see a pretty good strong hotel demand coming coming through you for the current year 2025 and the factors already mentioned there on the growth drivers. A lot of factors driving that growth but majorly coming from a good increase coming from a demographic shift of the Indian population and a good increase in USNI base as well as a good forecast for inborn tourism to grow by 15% in the current year. If you look at the Indian hotel market especially for Q1 Cuban Q126 we got impacted as mentioned by Vintram in the first quarter because of Operation Sindur the geopolitical situations in the Middle East.
But in spite of that we saw increase happening in passenger traffic by 4.4% on a year over year basis and that reflected also with a good buoyancy. In the era we almost saw increase of 9 to 11% though on the occupancy we were more or less flat. But overall the good ARR increase we saw an increase of 11 to 13% on on RevPAR was last year. So we expect the. You know from a management perspective we expect the demand for high end luxury to grow and become more prominent on the luxury side and with our portfolio of luxury hotels we we feel ourselves we are in a good position to to get the most benefit of the India’s evolving opportunities.
Considering that we already working we are very focused on our local domestic market as well as in the international destinations. We have a strong expansion Strategy with almost 25 new properties mainly focused in India but also in in some global markets but to be operational by 2030. Coming to operational performance. You know EIH is consistently has maintained leadership versus the competition and we continue to lead in most of the most of the areas including occupancy. We have maintained overall 20 lead over the competition. If you see over the years though of course that has been cyclical based on the market demands and the cycles.
But more or less on average we have maintained 20% leadership over the competition. On the RGI front looking at MPI we are higher by roughly 6 and if I compare that three years back in June 22 increase on the occupancy side on the ARI on the ARR there has been some drop but overall a very strong leadership on the repar. Side. Continuing on the RIPA movement. It’s the same cyclical trends what we see every year and the same cycle goes I think important to note would be the base. If you look at from 9811 we are we ended up at 11,350 which is a growth of 16% year over year on average versus last year on DEVPAR. And we continue to see this base increasing year over year even. And we also foresee a good strong base going for the next year. May I just add one thing. This RevPAR growth in Q1 of this year versus Q1 of last year. We see as you know, foreign travel to India declines come April or middle of April onwards. And despite that we have been able to take up our rates and our endeavor will be during the winter months to drive that even further. Supported by foreign travel into India. Coming on the next next slide, which is the red part, growth by industry and by by the hotels. So industry growth was a 12% in Q1. Our owned and managed hotels grew a little higher than the industry growth of 16%. Oberoi Hotels continues to reach the pack with a growth of 21% on a RevPAR basis over last year. If you look at the same on the occupancy and the ARR trends. So we started the year pretty strong in April at 77% but we saw a dip happening in May especially impacted by operations in as well as the geopolitical situation in the Middle east.
That has picked up a little in June and we hope to see that trend changing in the current quarter. But overall in spite of changes in the occupancy we saw a pretty healthy growth on ARR side and every month. So on a net basis if I look at overall quarter we were Almost flat at 70% but a good increase. Almost 18% growth in ARR was the last year. If I look at the same thing for EI shown hotels actually we saw a dip in occupancy and the the dip was more prominent in the month of May, especially impacting our hotels in the northern region of India.
So overall the occupancy dip from 77 to 73%. We got a got an impact even in our city hotels during the in the month of May. But overall good. In spite of the occupancy drop we were able to maintain the ARR and able to grow. That was the last year. If you look at growth by city in our hotels, including managed hotels, we saw pretty good healthy trends. Except what you see in Shimla and Chandigarh which were Basically impacted basically impacted the operation Sindhur where the where the travel to the northern part of India was definitely restricted but at the same time we saw a good increase in Red Bar in Jaipur and Rantumbore areas.
Hyderabad in particular we saw a very high increase but that was because of a one time event. We had the Miss World event which took place in Tried and Hyderabad and hotel was quite number of days which drove the ARR for us in Hyderabad. On the international front also we saw a good healthy increase and this due to good performance by our hotels in Mauritius, Egypt as well as in Marrakesh Egypt and Marrakesh. Basically coming back versus last year due to the impact of Israel and Palestine conflict which had which had impacted the which had impacted the room nights for those hotels last year.
That is that’s coming back in the current year on the room revenue. 10 minutes I would say more or less in the same lines. Nothing dramatic from any any particular segment perspective but we saw a impact on corporate segment where we are seeing a little drop in base in Q1 versus our last two to three years average. But otherwise most of the other ones are most of the other ones are in the same trend as last year. Coming to the quarter one financials the standalone I’ll start with the standalone starting with standalone performance. So looking at the Q1 F26 if you see over the last six to seven years leaving aside the COVID period even last four years we had the highest revenue in Q1, highest ever revenue in Q1 as well as same thing on Ebitda.
