Juniper Hotels Ltd (NSE: JUNIPER) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
Arun K. Saraf — Chairman and Managing Director
Tarun Jaitly — Chief Financial Officer
Analysts:
Prashant Biyani — Analyst
Vibhav M — Analyst
Samarth Goel — Analyst
Raghav Malik — Analyst
Abhay Khaitan — Analyst
Hitesh Arora — Analyst
Lokesh Manik — Analyst
Sourabh Gilda — Analyst
Juhi — Analyst
Varun — Analyst
Presentation:
Arun K. Saraf — Chairman and Managing Director
[Starts Abruptly] The conference is now being recorded. Investments are converting latent demand into sustained and more resilient travel flows. Recent trade developments including India EU Free Trade Agreement and the India US Trade Deal are further are further expected to support demand, push for hospitality sector and support increased business travel in India’s key commercial centers and metros. Domestic air traffic for financial year 2425 for the first 11 months reached 155 million passengers up 7.7% from the previous year, 12.9% higher than pre Covid levels. This is estimated to grow further by 7 to 10% in financial year 2026 reaching 175 to 180 million. Delhi, Mumbai Bengaluru airports presently account for 47.5% of the air traffic share.
Juniper has established presence in close proximity to these mega AirPods with these three mega metro constituting 67% of the existing key count. The locational advantage typically translates into better occupancy visibility and higher utilization of premium mice and event spaces. Indian hospitality market valued at approximately 32 point approximate 32 billion in 2023 is projected to grow at a CAGR of 9.4% by 2030. Industry demand is expected to grow at 9 to 10% CAGR outpacing expected room supply conditions. This upcycle benefits the broader sector. The luxury segment will benefit disproportionately. High luxury segment in the metro market is accounting for 76% of our revenues and is likely to see limited supply growth of less than 5% of CAGR up to 2030.
The structural demand supply imbalance is expected to support and drive sustained growth for Juniper portfolio and is also an important cornerstone to our future growth strategy. While we focus on markets where infrastructure investment unlocks demand but where asset differentiation and execution ultimately determines success. Let me now turn to our expansion pipeline and progress we are making across the key locations in Bengaluru. Phase 1235 keys should commence operations in first quarter of financial year 27 and phase 2 of 270 keys. Additional approvals are now being processed and Construction for phase two is target to commence in financial year 27.
Upon completion of phase two the property will comprise of 508 Big Box Hotel. The project is being developed with high capital efficiency at an approximate cost of 1.75 crores per key and is expected to generate strong grossing. Bangalore continues to be our core demand it continues to be a core demand market for us and it’s also one of the fastest growing markets in India. Our phase development approach allows us to capture existing demand while scaling capacity in line with market absorption which aligns with our capital efficiency framework in Kajiranga for adding 111 keys remain on track.
This will be the first luxury offering in that market and is being developed in an eco sensitive manner and representing our eco luxury thesis. Premium low impact hospitality that integrates conservation, wildlife experience and community engagement. In Guwahati, the process of getting approvals is underway. Construction is targeted to commence by quarter two of financial year 27 with 348340 keys. Our planned hotel is designed to develop culturally rooted luxury serving both business and long stay, experiential guests and vibrant event demand. This fits squarely with our strategy of establishing early leadership positions in emerging premium markets. Guwahati is steadily emerging as a gateway to Northeast benefiting from improved air and surface connectivity.
Inauguration by Hon. Prime Minister of Terminal 2 at the existing Guwahati Airport in December 2025 with a designated capacity of 13.1 million passengers annually has been nearly doubling throughout current throughput thereby making Guwahati the largest aviation hub in Northeast India. Therefore, our developments in Kazi Langa and Guwahati enable us to straddle the high growth potential of this market. While Guwahati will benefit as a hub destination such as Kajinanga are likely since demand from experiential and ecological space. Beyond the projects currently underway, we continue to evaluate additional value accretive opportunities. As previously shared, we have secured permission to add 314keys at our existing flagship property Grand Hyatt Mumbai.
Given the relatively lower incremental cost, the property’s strong average room rate performance, this expansion offers the potential to enhance return on capital. We will commence work on this latent opportunity at the right time. We also hold two prime land parcels adjacent to Grand Hyatt Mupai. We are carefully evaluating the optimal development strategy for this site to ensure effectively effective monetization and long term value creation. In line with our disciplined approach to capital deployment, Uniper stands on a strong foundation with its core business exceptionally well positioned to capture both emerging and long term growth opportunities in the sector.
