Juniper Hotels Ltd (NSE: JUNIPER) Q4 2025 Earnings Call dated May. 29, 2025
Corporate Participants:
Arun Saraf — Chairman & Managing Director
Tarun Jaitly — Chief Financial Officer
Varun Saraf — Chief Executive Officer
Analysts:
Lokesh Manik — Analyst
Prashant Biyani — Analyst
Nigel Mascarenhas — Analyst
Sugandhi — Analyst
Vaibhav Muley — Analyst
Abhay Khaitan — Analyst
Sourabh Gilda — Analyst
Surya Narayan Nayak — Analyst
Raghav Malik — Analyst
Aman Goyal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4FY25 earnings conference call of Juniper Hotels Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing then zero on a touchstone phone. Please note that this conference is being recorded.
Certain statements disclosed in this presentation or that may be disclosed over this call may relate to companies growth prospects that are forward looking statements within the meaning of applicable securities laws and regulations. These forward looking statements are not guarantees of future performance as they are subject to known and unknown risks which are beyond the control of the company.
We have with us today Mr. Arun Saraf, Chairman and Managing Director, Mr. Varun Saraf, Chief Executive Officer and Mr. Tarun Chaitley, Chief Financial Officer. I now hand the conference over to Mr. Arun Saraf. Thank you. And over to you Mr. Saraf.
Arun Saraf — Chairman & Managing Director
Thank you. Ladies and gentlemen. I would like to welcome you all to the finest hotel development owning company in India, Juniper Hotels financial year 25 earnings call. I hope everyone got an opportunity to go through our financial results and investor presentations which has been uploaded on the Stock exchange as well as our company’s website.
Let me begin with highlighting our key achievements made by us during financial year 25. It has been a landmark year for Juniper Hotels. We have achieved the highest revenue ever of 976 crores and EBITDA of rupees 368 crores. This performance is despite the disturbances we had in Grand Hyatt property due to renovation that had been taken up earlier last year. Renovation is now complete including the showroom, that’s the new ballroom, a new restaurant, Cellini, the bar, refurbished rooms and apartments.
The whole hotel is fully operational with all revenue streams active and generating income. We also completed the refurbishment of our hotels in Ahmedabad and Hampi during the last fiscal year and enhanced our food and beverage spaces and added new banqueting venues to the hotel. An upgraded product offering has reinforced Juniper as a leading player in luxury segment. This is borne out by the fact that Juniper assets have outperformed their competitive set in each market in terms of average room rate growth for the trailing last 12 months which has led us to achieve a hotel operating level EBITDA of 400 crores in financial year 25.
Coming to Q4 of financial year 25 performance, we have achieved the highest ever quarterly revenue of 287 crores and EBITDA of 126 crores on the back of healthy growth in portfolio RevPAR of 13.7% across all our hotel assets. Increasing and increasing contribution from Grand Hath Mumbai. Now let me brief you on some strategic developments in last fiscal. As I mentioned earlier, upgradation and refurbishment of rooms and apartments across our key asset has been completed. The full year impact of these improvements on improvements will be visible this year in our revenue growth and profitability.
In the previous financial year we acquired one greenfield project and one brownfield project which would contribute to additional 335 keys to our current portfolio of 1895 operating hotel rooms. We acquired a partially constructed 220 hotel room a hotel on land measuring 6.5 acres near the Bangalore Airport. Let me repeat, we acquired a 6.5 acre land with a semi built 220 room hotel near the Bangalore Airport. This was a tremendous achievement and I feel very very happy that we were able to acquire this asset at a very competitive and reasonable price.
The hotel is expected to complete by financial year and end of financial year 26 that is in next nine months in January 25. That’s about six months back. We acquired a 10 acre land parcel in Kajiranga, Assam to develop 115 key Alila. It’s a luxury resort by Hyatt. The project is slated to be for completion by financial year 28. These are two real opportunities that company has in its portfolio and is proceeding with the development of these assets. I’m really happy also to share with you what is the stuff that we have planned for ourselves in the coming years.
Let’s look at the plan for next three years as we look ahead. For the next three years I would like to share our plans for continued growth. Our strong balance sheet with a debt equity ratio of 0.3 multiple provides us with ample headroom to pursue strategic expansion opportunities. The company has a potential of 2,900 crore of headroom for future growth. We are actively exploring opportunities to deploy this capital efficiently. I must repeat the word efficiently. While valuations for built assets are at an all time high and value accretive opportunities are limited, we are in advanced discussion and remain optimistic about announcing a transaction in coming months.
Greenfield development has always been the core strength of our company and we continue to focus in this area with planned land acquisitions in key markets to drive long term growth. Our current initiative is to take thousand new keys in in addition to the 355 above. As I shared you earlier, the Bangalore and Kajiranga 355 keys into development by end of this fiscal year.
