EIH Limited (NSE: EIHOTEL) Q4 2025 Earnings Call dated May. 26, 2025
Corporate Participants:
Unidentified Speaker
Vikram Oberoi — Managing Director & Chief Executive Officer
Vineet Kapur — Chief Financial Officer
Analysts:
Unidentified Participant
Navin Agrawal — Analyst
Saket Mehrotra — Analyst
Jaiprakash Toshniwal — Analyst
Dheeraj Manwani — Analyst
Presentation:
Navin Agrawal — Analyst
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 Q4FY25 and full year FY25 earnings webinar. We have with us Mr. Vikram Oberoi, Managing Director and Chief Executive Officer and Mr. Vineet Kapoor, Chief Financial Officer. Friends, this virtual meeting is being recorded for compliance reasons and during the discussion there may be certain forward looking statements which must be viewed in conjunction with the risk that the company faces. We’ll have the opening remarks and a presentation by the management followed by a Q and A session.
Thank you. And over to you Vikram.
Vikram Oberoi — Managing Director & Chief Executive Officer
Thank you so much Naveen. Ladies and gentlemen, good morning to all of you and I apologize that we’ve kept you waiting for well over five minutes. I think there was a minor correction we needed to make on the presentation. It was really quite minor but any data that we present we need to ensure it’s accurate. So my very sincere apologies for that. What I really wanted to touch upon before Vineet makes his presentation is the strong financial results we had financially at 24, 25 and this was despite the grand being closed for a good part of the year.
Our objective, I’ve mentioned this a number of times, is to drive our rates higher and we’ve done that during the financial year and we’ll continue to do that going forward. I think with strong demand there’s a. The ability for the, for us and I presume for the entire industry to drive rates. I still believe for the quality of hotels that are available in, in India, both with our hotels and, and others we are significantly underpriced particularly in our city destinations like Delhi, Bombay, Bangalore, etc and there’s an opportunity certainly for us to drive rates higher given that we have strong demand.
And I feel that that is likely to continue given the significant changes that are taking place in the Indian economy. Wealth and affluence increasing and a desire for quality accommodation, quality hotels that provide exceptional services and experiences to our guests. The last thing I wanted to talk about before I hand over to Vineet was growth. And we in our last investor call shared details of the hotels that are under development. This continues to be a strong area of focus for us and I’m hoping in the coming year we will have more positive information and details to share with you on driving growth for EIH through owned and managed hotels, including JVs and partnerships.
With that I’ll hand over to Vineet for the presentation. Ladies and gentlemen, thank you and again I apologize we kept you waiting.
Vineet Kapur — Chief Financial Officer
Hi, good morning everybody. Will you be putting the presentation?
Navin Agrawal — Analyst
You need to keep it open in the background and then share your screen. There’s a green square box at the bottom of your screen which says share. So first you open the presentation.
Vikram Oberoi — Managing Director & Chief Executive Officer
Sorry Naveen, we use teams so we’re not as familiar with zoom as we are with teams.
Vineet Kapur — Chief Financial Officer
See my screen now?
Navin Agrawal — Analyst
Perfect. If you can just make it full screen and the presentation mode.
Vineet Kapur — Chief Financial Officer
I’ve just done that. It’s okay now.
Navin Agrawal — Analyst
I guess you can just go ahead. Yeah.
Vineet Kapur — Chief Financial Officer
So you know what we are going to start with is how the hotel sector is. You know how the outlook for the hotel sector is. So you know we are seeing a significant expansion across the hotel sector.
Vikram Oberoi — Managing Director & Chief Executive Officer
Can I just interrupt? It’s still on slide. It hasn’t moved to slide two for some reason.
Vineet Kapur — Chief Financial Officer
I’m answering the whole thing. My screen full. Is it fine now?
Navin Agrawal — Analyst
No, we need. We can’t see the. We can’t see the presentation. You need to share this. You need to Share your screen.
Vineet Kapur — Chief Financial Officer
So why don’t you go and present. You know, I’ll take it.