We continue to evaluate our assets and product offerings with a clear objective that is to lead our competitive landscape. I will now hand over to Mr. Tarun Chaitley, our CFO who will take you through the financial performance for this quarter. Thank you.
Tarun Jaitly — Chief Financial Officer
Thank you Mr. Sara. Good afternoon everyone. I would like to now Walk you through some of the key highlights of the quarter. As mentioned by Mr. Farad, third quarter fiscal 26 has been indeed the record quarter for the company. We’ve achieved a revenue of 300 crores reflecting a 15% yoy growth. The key drivers as mentioned by Mr. Saraf remain a very healthy ARR growth and a 300 basis points improvement in occupancy. Room occupancy driven by Grand Hyatt average portfolio ARR stood at 12,818 while the average occupancy for the portfolio for the quarter was 78%. Our continued focus towards high yielding customer segments which are transient in groups have contributed to ARR growth of a portfolio outpacing respective city segment concepts.
ARR growth for Grand Hyatt has been 7% y o wide, Andaz has grown by another 10% y o wide consistently and Ahmedabad at 17% yoy growth in ARR is the star performer for the quarter. Grand Hyatt has been the key driver for occupancy during the quarter. As I said with occupancies growing by 300 basis points on a year on year basis and the Grand Hyatt occupancy achieved in Q3 was 75% across the portfolio. We continue to execute on focused strategy of exiting lower yielding contracts and reallocating capacity towards higher ARR and more profitable customer segments which are transient in groups and bridging the ARR comps and gap.
We continue to invest into our strategy of offering an upgraded and fresher product experience to our customers. Food and beverage revenues grew sharply by 25% year on year to 94 crores in quarter three accounting for 32% of the revenue compared to 30% in Q3 fiscal 25. This aligns with our continued focus on increasing FNB mix given HYBE’s global strength is in FNB even segment a 64% share of FNB in quarter three was a key contributor with a 39% YoY growth. Events have again been primarily led. The driver for event growth has been Grand Hire during the quarter.
Our standard annuity assets also performed consistently contributing approximately 42 crores during the quarter equivalent to nearly 1.9 times our finance cost for the quarter itself. This significantly derisks our future business plans and growth. Robust ARR growth and improving cost efficiencies have resulted in a healthy 31% year on growth in EBITDA 232 crore. The margin for the quarter is 44% which is a sharp 500 basis point improvement over the corresponding quarter. Importantly for the nine month period Juniper has achieved an EBITDA of 306 crore and a margin EBITDA margin of 40% something which we have been targeting to achieve and mentioned even in the last quarter call.
On the cost front we continue to benefit from higher flow throughs of ARR cluster LED cost efficiencies which have reduced our consumables and led to increase in FNB departmental profits during the quarter, higher share of renewable energy in Andaz and Mumbai and going forward we are also looking at implementing that in Lucknow and Ahmedabad and that will continue to support the HLP costs contraction for the company as we go forward as a percentage of revenue. Finally lower RNN cost during the quarter also supported operating margins. Profit before tax for the quarter increased to 83.5 crores which is a 92% year on year growth during the and we have prudently provided for the impact of Labor Code 2025 and its resulted impact on gratuity provision of 6 crore during the quarter on a consolidated basis.
The company continues to assess that and we will see based on the recommendation what is the final position that we take but we have done a prudent provision in the current quarter the profit after tax for the quarter is 65 crores represent 101% growth year on year and the tax at 18.1 crore is being set off against brought forward losses and therefore there is no cash flow impact of the same. For nine months Juniper achieved a PAT of 91.2 crores which is a 459% YUI growth Juniper so this has indeed been a very very landmark quarter for the company.
On the balance sheet front Juniper remains well capitalized. Net bank debt to EBITDA is 1.3 and the net bank debt stood at 569 crores. Our average cost of borrowing stands at 8.3% and over the nine month period we have repaid 30 crores of term loans and also repaid down 88 crores of high cost ECB’s. Our cash position remains very healthy. We had as of 12-31-237 crores in cash and on the growth front which Mr. Sarath has already detailed earlier, we expect Bengaluru Phase 1 opening in Q1 fiscal 27th. Kaziranga project is on track and we expect CAPEX for that to start to accrue from fourth quarter of this fiscal year itself.