Let me outline how this will be achieved. We own a plot of land measuring 74,000 square feet, strategically located next to the State Secretariat in Guwahati, Assam. We are commencing the process of development of a 250 room luxury hotel in this location. This will be the first truly luxury hotel in Guwahati and all of the Northeast. We will also be immediately initiating phase two of the Bangalore project as I had mentioned earlier which we had acquired and now it is being completed under which we intend to build additional 250 quays on the existing six and a half acre of land. We are in design stage for development of a commercial tower in our Grand Hyatt property.
Commercial tower size would be approximately 45,000 square feet and this is slated to go into development process in the coming months. Juniper is currently actively negotiating actively negotiating two attractive opportunities in strategic locations to add 500 keys to our portfolio. We shall update you as soon as the deals are signed. We also have received ROFO of two SADA family owned hotels, Advisors and valuers have been appointed and acquisition process is underway pending necessary approvals.
I shall keep you updated with the above initiatives. We are actively working on adding 2072 keys to our existing portfolio 1895 keys over next three years we shall succeed Before I hand over to Karun, let me reiterate that we accelerate our growth journey. We remain committed to strengthening our position in luxury segment and ensuring our assets perform at optimum levels, delivering best in class profitability.
Tarun Jaitly — Chief Financial Officer
Thank you Mr. Saraf. Good morning everybody and welcome to the fourth quarter FY25 call. Since the presentation is already with you, I will just quickly run through just a few highlights and then we’ll be open to question and answers. So Q4 has been a key quarter for us. As we’ve been saying, we achieved a highest quarterly revenue of 287crores and we’ve seen a strong recovery in our EBITDA and EBITDA margins in quarter four. We are now we touched 44% corporate EBITDA margin in Q4 which has primarily been driven by strong overall performance across our assets.
Room revenue for instance for the full year for US has grown 16% and that is driven by stabilization in Q4 of Grand Hyatt where we saw 15% growth in Q4 coming in from Grand Hyatt YOY versus A minus 8% degrowth in the subsequent quarter. So sequentially Grand Hyatt has actually stabilized and that’s a big positive and will be a positive contributor going forward as well. Another key highlight has been the FNB contribution where the Grand Showroom since operationalization has achieved a 9 crore revenue and we anticipate in the current year Grand Showroom itself to contribute roughly around 27 to 28 crores.
On the key performance matrices the highlight has been 8% growth in overall ARR. And the star performers here have been Delhi and Mumbai where Delhi ARR yoy has grown 19% and Mumbai by 10%. And that trend has continued in Q4 where on top of a strong sequential growth Delhi contributed 22% growth in ARR, Mumbai 10% YoY in Q4 and Lucknow has been also a strong performer on ARR which saw 11% yoy growth in Q4 arrs. On the occupancy side in the year we ended flat. But the positive is that in Q4 the occupancy levels have increased driven by stabilization of grand height where Mumbai has now at occupancy of 82% versus 65% in third quarter and 78% in the similar quarter last year Delhi is at 84% and I’m pleased to share Ahmedabad is at 92% and this is on top of adding new capacity in Ahmedabad last year.
So overall very very strong performance on the business side. Moving on. On the financial statements the numbers are already with you. We are at 38% while on the full year we are stable or we are flat on the EBITDA on the quarter on quarter basis there is a sharp increase in EBITDA margin and we expect that this trend should hold in the current year. We’ve always at the time of the IPO we said that post IPO we will start emerging as a significantly net free cash flow generative company and also a very strong PBT.
We were on our way to achieving that FY25 we’ve achieved a PBT of 150 crores on top of Q4 contribution of 74 crores of PBT coming in in Q4 I’ll just quickly go through the balance sheet. Our balance sheet remains very strong post IPO we are still having 246 crores of cash and deposits on the books which includes 155 crores plus of residual GCP which is still sitting on the books and on the Overall Matrix As Mr. Saraf said, we are very comfortably placed on the debt to equity and also our current net bank debt to EBITDA is under 1.5 times and that gives us significant growth headroom and dry powder for growth to fund the plans that Mr. Saraf enumerated in his speech. With that I think we are poised for an inflection point with strong recovery and strong performance from our existing portfolio and positive contributions coming in from the growth part that has been laid out by the management.
With that, I’ll hand it over to the moderator and we’re open to the Q and A.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Lokesh Manik with Vallum Capital. Please go ahead.
Lokesh Manik
Yes. Hi. Good morning to the team. My first question is. You know, we’ve seen the hotel industry enjoy a good growth in Q3 and Q4 and Q1, Q2 subdue. Now, given that we are exiting Q4 with such a strong momentum in ARR in luxury and upper upscale, do you see Q1, Q2, you know, at a discount to Q3, Q4 or would you see it increasing on a base of Q1 and Q2 last year? How do we see that going forward? Do we see the momentum continuing with the discount of 10, 20% that happens in Q1, Q2 or is it a growth on the base, last year’s base in ARR?