Fat was not in the same line and that was because of one time impact. We had taken 110 crores impact in our financials on Karnataka Chopra which came in Q1 and due to that the PAT was on the lower side at 36 crores for the bottom looking into the same if you look at the consolidated performance again on the revenue and EBITDA side we had the highest ever revenue and EBITDA for the quarter PAT was lower because again because of the Bonshobra impact of 110 crores which lowered our PAT for the quarter on the first portion the funds continue to keep on adding our positive cash flows and keep adding to the funds which basically gives us a good situation to be in with a very healthy liquidity at this moment to push our growth plans, our long term growth plans to support in the coming years.
Coming on the financials financials in detail. If we look at on the consolidated level our overall revenue went up by 9%. Expenditure was actually in good control we only had a growth of 6% on expenses expenditure side which resulted in a higher drop through of almost 16% on EBITDA. Looking at the percentage on the EBITDA we ended up the ended of the quarter with 32% EBITDA percentage versus 30. So good improvement in EBITDA percentage overall on operational side good performance but at the same time we got impacted by due to the court judgment which came in the month of June that resulted in an impact on our pat we were down on 62% because of the 110 crores impact on Kanamishopra.
If you look at the standalone performance again a good growth of 15% over here. And this is in spite of the fact that we didn’t have grand and Oberoi airport services in the last quarter versus last year we had both the things in the numbers on on the expenditure side same same trend not has grown lower than the growth what we have seen in terms of revenue which has helped us to increase the EBITDA drop through and a good growth of 28% versus last year on EBITDA percentage we have gone from 30% to 24% as of Q1FY26 on pack we were down versus last year due to again the exceptional item of Shobra of 110 crores.
On on the awards and accolades you know there’s the list of awards which overall hotels have won. We continue to lead in the luxury segment and also get reward also also getting good rewards across across different from different authorities. If you look at Telegraph table awards we got the best total group award from Telegraph Travel awards we were ranked number two among the best hotel brands in the world by Travel Indonesia usa. The list goes on and if I look at the next sheet we also our restaurants also were awarded to be the best in terms of their own categories.
Going to our next expansion lines we continue to drive a very healthy pipeline on the hotels. We just recently signed four hotels which are going to be managed. So with this with this overall our list is roughly 25 properties with 2033 keys spread out across domestic and national but mainly in domestic. If I look at number of keys in domestic front out of the 2023 we are coming with 1750 keys in domestic and the remaining keys international. Out of the 25 properties will be owning eight and managing seven. And so overall a good growth pipeline coming in at this moment till 2030.
This is the business footprint across national and international along for Roy as well as Trident. Total number of keys in India is up to 3007, 3700 at the same time, 408 keys for Roy International in the international locations. I’m through with my, with my set of slides over to you back to Naveen.
Questions and Answers:
operator
Thanks Vinny. Thanks Vikram. Thanks Nabi. Can we open the floor for the Q A session now? Anyone wishing to ask a question, request you to please raise your hand. We’ll take the first question from Abhishek. Abhishek, please unmute yourself and go ahead.
Abhishek
Yeah. Hi, good morning. I have two set of questions. One is regarding the revpar. So basically what I’ve observed that the average revpar which is given across the industry and for EIS should be including the FNB revenue as well. Right. Otherwise the mat doesn’t add up.
Vikramjit Oberoi
We first of all go good morning Abhishek. The revpar is revenue per available room. It does not include F and B and other income.
Abhishek
Okay. So if we have to just you know do a math on the revenue for Q1 FY26 and if we try to take the ref part and multiply it with the number of available rooms into the occupancy ratio, say maybe an average if it is 70% or 75% should add up to. It adds up to the entire revenue. That’s my question. It shouldn’t add up to the entire revenue.
Vikramjit Oberoi
Right? Yeah. So I’m not sure what data you’re seeing for others but hospitality revpar very specifically across our industry refers to revenue per available room based on room revenue. It does not include food and beverage revenue and it doesn’t include revenue from mine operating departments and that’s an industry wide practice. But I’m not sure what data you’re referring to for others. And if you want we can certainly take this offline and better understand what data you’re looking at to answer any further questions you have if that’s okay. But ours very clearly is revenue per available room for room revenue only that I can assure you.
Abhishek
Okay. Another, another question is on the case for which we have taken a exceptional hit of 110 crores. What I understood earlier is that we were to receive a substantial sum through because we are surrendering the property back to them. But now in this particular quarter we have taken hit of 110 crores. So how do you, how do you see this going forward?
