EIH Limited (NSE: EIHOTEL) Q3 2025 Earnings Call dated Feb. 14, 2025
Corporate Participants:
Vikramjit Singh Oberoi — Managing Director and Chief Executive Officer
Vineet Kumar — Chief Financial Officer
Analysts:
Navin B. Agrawal — Analyst
Archana Ghode — Analyst
Amit Agarwal — Analyst
Abhishek Jain — Analyst
Unidentified Participant
Harshul — Analyst
Sangita Parshotam — Analyst
Abhai — Analyst
Bharat Sheth — Analyst
Rajiv Bharati — Analyst
Pratik Maheshwari. — Analyst
Jagan — Analyst
Presentation:
Navin B. Agrawal — Analyst
Good afternoon, 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 Q3 FY ’25 Earnings Webinar. We have with us Mr Vikram, Managing Director and Chief Executive Officer; and Mr Vineet Kapoor, Chief Financial Officer. 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 risks that the company faces. We will have the opening remarks and a presentation by the management, followed by a Q&A session.
Thank you, and over to you, Vikram. Thanks.
Vikramjit Singh Oberoi — Managing Director and Chief Executive Officer
Thanks, Naveen, and good afternoon, ladies and gentlemen. Thank you for joining us for the call. Many of you will be meeting beneath for the first time. So Vineet joined us as CFO. And it’s great to have him on-board are taking on the roles from Kallo, who all of you know. Just a few very broad statements I’d like to make is that you’ll see if you’ve already downloaded the presentation, you’ll see something that we’ve been reiterating time-and-time again on the premium positioning of Hotels. And possibly to a slightly lesser extent Trident Hotels.
It’s not quite — hasn’t shown the same ARR RevPAR growth as, but still has performed well. And our view continues to be that really the premium segment is — has strong opportunity for growth in terms of occupancy — in terms of average room rates, occupancies and therefore RevPAI profitability. And when goes through the numbers, you will see why we say what we’re saying.
So with that, I’ll probably hand over to Vineet. And of course, we both are here to answer questions that you have. Naveen, just one other request. Because we are in the midst of our budget process, I do need to get back. In fact, both of us need to get back to in a timely manner to our meetings. A number of our colleagues are waiting and we’ve just stepped out for lunch so if we can please keep it at the time limit, I’d be really grateful.
Navin B. Agrawal — Analyst
Sure, Vikram. Friends, I request during the Q&A session, request you to limit yourself to just two questions because we need to wind-up at 4 o’clock. Thank you. Thank you. Vineet, over to you.
Vineet Kumar — Chief Financial Officer
Thank you, Vikum. Thanks a lot. And treasure is totally mine for joining this call and I look-forward to more interactions with everybody around. So starting with the presentation, Daveen, if yeah I’ll just share it.
Vikramjit Singh Oberoi — Managing Director and Chief Executive Officer
Can you see it Vineet?
Vineet Kumar — Chief Financial Officer
Yes, yes, now we see. So if you look at this more of in the overall Indian hotel sector, we have seen quite good expansions happening in 2004 and the — and the expansion is happening both in domestic tourism as well as because of corporate travel. And I think the main key drivers are the tourism, a lot of conferences, a lot of events are happening, there’s also post tourism and also the fact that you know, there is a good growth from Indian leisure segment in luxury as well as wellness requirements.
So we have seen a good healthy growth in last year and we should be — and we foresee that this will continue in the coming future. If you look at the industry numbers for Q3, of course, when we’re talking about the domestic air passengers, the traffic has improved almost 12% as compared to the pre-COVID era and we are seeing also a very healthy 9% growth in the air traffic year-over-year — on a year-over-year basis. And with that, we see overall industry has grown — has done very well on occupancy, roughly 2% to 4% growth over last year in occupancy, which has led and also a very healthy growth in ARR, which is actually around 9% to 11%. And that has resulted in a very good RevPAR growth of 14% to 16% versus last year.
And if we look at versus COVID, the growth is almost 45% to 46%. And our perspective is that this is — the signs are very healthy, still growing. The demand is pretty strong at this moment. And we foresee a good growth coming in the coming future. If you look at our operational performance, EIH has done well as far as competition is concerned. If you look at both on an NPI as well as AI, we have been — we have been able to maintain more than 100% index versus the competition and that’s resulted in a good RGI over a good sustained period of time, except for the blips which we saw during the COVID era.
Just breaking that down, if you look at the industry growth on a RevPAR, we have seen a healthy 15% growth on RevPAR of for domestic hotels and this will be the total industry. If you look at within the Group, within the — within the owned and managed hotels, we have seen a healthy RevPAR growth of 17%. And if you further break that down, we have seen a very strong growth in our overall hotel segment where we’re seeing a 22% growth and in Trident, we are almost same similar in the similar pattern as industry. But that gives us a benefit of our RevPAR much more higher than overall industry.
And the same trend continues on a RevPAR growth. We are — if I look at the five-year RevPAR CAG growth is roughly in the range of 13%. We have seen the cycles of summers and then picking-up again towards Q3, Q4. But the base has moved up. And if I really see versus our FY ’20, which was 10, we are running at 19,000 on a RevPAR basis, which is a very healthy growth of 46% to 47% in terms of percentages. So same thing, just breaking them down in Q3 we are seeing pretty healthy occupancy levels in the range of 88% in — beyond 70% 75% and we’ve seen a healthy growth in December as well.
And the major thing to see down would be the ARR where we are seeing a good growth in every month vis-a-vis last year. So at an overall occupancy, if I look at, we have seen a occupancy almost at the same rate as last year of 79%, 80%, which is pretty good healthy occupancy rates, but driven by a very good ARR, which is driving our RevPAR growth for the quarter. This is a further breakdown between EIH own. The earlier slide was for the total. The same trends what was visible for the total group if I bring, if you break that RevPAR down on a growth by city, we have seen some degrowth in cities like, I think mainly driven by some sports events, which were there as a one-time event last year, which didn’t occur this year.