Arun Saraf
Lokesh, thanks for your question. It is a very, very pertinent thing that Q2, Q3 of the financial year are always lower in revenue compared to the first and last quarter of the financial year. This is the trend of the hotel industry. But this year we see a huge, huge demand rise compared to last year for these slow months. And our books overall on all our hotels have shown a potential growth of almost 12%. So I’m keeping my fingers crossed that unless some unforeseen events and stuff happen, we should be looking to a fairly robust growth in these two quarters.
Lokesh Manik
Great. Great. Sir, my second question was for Tarun sir, on the impact of India. If you can just clarify, what was the depreciation ROU for the year and the interest liability, lease liability for the.
Tarun Jaitly
So the actual lease charge which is there is around 80, not crores. That is the exact amount and in the books. If you could just give me a second, I’ll tell you. We are carrying ROU asset which is to do with the lease at Delhi and Hambi of roughly around 400 crores.
Lokesh Manik
The depreciation impact of ROU and the interest impact of lease liability in the PM.
Tarun Jaitly
Yes. You know the actual cash, you know, actual liability or actual charge on account of lease is roughly around 80.
Lokesh Manik
Okay. And sir, if you can just clarify the total one time cost for the full year which was a one off cost and we don’t expect this to recur going forward. So if you can just clarify that number for the full year.
Tarun Jaitly
Right. So the total one time which includes, you know, broadly the RNM and also you know the manpower or the employee cost and incentives which were expended through the year is roughly for full year FY25, roughly around 33 crores.
Lokesh Manik
Okay. And so we re levered a balance sheet. We’ve gone from you know, about 450 odd crores in the first half of the year to about 900 crores. So this would be attributed to the Bangalore property acquisition, is that correct?
Tarun Jaitly
That is absolutely right. So I will take you to the presentation and the balance sheet slide therein where if you see the increase in your non current asset is primarily on account of the Bengaluru asset impact and also 50 odd plus crores of the ballroom or the showroom capitalization.
Lokesh Manik
Great. The employee cost we are at 17% this quarter. 1617. So we go back to historical levels of 13% going forward. Do you see that happening as a percentage of sales?
Tarun Jaitly
So you know we basically said over the year that there are additions that we’ve done to improve the product offering as far as on the operational side given that we have also upgraded our assets. So in effort to give better customer experience we’ve added key personnel at the senior level. We do see while we may not go back to the same levels as the previous year on the employee cost but we are now reverting to a normative level. So in the previous quarters there were some one off charges or they were increase in manpower costs on a quarter on quarter basis. But we are now reverting back to a normative level of manpower cost. You know and yeah, but we may not go back to the last year level of manpower.
Lokesh Manik
Okay. So this is the last question from my end. Arun. Sir mentioned that we are expected to add about 2,000 ought keys in the next three to four years. I have the breakup for Kaziranga, Bangalore, Chennai and Mahidhar. That’s about thousand additional thousand I missed. If you can please clarify that. Where do that come from?
Tarun Jaitly
So, okay, so if I were to give you a breakdown of the planned capacity, we already got 220keys of the Bengaluru acquisition underway. We are 150, 115keys of Kaziranga. And then there are. There are plans for adding another thousand. Right. Which includes phase two of Bengaluru. We have this additional ability to add more than 250 rooms in the current land area in Bengaluru between now and FY29. That capacity or that room addition would also happen. Also. We are planning to now take in development the Guwahati opportunity.
We have a very, very good parcel of land in a very key location in Guwahati. And given that Northeast is emerging as one attractive segment for the sector, we are in addition to the Kaziranga also taking this under development. So thousand keys, which would include roughly 500 coming from Bengaluru and Guwahati and another 500 coming from what Mr. Saraf said. We are in negotiations, advanced stages for two more assets. So that would incrementally add another 500. So that would constitute cumulatively 1000 key. And then you have the ROFO assets which once they come in would add 737 keys.
Lokesh Manik
So that’s kind of the adjacent land in Kalina. So sir also mentioned something about commercial towers I missed on that part.
Tarun Jaitly
Yeah. So there are two parcels of land adjoining Grand Hythe. In fact, one of them is the one that we are taking into development for a commercial tower. 45 or thousand square feet potential. And that is also under designing stage as of now. And yeah, so that’s the one that we take. The other land opportunity which is adjoining Grand Hythe is a much larger land area. We are right now thinking how to efficiently kind of develop that given the demand supply evolving in the micro market. We will decide at an opportune time as to how and what kind of a development needs to be put in place there. And we will share with you once the plans are firm.
Lokesh Manik
Great. The last one, sir, any Update on the 300 room addition in Grand IR of 600 keys? Any update on that?