Vikram Oberoi — Managing Director & Chief Executive Officer
Do you have it? Naveen, can you. Is that. Is it possible for you to put it on screen?
Navin Agrawal — Analyst
Yes. You’ll need to make me the host again. Click on the participants.
Vineet Kapur — Chief Financial Officer
Yeah.
Navin Agrawal — Analyst
And you need to make me the host. Friends, my apologies for this. Just bear with us for a minute please.
Vineet Kapur — Chief Financial Officer
I’ve done that.
Navin Agrawal — Analyst
Vinny, can you see the screen?
Vikram Oberoi — Managing Director & Chief Executive Officer
Yes, we. We can. Yeah. Perfect.
Vineet Kapur — Chief Financial Officer
So just talking about the Indian hotel sector. We continue to see asymmetric.
Navin Agrawal — Analyst
Vineet, you’ve gone on mute.
Vikram Oberoi — Managing Director & Chief Executive Officer
You need to put yours back on mute.
Navin Agrawal — Analyst
Yes, please go ahead.
Vineet Kapur — Chief Financial Officer
Okay.
Vikram Oberoi — Managing Director & Chief Executive Officer
So yeah, now you’ll be fine.
Vineet Kapur — Chief Financial Officer
Okay. The sector is poised for a significant expansion. We are seeing the key growth drivers are both special tourism. We are seeing good experiential travel. I think what also is driving the growth is the demand for high end leisure which continues to rise and which is supported by a very good growth in India’s high net high net worth individuals population. And we will continue to see the increase coming on across of the the segment. The middle class and upper middle class going higher side and their demand for leisure would be will be growing. And we also see as for the government of India’s forecast the inbound tourism is forecasted to grow by roughly 15 in next year driven by of course global connectivity and India’s profile which is bound to bound to improve in the country.
Looking at the Q4 market we saw a healthy increase in air traffic. The air traffic in Q4 grew by roughly 9% which ultimately helped overall the overall sector. And we also saw a good healthy occupancy of 68 to 70% Q4 which which was higher than last year but roughly around 1 to 3 basis points. We also saw a good increase in ARR which saw a healthy increase of 11 to 13% versus FY24 which also resulted in a good RevPAR increase of 40 to 16% for us. So overall good increase in revpar growth continues though we foresee the road to stabilize.
But we saw a good growth happening in Q4 and from from a management perspective we are going to add roughly 21 new hotels in the coming three to four years which will which will help us grow the business as well as meet the needs of the travelers which is boundary increase. Looking at the operational performance, if you compare the EIH versus the competition, the EIH EIH is maintaining leadership over the concept in in all the three parameters both in MPI, APA, ARI and RGN good good to see a good increase versus last. If you look at compare from December 21st we went from 128% to 131% in RGI led by both occupancy as well as ARR improvement.
The same trend continues for the Revpar. We are starting from FY22 we have seen continuous rise of red bar and we ended up again at a higher level for Q4. In FY25 we saw the seasonality impact up and down. But when we look at the base over last year we have done a very healthy growth in Revpar for both EIH owned hotels as well as our managed hotels across the segment. If you look at the red part growth as compared to the competition overall industry grew at the rate of 16% while we grew both Oberoi and managed hotels.
The repa grew by 22% held by Obero Hotels which went which grew up roughly 24% and Trident was in the same range as our total hotel growth which was at 22%. Looking at the year over year growth the industry showed a healthy growth of 12%. On Red Path we saw a little higher increase versus the industry both for owned and managed hotels we saw a 13% increase in line, a little higher than the industry but in line overall hotels grew a little higher at 14 and this and the same for Trident we grew at 16% on revenue.
When we look at the Q4 occupancy both occupancy as well as ARR were higher than last year with the occupancy going from 81 to 84%. For Q4 as a whole same thing was the trend for occupancy cranes. For ARR we grew both in occupancy as well as ARR for Q4 on A on a quarterly basis. If I look at on a redar growth for Q4 by city there was a healthy growth all across led by Delhi NCR region we good growth in city hotels, Mumbai as well as as well as Bangalore. Except for B we we maybe saw a little slide down downwards due to certain sports events which had happened last year and some events which took place in Brumbaneshwar.