Vikramjit Oberoi
I don’t want to make any statements on how I see this going forward. The 110 core is based on the judgment of the court and us accounting for that based on that and if there may be questions. So Vineet, can I just maybe hand it over to you to just give a summary of that 110crore exceptional item for wildflower or from a shower.
Abhishek
So I mean the 110 crores actually constitutes of various and ultimately we have passed the quantity basis the court judgment. The 110crores is on a part of net impact of the equity value which we are, which we are not receiving based the post judgment and also impact of 50% of advance against equity which we are given to Mashopra which has not been considered by the court. So that constitutes the 110 crores.
Vikramjit Oberoi
So I have also seen that we have written back the used fee that amounts to 86 crores. So that we expect that we are not going to pay and we are not going to receive any sum beyond this. Right. That’s a, that’s, that’s the thing to. 86 crores was the user fee what we, what we had, what you’re mentioning that was the amount we were carrying you know a provision the books considering that and that was in lieu of we manage we having the property because think that that stand was not taken by the court. We have reversed that user fee which was sort of at least rental which is payable to the state government. So net of that all those three impacts is 110.
Abhishek
Okay so but this is another thing. Now that the property is given back to the government, I mean that’s very evident that there is going to be. A hotel resort there which is going. To be managed by you know, the hospitality players in India. So do you expect that going to our competitors or expect or you would expect that we, there’s a chance of us getting it back.
Vikramjit Oberoi
So we’re managing the hotel currently as you know on behalf of the state government and we will endeavor to. Once the bidding process is is announced and the criteria for bidders is disclosed our endeavor will be to continue to operate the hotel on terms that are, that are favorable and are a win win for both the Meshobra government or the Himachal government and us. So that’s our hope and our endeavor.
Abhishek
Okay, thanks.
Vikramjit Oberoi
Thank you Abhishek.
Vineet Kapur
Thanks Abhishek.
operator
We’ll take the next question from Amit Agarwal. Please unmute yourself and go ahead, please go ahead. Look, there’s a disturbance in your line. Amit.
Amit Agarwal
Hello?
operator
Yeah Amit, your voice is coming out muffled. We, we can’t unfortunately hear you clearly.
operator
May I request you to disconnect and join again and we take your Question. Thank you. The meanwhile we take the next question from Raghav Malik. Please unmute yourself and go ahead.
Raghav Malik
Yeah. Hi, good morning. Thanks for the opportunity. Congrats on a good set of numbers. So the first question was just a follow up on the Revpar question. So in your picture GPT you’ve detailed that domestic ref pars hire about 16% and international is 22% higher but consol revenue is about 9% higher. So what is the like gap between this Revpar and revenue growth number essentially.
Vikramjit Oberoi
So Raghav, the numbers what you’re seeing on the. That’s mainly on hotel. So the three things which impacted us on consolidated basis was one was Mashobra versus last year. Considering that we already handled all the property on 31st March we are no longer consolidating Mashobra in our numbers. So that is not there in our revenue year over year. At the same time we also impacted a grant which is actually closed for innovation. We had full plan operations last year which we don’t have now. And on top of that we also had our Oberoi airport services in Mumbai which was there last year but not in the current year.
So due to that one to one tie up with Revpar will not be possible with us living in.
Raghav Malik
Okay, okay, understood. And for international hotels specifically the ref part the I mean the slight details that it is including the hotels that were impacted by the recent Middle east conflict. So what is the like for like number then? 22% on a non like for like basis is 20 is 22%. What is like the number that would be you know X the hotels that might have been impacted because of the.
Vikramjit Oberoi
Context actually is the other way around. Like what had happened last year was Marrakesh and Egypt and to an extent Mauritius. These three entities were impacted by the Israel Palestine conflict which was pretty much more, you know impactful for these countries. Considering that that has evened out and the impact was more for Iran we are not seeing the impact. What we had was the last year that has actually improved.
Vineet Kapur
Yeah. And if I could just add to that Raghav, in, in Egypt we’ve also made some changes in how we are operating which has resulted in a sharp growth in Egypt. So one is external factors but I think due to internal changes that we’ve made in positioning the hotel that has also helped see a strong growth in revenue and therefore Revpar as well both in occupancy and well not in rates so much but in occupancy we’ve seen a sharp increase in Occupancy as a result of that. And in Mauritius also we’ve seen an increase as in Marrakesh.
So I think all of that has contributed to the increase you see in Revpar for international.