Tarun Jaitly
So right now our focus is on stabilization of assets. There is significant tailwinds in the sector and we want to get the benefit of the mothership having stabilized. We can always push the button on that 300 room addition. We all have fully approved plans in place already. We’ve already done structural integrity studies and all the things. As a management we can decide to take that call anytime. But for now, given the industry tailwinds, we want to basically ensure stabilization of revenues. And we’ll take that call when the time is right and we’ll share that with you as well.
Operator
Thank you. Mr. Lokesh, may we request that you return to the question queue for follow up questions as there are several participants waiting for their turn. Thank you. Our next question comes from the line of Prashant Biani with Elara Capital. Please go ahead.
Prashant Biyani
Yeah, thank you for the opportunity. Sir, what is the occupancy for Andaz for the last full year?
Tarun Jaitly
Just give me a second, I’ll share that. Okay. So last full year occupancy level at Andaz is roughly 80%.
Prashant Biyani
Okay. And so for FY26 and FY27 what would be our capex plan and if you can bifurcate that in hotel wise new builds, how we are planning to invest it.
Tarun Jaitly
So in the next two years the question is what is our capex for the next two years?
Prashant Biyani
Yes.
Tarun Jaitly
Right. So the next two year capex is primarily going to be. First of all the nearest capex is Bengaluru. As we said the asset we would spend roughly around 70 to 100 odd crores is a broad range for capex for Bengaluru completion and in addition to that for the future development that we are talking about you can take roughly around 1.2 to 1.3 crores.
Varun Saraf
Can I add. So this is Varun here. So the Kaziranga asset will be built at about 1.2 to 1.5 crore. RUP is a key. Same goes for the smaller city assets. So Bangalore asset, the additional that we had said the 250 that will be built that would cost approximately 2 crore a key. So that’s about 500 crore. And the Guwahati asset again would be about 1.2 to 1.5 crore rupees a key. So that adds up. I don’t know if the exact figure but Tarun, if you just add that up and the additional 500 that we set that is under discussion again the approximate value per key would be about 1.2 to 1.5 rupees for key.
Prashant Biyani
Right. So for this Bangalore asset which there was some unfortunate incident of fire that will defer the completion of assets by how many months.
Varun Saraf
So that was not. It was unfortunate but it does not affect anything. It was an isolated event which was taken care of. All the entire building is absolutely safe. And the opening of the hotel will happen by the end of this financial year. It was isolated event. As I said. Insurance and all the schemes are in line and we should be able to. We should be able to proceed.
Prashant Biyani
Right. And I have few questions for Mr. Arun Saraf as well. So we are also Planning to expand 250Keys in Marriott Bangalore. So we haven’t even seen started the new initial 220 room. And then we are thinking of expansion. So how will we ensure that the existing 250 keys will be. We will sweat it before partially closing it again for future expansion.
Arun Saraf
Actually this is a six and a half acre site. I don’t know if you understand the site. Six and a half acres is as big as Grand Hyatt Mumbai property. This is a huge site. Has a development opportunity of more than a million square feet. Because of the airport proximity and the way the existing building is located. That will not be affected by the new development of additional 250 rooms which would be in the back of the property along with the boardroom. So it does not impact. It would be more seen like a neighborhood building. New building coming up in the neighborhood rather than in our own plot. The hotel at this moment 220 rooms actually is going to open at a 245 rooms hotel. And because of some reconfiguration of some of the rooms and suites and that will allow us to complete this hotel, get it operational and we will start. We have already started gone into the planning stage of the development of the additional rooms and they would not impact this property.
Operator
Thank you. Mr. Prashant, may we request that you return to the question queue for follow up questions as there are several participants waiting for their turn. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference please limit your questions to one or two per participant. Should you have a follow up question we would request you to rejoin the queue. The next question comes from the line of Nigel Mascarinius from LEO Capital. Please go ahead.
Nigel Mascarenhas
Good morning sir. Thank you for the opportunity. A couple of questions from my end. First question. What sort of timeline are we working with for the right of first offer assets from the startup group to come into Juniper?
Arun Saraf
This is a process that has been started and it is actually quite a bit of let’s say regulatory and other issues would be there. But I am expecting this to move fairly rapidly once we get this going. But I would be, if I say any specific date it would be misleading you at this moment. But I would say that I’m looking forward to closing this transaction within next eight to ten months.
Nigel Mascarenhas
Got it. And by when do we expect Hyatt Regency Mumbai to be operational?
Arun Saraf
That is still, that is going to be refurbished totally and it will take one year from now. So I would expect it to be in the last quarter of next the commit this current financial year.
Nigel Mascarenhas
Understood. That will be it from my end. Thanks.
Operator
Thank you. The next question comes from the line of Sugandhi from FedEx securities. Please go ahead.