Bengaluru Phase 2 and Guwahati works are expected to commence by the first half of fiscal 27 with a potential 613 key addition by these two projects. Thank you. I now request the moderator to open the floor for question and answers.
Questions and Answers:
operator
Thank you. We will now begin the question answer session. Anyone who wishes to ask a question may press star N1 on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star. And two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the line of Prashant Biani from Elara Capital. Please go ahead.
Prashant Biyani
Yeah. Thank you for the opportunity. Sir, how is fourth quarter turning out? And how has it been till date? And based on business, on books, how do you see the entire quarter?
Arun K. Saraf
So. Hi Prashant. So we continue to see firmness in the market and you know, we believe that the targets that we set out for the year for ourselves, I think we are pretty much on track to achieving them. So we don’t see any significant slowdown in any market that we at least operate in.
Prashant Biyani
Sure. Is there any opportunity for further expansion in Hayat Regency Ahmedabad?
Arun K. Saraf
So of course I think Q4, as you know, is the strongest quarter for the sector. And we believe that there are certain operational efficiencies which are there. And Ahmedabad has only performed as per the optimal performance that it is expected to in this current quarter. And going forward, not only Ahmedabad, we anticipate all the other assets and the larger flagships also to continue to maintain the optimal performance.
Prashant Biyani
No, I meant capacity expansion.
Tarun Jaitly
So Ahmedabad is, you know, after the demand undercurrent in Ahmedabad, market continues to be very, very strong. And it has been so for the past few quarters. We do not see any sign of any weakness in that. A few quarters ago there were times when Ahmedabad had 98% occupancy. Despite the expanded rooms in this current quarter, Ahmedabad is at 85% occupancy.
Arun K. Saraf
And this is. Arun. This will only strengthen given the way Ahmedabad is focusing on these global sports events. With the Commonwealth Games already signed up, multiple international sports events happening, we believe that the Ahmedabad market demand will remain very strong with good arrs and very. Very high and healthy occupancy.
Prashant Biyani
Sir, my question was, can we expand rooms further within Hayat Regency Ahmedabad? Is there a room for that?
Arun K. Saraf
No, no, no. Sorry, I think we misunderstood your question. There is no further room for, for expansion of or addition of rooms in Ahmedabad in the current complex. Yeah.
Prashant Biyani
Sir, we will continue with Marriott for the Bangalore asset or what is the way forward?
Arun K. Saraf
The Bangalore Marriott we are in very detailed discussion with Marriott and we will have something more to share in the future.
Prashant Biyani
Okay. And sir, lastly, how much would be the hotel wise occupancy for last year? Q3 for this year. You have shared in the PPT for last year. If you can share it will be great.
Arun K. Saraf
I mean you know we don’t share, you know the hotel wise numbers Prashant but we do share, you know the luxury and upper upscale segments which is there in the presentation as well. If there are specific questions that you have, I’ll be happy to answer that for you separately.
Prashant Biyani
Okay sir, that’s it. Thank you from my side.
operator
Thank you. We have the next question from line of WebHav M from Hightown Securities. Please go ahead.
Vibhav M
Hi sir, Congratulations on a very strong set of numbers and thanks for the opportunity. My first question was on our FNB performance. We have delivered a very strong growth of 25% year on year. Can you share more color on this? How we have achieved a strong FNB growth which has outpaced the overall room revenue growth as well for the quarter. That’s my first question.
Tarun Jaitly
Right. So as I said in my introduction comments. Right. FNB has been a good performance in the current quarter but again and this quarter it’s been driven by Grand Hyatt where the FNB in Grand Hyatt has grown by roughly around 23 plus percent. You know, so there is the Grand Hyatt is the last contributor followed by Ahmedabad on the FNB side.
Arun K. Saraf
Just to add to that, this is the first full season that you’re seeing the showroom being operational. Last year it was there, the market was understanding that. And this is something that we built about 18 months ago. And this Q3 and Q4 is where the real impact of the showroom will be visible. And that’s what we’re seeing main issue signs of.
Tarun Jaitly
Yeah. And I guess just to come back to your question, you know SMB is a traditional strength for Hyatt and you know we put that as a focus area for us in the last few quarters and we are happy to see that is now playing out. And FNB as a percentage of revenue should normally Trend to around 33, 34%. We are in the last quarter at around 31% so there is still room for growth there.
