Kamat Hotels India Ltd (NSE: KAMATHOTEL) Q1 2026 Earnings Call dated Aug. 01, 2025
Corporate Participants:
Unidentified Speaker
CS Nikhil Singh — Company Secretary and Compliance Officer
Smita Nanda — Chief Financial Officer
Analysts:
Unidentified Participant
Nupur Jainkunia — Analyst
Aman Soni — Analyst
Amish Kanani — Analyst
Shaurya Punyani — Analyst
Niraj Mansingka — Analyst
Gurvinder Juneja — Analyst
Anurag Janani — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q1FY26 conference call of Comet Hotels India Limited as a reminder all participants line will be in listen only mode and there will be an opportunity for you to ask questions after presentation concludes. Should you need assistance during this conference call please signal an operator by pressing star followed by zero on your touchstone phone. Please note that this conference is being recorded at this time.
I would like to hand over the conference to Ms. Nupur Jainkunia from Ballroom Advisors. Thank you and over to you ma’. Am.
Nupur Jainkunia — Analyst
Thank you. Good evening everyone and a very warm welcome to you all. My name is Nupur Jain Kunia from Valorum Advisors. We represent the investor relations of Kamath Hotels India Limited on behalf of the company and Valorum Advisors I would like to thank you all for participating in the company’s earnings conference call for the first quarter of financial year 2026. Before we begin let me mention a short cautionary statement. Some of the statements made in today’s earnings call may be forward looking in nature and such forward looking statements are subject to risk and uncertainties which could cause actual results to differ from those anticipated.
The statements are based on management’s belief as well as assumptions made by and the information currently available to management. Audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decisions. The purpose of today’s earnings call is purely to educate and bring awareness about the company Company’s fundamental business and financial quarter under review. Let me now introduce you to the management participating with us in today’s earnings call and hand it over to them for their opening remarks. We have with us Mr. Vishal Vittal Kamath Executive Director Ms. Mita Nanda, Chief Financial Officer of the company and Mr.
Nikhil Singh, company Secretary and Compliance officer. Without any further delay I request Mr. Vishal Vital Kama to start with his opening remarks. Thank you and over to you sir.
CS Nikhil Singh — Company Secretary and Compliance Officer
Thank you very much. Namaskar everyone. Thank you for being on our call for this for the first quarter of this year. While the overall financials are nice they could have been much better because unfortunately and it is our duty, national duty to support our government and our nation and that’s basically what has affected us in the first first 1520 days of the month of May and in some cases it has affected even more like in the case of Sandigad and Himachal Simla Manali but that said still the team has done very well. We have seen an improvement in our overall ARR and other aspects because Many of the better properties also are now in opening.
We have good news that we will be opening the this year. Sorry this month. And along with that we were happy to inform that we signed another one, another hotel next door. So we will be basically having two hotels there but they are next to each other because of which the overall inventory will be 100 plus right now. In fact the owners are so happy that they may make even more rooms. Because we wanted that Rishikesh is a premium wedding destination. So based on that that will be opening we have a lot of additional hotels opening also.
Which are your Dwarka we have opening. We have which is in the month of September along with B. Nagar and then we have various others. We signed the Nashik hotel which should open in the month of April. The Orchid Nashik Panchgani Orchid Hotel Panchgani we signed a day before which will be opening in the month of September. In fact the 15th of September it will open. So as we can see that the coming time is also very buoyant where currently we are operating around 17 hotels by this year ending 19. Sorry, 19 hotels. Thank you Nikhil G.
For correcting me. 19 hotels. We will be going to approximately running, not signed up but running hotels around 25. So that is basically it. And the company is very buoyant and sure that we are aiming to open 30 hotels by this year which are qualitative which are, you know, adding to value to karma hotels, adding value to Orchid brand and ERA brand. So we’re very selective in what we’ve been taking as we’ve been and that’s why our numbers show that our efforts show that. So we will have 30 good hotels operational this year apart from in addition to all the other hotels which are in pipeline.