Sugandhi
Yes, hi. Thanks for taking my question. I just wanted to understand the calculation of bank debt to ebitda. And if I see on your balance sheet you have around 900 crores of debt and the trailing EBITDA is in the range of 370 crores. So am I missing something? If you could break down that borrowing number and the cost of funds for the non bank portion.
Tarun Jaitly
Yeah. Hi Tarun here. So what we refer to, as I said and I repeat is net bank debt to ebitda. So if you look at the balance sheet we have 776 crores of gross bank debt which is the consolidated bank debt on the books today. The other borrowings are primarily promoter ECBs which you see on the balance sheet. Right. So when we talk about the borrowing power and the headroom, we are talking about net bank debt to EBITDA which is at 1.4 times the multiple. As far as your question on the borrowing cost, our average borrowing cost should be around 9% as of date.
Sugandhi
Right. Okay. So if I’m trying to put this together, you know, within the span of next 12 months hoping that Lofo, I mean is also going to go through, you know, the spend that we are going to do in Kaziranga, Guwahati and Bangalore and you know, along with the potential expenditure on, you know, bringing the Hyatt Mumbai you know, operational, how much capex are we planning the budgeting for this year.
Tarun Jaitly
Okay just to clarify for everybody the capex and the expenditure for Hyatt Regency Mumbai the ROFO assets are being done by other promoter respective promoter companies. That is not being undertaken by Juniper. It will only be taken by Juniper once these assets merge into Juniper. Right. So right now whatever capex is being done is being done individually by the respective promoter companies There coming back to the overall vision as I understand your question with what we have enumerated as key counts and you know the Brownfield expansions we have headroom of roughly 2,500 plus crores. This when we talk about headroom we are talking about you know the and this is over the next three years.
We are talking about the EBITDA accretion, the free cash flow generation plus the 250 odd crores of cash on the books today. The deposits that we have and a potential let’s say acceptable debt to EBITDA multiple that one assumes which is acceptable to the banking system for incremental debt. So we have more than 2,500 crores of dry powder to fund this growth which is more than adequate to fund the expansion plans that we’ve enumerated. I would also like to clarify something which we have shared in the past is that the ROFO asset the intent is to do it in a cashless share swap manner so there would not be any cash out anticipated with respect to the ROFO asset integrations.
Operator
Thank you. Mr. Gandhi may we request that you return to the question queue for follow up questions. Thank you. Our next question comes from the line of Vaibhav Mule with yes securities. Please go ahead.
Vaibhav Muley
Hi sir. Congratulations on a strong set of number. My first question was on a broad strategy of the company. So now we are venturing into a wildlife tourism through our Kaziranga resort. So can we expect more such acquisition towards leisure side or experiential travel side in future? As well as in terms of geographical diversification are you planning to get out of key metro cities which is Mumbai and Bangalore for you into cities like Hyderabad and maybe into even tier 1 and tier 2 cities in future.
Arun Saraf
That’s a good question. Thank you very much. Bhaibhav. Let’s say that this Kajiranga acquisition is actually a fantastic opportunity for us to explore into the leisure segment. Luxury segment of the leisure. This is our property. That’s first property that we as Sarah family have experienced, although the Juniper Hotel does not. But I would like to re emphasize that our focus will continue to be in luxury segments of the market. Our primary focus continues to be in big box hotels in big cities. But those opportunities, if they are few and far between then we are continuing to be exploring into the newer luxury segment of experiential travel as you have mentioned. And this is something that you will see more of it as and when the opportunity. These are open to opportunity and revenue generating opportunities.
Varun Saraf
If I may add to that, we already present in Hampi again it’s a UNESCO World Heritage site, again experiential travel. So we are experienced in that. And the portfolio already has a hotel which is located in a similar tourist friendly destination in terms of the expansion across country wide. So we are located in the state of up in Gujarat, in Karnataka, in Maharashtra, in New Delhi. So we already have a country wide expansion and the focus as Mr. Sara said is big box metro cities. But we will continue to grow wherever the opportunity produces and the opportunity for development is there.
Vaibhav Muley
Understood. And I just had a follow up on Kaziranga. So what kind of arrs do you expect for that particular property?
Varun Saraf
It would range from 12 to 15,000 rupees starting here.
Operator
Understood. Perfect. Thank you so much for answering the question sir. And all the best. Thank you. Our next question comes from the line of Abhay Kaitan with Access Capital. Please go ahead.
Abhay Khaitan
Yeah. Hi. Thank you for the opportunity. So my question is more on the near term trends. So can you share what has been the ARR and occupancy in the last two months that is April and May. And the reason for this question is that we have been. We have heard from other hotel companies that there have been some sort of slowdown particularly in the last month during the cross border escalations. And there have been also some cancellations as well. So do we see that effect playing out or has that faded away?