Vibhav M
So you think the growth is sustainable going forward in FY27 for FNB?
Tarun Jaitly
Yes, certainly.
Vibhav M
All right sir, my next question was on our Bangalore project. I think we have delayed the opening by 1/4 and earlier we were targeting Q4, FY26 opening. Now we have shifted it to Q1. Just wanted to understand why there has been a bit of delay over past quarters in operationalization of this asset. And secondly, what kind of EBITDA contribution do you expect from this asset in FY27 and 28 and what would be the expected timeline for this asset to scale up to an optimum level.
Arun K. Saraf
So there is no actual delay in the opening. Where we are today is the hotel is undergoing the final phases. There will be a soft opening, the approvals need to come in place, the brand needs to be finalized and in Q1 of FY27 the hotel will start generating revenues. And in terms of overall first year revenue, I will let Tarun sort of add on that.
Tarun Jaitly
Yeah, thank you, Varun. So just to add to what Varun said, you know, if you remember we’d been sharing this with you, that we want to optimize, you know, that important asset for us. You know, it’s a 500 key asset and it’s a big one. And it is also we acquired it in a partly developed stage and the configuration of that asset is luxury plus segment, which is more fitting with our overall strategy. And we have been engaged with Marriott to give us a higher luxury flat than what it is right now. And those discussions are the only reason where this little bit of time is taken.
And we believe it is worth, you know, that one or two months movement given that we are able to get a better flag for that asset. That’s the only reason. Otherwise from a readiness for completion of the project, there is no delay. And yeah, the approval is the only reason. Otherwise there is really no delay in construction of that asset. So we’re just doing justice to what that asset deserves. As far as the second bit of your question, again, I would refrain from really giving you specific projections, but I would say that in FY27 we are looking at this asset contributing positively to ebitda upwards of 2025 plus crores.
Vibhav M
And for FY28, sir, what would be.
Tarun Jaitly
The range in FY28? On a stabilized basis, this asset should give you above 50, 55 crores.
Vibhav M
Understood, sir. Perfect. Thank you so much and all the best.
operator
Thank you. We have the next question from the line of Samarth Coel from Choice Institutional Equities. Please go ahead.
Samarth Goel
Hi. Hi all. And congratulations for the amazing result and thank you for the opportunity. So my question was around the ROFO agreement. So the ROFO agreements, what I’ve understood are part of Sarah’s Group’s promoter assets. Only one is Maya Chennai, which is and one is which is in Asian East. So despite this promoter linkage, what are the specific factors causing delay in the stretching the timelines on ROFO acquisition and consolidation of these assets in general.
Arun K. Saraf
So Summer, you know, the ROFO mechanism is a broad mechanism, not really linked to any specific. But I’ll come to the specifics that you asked. We have already gotten in the past year two companies which is chartered came in. It was sitting outside of Juniper and then we also got in gaze Ranga into Juniper to make Juniper as the flagship. So that’s point number one with the name specific assets that you’ve spoken about which are right now sitting outside of Juniper. These are all individually sitting in their own listed companies and they have their own compliances and other issues.
As and when we have something tangible in that mechanism to share with investors, we would in the most transparent manner share the same with you at that time.
Samarth Goel
Okay. Any timeline or any next milestones which I. Which are a hurdle.
Arun K. Saraf
Yeah. I would not wish to speculate on it, but I will, you know, as and when there is some credible development that happens, you know, we will, we will share that in a most transparent manner with the investors.
Samarth Goel
There. Another question related to your participation in the circ of Gustar Hotels, the JW Marriott in Bangalore. Could you share any current status of the resolution process and WhatsApp is, is your. Is the bid still inventive favor for this or is it a. Is it isn’t Juniper’s favor or is it a dead end?
Arun K. Saraf
So you know we were, we are one of the resolution applicants for the start resolution process which is currently underway. It is being driven by the resolution professional managing that we are in live discussions and engaged with the RP and CoC and you know, I would not like to again speculate beyond that, but it is an asset that we are keenly looking at.
Samarth Goel
One last question on what is the like what is the ROC you expect from the Bangalore assets? One, it stays like one, it is stabilized.