Otherwise, healthy RevPAR growth in every city. And if you look at the Hyderabad grown by 26%, huge demand in terms of both supply — in terms of requirement. And our international hotels also have done customer well versus last year. We’ve seen a 20% growth in terms of RevPAR, driven by the fact that last year we got badly impacted by the Israel conflict, which is now coming — stabilizing at least from a tourism, tourism and travelers perspective.
If we further break that down on the revenue tail — on the segment-wise revenue, we are seeing a good trend in terms of direct is driving a lot of growth where there’s a lot of growth in that segment, the revenue which is driven by the direct segment has grown much more faster. We have seen leisure and mice on the same range, but a good factor of growth coming from our direct sector for the current — for the last year, if you look at the Q3 performance, on a standalone basis, our Q3 was the highest — highest performance in both in terms of revenue, EBITDA and PAT, driven — driven by occupancy as well as healthier ARR growth, which is helping the overall financials.
Through the same trends for Q3 consolidated standalone and consolidated. In fact, consolidated was on a little higher side because of our subsidiaries and international business did well as compared to last year. So this is the cash-flow situation. So pretty strong cash-flow. We have been able to maintain and this basically will help us to support all the expansion plans which we have, which we have already announced and are planning to announce in the coming future and supporting the expansions for the hotels, which you will see the list in Slide 24, which already has the list of the hotels in the pipeline so if I look at the Q3 financial statement on a standalone basis, we grew revenue income by roughly around 6%.
And just to add here, we had one of the hotel — hotel brand in Calcutta, which was shutdown for innovation. If I exclude — if I exclude that impact on a like-to-like basis, we have grown at 11%, EBITDA growing in a healthy range of 7% and PAT growing much more healthier by roughly 18% on in Q3. So consolidated is the same and we — what I mentioned before, our growth is higher than my standalone because of better operations, better performance in subsidiary and my international operations. Overall PAT increase of 21% on a consolidated basis.
These are various list of awards and accolades, I think — Obra is known for his of for the hotels and the service. So we got numerous awards across US, UK and in — and in India for our hotels. These are all the awards which are during the Q3 which were received. Coming to the expansion plans for the Group. This is the list of hotels and roughly 19 properties which are — which are coming and are in the pipeline. A few of them will get operational in ’25, couple of them coming ’26 and in the future, yes. So overall, if I look at as a summary, overall hotels, we’re going to add roughly 13. Tradent, there’ll be three hotels which will be added. We’ll also have luxury boats and cruiser, which is roughly three. If I take the split, we are increasing in all geographies, including domestic and international, domestic growth of 10 and international, we are increasing Nine numbers. And the same if I look at in a percentage basis, owned are eight and managed properties will be 11. So maybe we just want to say that we will be in the further two hotels or I can add this is more of a for the next week. Right.
Vikramjit Singh Oberoi — Managing Director and Chief Executive Officer
Okay. But I won’t give details of the hotels, but should I just mean and a press release will be coming out next week on two further management contracts that have been signed since our last presentation to you, both of these hotels, one is in, one is at and they both are in India, but we will share that press release with the stock exchange and of course with the press so that will be covered and of course we will announce it to you as well. Should we move on?
Vineet Kumar — Chief Financial Officer
Yes, please. So next is just the footprint across. We are present — this is a chart of the international presence. We have seven resorts and hotels across in different geographies and if I look at there will be some of course our presence will increase once we the pipeline, hotel, hotels, the pipeline get ready and they become operational. On the next page is the presence in Indian national — that’s our national presence, both for and. So roughly on a total basis, INR3,000 — roughly INR3,700 please across India. That’s it. That’s for our Q3 investor presentation. Back to you,
Questions and Answers:
Navin B. Agrawal
. Thank you, Vikram. Thank you,. Friends, we now open the floor for the Q&A session. And as requested, please restrict yourself to one question because you’re running short of time.We take the first question from Ashna Gurde. Ashra, please go-ahead. Ashra, please unmute yourself and go-ahead.
Archana Ghode
Am I audible now?
Navin B. Agrawal
Yes please go-ahead.
Archana Ghode
Hello. Yeah. Yes, sir. Sir, thank you for the opportunity. Good afternoon. Decent set of numbers. Sir, actually I had two questions, but Naveen is enough since we are running out of time. I’ll just ask you one quick question. We had this impressive mid-teens increase in ADR. How has been the trend in Jan, Feb of this quarter? Some color on this. And after healthy growth in India post-COVID, continuation of similar growth is doable or should we expect some softness there? Any guidance for FY ’26 would be helpful?
Vikramjit Singh Oberoi
So, sorry, Archina. First of all, good afternoon. I think perhaps this — is this your first time on the call?
Archana Ghode
No, sir.
Vikramjit Singh Oberoi
Okay. Sorry, then I apologize, Archina., just your — I had trouble hearing you. So if I understood you correctly, you were asking about January and February. Is that correct on ADR growth?
Archana Ghode
Sure, sir.
Vikramjit Singh Oberoi
Yeah. And the same likelihood of continuing to drive ADR in times to come. Those were your two questions.
Archana Ghode
Great.
Vikramjit Singh Oberoi
Okay. So we continue to drive ADR and we’re confident that we will be able to drive ADR like we’ve done in the past and there’s no reason for that to change. Our position still remains unchanged from previous questions that I’ve answered along these lines. And your second question was really can we sustain these ADRs over-time? And my view is absolutely, in fact, my view is that there is considerable opportunity to enhance ADRs substantially. You would have seen in the EIH slide, the hotels are running of a very-high occupancy.