Varun Saraf
Sure. So the trend in April was very strong. We did not see any issues. May of course as everyone else has iterated there is some impact. But we believe the business is strong. The pickup in Mumbai is very strong. It was the end of May. Where has it been affected? I think Delhi and Ahmedabad are two locations which were close to the border and would probably have an impact. But I think the business is very strong in the month of June and July as said by Mr. Saraf earlier as well and we do believe to catch up. Will there be an impact? I think as an industry there was an impact, but I think the tailwinds are strong and we should be able to recover by the end of the financial year.
Tarun Jaitly
Just to supplement to what Varun is saying, I can give you a specific number for ARR growth in the two key assets of Mumbai and Delhi in April. We’ve seen on top of and remember this is on top of the strong growth in 25 that has happened all through in April. We’ve seen 11 plus percentage ARR growth in Mumbai and Delhi. We’ve also seen for our asset between 10 to 11% ARR growth in April. So the trend for ARR growth continues.
Varun Saraf
And just to reiterate, I think it’s important to realize that a lot of companies are announcing hotels but that is all four, five years out. Current situation still stays the same. Supply is limited, demand is strong and we will continue to take advantage of that.
Abhay Khaitan
Thank you for this. Also on the Gandhiat Mumbai as well, have we seen any sort of occupancy impact so far after the opening of Fairmont?
Tarun Jaitly
So look, let me share the number with you, right? And again I’m telling you I’m sharing a number of April on occupancy and in April Grand Hyatt saw 9 percentage point increase YOY on occupancy. So you know we’re not witnessing any impact from the opening of Fairmont. In fact Fairmont opening would only help ARR improvements across the micro comp set we shared. Given the any new asset coming in at that segment in which we are operating, we will only push up the ARRs and help the existing players.
Abhay Khaitan
Thank you for this. Just one more question if I can on the EBITDA margin. So we saw a very strong margin this quarter for the overall year. Overall FY it was at 36% and I know it was impacted mostly because of the renovations at Grant Hat. But what is the sort of steady state margin that we look at for the company going forward?
Tarun Jaitly
Look, we are not giving any specific guidance on margins right as a policy. But what I can share with you is that Grand Hyatt impact was there for most of the FY25. You’ve seen quarter four impact of stabilization of Grand Hyatt and what it has done to the flow through and the EBITDA margins. Now given that the top line which is your revenue drivers which are ARR and occupancies, they continue to be remaining healthy, the flow through will improve further and we will see scope for margin expansion in FY26. You know, beyond that I would. I would refrain from giving a margin guidance at the moment.
Operator
Thank you. Mr. Abhay, may we request that you return to the question queue please? Our next question comes from the line of Sourabh Gilda with JM Financial. Please go ahead.
Sourabh Gilda
Yeah, am I audible.
Operator
Yes sir. Please go ahead.
Sourabh Gilda
Yeah. Thank you for the opportunity. I just wanted to get your outlook on the MICE segment and more specifically with now that the larger ballroom is now commissioned in the grand at Mumbai asset, how do you see the ramp up and what could be the expected contribution from the new ballroom?
Varun Saraf
So MICE continues to be focused for us and in the numbers are also reflecting that. I think year on year growth in FNB and mice combined has been upwards of 15% and this trend will continue. Grand Hyatt is a leading MICE player in the Mumbai market. And so is Andaz in the Delhi Aero City market. So our strength remains that and we will continue to push. In terms of the exact. Sorry. In terms of the showroom contribution, I think it would be upwards of 25 crore rupees. Now it has been six months in operations and the segments that we wanted to target, the social segment has responded very well to it and it will continue to drive strong revenues into the showroom.
Sourabh Gilda
So 25 crore for the six months or that the expectation for the.
Varun Saraf
The expectation that we have for the current numbers I will not be able to share currently. But our expectation is for the full year of operations we would be able to generate upwards of 25 crores.
Sourabh Gilda
Okay, thank you so much.
Operator
Thank you. Our next question comes from the line of Surya Narayana with Sunidi Securities. Please go ahead.
Surya Narayan Nayak
Am I audible? Sir?
Operator
Yes sir, please go ahead.
Surya Narayan Nayak
Okay. Okay. So congratulations for great set of numbers. So one question is that you said the you have peak debt deliveries of up to 2500 crores. So currently around thousand crores. So are we expecting that after consolidation of the ROFO assets we can think of any kind of inorganic move or if the opportunity comes date may come also in between.
Tarun Jaitly
So if I understand your question correctly, let me also respecify the 2,500 row hedge is not just leverage. It is dry powder for growth which I said is constituted by the following. It is 250plus crores of current cash. It would be net cash accretion over the next couple of years and also the incremental gearing without breaching a comfortable level of between 3 and a half to 3.7 times net debt to EBITDA which is we would never want to kind of go beyond a peak EBITDA on a consistent basis beyond a certain number that we’ve set internally. So without breaching any of these internal targets we would have sufficient headroom for growth to fund the expansion plan. That’s point number one.