So that’s a very good thing that I can see over here. Apart from that take the financial figures. We have Mita Nandaji also who’s there with me. So if you can just touch upon the performance and the highlight that will be very nice. Thank you.
Smita Nanda — Chief Financial Officer
Let me briefly touch upon the key performance highlights for the quarter ended June 2025. The consolidated revenue for Q1 FY26 stood at 83 crores representing a growth of approximately 12% on year on year basis. EBITDA for the quarter was 18 crores growth around 37% year on year basis with an E margin 21.91%. Profit after tax stood at 4 crore showing a significant increase in 291% year on year basis. With this I conclude my Remark and request the motivator to open the floor for question and answer question. Thank you.
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 their Touchstone phone. 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. The first question is from the line of Amansoni from NVIST Analytics Advisory llp. Please go ahead.
Aman Soni
Hello.
CS Nikhil Singh
Hello, Namaskar.
Aman Soni
My question is regarding the US growth. You have reported an EMS growth of around 12% this quarter and our full year revenue Target is around 10% while other major companies, even if I take companies which are not so big in this size in the auto industry are working at much higher rate and I am not able to understand why our hotels cannot grow fast. Could you please elaborate on the reason for your as compared to other place.
CS Nikhil Singh
Sir, I’m sorry, I was not able to fully get your question. But to answer you why we are. Not growing as fast as other chains, basically, sir, primarily is because whatever properties we take, we are very particular in the type of property that we’re taking in the terms of our main model of growth, which is basically revenue share or lease and in some cases management. Okay, we want basically not just numbers, but we want qualitative numbers. Whichever of our hotels today, wherever they are operating, they are all operating in the top, you know, top 5, top 10 of their markets, of the categories, you know, whether it is Shimla, whether it is Manali, whether it is wherever we are doing.
So we want to basically expand in a qualitative manner. And qualitative nature, okay, is basically the major thing. The happy news is that from around right now we are at around 1850 rooms, 1825 rooms from this basically we are this year going to grow to almost 2500 operational rooms. That is the kind of, you know, growth that we have within this year. And that is the growth at which basically where we are again growing Asset light. While we are growing, we are also repaying our debts, you know, to as promised. We are already a net zero company in that regard.
So this was our promise to ourselves and our investors shareholders that we will become net zero. And we have achieved that before our deadline target. So this on that lines, whatever we have committed, we have been growing and we have been doing. Thank you. Yeah, next madam. Thank you, sir.
operator
Thank you. Before we take the next question, we Would like to remind participants you may press star and one to ask a question. The next question is from the line of Amish Kanani from Novice Investments Management. Please go ahead.
Amish Kanani
Yeah. Hi sir, Congrats on a relatively good set of numbers. Sir, you know just one wanted to know whether our expansion plan have we added a few more properties during the quarter and hence relatively more number of operational rooms and hotels. Is that the you know, impression that I’m getting? So if you can just update us on you know, what are the change in plans if at all. That’s one second sir, in terms of performance, you know there’s a very good improvement in ERA and Lotus on a yoy basis. But there’s some softness in Orchid and for Jada Guard.
So if can give us some trends of you know, why this is happening. Third sir, the last question from my side would be, you know the observation is that we have mostly now the new properties with you know, about 50 rooms or 70 rooms kind of property. So is this the right size of properties that we can optimally manage with a decent margin or how should we look at. Thanks.
CS Nikhil Singh
The last question was an excellent question. I’ll first address the ERA and Orchid as you said rightly See what has happened is that in ERA brand wherever we have our properties there they are doing better and better and the ERA base is smaller. So when I say basis smaller means the number of rooms. So the performance to show is much easier because Also the largest era is Era Mumbai which is a 197 room hotel. So that kind of lifts the rest which are having relatively small 32 rooms, 33 rooms or 110 rooms. And and by the way in our era contribution is the Eera Bhubaneswar era various of the eras did a very good contribution in the overall lifting of the when we say brand wise the segment now more orchids have come and many of these orchids are new because.