Raghav Malik
Okay, understood. Thank you, sir. And if I may just squeeze one last follow up so you don’t. I know you don’t give guidance on the existing months probably or the existing new quarter 2Q. But in terms of just the trend like occupancies like halfway sort of caught up I think in June after the dip it seen in May. So is there like a upward traction that we’re seeing again in July and even August maybe? Or is it like somewhat sustaining now at June levels? Just occupancy for the portfolio.
Vikramjit Oberoi
Yeah. Well, do you know in Q3 and Q4 in particular we see the whole industry move up. And I don’t want to make any forward statements but the only thing that I’d like to highlight is some facts. First of all, Q1, despite all the issues that we faced as an industry in India, we were able to drive Revpar. And our endeavor will be to do that in Q2, Q3 and Q4. And I think in Q3 and Q4 our endeavor will be to really maximize opportunity given we anticipate strong increases in demand which are customary every year.
Raghav Malik
Okay, understood. So thank you. I’ll come back. Thank you. Great Raghav. Thank. Thank you. Please call me Vikram. Raghav. I’d feel much more comfortable. Thank you.
Vikramjit Oberoi
Thank you, Vikram. Thank you.
Vineet Kapur
Okay, thanks so much. Thank you.
operator
Take the question from Amit. Hopefully his lines. Please unmute yourself and go ahead. Amit. Yeah. You need to unmute yourself and ask your question. Please go ahead. Yes. He’s still facing some issues. We’ll take the question from Web of Dinesh. Please go ahead. Please unmute yourself and go ahead.
Dinesh
Am I audible now?
operator
Yes, please go ahead. Okay, perfect.
Dinesh
Hi Vikram. Hi Vinit. First of all, congratulations on a strong set of numbers despite all its challenges. Firstly on your performance in owned hotels versus your own domestic owner and managed hotels. So occupancy impact in own hotels seems higher while ARR growth is much better in the own hotels compared to domestic. Domestic, including managed hotels. So is there a strategic shift that. We are targeting in our own hotels where focus is on commanding higher arrange of occupancy going forward? Is it a strategic shift?
Vikramjit Oberoi
Good afternoon. No, actually our endeavor is to maximize rates across our hotels. That of course is subject to demand. Just applying the simple principles of supply and demand. A lot of Our city hotels are EIH owned hotels. And although for example Delhi had a significant impact, Bangalore had a significant impact because of the political tensions. We were still running strong occupancies in the month of April and we by reducing rate we didn’t feel we would stimulate additional demand because I think it was a crisis beyond our control and people will choose to travel and not travel.
Safety and concerns would come first. So we saw a decline in demand and we also well really in pace of reservations and cancellations particularly as a result of sindur. But our city hotels have run high occupancies both in summer and in winter and the differential isn’t that much because business travel still happens whereas our leisure hotels we really see sharp declines in foreign travel to our leisure hotels in the summer months. And therefore your ability to drive rate in leisure hotels when demand tapers off is lower. And that’s really it. But our endeavor is to drive rate when demand is strong across every single hotel.
And in fact our leisure hotels are, you know they offer a level of product and service which is, which is unmatched at global standards. So and therefore operate at much higher rates. Our leisure hotels operate well over 50% arrs. In fact 60 and touching 60 and beyond in the winter months averaging you know in the, in the 50s if you look at year round. So they command much higher rates than our, than our city hotels particularly in the winter months.
Dinesh
Got it sir, My second question was on your pipeline. So I can see there are some delays that have happened quarter on quarter. Mainly I can see The Oberoi Dahabiya 1 and 2 which was supposed to be operational in 2025 are now postponed to 2026. Similar is the case for Nepal property and few others. So what was the reason behind the scene?
Vikramjit Oberoi
So these hotels are all managed hotels and although we have you know we work very closely with, with our partners, if there is a delay our influence over those, those on the timelines, because these are managed hotels is not as much as hotels that we own or have a significant equity interest in. So it’s nothing more than that our endeavors to work with our partners, be sensitive to their needs, support them the best we can and open the hotel as soon as possible. So I can presume that there is no impact on our own properties expansion plans.
Dinesh
No, that. That is. That is correct. Perfect. Just if I may ask last one question on the impact of closure of Over A Grand and Wildflower hall. So what kind of impact was there? Because on the closure of two. These two properties along with that what was the impact of closing the. Of the airport launch business. And also if you can share the revenue numbers for the OFs and OS.
Vikramjit Oberoi
So I don’t know if we share numbers. Vinit, you just want to take that question. I don’t think we disclose numbers for OFS and oas.
Vineet Kapur
Yeah. So overall I’ll not share anything specific on the profitability. But on a revenue side I can just give you an indication on the grant. If I look at between Q1 and Q1 this year and last year we had roughly an impact of 22 crores which we had on account of grant on Oberoi Airport services. The impact was roughly 28 crores. 28 crores.