Arun K. Saraf
So Samarth, you know that’s a speculation. What I can say is that start today again from what I understand it and I’m bound by confidentiality so on a public platform I would refrain from giving any specific numbers on it. But you know, from a public publicly available information that is there with us, it Is, it’s a 100 plus crore, you know EBITDA currently. What it can do or what root will have is again a function of what value it comes in if it at all comes in into Juniper. If you were to win the resolution process.
So there are a lot of, you know, steps between now and when the final decision of the RPM is going to be done. When that happens, we will again share that with the investors.
Samarth Goel
Sorry, I mean the Bangalore asset we are currently coming up with Marriott one.
Arun K. Saraf
And so from a ROC perspective. Okay, understood. So for our Bangalore asset in phase one and phase two, the phase one has got the, you know, the cost of land also built in. But if you were to look at it on a holistic manner of 508 keys and all in cost for development, this would generate 15% plus ROI. So it will definitely be, you know, Rosie accretive for the balance sheet of Juniper.
Samarth Goel
There is one more question as there is time. So we I there are land passes adjacent to Grand Hyatt Mumbai and previously we were creating a new Hyatt there. And then there were some talks of commercial, commercial leaving. And what is the final like? Is there any definite or final plan we see on those land passes?
Arun K. Saraf
These two assets next to Grand Hyatt are our prized possession which do not get counted or reflected in our performance. But I can assure you that at this moment we have engaged top class consultants to advise us of how to exploit these opportunities either in hospitality or otherwise. So we still do not have a very clear decision have not taken. But these are being actively pursued as we talk. We will share with you more information on them once we finalize the usage of them and the project cost entailing on that.
Samarth Goel
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on your touchstone phone. Participants also request you to kindly restrict your questions to two per person. We have the next question on the line of Raghav Malik from Jefferies. Please go ahead.
Raghav Malik
Yeah, hi. Thank you for the opportunity and congrats on robust set of results. Firstly on just on the guidance that you gave 9 to 10% sort of demand growth for the industry, where could we expect maybe you know, the Mumbai market to be in that, you know, how much lower or in line with that range would that be expected for us? Because for the industry actually because for us I would say that Grand Air and the support transformation you’ve done has brought about that big jump in occupancy. But in general for like demand growth for Mumbai, are you seeing a track where in that range? Maybe if you could elaborate.
Arun K. Saraf
So the Bombay market remains extremely strong, right? With Fairmont opening up last year, the absorption has been very strong. We have not seen any occupancy dip up. Occupancies remain steady if not grown, rates have grown further. So we do not see any kind of weakness in the Bombay market. I think this is only going to continue. Again supply is still limited. There’s nothing that is being planned to come in over the last three years. As I mentioned, one was the Fairmont, one was Orica. All of them came. Orica wasn’t even in the luxury segment. And as a growing city I think the demand will continue to outstrip the supply and we are well positioned to take advantage of that.
Arun K. Saraf
So I was just saying that adding one more point, you know we have, we have grown better than the concept like you know we have for the past year plus in Mumbai. We’ve grown better than the concept in err. And you know, going forward we still need to, we are embarking on those two strategies. Right. We are pivoting to focusing on more on the high paying segment. And plus we are also bridging the gap on the ARR whether we the number one in the concept. So there is, you know, there is expectation that we will continue to do better from the concept in Mumbai going forward as well.
Raghav Malik
Sure. And just in terms of occupancies, like a follow up in terms of occupancies for Grand Hyatt now would it be like at the normalized level or resistance scope, you know to increase it with the rooms coming back to market? You guys. Hello.
Arun K. Saraf
Sorry, are you talking about Grand Hyatt Bombay?
Raghav Malik
Yeah, Grand Hyatt Mumbai. So you guys have you know renovated a bunch of rooms. So is it now that everything’s back like from the perspective of the rooms coming back, is there still scope to grow occupancy or would it now just be more in line with the market?
Tarun Jaitly
547 room asset. Right. Occupancy does stabilize at 82. 82 to 80 to 82%. Right. So from that point of view, yes, there is some room for growth but that’s where it is. More, more up. If you’re actually looking for upside, I think you have to look more from the rate point of view. I think the rates are still stuck due. If you’re going to go see the overall city rate, I think it’s still much higher than ours. So I think that’s where the revenue top line and the EBITDA will come through. For any incremental increase in rate. At. This level, I think almost 80% will go down to the bottom line. So from that point that’s what you should be seeing.
Raghav Malik
Understood. I’ll come back in thank you.
operator
Thank you. We have the next question from the line of Abhay Ketan from Access Capital. Please go ahead.