Overall on international side we also again saw a very healthy growth which was roughly around 20% for the quarter. So strong revenue tailwinds. We are seeing good tailwinds across most of the segments. All the segments are growing and of course led by the biggest chunk coming from the direct segment. Corporate segment also has has has picked up over the last two to three years continued with the with the buoyancy in the corporate world with the business and the GDP growth of India same trends we are seeing leisure of course very seasonal going up and down but still ending up on the higher side towards the end of the year for FY25 if I look at the financials we had the strongest highest ever performance in terms of both revenue.
The revenue grew by 9% year over year. We had a growth of 10% on EBITDA and we had a 44% growth in in standalone books driven by one time and impact of Mashograph but overall a very good healthy growth for the company on a standalone basis the same same continued at a consorted level. The we ended up for the year with the highest ever performance both for EBITA as well as pat at account. Considering the good performance we have seen over the last couple of years our cash cash surplus fund has has become more stronger from a negative negative years in the COVID years the funds which we added to our kitty has been pretty strong.
We had roughly thousand crores of surplus funds at the end of March 31st, 2025 which gives us a good position for future growth and expansion which we are looking across the hotel segments Coming into the financials in detail. If you look at on the consolidated side our revenue grew by 11% EBITDA grew by 13% year year over year. The PAAT at a consolid level only had uh only grew by 6% where we had six some exceptional items for in the current year due to impacts taken for grant as well as therapy. We had few negative impacts for the current year which resulted in PAT growth of 6% year over year.
The same thing at if if you look at on a consolidated basis for the year we grew at 10 10% on a revenue basis expenditure grew or I would say EBITDA grew by 11%. Healthy healthy drop to the bottom line and looking at the profit and loss the pat we grew at 14%. Again small impact because of exceptional items which came in but even with those exceptional items we ended the year with a PAT growth of 14% for the. Year. On a standalone basis. Q4 the growth was roughly 9% good drop through in EBITDA resulting in an increase of 12% year over year. We had one bigger exceptional item. This was on account of Mashobra impact maybe where we deconsolidated the Mashobra books. That’s string we have given the control back to the government Due to that we we had a one time impact exceptional gain of 115 crores which came in the books for port of 4 resulting in 109 increase over last year. Impact the same thing I would look at standalone basis on 12 months overall revenue increase of 9% with a drop through in EBITDA growth of 10% for the year.
PAT grew at 44% again because of the one exceptional gain because of Mashobra deconsolidation which we had in our books for the current. So looking at the awards Oberoi Oberoi Group keeps get. Keeps on getting good awards and accolades all across because of the kind of. Because of the exceptional customer service it provides to all its customers. So we notable ones are listed here where we got awards from travel and Malaysia USA as well as Spontaneous Traveler where they rated one of the most of the hotels as one of the best in the categories. So coming on the expansion plans we have a very healthy pipeline of growth coming across across various segments.
We have 21 properties with almost 1500 keys going to be added in next two to three years. Out of this domestic we are going to add roughly 12 hotels in international there’ll be a growth and there will be addition of nine hotels all across our group. This is the business footprint. We are at 3700 keys in India total with almost 500 keys across in different international geographies totaling to roughly 40024200 rupees with roughly 14001500 keys coming in next three to four years which will be added to the group total of number of keys. That’s it from us.
Thank you. We are open for questions.
Questions and Answers:
Navin Agrawal
Still not beneath friends. We now open the floor for the Q and A session. Anyone wishing to ask a question request you to raise your hand and we take it up. We’ll take the first question from Priyanka Burma. Priyanka, please go ahead. Priyanka, please go ahead. Yes, there’s some audio issue. We’ll come back to Priyanka. We’ll take the question from Amit Agarwal. Amit, please go ahead. Amit, please unmute yourself and go ahead. Amit, you’re not audible. Please go ahead. Take the next question from Saket Mehrotra.
Saket Mehrotra
Saket, am I audible?
Navin Agrawal
Yes, you are. Please go ahead.