Point number two, I repeat ROFO assets are not going to be cash buyers. They are intended to be cashless share swaps post integration as in, you know, as per the targets and the timelines for the ROFO asset. We are also working on expansion of the current opportunities which is primarily Kaziranga and also as I enumerated 500 keys. Target is to come from two source. One is 250 rooms additional over the course of the next few years coming in from Bengaluru. That is phase two of Bengaluru and Guwahati Opportunity development. So we are looking at our strategy for future comprises brownfield acquisitions and expansion of current existing land parcels and opportunities. In addition to that we are continuing to closely negotiate and explore greenfield opportunities. We will share the same once they are finalized with you.
Surya Narayan Nayak
Okay, just to understand the grand compared to the grand add the average rate, average rentals will be higher or lower than the the Grand Hyatt. I mean the airport property I’m seeing once it is starting.
Varun Saraf
Sorry, could you repeat that? The difference between Grand Hyatt and the Hyatt region.
Surya Narayan Nayak
Yeah, yeah, just a Hyatt agency. I’m asking whether the rates will be higher than the Grant Hyatt currently or it will be at par.
Varun Saraf
So the rates are market driven. In each micro market the rate is determined. So if so somebody on the call asked about Fairmont. If Fairmont is driving great, then JW Marriott is driving rates in the Sahar Airport vicinity. Hyatt Regency Mumbai is a luxury segment player. We’ll be positioned at that grand height being in a separate market micro market will also. So I don’t believe that the brand dictates it. I think the micro market, the supply and demand situation would do it. But in an ideal situation I would hope to Command a higher 100 grand higher Bombay than a Regency. But again, it all depends on the market.
Operator
Thank you. Mr. Naik, may we request you to rejoin the queue for follow up questions? Our next question comes from the line of Raghav Malik from Jefferies. Please go ahead.
Raghav Malik
Yeah. Hi. Thank you for the opportunity. Most of my questions are answered. Just one question on the Grand Hayat refurbishments. So what kind of ARR expansion on a normalized basis can we expect from the recent refurbishments that have happened in the last year? Just that question please.
Varun Saraf
I think the rates have already gone up approximately 1500 to 1800. I believe there’s still a headroom of another 2000 to 3000 rupees given market conditions. So if you see again see it in the larger context of Mumbai and what the supply is there and the demand dynamics. Right. So I believe demand is very strong. I think the micro market where the hotel is located is seeing good traction. It will continue to strengthen. Bandra Kurla complex is growing. With the connectivity improving in Mumbai. Access getting better. I think the rates will further go up. Yes, I think in terms of. Exactly.
Tarun Jaitly
Just to supplement what Varun is saying. Just to give an idea. Right. Q1FY25 on an average, let’s say blended Grand Hyatt ARR was in the vicinity of roughly around 10,500. Q4 we are surpassed 14,400 as an ARR. Now it’s a function of the strength in the micro market and also the benefit of focusing more on transient and higher paying customers by offering a much more upgraded product and reducing our contribution on the traditional contract or the airline business. So it’s a mix of strategy plus a much more higher and a fresher product offering to capture the high paying customers that has helped us in Mumbai. And we expect that should continue going forward.
Operator
Okay. Thank you. Thank you. Our next question comes from the line of Prashant Biani with Ilara Capital. Please go ahead.
Prashant Biyani
Yeah, thanks for the opportunity again, sir. We are regularly referring to the Bangalore asset as just Bangalore asset even though it is flagged with Marriott. So do we plan to continue with that brand or we have some change of plans in mind with regard to the brand that we want to use for the hotel.
Arun Saraf
See, presently we are in discussions with the operator Marriott and it is basically to make sure that the brand that is signed up and is going to the hotel will open with the brand which is actually going to create value for the property, give us better revenue, better average room rate. So right fit of the brand has to be put there. And this is an ongoing discussion. It is presently slated by the erstwhile earlier owners was on a plane Marriott and we will after the outcome of the discussions and we’ll keep you updated on this.
Prashant Biyani
So I mean you would believe that either JW or brand in the similar category would be doing justice to the investments that we are doing.
Varun Saraf
So Prashant, it’s going to be a luxury asset. I think you do cover the hospitality space and you know what the Bangalore micro market is. Right. So I think I would not like to further dwell on this question. I think it would be a luxury product. We believe so. I think the investment is still in line with that. Our acquisition was 350 crore rupees for a 220 room asset which is going to add another 20 room. That means 240 plus another 200 keys. Right. So for 450 rooms in Bangalore in the luxury segment, given that, you know, understand the dynamics of the industry, it’s not going to be cheap. But we are well within those parameters and we will get the right brand for the product.