And with that high-demand, we’re confident of being able to drive ADRs further. I also want to point out that given the quality of hotels, not only EIH hotels, but the quality of hotels that we have in India are EIH and others are there — and you look at our pricing relative to other cities around the world, there is a considerable upside in rate. We’re still, in my view, underpriced for the quality of hotels that we offer. Both in parts of Asia and in leisure and business and also in Europe and North America where many of our guests come from. So we still great value for our guests who travel to and stay at our hotels and we’ll continue to drive ARR on.
Archana Ghode
Sure. That was helpful. Thank you so much, sir.
Vikramjit Singh Oberoi
Thanks so much, Arshna. Thank you.
Navin B. Agrawal
Thank you, Arshna. Time permitting, we’ll take your follow-up question. We’ll take the next question from Amit Agarwal. Amit, please go-ahead.
Amit Agarwal
Hello, can you hear me?
Navin B. Agrawal
Yes, Amit. Please go-ahead.
Amit Agarwal
MR. Hello Amit. How are you doing?
Vikramjit Singh Oberoi
I’m doing well, but I feel in fact both Archina, Archina called me, sir, and I’m certainly not sir. I’m Vikram and please, I promise bro either. But whatever you’re comfortable with.
Amit Agarwal
Right now calling — I’m joining a meeting from.
Vikramjit Singh Oberoi
How nice. Oh, thank you so much for staying with us. I hope you’re having a good stay.
Amit Agarwal
Yeah, but I’m sad also because the property won’t be there next month, so I just came to have more time to enjoy this property.
Vikramjit Singh Oberoi
That’s very kind, Avian.
Amit Agarwal
I will — I request you to do everything to — so that we can regain this property. Like I love this property. This is my seventh or eighth visit.
Vikramjit Singh Oberoi
Yeah. No. Thank you. Thanks, Amit. And first of all, thank you for staying with us. Secondly, absolutely, we love the hotel just as you do and we will do whatever we can.
Amit Agarwal
What are the chances?
Vikramjit Singh Oberoi
I don’t want to comment on that, Amit.
Amit Agarwal
Okay. I’ll let that go there.
Vikramjit Singh Oberoi
All I can say is that our effort will be 100%.
Amit Agarwal
Sorry, sorry, sorry, just my other question is regarding Pune thing. Like within three months, it what made you feel that we shouldn’t go with the project? Because I think our approach compared to the other hotel chains in India, we are conservative in owning the hotels now and most of the hotels that are coming up are mostly managed. And the two or three properties which are coming are old properties like Bangalore, I think you own the land for a long-time. So nothing new. Are we conservative approach in future because most of them has managed and the Pune one is canceled. Any reason the Pune one?
Vikramjit Singh Oberoi
So, we — I’m sure you’ve seen it, we made an announcement to the stock exchange on the cancellation. And Amit, I don’t want to say anything over and above that on the — on why it didn’t happen. All I can say is that we would be very keen to have a hotel in Pune. And we’re disappointed that this has not happened with this particular opportunity. But we will look for other opportunities for mixed-use developments, both in Pune and in other cities.
And that’s our endeavor and I hope we’ll have more good news to share with you. Like I mentioned, we’ve signed two further management contracts from the last-time we met and one is an, one is a Trident and we’ll be making a sending a press release out next week, so please wait for that. But growth is something that is very important for us and we continue to focus on it and give our 100% to driving growth are both in terms of JVs, management opportunities or owned opportunities.
So that is a top priority for the organization in addition to maintaining the highest levels of service for our guests and keeping our premium position and running profitable hotels as a result and ensuring our team and our colleagues are well looked after so they can do the best they can for our guests.
Amit Agarwal
Do we expect some more announcement beyond the last — next week announcement regarding some new joint-ventures or opening?
Vikramjit Singh Oberoi
The two the two will be — it’s not a JV, it’s a pure management contract, but we will be announcing that Next year.
Amit Agarwal
Beyond that, is there any scope of announcing some more next month or so two months?
Vikramjit Singh Oberoi
We are — we are working hard and I think given the effort we’re putting in, I hope we will continue to share news on our growth. But other than that, I really don’t want to say anything till everything is confirmed and we can make a formal announcement.
Amit Agarwal
And my last thing is how the development going on? Because I heard that political there have been particular some, you know, objections to the project. No, are you sure we are going to meet the deadline?
Vikramjit Singh Oberoi
We absolutely will. Yes.
Amit Agarwal
Okay. Thank you. Go-ahead.
Vikramjit Singh Oberoi
Thank you so much. And I’m thank you and enjoy your state Hall and thank you for staying with us. Really appreciate it.
Navin B. Agrawal
Yeah, man. We take the next question from Abhishek Jain. Abhishek, please go-ahead.
Abhishek Jain
Good evening.
Vikramjit Singh Oberoi
Hello Abhishek.
Abhishek Jain
Yeah. So I just — I recently I had visited your maintenance hotel in Delhi. Yeah. What I would like to know is that like maintenance hotel, what is the proportion of the properties that are owned by EIH out of our total portfolio?
Vikramjit Singh Oberoi
So if you refer to the — I think that’s given in the national presence. So just go to that chart, it will give you those details and…
Abhishek Jain
Yeah. So along with that, I want to know that since these properties are like a couple of them are owned by us more generally the older ones, what would be the market value of the land of the number of hotels which are owned by us — owned by EIS as of date?
Vikramjit Singh Oberoi
We haven’t done a valuation on the land side. I don’t want to even hassle a guess.
Abhishek Jain
Okay. And just the last one, what would be the extent of the property, which is located at Narimin Point and just the extent of land.
Vikramjit Singh Oberoi
I’m sorry, could you repeat that question? The extent of land at, which includes and?