Vikramjit Oberoi
Yeah. And. And that was more than offset by. By. By OFS subsequently. So that I can assure you.
Dinesh
Got it. And about White floor Hall.
Vikramjit Oberoi
Yeah. Once VI would have been approximately the same because last year we were consolidating on revenue front. There was no impact.
Dinesh
Oh, got it. Perfect. Sir. That’s it. From my side and all the best.
Vikramjit Oberoi
Thank you. Thank you so much.
operator
The next question from Vaishnavi. Vaishnavi. Please unmute yourself and go ahead.
Vaishnavi
Good morning, sir. Thank you for taking my question. I just have one question from my end. This is regarding the exceptional items. Do we see any other future exceptional items to be recorded from the Himachal property or the current one is the final one.
Vikramjit Oberoi
You want? I would say the current one is the final one. We should not see any more exceptional items coming from him. Master.
Vaishnavi
Thank you, sir.
Vikramjit Oberoi
Thank. Thank you, Vishnu.
operator
Thank you. We’ll take the next question from Amit Agarwal. Amit, please go ahead. Please unmute yourself and go ahead. Ahmed, you need to unmute yourself. Yes. Please go ahead. Still facing a problem with his connectivity. Maybe type his question in. Amit, can you please post your question on the Q and A board and I’ll read it out. The next question is from Amit Kadamit. Please go ahead.
Amit Kadamit
Yeah. Hi Vikram. So my question is just. I want to go back to our bag. When we had shared this vision 2030 where we had shared that we want to double our room counts. And. And that we had seen a series of some activities that action regarding. Whereas now if I look at the pipeline what we have said till almost 2030. It gives me just an indication of 2000 odd rooms on a current sitting base of more than 4,000 odds. So how do I see this thing like the. How do I reconcile our two year back vision 2030 and the current pipeline. Do we have to materially scale up our manage rooms efforts too so that we at least be closer to that thing because on 4000 we were assuming 4000 kind of additional.
We are all park in the range of 2000 so we need to gap the bridge the gap of almost 2000. So what’s the management view on this particular part?
Vikramjit Oberoi
No, great, great question Amit. And all I can say is that all of us in the organization are single mindedly focused on growth and whether that’s through management contracts, through partnerships, etc. And in just this last quarter, as you know beneath ran through the four hotels that we’ve announced, we continue to focus on this. It has our complete attention and we hope that with that focus and with that attention we will be able to drive further opportunities for growth for both Oberoi and Trident.
Amit Kadamit
So we should be certainly optimistic about that particular thing at least being closer to that particular vision. What we had mentioned.
Vikramjit Oberoi
Yeah, I mean what I’m saying to you is that that is our vision, that is what we’re going to work towards and you know it’s very important for us to drive growth. And if you just see the announcements that we’ve made in the last 12 months, we’ve still got part of 2026 to go in 2027. So there’s still opportunity for considerable growth at least. I remain hopeful and optimistic.
Amit Kadamit
Okay, nice to hear that. And second, just in the extension of this particular question as the hotelier and the things what we have seen in last three years, what are the challenges, new challenges which has emerged in last one or two years which would may not allow or will act as a deterrence to this particular vision. What I’m trying to indicate from here is that we have seen like a couple of hoteliers saying that some clearances are getting delayed. I mean one of the recent comments from you only in the today’s call you will see that one of the hotel moved from 25 to 26.
So what are the challenges? Build regulatory be it human resource or be it some like new Greensville land level things. So just wanted to hear from you, what are the challenges current hoteliers have started seeing in the last one or years because of the rapid expansion from all the hotels companies across India? Yeah, that’s it.
Vikramjit Oberoi
No thanks. Amit. Amit. I don’t know if there’s anything that has changed substantially in the last one or two years. I think during COVID and this is my personal view is that I think we as hoteliers was the hotel industry were not kind to our colleagues There were large layoffs of people. And this really pains me a lot. You know, as human beings, we should be supporting one another, at least people within our organization and, or within the companies that we work. And that really was something that the industry did not do during COVID And as a result of that, you can look at admissions to hotel schools.
There’s enough published on this to see that positions weren’t vac or admissions were lower. Positions remain vacant. So one area of concern is of course people and that’s core to who we are and a core to our business. We stand by our colleagues, we support our colleagues and that is a very, very important value for our organization. So, but, but human resource is a challenge for the industry. What hasn’t changed is the, the approvals, the delays as a result of that. Those things haven’t changed in, in the last two years. They existed even before. And that is, that can cause delays for hotel openings.