Prashant Biyani
Thank you so much. That’s it from my side. All the best.
Operator
Thank you. Our next question comes from the line of Aman Goyal from Access Securities. Please go ahead.
Aman Goyal
Yeah, thank you. Thank you for the opportunity and congratulations for Grace at of number. So my question is in this quarter we have reported almost 42% EBITDA margin. So what would be the guidance for the next year in the terms of margin? Since last year we have experienced the refurbishment expenses in one of the items. So will be the Bangalore asset dent some margin due to the earlier breakeven period.
Varun Saraf
So we’re not providing any guidance for going forward. But what was the last part of your question regarding Bangalore? Could you repeat that please?
Aman Goyal
So like Bangalore will take some time to break even the period. So it will, I mean drag down our margins for this year. Comparing to the quarter for as a base.
Varun Saraf
I wouldn’t think it would drag down the margins. It would only incrementally contribute. And as in terms of the numbers. Yeah, sorry.
Tarun Jaitly
So primarily given the expectations that it gets commercialized. The contribution of Bengaluru Phase 1 is expected to come in by the end of this year or the first quarter of the next fiscal. Right. We anticipate that it will open. Given the branding and the way we are looking at opening that asset, we believe that it will generate healthy margins for the full year given the positioning that we are planning for that particular asset. And we will share more details around Bengaluru plans in the next quarter calls with you to give you more appreciation of the potential and the upside that Bengaluru project provides to Juniper.
Arun Saraf
I would like to add something just for all of your knowledge. A hotel, if the leveraging is not taken into account, a hotel normally breaks even. A luxury hotel will break even at about 30 to 35% occupancy. So it is not something which is a herculean task. When you have a single property which is heavily leveraged, then the break even point can go very high. But for a company like ours, with stable revenues and cash flows available from our assets and a very, very managed leveraging and at a level of 35% occupancy, which can be very easily achieved within the two months of opening. So it is not something that we have to wait for a long time that where the asset starts contributing into the bigger balance sheet of the company.
Tarun Jaitly
Mr. Saraf, I like to also just being specific. While as I said we do not give guidance on ebitda, Bengaluru is going to be part of a contribution on overall operating basket. And we believe that the given Grand Hyde was 50% of the EBITDA contribution to the mothership. With the expansion of margins coming in there, you will see expansion overall for the company in the current year. And once Bengaluru comes in, I believe on a blended basis we would still have the potential to grow.
Aman Goyal
Okay sir, one more question from my side. So what is the ARN occupancy for the CHPL during the year? And and also I can see over the past few, the tax rate is very volatile. So what could be the effective tax rate we can assume for next couple of years?
Tarun Jaitly
Right. So. So chartered hotels for the full 12 months achieved 126 crores of revenue and roughly 38% EBITDA margin. Your next question was on the if I want to give you. Sorry.
Aman Goyal
Effective tax rate, sir. And my question was on the CHPL AR and occupancy improvement.
Tarun Jaitly
Right. So let me take the ARRs with you first and then we’ll come to the tax rate question. Now again I will share some specific numbers with you. As I said, you know Lucknow for instance, which is the largest asset the you know of the chartered portfolio. The Lucknow ARRs have increased. Just give me a second. Yeah. Lucknow ARR in the quarter for the full year has increased by 10 percentage. And also Raipur and Hampi if you see Raipur arrs have also increased and stayed positive. The ARR increase in RIPUR has been between 2 to 6%.
Aman Goyal
And what is the improvement in the occupancy over the year in this asset?
Tarun Jaitly
In these assets?
Aman Goyal
Yes.
Tarun Jaitly
The overall occupancy in Lucknow today is 83%. That when I said today I’m talking about FY25 RIFOR occupancy is 70% and Hampi stable state occupancy should be between 60 to 65%. We believe that that’s the trend that you will see for the chartered assets continuing in this year. Coming back to your second question on the tax. We have enough tax shield on the company and we believe we will maintain tax neutrality given the shields that the Juniper enjoys today.
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 Saraf
Gentlemen, ladies, I was delighted to see that we had 150 audience in the audience and looking at the number of conferences and investor calls that were going on, this was very, very encouraging for us that we saw so much interest in our company. And I assure you what we have, this company is actually poised for a fairly decent, I would say better than decent, a good growth in the coming years.
We are a development and ownership company. We employ management companies to run our assets. So the continued focus of the top management of this company is going to be on development and taking care, nurturing our assets. So with that I would like to thank everyone who has joined us on this call, and we would be very happy to engage and receive your calls if you need further clarifications on any of the issues that we have shared. Thank you so much. Bye.
Operator
Thank you on behalf of Juniper Hotels Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.