Yeah. It’s — you would have seen the site. I’m like let me get back to you on the exact sort of exact size of that land.
Abhishek Jain
Okay.
Vikramjit Singh Oberoi
I don’t want to give you anything which is not 100% accurate. And I don’t recall the exact plot size, but we can certainly share that with you.
Abhishek Jain
That’s owned by, right?
Vikramjit Singh Oberoi
It is — it’s — the hotels are owned by EI chips on a lease, which if I remember correctly is a 99-year, 99 lease.
Abhishek Jain
Okay. Okay. Okay. Thanks. Thanks.
Vikramjit Singh Oberoi
My pleasure. Thanks. Thank you, Abhishek.
Navin B. Agrawal
Yeah. Thanks, Abhishek.
Vikramjit Singh Oberoi
And Abhishek, thank you for visiting the maiden.
Abhishek Jain
Yeah, I was really quite delighted to — yeah.
Vikramjit Singh Oberoi
One thing, I think that hotel has tremendous potential. Yeah, because it’s a historic hotel that’s hated for leisure and I think it has a bright future. So that’s all I’ll say for the moment.
Abhishek Jain
Yeah. Yeah.
Navin B. Agrawal
Thank you,. Thank you. We’ll take the next question from Andre. Please go-ahead.
Unidentified Participant
Could you just help me reconcile some of the numbers that you have presented in the financials are 2% RevPAR growth and an absolute growth in revenues of 8%. That’s one. And the second thing is that you have an absence of exceptional items in the PAT, which is boosting the PAT growth as compared to last year — next year. So could you give us a sense of how we should look at the operating leverage that is actually playing out in your hotels?
Vikramjit Singh Oberoi
Yeah please. Vineet, in case you need to refer to the PPT, yeah, I’ve opened it.
Vineet Kumar
Yes. So if I just see here, if you look at the number, we have grown by 8% in terms of overall revenue. And the one-timer, what you’re looking at was a one-time event, which was last year, that has been — it’s not — that was mainly on kind of, which was there last year, which is not getting a — there was no one-time for the current year.
Vikramjit Singh Oberoi
And the 2.1 if I — it’s just the lease rental, if I’m not mistaken, the 2.1 the exceptional items this year in FY 2025 under exceptional items. Please sorry, I didn’t mean to interrupt.
Unidentified Participant
Yeah, that’s the lease — that’s a lease rental impact for the current year.
Vineet Kumar
That’s a lease rental impact for the current year.
Unidentified Participant
No. So my question is 17% RevPAR growth and 8% absolute revenue growth. Can you just help reconcile the difference?
Vikramjit Singh Oberoi
This is — I’ll just explain that. And I’m sorry, we probably didn’t cover it in detail. But the grand has been closed and for renovation and redevelopment or renovation or restoration may be a better word. And therefore, if you exclude — if you take-out both for Q3 of last year and Q3 of this year, then our revenue growth is 11%. Our EBITDA growth is 14%. But with Grands Absence, it is 6% revenue growth and 7% EBITDA growth. So what you’re seeing is the grand effect on the numbers. I hope I’ve been able to explain that.
Unidentified Participant
Yeah. That’s still doesn’t explain the difference between 17% and 11%. Let’s just take top-line growth.
Vikramjit Singh Oberoi
So where — which slide are you looking at for 17%?
Unidentified Participant
The RevPAR growth, which you’ve shown, you’ve shown I think, 17% overall growth for yourselves with 22% in the overall brand and 15% in that.
Vikramjit Singh Oberoi
So if you just look at the top of the slide, I think one needs to just see where it says owned and managed and just EIH-owned hotels. So that will give you the difference between the two. So one is for owned and managed, one is for EIH-owned and operated hotels.
Vineet Kumar
Andre, which slide are you referring to? Was it this?
Unidentified Participant
I’m referring to the slide where you talk about 17% RevPAR growth over last year, broken up as 22% for the Obroi brand? Yeah, that’s fine. Yeah. So you’re showing 17% RevPAR growth and you’re showing about 8% growth on a consol basis may be correctable to 11% if you take into account the overall grand effect. So I’m just trying to understand the difference between 17% and either 8% or 11%.
Vikramjit Singh Oberoi
So that would be that the grant. And I can — we can just look at the numbers and come back to you. But that would be the fact that.
Vineet Kumar
The grand definitely had an impact, which was — which was driving. If we take the grant impact out we grew by around.
Vikramjit Singh Oberoi
And sorry, a colleague of mine has just handed other revenue components, of course, our food and beverage. There was a discards as well because five floors at Trident Point were renovated and so it was discard of assets there as well.
Vineet Kumar
And the dividend impact, which was — which was there last year, is the timing difference for the current year?
Unidentified Participant
Okay. And given the fact that there are linkages between the stock market and the luxury market, and have you seen in the past that with a lag, it either benefits you or hits you? And given the short-term impact in the stock market that we see right now, do you see any grounds of concern for immediate revenues, let’s say, in the next six to nine months.
Vikramjit Singh Oberoi
Sorry, I haven’t — or at least I haven’t understood the question. But
Unidentified Participant
Okay. Let me repeat. The stock market has not done well in the last six months, right? And that could possibly lead to a perception of reduced wealth amongst the clientele that you have. And this has happened in the past. And have you seen a correlation between negative movements in the stock market and its impact on you with a lag if that be.
Vikramjit Singh Oberoi
So my — and we haven’t — first of all, we haven’t done that analysis to correlate the stock market movements with our business. But what I can say, which is reflected in the numbers is that we have strong RevPAR growth are at high occupancy levels. So if that is anything to go by, then the last six months where we’ve seen a decline hasn’t impacted us would be a reasonable assumption to make.
Unidentified Participant
So thank you. Thank you. Thank you.