Land is also another, another issue. Securing land. Land values are very high in city locations. You have to look at mixed use developments and obviously location is key to a hotel’s success. I don’t know if I’ve answered your question. I’m just trying to think if there’s anything else. But let me talk about the positives. Let’s not focus on the negatives. I think our economy is growing strongly. The ability to spend on high end experiences and products are strong and growing rapidly. So I think there are many, many positive things that are happening in our country driven by strong economic growth and these will continue into the future.
So I think there’s a lot to also celebrate and just not focus on the negatives. Let’s focus on, see how we can capitalize on the positives and at least not worry about negatives that are beyond our control.
Amit Kadamit
I’ll just fall back into. I have a couple of notes. I’ll come back.
Vikramjit Oberoi
Okay, great, thanks. Amit.
operator
Friends request you to limit yourself to two questions because there are a lot of participants waiting in queue. Take the next question from Abhishek Amishek, please go ahead.
Abhishek
Yeah, hi, I just see the. There’s a rental income from investment property in the annual report for financial year 2025. What is that and from what are we getting that money for?
Vikramjit Oberoi
That rental income is mainly coming from Oberoi center, which is a building in Gurgaon.
Vineet Kapur
This is just to give you a little bit more detail. We have the Oberoi center which is in Cyber City in Gurgaon. It’s roughly about 110 square feet and it’s a seven story building. We occupy one of the floors which is the top floor and the others are leased out two to, to various parties. One of our key tenants there is BMW that’s taken multiple floors.
Abhishek
Okay. And there’s another. Just a follow up question on the right business. Out of 2,000 odd crores, 2007, 2,700 crores of revenue which we have booked for financial year 25, how much of that does from the flight services business?
Vikramjit Oberoi
I’ll leave that. I’ll give you overall if I look at Q1, I’ll give you the Q numbers. We had roughly 110 crores. That’s our revenue. That’s the figure I can share, but nothing more than that. But for financial year 25 on a whole year basis. 25, I can share the numbers separately. I don’t remember the number and I don’t have that handy.
Amit Kadamit
Just to understand what is, I mean why are we not very, you know, transparent about revealing this numbers for this business? Is there a reason for it?
Vikramjit Oberoi
I, I don’t think there’s a. There’s a reason for it and we’ll certainly look at it but at this point we’re not. And Vineeth and I’ll have a chat about seeing how we can include that going forward. But what I will say is that, you know, the Oberoi Airport services had very strong revenue and very strong flow through to ebitda. And what I can also say to you is despite that business closing with the lounge contract coming to an end, we’ve been able to offset that at an EBITDA level as well with the flight kitchen business.
So there’s strong demand. Our focus is on international flights where margins are better and the business is doing very well. But what we will look at is seeing whether we can give you or share with the market details on that business.
Abhishek
Yeah, sure. And another thing, if we want to communicate offline, it’s not a question, just if we want to connect with, with you offline, how should we do that? Writing it to the investor department or how should we do that?
Vikramjit Oberoi
Yeah, I mean maybe you can, we’ll be in touch with Naveen and we can look with Naveen’s help we can do that. My email ID and number there on the invite. Maybe you can just drop me a mail and I’ll take it.
Abhishek
Sure, sure. Thanks.
Vikramjit Oberoi
Thanks. Thanks for that too. Thank you.
Abhishek
Before we take the next question from Sangeeta, may I just read out a couple of questions on the board show? Okay. Amit, who’s been trying to get. Come on to the, you know, to ask this question. He says. Just wanted to tell Mr. Vikram that last week I was in Lombok and it’s an amazing property but my suggestion is that you need helicopter services as it is a remote island.
Vikramjit Oberoi
Yeah, no, you know, it’s. The hotel is a fantastic hotel and Amit, I’m so glad you stayed with us. I hope we looked after you well and you were happy with the service and the lovely people we have who work at that hotel. Touch with our guest feedback is very positive. I think with a helicopter service, if you have to underwrite that, it’s a substantial commitment and a substantial risk and therefore it’s something we haven’t done. You can’t. They’re regular flights from Bali and also from Kuala Lumpur and I believe Singapore perhaps now as well to Lombok.
So access is a little bit easier than it was previously. And there’s also a very convenient. In fact what I normally do if I’m in Bali is I take the. There’s a ferry crossing, it’s a high. It’s like a large boat which is very comfortable and takes you from Bali to Lombok in, in about two and a half hours. And it’s quite a nice experience as well. So there are many ways to, to get to Lombok. We’d be hesitant to look at a helicopter service because I think there’s a risk associated with that and you need to underwrite it, which we, which we wouldn’t want to do.