Abhay Khaitan
Yeah, hi. Thank you for the opportunity. So my question is on the EBITDA side. So you’ve seen really strong growth and very sharp expansion in margins this year. We saw that in the previous quarter as well. While some of it can be attributed to the fact that there was renovation in the base year. But if you can help us in breaking down that how much of the renovation cost in the base and how much was because of other expense and within that also in terms of employee cost also we see that the total number of manpower has increased on a Y O I basis.
However, employee cost as percentage of revenue will actually fall into. Can you also explain that?
Arun K. Saraf
So I’ll take the second one first. I think, you know, we’ve added, you know, the manpower at primarily to augment the project team because we have large projects that are currently underway and that will contribute to growth. Coming to your specific question, I think of course the rate of revenue growth is much higher than the rate of growth of wages and hence there’s a reduction on the percentage of revenue on the wage bills and that is what is positive. That despite the growth in headcount we are still maintaining, you know, the overall wage cost as a percentage.
On the question on the expansion of margin, you know, we’ve always said that for a company like ours we normative margins have to be in the region of 40% and I think this quarter has enabled us to get back to that 40%, you know, normative performance. So it is not something which is like a one off. It is something which we needed to trend to a normative performance level which we’ve done. So as far as last corresponding quarter of the last year, you know, there was just one element of one time which was there which was roughly around 3 crores of RNN.
So if you have to do that math, I mean, you know you can add the 3 crores of RNM last quarter corresponding which is not there in this particular quarter.
Abhay Khaitan
Okay, thank God it. Thanks. Very helpful. My second question is on the ARR growth that we have seen in this quarter for the luxury and the perhaps skill segment. So on the luxury side I understand grand Hayat has done slightly ahead of what the compsat has done. But again is that something how much of that was driven by the fact that you had also renovations and therefore there’d be some natural uplift from that. So how much did that contribute to the growth? And secondly Even on the upper upscale segment, 13% growth is a very strong number.
So can you highlight which cities are mostly corresponding, which particular assets are contributing more towards this high growth?
Arun K. Saraf
Sure. So for Grand Hyatt. Yes. I mean you know, and that is something which also I mentioned in my comment that we are investing into assets to give a better product experience to the consumers and it’s not just limited to Grand Hyatt, you know, so but since you mentioned about Grand Hyatt. Yeah. I mean you know the investment that we did in Grand Hyatt is enabling us to capture and focus more on the transient and the high paying group segment and reduce our overall contract business which is now in grand height down to less than 6%.
So that is one major, you know, contributor to the error improvement. And I think as Varun said there is still a significant catch up with respect to the concept that is required and the room headroom is still there in Mumbai. Going to the second question on the upper upscale, the key contributor there is Ahmedabad which has seen as I said, you know, 17% plus, you know, growth in ARR.
Abhay Khaitan
Thank you. This is very useful.
operator
Thank you. We have the next question from the line of Hitesh Arora from Abacus. Please go ahead.
Hitesh Arora
Thank you. Thank you. Opportunity. I just wanted to get a sense of what is the capex we are looking to do in FY27 and FY28. Some estimate would be helpful to you.
Tarun Jaitly
Yeah, so give me a second, I’ll just, I’ll give you the exact numbers. Yeah. So we are investing as I said, you know Kaziranga is the one which is getting under construction. And then you have Bengaluru itself which will come in phase two. So from 26, FY27 the CapEx that we are projected to do is roughly around 274 crores and in FY28 roughly 525 crores. This covers you know our, the projects that we have disclosed which is essentially Bengaluru, Phase 2, Kazaringa and also Guwahati.
Hitesh Arora
And you know Capex. We should think we fund by via debt or do you think we need to raise it?
Tarun Jaitly
Yeah. From a sources perspective. Right Hitesh. We are sitting on roughly 200 plus crores of cash and we are generating gross cash roughly around 300 crores every year as we go forward. So I think most of this will get funded through robust cash flows and then on top of it we also have significant headroom for debt. If we were to take that decision because we are right now on net bank debt to EBITDA. We are just at 1.3.
Hitesh Arora
Sure, fair enough. Thank you. We come back in the case.
operator
Thank you. We have the next question from the line of Lokesh Manik from Vallum Capital. Please go ahead.