Vikramjit Singh Oberoi
Thank you.
Navin B. Agrawal
Thank you, Andre. We’ll take the next question from Harshal. Harshul, please go-ahead.
Harshul
Am I audible?
Navin B. Agrawal
Yes, please go-ahead.
Vikramjit Singh Oberoi
Hello, Harshel.
Harshul
Hi. So from what we’ve read from the news articles that wide flower would be up for auction by the government post and once it is closed so am I correct on my understanding.
Vikramjit Singh Oberoi
I really don’t want to comment on fla hole. I think what is available in the public domain is all I would like to restrict my answer to.
Harshul
Yes. Okay. Thank you for that.
Vikramjit Singh Oberoi
Thank you so much. And I apologize for that. Please forgive me for not being able to say anything beyond that.
Harshul
Okay. Yeah.
Vikramjit Singh Oberoi
Thank you.
Navin B. Agrawal
Thank you, Harshul. We take the next question from Abhaik Haital. Abhai, please go-ahead. Abhai, please go-ahead we can’t hear you goodbye we can’t hear we’ll take the next question in the interim from Sangita. Sangita, please go-ahead.
Sangita Parshotam
Good afternoon and thanks for taking my question. You know when I look at the list of new hotels and new rooms that you’re going to add over the next few years, a bulk of the addition seems to be coming more from — from 2027 onwards. And the numbers in the next two years are in the range of about 100 plus-minus a little bit. Now, does that mean that for you in — for your growth in the next two years, our growth in the — in the rates or the price will be more important and therefore, you know, overall growth is going to kind of normalize to the mid-teens from the high-growth we’ve seen in the last few years till your new set of properties come up, how should we really look at the numbers? And that’s my first question.
Vikramjit Singh Oberoi
So before I answer that question, I just wanted to say a couple of things. First of all, Sangita, we really are doing — sparing no effort in terms of growth and through management contracts, through JVs and through our own 100% investment in hotels. So growth is very important to us. The second thing I wanted to say is that the — in order to — the lead-time for developing a hotel, as you know is it can’t be done overnight and that’s why you see the number stagger to the next couple of years.
The third thing I wanted to say is that this has been an important focus for us since my brother Argin and I took over the, for lack of a better word, with our colleagues, the running of the company, which has been two years or thereabout. And I think in two years, you have to judge whether we’ve made good progress or not. And you can look at what growth EIH did prior to that and see what we’re doing now through the various options that are available for growth that I just outlined.
In terms of what are the opportunities for keep driving increased revenue and increased profitability. It is not unusual to have our luxury hotels or the top hotels in key cities, whether it’s in Asia, Europe or North-America, command rates of well over $1,000 a night. And therefore, I still continue to believe provided demand is strong provided and there’s no reason to think that India’s growth story is not going to continue.
There’s no reason to believe that our wealth creation within India is not going to continue. So we still remain optimistic on the substantial upside in rates and occupancies as well at some of our hotels. And our focus will be to drive rates even at the cost of occupancy because you can — by increasing rate, the flow-through to bottom-line is 100% and that’s going to continue to be our focus to drive ARR. That’s our top priority. All things being full and the market continuing to be strong.
Sangita Parshotam
All right. Thank you. I had one more question. If you look at your shareholding pattern, there is a substantial amount of your shares which are held and have been held for many years by one of your competitors who’s recently gone in for a reorganization of their hotel business. And are there any insights you could share with us as to how you the situation is likely to pan-out in future and what impact, if any, it would have on your business?
Vikramjit Singh Oberoi
I have no insights to share Sangea.
Sangita Parshotam
All right. Okay. Thank you.
Vikramjit Singh Oberoi
Thank you so much. Really appreciate it. Thank you.
Navin B. Agrawal
Yes, Sanita.
Abhai
Hi, this is Appe. Can I go-ahead?
Vikramjit Singh Oberoi
Hello. Please go-ahead.
Abhai
Yeah, hello. Sorry, sorry for the previous one. Hi, Vikram, hi, Vineita. Good afternoon to you guys. Yeah. Thank you for the opportunity. I have a couple of questions. Let me take it one at a time. So the first is on the city-wise slides. So I can see that the metro cities have seen much stronger growth compared to the tourism focused cities and that is the trend actually we have been seeing across all other hotel companies that have reported. So do you think this sort of discrepancy is going to go on in the near-term or as well as in the medium-term as well? And in that light, how does that tally with your strategy, given that if I see the pipeline that you have that focus is mostly on the on the domestic side, mostly on the tourist cities. So how do you see this trend going-forward?
Vikramjit Singh Oberoi
Yeah. No, it’s a great question, Abei. So let me let me first of all say that if you look at outbound travel from India, there’s been — that continues to grow year-on-year. And although that’s not broken up into leisure and business, I think many of us are traveling not only within India, but looking at opportunities outside of India for travel. And with connectivity improving, as an example, now you can fly directly from Delhi to Bali. It’s not a very — it’s an overnight flight. And we’ve — at our Bali hotel, we’ve seen a substantial rise in our Indian guests staying at the.
So I think number-one, what you’re saying is correct, people have connectivities improved and people are traveling outside of India and not only holiday in India. And that’s reflected in the numbers. Now I think my counter to that is that we as an organization need to say what is it that we need to do to get a larger share and still drive growth for our leisure hotels. And we have — that we are working on that because if we take that as given, then really where-is it that we’re applying our minds to really influence our future. And therefore, we need to take steps to say, despite that, how do we grow our leisure business.
One, of course is foreign travel. Our foreign travel in a number of leisure locations has still not reached pre-pandemic levels. But in addition to that, even with our domestic guests, how do we incentivize them to stay with us are increasingly, not only by providing a better service, but through other means as well, so that we get a larger share of their wallets and that’s something that we will — we are working on and we will continue to work on.