Saket Mehrotra
Yeah, couple of questions. First could you tell us how your international business was for the full year and in terms of what was the contribution of your Holdco into the total consolidated earnings for the company.
Vineet Kapur
So if I look at the international category roughly on revenue size we had a contribution to the revenue around 131 crores. And with the EBIT contribution of 36 crores. 36 crores in EBITDA. The growth we had roughly 10% growth in terms of revenue and the similar growth in EBITDA from our international category degree. This was part of, which constitutes, which constitutes the part of our consolidated numbers. We also had impacts coming. Good, good impact, good benefit coming from our non consolidated entities. Marrakesh had a good number for the year as well as we had good set of numbers coming from our operations and volishes.
Saket Mehrotra
Okay, so if I look at EIH International as an entity, I believe the contribution of this entities to your pat last year was roughly around 88 odd crores as you mentioned in the annual report. So could you quantify that number for this year.
Vineet Kapur
On pat? The numbers I have is different. So maybe I need to come back to you on.
Saket Mehrotra
Okay, a couple of housekeeping questions from your notes. I mean if I go to note 7 where you’ve mentioned about Mashobra’s derecognition and recognition. So if I understand correctly, we expect to recover around 136 crores. Is that the correct understanding or is it going to be 136 plus the 290 which we’ve classified as head for sale. I just wanted some clarity on this.
Vineet Kapur
So 136 crores is the advance against equity which was put in Mashobra that we, we, we forced it to recover. On top of that the value of book value which was roughly 141crores is what we consider as recoverable based on the outcome of the current litigation which will be decided in, in the coming months.
Saket Mehrotra
Okay. And if I look at the net asset value which is about 290 that is something which will get realized. Or I mean how does this work out? Is or does the 140 included in this 290 like your 320 net assets and your 31 crores of liabilities.
Vineet Kapur
This is the book value what we are taking for mushroom price roughly around 141 crores. There’s a couple of other things which will be part of that number. Would what you’re mentioning and we force you to recover the book value basis. Basis the court proceedings.
Saket Mehrotra
And what would be the quantum of let’s say the legal savings cost? Legal cost savings. Because now I guess would that still continue or will this be something that will get saved as we move forward from subsequent years?
Vineet Kapur
I would say till the time the court proceedings are going on, till the time that legal expenses will continue to occur as soon as the hearing is decided And a judgment is made. We’ll see the course on that account later on.
Saket Mehrotra
Okay, just one final question. The, the investment in the London subsidiary which is about 240 odd crores, has this been committed or like do we still have more funds that are going to get infused into this business?
Vineet Kapur
So there will be some additional requirement which will come through but most of the investment, at least for current, current year, this year is done. I think there will be some few additions which will meet towards the end of this year, but not, not a sizable one.
Saket Mehrotra
Okay. And strategically as a company, how are we looking at this international business? Like if you could throw some light on that for this year, I mean we’re already second month into this financial year so if you could tell us how the offtake has been and what is your outlook for this year, that’ll be great.
Vineet Kapur
Maybe I’ll speak in the heat. So considering the current performance and what we have seen over last year, our international performance especially in the Middle east got impacted by the conflict in Israel, Palestine which is sort of stable now. And we are seeing good progress happening across the hotels what we have in Middle East. So we are seeing some good trends and I would say that hopefully that will be helpful for the current year.
Vikram Oberoi
Yeah, I think for the current year we’ve seen growth over the last year. Internationally as well, I think continues to be strong. That’s reflected both in Marrakesh and Mauritius.
Saket Mehrotra
And I believe on the domestic front, Mr. Oberoi, we are quite comfortable I believe and given what we’ve achieved in Q4, I believe this trend is something that you foresee continuing. Do you see any headwinds?
Vikram Oberoi
Let me just, let me just take, come back to a couple other things and then I’ll answer that that part of your question as well. In, in London our long term objective is to get a partner at 49%. So and obviously the, the, the, the closer we do that till to the hotel opening, the better the, the lower the risk and therefore the better the, the contribution from our partner to that 49%. So I just wanted to mention that to you. That is our, our endeavor. And talking about India, we’ve seen, we, we continue to this financial year as well.