Lokesh Manik
Yes. Hi. Thank you. My compliments to the team for the execution of the strategies outlined in the past few quarters. My first question was actually more broad and more from a three to five year perspective. Arun. Sir, where does Hyderabad sit in your entire strategy? That’s the missing piece in the puzzle. Do you think so? And any outlook on that would be great. If you’re planning any properties out there.
Arun K. Saraf
See I will tell you. Hyderabad is definitely on our radar and it’s on a priority list. And we did engage on certain assets which I’m not able to share with you on open platform. And we will continue to look for ready built asset if. If there is any coming into the market or even Greenfield or brownfield opportunity in Hyderabad. This is definitely on our radar screen. Number one.
Lokesh Manik
And any development on the properties towards Navi Mumbai site, the second new airport.
Arun K. Saraf
That’S coming see Navi Mumbai per se. We have looked at the. Continue to look at the airport, the new airport of Navi Mumbai. And that is an opportunity which is in medium term a really a good opportunity. And we are at this moment actively looking for opportunity in that facility.
Lokesh Manik
Great. So I hope to hear with some good. Sure sir. Hope to hear some good news on those two fronts.
Arun K. Saraf
Absolutely sir. If you have anything in your portfolio that somebody is trying to sell, please do approach us.
Lokesh Manik
Bill Dusa, thank you so much. That’s it from my side.
operator
Thank you. We have the next question from the line of Saurabh Gilda from JM Financial. Please go ahead.
Sourabh Gilda
Yeah. Hi. Congrats on a good set of numbers and thanks for the opportunity. Just wanted to get a sense on how January has panned out and what sort of visibility do we have for Feb. March for Q4.
Tarun Jaitly
So as I said, you know, we are seeing this. The basic variables continue to remain firm and we are on track of achieving our guidance that we had set out for ourselves for the full FY26. So all the variables remain positive over the next three months.
Sourabh Gilda
Okay. So thanks
Tarun Jaitly
to show healthy growth y oi even in this quarter.
Sourabh Gilda
Sure sir. Thanks.
operator
Thank you. We have the next question online of Juhi from Aryan Capital. Please go ahead.
Juhi
Hello. Am I audible?
Arun K. Saraf
Yes, we can hear you.
Juhi
Yeah. Thank you for the opportunity and congratulations for the number. My question is that it was noted that the company has utilized brought forward losses which acted as tax shield against the current profit. So how many more quarters do you expect this tax benefit to support your bottom line? Yeah.
Tarun Jaitly
So we have today more than 1000 crore of tax sheet and given our growth trajectory and very high, you know, performance levels that we anticipate the company to achieve over the next few years, it should hold good for zero tax status for at least the next three years.
Juhi
Okay, thank you.
operator
Thank you. We have the next question from the line of Varun from Samara Capital. Please go ahead.
Varun
In the last con call you had mentioned that and given an update on the Hayat Regency Mumbai that the construction is on track. Can you also update the status on the same.
Tarun Jaitly
Sorry, could you repeat that? I just lost you. Couldn’t hear you clearly.
Varun
Can you hear me?
Tarun Jaitly
Yes, I can hear you now.
Varun
Yes. I was thinking in the last, in the previous con call sir, you had given an update that the Hiat Regency Mumbai asset acquisition and construction is on track and you would expect there’s no change in the timeline as far as the operationalization of that asset is concerned. Can you share an update on the same? And also from a ROFO asset perspective, we do understand that you have clarified that there are timeline constraints around it but is it broadly in line with the original timelines?
Arun K. Saraf
Well, as I said, I mean, you know, from the perspective of Juniper today, you know we, when we have a credible update to share, we will be the first ones to share that on a very transparent basis. But you know, you have to appreciate these are individually listed companies and that is, you know, one of the key factors that I would want to differ the discussion to the time that we have something credible to share on those.
Varun
Got it. And overall for the market as a whole, especially in Mumbai, how do you see the ARR trends over the next three to four years? How do you see the demand and supply trends shaping up and what do you expect that to result in in terms of ARR growth?
Tarun Jaitly
The market will continue to remain very strong in Bombay in the next three to five years. As of now, if you go back in the market and do the supply side is still going to be Ltd. With one maybe two assets coming in the next three to five years. We believe the luxury segment will continue to perform well. And in terms of rate, I think there is probably still further upside on the rates as well. If you see the luxury segment is anywhere about 15,000 odd as per the numbers, I think this 15,000 still has upside.