Abhai
Got it. Thank you. Thank you for this. My second question is on — again, on the pricing side. So while I agree that the pricing of the hotels, the premium hotels in India is much lower compared to international hotels with similar offering. But given the sharp rise in the room rates in the Indian premium hotel segment, do you think there will be an element of price elasticity — price elasticity of demand? And/or do you think it does not matter for the segment we cater to? And also in the medium-term, if there is an opportunity or if you have to sacrifice some occupancy for higher ARR growth, would you do it or would you focus on overall occupancy and then Increase the ARR as per the demand?
Vikramjit Singh Oberoi
Provided we can increase RevPAR. We will focus on — and actually not only just RevPAR, but RevPAR plus driving bottom-line, we will be happy to sacrifice occupancy for either equal or better RevPAR or increased profitability.
Abhai
Okay. And about the price elasticity of demand, do you think it matters in the segment that we get into?
Vikramjit Singh Oberoi
So I don’t know the answer. If I look at rate increases and there was a — in our presentation, you can see how rates have — RevPAR has increased from I think we looked at the last 10 years. That would seem to suggest that it is fairly inelastic because we’ve been able to increase price while maintaining occupancy, in fact, driving occupancy higher as well and therefore RevPAR. So I would say that 10-year slide will be factually correct and which should answer the question. And if you want my view on it, my view is, yes, you can. There’s still upside to be — to be had.
Abhai
Got it. Thank you. Thank you so much for this.
Vikramjit Singh Oberoi
Thank you. Thanks so much, Abe. Thank you.
Navin B. Agrawal
Thank you. We’ll take the next question from Bharak Sheth., please unmute yourself and go-ahead.
Bharat Sheth
Good afternoon, Victor. Hi, hope my hi, Bharat, how are you?.Just one curious, I mean, of course, because of our all — almost all hotels are — I mean old and built over a time. So we are generating a very-high ROCE as on today. But now going ahead, the way we are in the portfolio and the cost of blend as well as construction cost has gone up. So to sustain those kind of a Rosi, what kind of ARR growth do we have to really look for?
Vikramjit Singh Oberoi
So great, great question. And it really unfortunately, there’s no straightforward answer to that question. So in city hotels, if you’re just doing a hotel and it’s a prime location, then to get a healthy ROC given the cost of development becomes very difficult. And that’s why we’re looking at mixed-use opportunities for Citi Hotels. Hebble is an example of that. And please be rest assured that development has a very healthy ROCE. So that’s the first thing I’ll say. In leisure locations, land depending on where you go and the nice thing with leisure locations is the more remote you are and the less that is around you, guests are willing to pay a premium for that.
So provided it’s not a — it’s reasonably well-connected and it’s a couple hour drive, guests will pay — guests will not only visit the hotel, but also pay you a high-rate. And Villas is the perfect example of that, albeit it’s not a new hotel, but you can see that it drives — it demands or it achieves. And I don’t — we don’t share velocity data with you. We don’t show individual data, but velocity is a very-high occupancy and a very strong ADR or average room rate. So it really, there’s no one answer and I think we need to be flexible with our approach. We need to be really diligent in the analysis we do, whether it’s owned or managed hotels on P&L project levels, the cost of development and therefore the enterprise value and the internal rate-of-return.
So that’s what I would — that’s how I would answer that question. And we do get into a lot of detail, whether it’s an owned hotel, a JV or a — even with a management contract to ensure that we are running hotels that provide a return either to us or to us and our JV partners or to the owner of whose hotel we operate in. We have that our moral responsibility and of course, we’ve got a responsibility to our shareholders and to the Board as well.
Bharat Sheth
Can I go for a second question,?
Vikramjit Singh Oberoi
Go-ahead.
Bharat Sheth
So second, post-COVID, we have seen that mice and waiting have substantially increase in the hotel area. So how are we experiencing because that wedding particularly as well as mice bring a lot of food revenue also simultaneously, whereas guests may not be, I mean, in-line with that for hotel, I mean room rate and revenue food revenue growth. So how are we seeing the increasing and how long do we expect that this will sustain?
Vikramjit Singh Oberoi
Bharat, the nice thing is that young people are getting married, right?
Bharat Sheth
Yeah.
Vikramjit Singh Oberoi
And you know, a marriage if as a parent and many of us will be parents who have children who are either married. It’s such an important part of our one’s journey through-life as a parent or as a child. And so I don’t see — I continue to see demand being very strong for that segment. I continue to see our parents are willing to make that event very special and memorable for their family, for whoever is getting married, the bride or the groom and for guests who attend the wedding.
And therefore, these rates, which are you absolutely right, both in terms of average room rate and in terms of F&B spend are — they are higher than what an FIT guess would typically spend. So the contribution to bottom-line is significant. And I think what we need to focus on is how do we make a wedding absolutely perfect for people who are attending, giving them the best possible experience, drive word-of-mouth and drive a premium price for that segment.
Bharat Sheth
And in color, to the same question, so how are we seeing the traction within City Hotel and our leisure where nowadays lot of destination wedding is also taking place.
Vikramjit Singh Oberoi
But both are strong, both are strong.
Bharat Sheth
Okay. And all the best. Thank you.
Vikramjit Singh Oberoi
And thanks so much. Thank you so much.
Navin B. Agrawal
Thank you,. We’ll take the next question from Rajiv. Rajiv, please go-ahead.
Rajiv Bharati
Nothing, sir. Thanks for the opportunity.
Vikramjit Singh Oberoi
Hello, Rajiv. Please Vikram if you don’t mind but.
Rajiv Bharati
Sir, with regard to your Slide 16 where you have shown your cash position. So you have — the cash position has increased by INR42-odd crores. And if I just add your cumulative PAT plus depreciation, you would have accumulated close to INR588 odd crores during the nine months. Now can you just state where-is this — where all this capex is going?