Of which they take time to stabil. So because of which the overall orchid average is as you would have likely pointed out, low. But if we look at on a case to case basis on a standalone be it Orchid Mumbai or Orchid Pune then they are doing much better in that regards on their own. But this is a brand wise we have done a basket breakup which is basically which is why your question is valid that the base so now see which orchid Panchgani coming in Orchid, you know, various other orchids opening up. Then what will happen like Rishikesh and Panchgani both are coming at a Similar time.
So what will happen is they will tend to bring the average down in the short run but in the long run they will contribute greatly because they are iadr good occupancy, good revenue, very good revenue markets. So season will come for Rishikesh where we are targeting around 15,000 to 20,000 ARR fluctuating between the seasons and others. So again that will help the ARR go up. So your point is very valid on that front. On the second, on the rather the last question which you mentioned particularly that question is a very, very valid and very correct thing.
We actually tend to want larger inventory because we have expertise in running hundred plus. There are very few hotel brands in the country which can claim operation skills of you know, large hotels of 300 plus. We have two, we have one which is Orchid Mumbai which is 372 rooms and we have the Orchid Pune which is 410 rooms and both doing exceedingly well. So very few operators are there who can play because it’s a different kind of game altogether. When you are in the 0 to 70 rooms it’s a different style of operation. When you’re in the hundred or to 200 it’s a different style of operation.
And 200 plus or rather I would say around 250 plus that’s a totally different ballgame altogether. So that is why you know the market mix of your kind of halls, you require banqueting space, you require the infrastructure you require for a large hotel. Like what is our convention hotel in Pune or kid, you know we are adding two more banquet halls over there of you know, 7,000 and 5,000 square feet. We’re adding public area spaces. We had the renovation which is going on over there from internal accruals only. We are doing so, you know, so that kind of bulk once it comes in the hotel will do even better.
So that’s a right kind of mix which we are added, we made where increased the number of halls also and we’ve made them larger also because that’s what a 410 room hotel needs. So you know this question of yours, can we successfully do it? Definitely. We can do it where the ADR supports, where the revenue supports but if the revenue is low like in the. That’s why we don’t take a lot of hotels. You know, we need to be very candid. Out of 10 hotels that come, we probably select one because many of them don’t fit.
Exactly what you said. If I’m not going to make money for my hard work, I don’t want to do it. I don’t want to have 5,000 rooms and have revenue worth 2,000. I’d rather have 2,000 rooms and have revenue worth two and half thousand. So, you know, that’s basically how we’ve been approaching it. That’s why our previous caller also when he asked a very valid question that if others are growing in leaps and bounds, then why are you growing at a steady pace? That’s because I want my growth to be robust and I want that tomorrow if something happens, I will not be caught on the wrong foot again.
And secondly, if you look at it, there are companies on paper who are double our size in terms of number of hotels or number of rooms. But in terms of operating performance, in terms of ebitda, in terms of other things, we are far superior. Why? Because like I said, we’d like to make sure that our guest gets a qualitative experience and then our revenues and our EBITDA match in that. So it’s not just about this thing, but we’d like to definitely go for larger hotels and as we get more larger hotels, they will definitely add a different dimension to our results and our operations.
Thank you sir.
Amish Kanani
As a one quick other follow up on the EBITDA margin sensor, this is. A quarter, we have a good yoy growth. I was worried, you know, given the pace of expansion, you know, in September, October, November, new properties, they made like time to stabilize and build the brand in that area. Should we worry about the overall annual EBITDA margin which is more in the range of 29, 29.5% last two years or should we worry that we may or may not be able to repeat that because of the new hotels? Or should we? Are we looking at EBITDA margins more in the range of last year?