There was some impact because of the conflict between India and Pakistan but that’s since stabilized. We’ve seen a strong pace returning. There was a roughly a 10% impact for the month, for last month, for the month of March, sorry May and in June we are seeing a bounce back and positive pace of reservations over the same time last year. So I think that’s been hopefully addressed and nullified.
Saket Mehrotra
Okay. Thank you so much, Mr. Oberoi.
Vikram Oberoi
Thanks. Thank you. And saket please, Vikram. I’d be much happy if you addressed me as Vikram. But whatever you’re comfortable with.
Saket Mehrotra
Thank you so much. Thank you.
Vikram Oberoi
Thanks.
Navin Agrawal
We’ll take the next question from Amit Agarwal. Amit, please go ahead. Amit, we still cannot hear you.
Unidentified Participant
The token now.
Navin Agrawal
Yes, you’re honorable. Please go ahead.
Unidentified Participant
Good morning everyone.
Vikram Oberoi
Hello, Ahmed. How are you?
Unidentified Participant
How are you?
Vikram Oberoi
I’m well, thank you.
Unidentified Participant
My question is regarding White Flower, sir. I. I imagine that we are doing. Managing this hotel for next three months.
Vikram Oberoi
Actually it’s next six months. Or till. Yeah, or till they. The bidding process is concluded.
Unidentified Participant
So are we eligible for bidding for the hotel and how keen we are for bidding for that particular hotel?
Vikram Oberoi
We absolutely are keen, yes.
Unidentified Participant
And how much revenue we are going to lose because of the total business going out of our total turnover this year.
Vikram Oberoi
Could you give the exact number? Is it okay to disclose that number?
Vineet Kapur
So current year, just to add, we had a revenue of 78 crores on a quarter of mushroom product for the.
Unidentified Participant
For the year.
Vineet Kapur
For last year we dropped it at 78 crores revenue.
Unidentified Participant
Okay. And my last question is regarding flight catering business. What is the turnover we are getting for the flight catering business? And how much is Bombay Input Lounge is contributing? And is there any progress on the renewal of the lounge business?
Vikram Oberoi
So Amit. No, the lounge business has been concluded that concluded at the end of the financial year. So the land business is no longer there. In fact it was supposed to end sooner. It was supposed to end in halfway through last financial year. And then there was an extension which was received for two consecutive quarters. So as of 31 March, that business has been concluded. The numbers Vineeth will just give you.
Unidentified Participant
And how much. Is there any chance of renewal of that business? And how much have you lost?
Vikram Oberoi
No, there is no chance of renewal of that business. And I think if you just look at what’s happening with Bombay Airport, it’s all been consolidated with the hotel operator. And that’s part of their overall strategy. So I don’t want to comment on that. But no, to answer your question, that business will not be concluding. But we see strong demand for the airline business, for the airline catering business. And I hope we can offset most of that in this financial year. That’s going to be our endeavor to compensate for the loss of lounge business through buoyancy and increased business for the flight catering business.
Unidentified Participant
Can we throw some Numbers how much we are going to lose and how much is the flight catering business right now.
Vineet Kapur
So total amount of the business what we did last year was around 122 crores. And without giving further a breakdown, total ofs OS business for us was roughly 494.
Unidentified Participant
Sorry, come again?
Vikram Oberoi
490.
Vineet Kapur
490.
Unidentified Participant
And do we intend to stay in airport launch business or. That was just one of.
Vikram Oberoi
That was, that was. That was a one off.
Unidentified Participant
And can you give the breakup of domestic flight business or compared to international?
Vikram Oberoi
Amit, I don’t have those. Those details with me. So I, I unfortunately can’t give you that business that, that breakup right now.
Unidentified Participant
Because I’m worried that if Turkey, Turkey flights go out of the picture then we might lose that business also.