Vineet Kumar
There are — the investments which have happened during the last period we have made, as was announced earlier was London investment. So we have done an investment roughly INR241 crores on our London asset. And also we have spent on capex, the few things — a few new hotels in the pipeline, which you see. We have been spending on that, which is roughly around INR200 crores.
Rajiv Bharati
Yeah. So the idea was to just get the names of projects where you have started work. Okay.
Vineet Kumar
So we are spending — the investments are happening in Tirupati. We are spending in Rajkar, Gandhi Kota, all these three main places the investments are.
Vikramjit Singh Oberoi
But for EIH, it’s and of course London and also someone Hebbled as well. Oh, and of course, renovations as well. We’re renovating our hotels. So like I gave an example of Trident Point, we renovated five floors at Trident Point as an example.
Rajiv Bharati
Sure. So the last question is on the international bid. So after several quarters, we are seeing that it has grown 20% Y-o-Y. Yeah. So what led to this and is it sustainable?
Vikramjit Singh Oberoi
I think with international, we have a considerable upside but I think these hotels also need investments or some of them, not all of them. And with those, we will be able to run far more profitable hotels. Subali is an example is a hotel that has tremendous potential and Therefore considerably more upside. Marrakech is a hotel that opened and that literally when it opened, COVID broke out, so the hotel shut. We had the earthquake in as you remember, there’s the Middle-East crisis. So there’s considerable upside in Marrakech as well, which is a new hotel. It doesn’t need an investment. It’s a beautiful hotel and one of the slides is of Marrakesh in the presentation. So I think there is further opportunity for our international hotels too.
Rajiv Bharati
Thanks a lot.
Vineet Kumar
Thanks Raji.
Vikramjit Singh Oberoi
Thank you so much, Rajiv. Thank you.
Navin B. Agrawal
We’ll take the last two questions from Pratik and. Pratik, please go-ahead. Hello, Pratik.
Pratik Maheshwari.
So yeah, hi,. My first question is on — is there an occupancy you have been alluding on like wanting to maximize RevPAR at obviously compromising occupancy at some instance. So what is the right occupancy, I don’t know whether we should see on a quarterly basis or annual basis as an analyst which a hotel can achieve in general for like looking at RevPAR growth for the company?
Vikramjit Singh Oberoi
Yeah. Josh, that is a really hard simple peak for me to answer. So I don’t know if there’s one or the other, it really depends on your — what are the segments that drive business are. And for example, if you have, as an example, a segment like mice and particularly leisure mice weddings, celebrations, et-cetera and that’s a large part of your — or has the potential to be is contributing and has potential to grow, then our price elasticity there is very low.
So you can — you can look at increasing prices. If you have a large corporate segment, corporate segments are far more price-sensitive. And unless you can replace that business with other business, then you need to continue to focus on that segment, which is price-sensitive. So I don’t — and I take the direct segment, direct segment, you have great flexibility because — and a large part of our business, as you can see from the slide comes from that segment.
And that’s why we look at our pricing, we adjust pricing based on our business on books, pickup, etc. So you have the ability to yield either upwards or downwards based on-demand. And of course, there’s also seasonality which exists. I have to say that seasonality in our city hotels is coming down, but we continue to see seasonality in our leisure hotels, although if you look at figures from 5, 6, 7 pre-COVID or maybe a couple of years before COVID, it was far more seasonal, but with more domestic business, the seasonality even at leisure hotels has reduced.
So there’s no one — you have to look at each hotel individually. You have to look at each segment individually. You need to see what that contribution is. It also depends on the competitive market in that area and then see what you need to do and how you need to adjust pricing for each one of those segments to maximize our RevPAR. And I’m sorry, Pratik, I haven’t given you a straightforward answer at all. But I don’t have a straightforward answer for your question.
Pratik Maheshwari.
Thank you. Thank you, sir. That was useful.
Vikramjit Singh Oberoi
And thank you.
Navin B. Agrawal
Please. Vikram, it’s a matter of habit. Yeah. Okay. We’ll take the last question from Jagnam Pathak., please go-ahead.
Jagan
Hi, thanks for taking my question. Basically regarding the Airport services and site services segment, yes. So could you please share the revenue contribution for the quarter.
Vikramjit Singh Oberoi
Do we — do we provide that? We don’t — all I can say, Jagnam, is that we — the business has really, really performed incredibly well. And we are so happy with the performance of our flight — flight business. We’ve seen strong growth in top-line. We’ve seen strong growth in EBITDA. So we’re very happy with the performance. And if you just see what’s happening in India, I mean, if you just take Indigo and Air India and you also see British Airways, for example, is adding a third flight we cater to British Airways.
Both domestic and international airlines are adding significant our flights to our India. And therefore, we remain optimistic about the flight kitchen business. All right. And anything on margin compared to last year, has it improved or it’s been a significant improvement on margin as well.
Jagan
All right. Thank you so much.
Vikramjit Singh Oberoi
My pleasure. Thank you.
Navin B. Agrawal
Thank you,., we have a couple of questions on the Q&A board. May I take that?
Vikramjit Singh Oberoi
Sure, please.
Navin B. Agrawal
If we can — I mean with, we’ll wrap-up in the next two, three minutes.
Vikramjit Singh Oberoi
Okay. Perfect, please.
Navin B. Agrawal
Yeah. Okay. Sachi. How many rooms have been shut for renovation in Q3 and Q4, what renovations will we undergo in FY ’26?
Vikramjit Singh Oberoi
Okay. Yeah, I don’t have that with me and I’ll just check if we are comfortable sharing that. And then if we — if Navin, if you sent us. We don’t have the information readily available., if you can write to me, I’ll take it up with the management and get back to you. Thanks.