But the hotel is, I mean right now the hotel is doing very strong occupancy. This is peak time for Bali and for Lombok. In touch with both hotels are doing very well.
Unidentified Participant
Thanks. Okay, here’s questions. My two questions are regarding the London property that we are coming up with. Boutique properties. Do we own the land and are there any restaurants and shops coming there along with the rules?
Vikramjit Oberoi
Yeah. No. So absolutely with the Mayfair hotel, it’s a 125 year lease from Grosvenor State. So it’s. We don’t own it but it’s on a very long term lease of 125 years and there will be a restaurant and absolutely a bar and nice common spaces for our guests as well at Mayfair London.
Unidentified Participant
And the second question is that we’re doing a lot of managed deals. Are they for a particular period or the contracts are for an infinite period?
Vikramjit Oberoi
Contracts for hotels are never for an infinite period. They are for a specific number of years and these are varied from 20 years upwards. So. And there’s also typically hotel contracts renewal clauses for another 10 or 20 years. So these are very long term contracts. Thanks. And I’m talking about the industry in general and we are no exception to that.
operator
Okay, question from Anshu Chauras here. As a hotelier, what is the targeted IRR for acquiring a new property and whether it’s a greenfield or a brownfield project. Can we, I, I don’t know if we can. Do we disclose?
Vikramjit Oberoi
I mean I have no issue looking at unturned benchmarks but I don’t know beneath it.
Vikramjit Oberoi
This question is on error, right?
Unidentified Participant
No, no. Yeah.
Vikramjit Oberoi
So of course, you know, I would say we have a benchmark considering that we have taken to consideration the return on equity to the shareholders as well as look at the debt levels, what the company can afford. But yeah, it’s a decent double digit IRR which you look for. But I’ll not be able to give you the specifics.
Vineet Kapur
But we may I just say one thing which may give you some comfort is that we have internal benchmarks that we strictly follow on IRR and in terms of enterprise value as well. And we, it’s something that we, when we do our projections, whether it’s for an owned or managed hotel, even for managed hotels we always run the numbers of how we feel we can perform and we do that with honesty and integrity with our partners. So we really present what we believe is a true and fair picture and we tend to be conservative. I’ll give you an example of I won’t mention the hotel but when we did a study and shared the numbers for occupancy, ARR etc and P and L, let me.
Not even because it was really on revenue side, on the cost sides we have, we’re reasonably efficient. It was substantially lower than what was subsequently shared by a consultant. So we are conservative with our projections. We make a commitment to our partners and we want to not only meet those projections but exceed those and that that will hold us in good stead in terms of building a strong foundation of trust and a strong relationship with our partners. We don’t want to ever be in a position where we let people down.
operator
Thanks Vikram. We’ll take the next question from Rupam Jaiswal. What’s your view on upper luxury segment and how do they trend in terms of ARR and occupancy and does international travel leader is this bound to see exceptional growth in future and where are we placed?
Vikramjit Oberoi
So, so do you know in we’ve seen if you look at, let’s take a 15 year horizon. We’ve seen a dramatic change in the contribution of Indian guests to overall revenue. And I’m now specifically talking about leisure since the question was at leisure. But this applies to all our hotels. And we remain very optimistic that that trend is going to not only continue but increase at a more, even a greater pace, a more rapid pace of growth just given what’s happening in our country. So that’s the first point. The second point is that international travel and international guests staying at our hotels, our Indian guest is the single largest segment followed by the US and the uk and it’s a very, very important segment for us.
I know you’ll be familiar with figures released by the government on growth of international travel to India. And I think we’ll all benefit. The industry will benefit if we achieve those targets. And our country of course will benefit if we achieve those targets. So I think we should really see how we can work in partnership with the government both at a central and state level to drive foreign visitors to our country. It brings in foreign exchange. It also creates ambassadors to our country. And I’m sure that translates into business opportunity as well.
operator
Thanks Vikram. We’ll take the last question on the Q and A book before we get back to the question and answer. What is the occupancy for full year FY25 at consolidated level?
Vikramjit Oberoi
I think it was. I feel like saying 78% but just, just give us one moment. This was from Vineet Bajaj Vinit. Just hang on for a second. For eih. It’ll be for EIH totals. You know this is mainly on. On over on eh. Totals what we have in India. We were running occupancy for the full year at 80.77 last year.
operator
Thanks Maneep. Okay friends, we are in the last 10 minutes of the webinar. So request you to limit yourself to just one question and make it short. Thank you. We’ll take the question from Sangeeta. Sangeeta, please go. Please unmute yourself and go ahead. You need to unmute yourself. We’ll take the next question from Rajiv Bharti. Rajiv, please unmute yourself and go ahead.