Vikram Oberoi
I think I. I think. May I just comment on an overall we see. Amit, I just want to repeat what I said. We see strong demand for our airline business. We’ve been able to or we continue to add flights to the business both domestic and international. And we will do our uttermost to compensate for the loss of the airport services.
Unidentified Participant
Okay, thank you. That’s it. Thank you.
Vikram Oberoi
Thanks so much. Thank you very much, Amit. Thank you.
Navin Agrawal
We’ll take the next question from Deepak Watmar. Deepak, please go ahead. Deepak, please go ahead with your question. Let’s just take the next question while he fixes it. We’ll take the next question from Rajiv Bharti. Rajiv, please go ahead.
Unidentified Participant
Yeah. Good morning sir. Thanks for the opportunity.
Unidentified Participant
Good morning, sir. So with regard to. So I thought that the, the lounge was, you know, the contract was supposed to end by Q3. And so you’re saying that for the entire year where we ran the.
Vikram Oberoi
That’s correct.
Vineet Kapur
That’s correct.
Vikram Oberoi
Okay, perfect.
Unidentified Participant
And on the Kolkata business, so what is the impact for the quarter? I understand 110 crores is the revenue last year. So what are the impact here?
Vikram Oberoi
So for, for the year the impact is roughly and Vineet can give you the exact number but it’s roughly 70 crore on revenue and 43 crore on a bit time. Perfect.
Unidentified Participant
So on the FNB side if you can, for the quarter and for the year, how has been the FNB growth?
Vikram Oberoi
We, we don’t disclose those. Those figures.
Unidentified Participant
Lastly on the Capex side. So I can see that 480 crores on the console and 270 crore on standalone. Can, can you break that up then where is this Capex essentially going?
Vineet Kapur
That amount could also include the investments made made in overall London and we had spent. We have spent Capex on our Rajgarh property which is going to come up very soon. We also had invested a quite significant amount in renovation in Trident Element Point which was which was four floors renovation. Also we had done long stay apartments in Oberoi Mumbai which impacted which which was part a part of that Capex. What we did last year including some amounts on Roy Boa which is already being done and also on Oberoi grand which is closed for major innovation.
Unidentified Participant
Just one follow up on the the Bombay asset. What is the room count which we have you know like for like addition was there in Q4.
Vikram Oberoi
So the total number of keys at Trident araman point are 585. And the total number of keys at the oberoi Bombay are 237. Sure. Thanks a lot. Thank you Roger.
Navin Agrawal
Thanks Rajiv. We’ll take the next question from Deepak. Deepak please go ahead. We’ll take the next question from Webhav Mulay Weber. Please go ahead. Please unmute yourself and go ahead.
Unidentified Participant
Hi. Hi Naveen, can you hear me?
Navin Agrawal
Yes I can. Please go ahead.
Unidentified Participant
Okay, perfect. Hi Vikram. Congratulations on a strong set of numbers. I had a few questions on your pipeline. So you mentioned that most of your own hotels portfolio will be coming online in FY28 and FY29. So till then your major dependency will be on growth via increase in room rates and occupancy. So any plans of exploring any inorganic acquisition opportunities to protect yourself, you know in case of muted growth in room rates over next two years.
Vikram Oberoi
So let me answer the question in two parts. The first part is on. I’ll take the second part first which is that if demand continues to be as it is today our endeavor will be to drive rates up to the largest extent possible. And even if that is at a at the cost of occupancy as long as our revpar sees strong growth and I don’t see any reason why that will change all things that we know today. So that was the. The second part of your question. If I may now answer the first part. We are absolutely open to looking at other all options for growth which which will include brownfield or acquisition.
Unidentified Participant
All right sir. Thank you so much for answering the question.
Vikram Oberoi
My. My pleasure. Thank you so much.
Navin Agrawal
Thank you. We take the next question from Jay Prakash Toshniwa. Please unmute yourself and go ahead.
Jaiprakash Toshniwal
Thank you. Good morning sir.
Vikram Oberoi
Good morning.