If you see in dollar terms it’s probably still $150 comparing it to other. Large cities in the region. So there is still upside there and I believe the demand will remain very, very strong and there is good upside on the average rates as well going forward.
Varun
Got it. And one last question. You mentioned that you’re also evaluating acquisitions and you shared about gstart in Bangalore. From an acquisition perspective, how much in terms of are there multiples that we are okay with in terms of premium to replacement costs or looking for discount replacement costs? Are there benchmarks that you have in mind for Rosie or multiples that you anchor yourself on as you think through acquisition and bin field strategy?
Tarun Jaitly
Each asset has to be reviewed on its own merit. I don’t think we have any sort of. I will not be able to share what our thresholds are, but each and every opportunity will be evaluated. If it is value accretive for Juniper, we will acquire that and our prudent and capital allocation strategy remains intact.
Varun
Got it. Thank you. Thank you.
operator
Thank you. We have the next question from the line of Raghav Malik from Jefferies. Please go ahead.
Raghav Malik
Yeah, hi. Thanks again for the opportunity. So just wanted to ask you about the Delhi property. So for Andaz, given that, you know there’s this big AI summit happening right now, is there like a very sharp jump that we can expect in ERs and what kind of occupancy would it be tracking at currently? Maybe for the next week or this week.
Arun K. Saraf
So this is all for Delhi, right? Whether it’s a large investor conference driven by Asho Boomi or the AI or a foreign dignitary coming in, Delhi supply is also very limited. If you actually want to look at it, Aero City is what sitting at 85, 88% occupancy around. There is leisure business coming into Delhi. So Delhi remains in extremely strong and it will continue to see global events happening on a regular basis. With the two large convention centers run by the government, the Bharat Mandapa and the Yashwabhoomi that will continue to drive. So you will find this month on month an event happening and there will be spikes and there will be a good projection.
Arun K. Saraf
Sorry, this is one of the reason we are scouting for more properties in Delhi. Both Greenfield, Brownfield and we are actively looking at adding more properties in that micro market along with definitely Mumbai, as mentioned earlier, Navi Mumbai, Mumbai, Bangalore and Hyderabad.
Raghav Malik
Sure sir. And for this the Bangalore property, just on a maybe normalized pure set basis, like what is the average err that we can expect when normal is.
Tarun Jaitly
So given, you know, the market there and there are Also, you know, current benchmarks for Marriott in that particular micro market. We believe this asset starting era could be north of 14,000.
Raghav Malik
North of 14,000. Okay. And so if I can just squeeze one last question. And so for bit prima facie, but for FY29, there seems to be a very sharp. So is that a very fixed timeline even for those 500 unnamed keys so far in terms of the kind of jump in keys that we’ll be seeing? And would that.
Tarun Jaitly
Yeah, sorry Raghav, I’m just cutting you. We are aggressively working on the Brownfield and Greenfield acquisitions. We believe that one asset itself, we are not looking at adding a bunch of 50 key assets. Right. I mean our ethos is to focus on big box assets. That is what really makes sense for us. And I think, you know, even one asset potentially can fulfill that obligation.
Raghav Malik
And would it be right to assume that there could be a debt increase in that particular year then a sharp increase just to make up for that?
Tarun Jaitly
If you decide, you know, if we do decide. And again there are a lot of variables, as I said, you know, are operating cash flow remain very strong. So it is also a function of what other things we are doing. But let’s say hypothetically, if we keep the operating cash flow aside and if we were to leverage at that point in time, there would be a short spike in the leverage. But we would also even then make sure that we don’t breach the prudent gearing EBITDA to debt ratio of, you know, 2.5 times.
Raghav Malik
Sure, sir, that’s very clear. Thank you. Thank you.
operator
Thank you. Ladies and gentlemen, in the interest of time. That was the last question for the day. I would now like to hand the conference over to the management for closing comments.
Arun K. Saraf
Thank you very much. I want to extend my sincere gratitude to all our stakeholders, all people who were present on this call, our shareholders, partners, our employees and most importantly, our guests for their continued trust and support in Juniper Hotels. Together we are navigating one of the most exciting phases of India’s hospitality journey. Our vision remains clear to redefine luxury hospitality in India while creating enduring value for all our stakeholders. Thank you very much.
operator
Thank you. On behalf of Jino for Hotels Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.