Navin B. Agrawal
Okay, Tarun Rathi. Good afternoon, sir. Congratulations on good set of numbers. Please share details on Over grand opening. Please share in which quarter Overa Rajgar will start operations. Any plans for having an overall at Hyderabad?
Vikramjit Singh Oberoi
Yeah. So gosh, there are three questions.
Navin B. Agrawal
So details on Grand opening.
Vikramjit Singh Oberoi
Yeah. So Oprah Grand should open in about 18 months.
Navin B. Agrawal
Can you share which quarter Overa will start operations?
Vikramjit Singh Oberoi
So in — hopefully in and around August.
Navin B. Agrawal
And the last one, any plans of having an overall at Hyderabad?
Vikramjit Singh Oberoi
Absolutely. We’d love to have an overa in Hyderabad. So anybody who is on the call is interested in our partnering with us for a hotel in Hyderabad, we love that. And we continue to — we’re looking at Hyderabad, absolutely.
Navin B. Agrawal
Okay. One last — one question. Do Tiosh Ayer, do we see similar growth or occupancy rates ARR in Tier-2, Tier 3s compared to metro cities.
Vikramjit Singh Oberoi
So again, it’s a mixed bag. So if you look at — I don’t know if — and I’ll give examples, if Odaipur is classified as a Tier-2 city and I don’t know if it is or not. We’re seeing strong demand for Trident. We’ve seen probably slightly less strong demand for over last year. Agra, as an example at the Trian Amer does extremely well, our extremely profitable hotel and incidentally is our most profitable hotel with 87 keys per key, that is the most profitable hotel. We have in the — out of all our hotels either owned or managed by Key.
Agra as an example is at the Trident is a is a hotel that there is greater, what’s the right word, demand is more elastic. So our ability to raise prices at the Trident Agra are not as good as others and that may be classified as a Tier-2 city. So I don’t know if I’ve answered that question, Naveen.
Navin B. Agrawal
In fact, is asking, for example, Tirupati, Hebal.
Vikramjit Singh Oberoi
Okay these specifically these. I think therapathy is at least based on the analysis that we’ve done and we did — we put together P&L for therapathy, I can’t remember maybe about a year, year and a half ago with, if I remember correctly, a 10-year forecast. And already those numbers are conservative and we do look at SDR data, etc when we put these figures together.
Trident Jaipur is another example where we plan to renovate the hotel. And when we did the — given the capital investment that will be made, it’s an EIH associated hotel. But given the capital investment we’ll make a very strong internal rate-of-return, those numbers were done again about a year-ago. We are revising Those numbers because they’ve gone upwards. So I would say, again, we believe both in therapy in Hebble, we haven’t revised the numbers yet. So there’s still the old numbers, but the numbers were positive numbers. And you can see that by if you look at SDR data for Bangalore in the luxury segment and even in the — in the Trident segment, you have very strong rates, ADRs in those locations. So is good. I cover Jaipur is good. Therapy, we believe will be very strong.
Navin B. Agrawal
Thanks, Vikram. We’ll take the final question from Abhishek Jain. Can you please provide a broad revenue guidance over the next three to five years? Don’t do guidance.
Vineet Kumar
Okay. So why are we?
Vikramjit Singh Oberoi
Maybe we should — but I don’t know. Naveen, maybe we can have a chat separately, but we’ve shied away from guidances is.
Navin B. Agrawal
Okay. Also, why are we as a corporate rules doctor disclose services numbers?
Vikramjit Singh Oberoi
I didn’t know we didn’t disclose Services numbers, but thank you for that. We’ll absolutely look at that. And whoever gave you that, we look at — it’s primarily B2B business, right? It’s not really a B2C business. So that may be one reason, but that may not be a good excuse. Please, first of all, thank you for that feedback. And rest assured, we will look into it today.
Navin B. Agrawal
And that’s it for the questions. Friends have shared my email ID in case there are any unanswered or follow-up questions, please write to me and we’ll take them to the management. Thank you very much, Vikram. I hand over the webinar to you for your closing remarks.
Vikramjit Singh Oberoi
You know, it’s just Naveen, first of all, thank you to you and again, it’s just nice because every quarter, we get to talk to a number of analysts, investors, people who are interested in EIH and many familiar names. And I hope we’ll get to meet some of these are interested parties face-to-face. So just a very big thank you for your support. We are extremely grateful and we’ll continue to work hard on really providing the best possible service to our guests and looking after our colleagues like family and driving profitability for our hotels are either through owned or managed hotels or through JVs.
So I have to close with a sales pitch if anybody is interested in partnering with us. We are all as we treat our partners with the highest degree of respect. And we will only — you know our former Executive Chairman and Chairman used to tell Arjun and me and it’s a really important lesson that we live by is if somebody gives you money, you take and asks you to go and shop for them for example, you would literally say this, and then you take great care, you take much more care than it was if it was your own money.
And that is absolutely the way we approach our partners. We have a real responsibility to them if we’re going to operate a hotel and we say no to a number of opportunities because if we can’t run a profitable hotel, all we’re doing is creating a problem for the future. So we need to be absolutely sure that we can give a good return to our — to our owners and run hotels that again meet the needs of the various stakeholders, including EIH and its shareholders.
Navin B. Agrawal
Thank you very much, and Vineet for taking time-out to interact with the investors. Thank you, ladies and gentlemen, and we look-forward to hosting you again in the next quarter, which will also be the annual results webinar. Thank you and have a wonderful day.
Vikramjit Singh Oberoi
Thank you, ladies and gentlemen. Thanks, Naveen. Thank you so much.
Vineet Kumar
Thank you. Bye-bye.
Vikramjit Singh Oberoi
Bye-bye. Bye