Jaiprakash Toshniwal
One question. When we are saying there are few drags because of the recent businesses which we have either discontinued or we didn’t continue, we are also hitting occupancy almost 84, 85% and RevPAR growth of let’s say lower double digit numbers. So in that context how do you see the growth at least for the next year? Because we also not getting much of the room addition at least in the current calendar year. So just your comment on this please.
Vikram Oberoi
No, I think Prakash, I think I’ve covered this before and you know this is my, my firm belief and you can you know go online and see top hotels around the world in key cities. We’re still really really underpriced in my view and that’s my view. You may or may not share that view. To get a hotel in a major city today is a good hotel can cost a thousand dollars upwards per night. So I think we are significantly below that threshold. And if I then combine that with the quality of hotels we have in India in our key cities, I think there’s tremendous opportunity for upside in ARR today.
I am of the firm view that we are significantly underpriced when you look at how we perform on rates globally.
Jaiprakash Toshniwal
Okay. And in your value mentioned, I mean mentioning on the pricing point on various platforms. But just to continue in which brand do you see the gap reducing faster? Is it Obero brand autos or tread end hotels?
Vikram Oberoi
My personal opinion is that we will have more opportunity to drive ARR growth within Oberoi. But if you saw the figures in the investor call actually Trident it slightly better on revpar growth. Yes. So but my, my, my belief is that with strong demand, with everything that’s happening in India over the medium to long term we’ll be able to drive greater premiums in, in Oberoi.
Jaiprakash Toshniwal
Okay, thank you sir. All the best.
Vikram Oberoi
Thank you so much.
Navin Agrawal
Thank you Jay Prakash. We’ll take the next question from Sanjay Kohli. Sanjay, please go ahead. Yeah.
Unidentified Participant
Hi, good morning to all. Mr. I had two questions. One is on you know, spiritual destinations. We’ve seen quite a bit of robust pricing over there. How do you view the sustainability in these spiritual destinations? And my second question is do we this is on the FNB side. Do we see an opportunity in leveraging our restaurant spaces within the properties to drive FNB growth including the possibility to outsource to focus brands.
Vikram Oberoi
Sure. Actually so Sanjeev, I’ll take your first question on sustainability and I’d like to believe it’s not only EIH or Uber and Trident but I’d like to believe that all the well known brands in India, whether I take Taj or Leela have a or us for that matter with Oberon Trident have a strong focus on sustainability and this is disclosed in our annual reports. I believe that will now also be available with Leland, with itc. So I. I think as organizations we want to be responsible organizations and, and do the right thing and certainly at.
At EIH we’re committed to doing that, so.
Unidentified Participant
Mr. Obra, can I interrupt?
Vikram Oberoi
Sure. Please.
Unidentified Participant
I. What I meant was sustainable prices. Are prices sustainable in the spiritual destination?
Vikram Oberoi
Okay, sorry, I thought you were talking about sustainability as in sustain csr. I beg your pardon? Sanjay. Prices are a function of supply and demand. And with religious tourism being so embedded in our. In our culture as Indians, I think there will always be strong demand and therefore I think prices will remain buoyant in those destinations. We’re through one of our JV companies, Mumtaz, are doing a hotel in Tirupati. And our projections for that are also strong in terms of ARR and occupancy and therefore revpar and profitability.
Unidentified Participant
And for the time being it’s just going to be the one in Tirupati for the next couple of years.
Vikram Oberoi
Let me rephrase that question or let me re. Answer that question. It for the time being, as of now, it’s just therapy. Yes.
Unidentified Participant
Right.
Vikram Oberoi
And your question on food and beverage. We partner with celebrity chefs. Whether that’s our Chinese restaurant in. At the Obra New Delhi or it’s our restaurant Indian restaurants across multiple locations. We partner with well known chefs for our cuisine in. In restaurants and we will continue to do that.
Unidentified Participant
Right, right.
Vikram Oberoi
Thanks.
Unidentified Participant
Thanks very much.
Vikram Oberoi
Thank you so much. Sanjay.
Vineet Kapur
Sanjay.
Navin Agrawal
We take the next question from Deepak Verma. Deepak, please unmute yourself and go ahead. I guess Deepak’s having some issue with his audio. He sent a question on the Q A board. Vikram, may I take this?