Unidentified Participant
Yeah. Hi. Good morning sir. I have three questions actually. So one is the one thing is actually capex part of it. Now when I see the schedule versus let’s say Q2 FY23 of various projects you have given then out of the. Out of the. Let’s say 21 and now they have scaled to 25. 14 are delayed by close to a year. And four are delayed by close to three years. So this is, this is in terms of timelines which we are giving how confident are we that these would be met? And in that way very happy to see that the gear is back in the fold again.
Vikramjit Oberoi
Thanks. Thank you. Like I mentioned our endeavor with hotels where we either it’s owned by EH or has substantial equity we meet the timelines that we set that’s important for us sometimes that’s not always the case and I don’t know if I can get into specifics to just give examples maybe I shouldn’t because I can think of one EIH associate hotel where there’s been a delay as a result of some land related issues but we’ve now solved those and we’re pressing on with that. With managed hotels like I mentioned earlier we have far less control and Dahraya for example is one of those where there’s been been a delay reopening the first hotel in Daraya next year but there was also a second hotel which has been delayed and that is really beyond our control.
It’s a Daraya Gate project and there have been delays or deferment of certain or certainly of our hotel and so that’s really what I what I have to say for our in summary for our own hotels our endeavor is to meet the timelines we set and sometimes the things beyond our control. As an example one specific land related issue with our partners they if they’re delays we we see how best to work with them to meet the earliest possible timelines for opening the hotel.
Unidentified Participant
Sure sir. So regarding EH International when we are seeing this last four quarter performance you have seen 20 RevPAR growth but when I compare the annual numbers they moved up I think by 3, 4% so what is the seasonality in H1 H2 in this business?
Vikramjit Oberoi
In fact in places like Indonesia the Q2 of our financial year and Q3 are strong because they have their rainy season that starts in November if I’m not mistaken. So it’s in fact in many ways opposite to ours. Egypt on the other hand is again occupancies pick up in the winter months similar to India because it’s very hot. Marrakesh is also similar because summers tend to be hot there so winters are typically periods of higher occupancy and Mauritius is its seasons are reversed so again summer months are better in in Mauritius sorry their summer months are better which is our winter because it’s reverse season.
So it really is a mixed bag to answer your question.
Vineet Kapur
Lastly this tribe Oberoi Hyderabad. Is it a conversion or this is a greenfield as that it’s a green field.
Vikramjit Oberoi
That’s all from my son. Thanks. Thank you very much. Thank you. Thanks Rajiv.
operator
Naveen, you’re on mute.
Amit Kadamit
How much time do we have? Because there are some questions on the Q and A board, some on some participants lined up.
Vikramjit Oberoi
We can I have a meeting at 12 Naveen. But I can, I mean if I’m five as long as I’m not too late. So maybe a few more minutes or we can also ask people to send their questions through through I leave it to to you.
operator
It’s they are all follow up questions from va Raghav and Amit. Guys, request you to send me your questions and I’ll forward them to the management because Vikam’s already running late for his commitments. Give me a second. I’m I’m really sorry Naveen. Maybe next time I’ll set an hour and a half aside. I’m sorry. So friends, may I hand over the floor to Vikram and Vineet for their closing remarks before we wind up please. Just one sec. I’m sharing my email ID so any follow up or unanswered questions request you to write them to me and I’ll take them up. Yeah Vikram, please go ahead.
Vikramjit Oberoi
Vineeth. I I sorry Naveen. I don’t have much to add to whatever I’ve already said in the questions that I’ve asked I’ve answered. If I were to give an overall perspective. I still am optimistic about the India story. I think EIH will benefit from that. And we continue to work in the premium segment which we believe is a segment that has tremendous opportunity in our country. We continue to drive ARR to the best of our ability. Sorry, you can maybe cover that. Vinita has given me a note but if he I’ll ask him to add his comment as well rather than reading out what he’s telling me.
So yeah, we remain remain optimistic and you know there are in any business you have ups and downs and what happened in the month of May that extended into June had an impact on all of us. So those risks always do exist.
Vineet Kapur
And I would like to add that we continue to drive our vision for 2.0and we are working towards that goal. I would say we are pretty much focused to deliver what was committed two years back.
operator
On behalf of SKP securities, thank you very much Mr. Oberoi and Mr. Kapoor for taking time out to patiently answer all the queries and we look forward to hosting you again in the next quarter. Thank you very much. Thank you, ladies and gentlemen.
Vikramjit Oberoi
Thanks, Naveen. Thank you very much, everyone. Thank you. Bye bye. Sa.