Vikram Oberoi
Yeah, sure. If you could just. I. I can’t see it, Naveen. So
Navin Agrawal
yeah, can we please have a short narrative on the Wildflower hall case? Also, what financial impact is. It is expected both on capital assets and income statement in FY25, FY26 and FY27.
Vikram Oberoi
No, no, that’s fine. I mean what I would. The way I’d like to answer, perhaps Vineeth may want to add to it. But we’ve made all our disclosures on Wildflower hall and that is available in the public domain and I’d encourage you to read.
Vineet Kapur
And at least from a financial perspective, we have taken the hotel on operational management basis for six months. So we will, you know, there’ll be some income on part of that which will be Coming through. Other than that, on major financial impact. That will be based on the court proceedings and the judgment.
Navin Agrawal
Deepak, I hope your question has been answered. Okay. There’s another question on the Q and A board from an anonymous attendee. Mayor.
Vikram Oberoi
Yeah, please.
Navin Agrawal
Revenue growth lower than Revpar. Mainly due to Kolkata over closure. When is it reopening? Second, how are the bookings from foreign tourists in FY25 versus pre Covid a ballpark number. Have they started coming back or still preferring other locations?
Vikram Oberoi
So I’ll take the second part first. We closed last financial year where we still hadn’t reached across all our owned and managed hotels. Pre pandemic levels for foreign business. I hope this year all going well, we will meet if not exceed that number. So that’s as far as foreign business returning to levels of pre pandemic portions. As far as the Oberoy grand is concerned, the plan is to the renovation was for 18 months. We’re already six months through that. So we’ll open in about 12 months from now. And that’ll be a partial opening. It’s a two phased renovation.
Navin Agrawal
Rajiv, do you have a follow up question? Your hand is raised.
Vikram Oberoi
Sorry, Sorry, I forgot.
Navin Agrawal
Okay. Do you have a follow up question? Yes. Not Sanjay Kohli. Your hand is raised too. In case you do have a follow up question. Friends, anyone else with a question request you to please raise your hand and we’ll take it up. Okay. There’s a question from Dheeraj Manwani. Please go ahead.
Dheeraj Manwani
Hello sir. So I just wanted to understand our major expand. What we are expanding. The new hotels are coming among around 20, 219 are in international destinations. So are we looking toward more towards international distributions?
Vikram Oberoi
Dheeraj? Actually no. I’d say our focus should and will be towards India and the Indian subcontinent.
Dheeraj Manwani
Okay, thanks.
Vikram Oberoi
Thank you.
Navin Agrawal
Friends. Anyone with a question, please raise your hand and we’ll take it up. As there are no further questions, I’d like to hand over the webinar back to Vikram for his closing remarks.
Vikram Oberoi
No, thank you, Naveen. And ladies and gentlemen, thank you once again. And I really apologize for the keeping you waiting this morning. And I know some of you had questions. I hope you were. We had trouble listening to some people but the voice wasn’t coming through. But I hope we were able to answer your questions. And we thank you for your support. We remain committed to providing the highest levels of service to our guests. We’re extremely grateful for to our colleagues who do so much every day to look after our guests. And with that and a strong foundation in India.
We see the hotel’s performance to be strong. Also, as far as the airline business, we see tremendous opportunity there as well with increased flights taking place and increased travel. So we remain optimistic about the future for the tourism sector and for Oberon Trident Hotels more specifically.
Navin Agrawal
Thank you, Vikram. Friends, I’ve shared my email ID on the invite. In case there are any follow up questions or there are something else, please write to me and we’ll take it up at the management. On behalf of all of us at SKP securities, thank you, Mr. Oberoi. Thank you, Mr. Kapoor, for taking time out to interact with the investors. And we look forward to hosting you again for the next quarterly webinar. Thank you.
Vikram Oberoi
Thank you so much. Really appreciate it. Thank you.
Navin Agrawal
My pleasure. Thank you and have a lovely day.
Vikram Oberoi
Bye.
Vineet Kapur
Thank you.