CS Nikhil Singh
Sir, your brand Orchid Era Kamath is already an established name. So it does not require much time to get to know, get to get known in the market in that regard. What actually takes time is basically to build up the business on the books. So once we open, like we opened in Sambhaji Nagar, we opened an area where nobody thought, they thought what is Kama doing and why have they taken the era at that location. But today that location is become the one of the best because of the efforts of the team. The excellent food, excellent thing.
So, so brand issue is not there. What is is that rightly put by you that it takes time to build up your books? You know, taking weddings, once you open, then people will come for a wedding, then people will come for a Conference. So your fit, which comes through your OTAs, which is your make my trip or agoda or through our Orchid reward loyalty program, which is also very popular. So that all is basically the additional. So that all comes quickly. But the other larger events not takes time. So like example, Rishikesh. Yes, initially we will have a EBITDA burn in Rishikesh on a standalone basis.
But once the business starts pouring in, you know, like we already have some queries of weddings which we have, we are closing in the coming in December and November. Then that that time this will get wiped out or this will get covered. So definitely, you know, the margins will more or less remain the same because we have now a very good mix of old, stable, new coming in and growing. So definitely the margins will be if not stable, if not down, it won’t be but if not growth, at least it will be stable.
Amish Kanani
Sure, sir. And that’s very happy and all the best. Thank you.
CS Nikhil Singh
Thank you, sir. Thank you.
operator
Thank you. A gentle reminder, participants, to ask a question, please press star and one on your touchstone. 4. The next question is from the line of Shaurya Punyani from Arjav Partners. Please go ahead.
Shaurya Punyani
Hi, am I audible? Yes, yes. Please go ahead. So what has been a occupancy and ARR this quarter.
CS Nikhil Singh
Is there in our presentation. But let me just for your overall then we have basically had ARR of around 6300 for Orchid we have around 5400 for Era, we have 5,5 for our Lotus, we have 8000 for our for Jadhavat.
Shaurya Punyani
Okay. And on a blended basis we have targeted around 7,500. Right. For this year
CS Nikhil Singh
we have targeted definitely. So now what happens is that first Q1, Q2, the ARRs would be a little lower and the occupancy will be more voluminous. And in Q3, Q4 that’s when the ARR and occupancy because the best quarter is the third quarter and the fourth quarter is the second best quarter and then you have the first two quarters. So on a target of on a blended basis with our other premium products now coming, we hope to target the seven and a half mark. So with the new properties coming up.
Shaurya Punyani
This year, can we like expect a good like can we touch like 500 crores in FY27. Top line
CS Nikhil Singh
in this year?
Shaurya Punyani
Yeah.
CS Nikhil Singh
Yes, we should. If our pace continues at what we are doing and considering the kind of qualitative hotels we are adding, it is very much possible for us to hit 500 crores next year.
Shaurya Punyani
Okay sir. Thank you. Thank you so much.
CS Nikhil Singh
Thank you.
operator
Thank you. The next question is from the line of Neeraj Mansingha from White Pine Investment Management. Please go ahead.
Niraj Mansingka
Thank you. Vishal, I think Congress was signing again two, three properties. Can you give one example of you know say Rishikesh property where you have signed 54 and 44 rooms. How can an EBITDA cash flow flow to you over next two years or three years? Just a broad understanding would be useful.
CS Nikhil Singh
You want exactly what I could. I didn’t. You want basically me to tell you what it will do as a revenue.
Niraj Mansingka
No. So because you have a revenue share, I just wanted to understand how much cash will come to Kamath hotel for this hotel maybe two year down the line when the entire 98 rooms are operational. Just an hypothetical number as an understanding would be useful.
CS Nikhil Singh
So exact number I would not know right now. But I can tell you in terms of a percentage that. Let’s assume that if this the hotel. Does at 100% revenue. The thumb rule is 40% GOP. Okay. So the company the 40 to 45 or 35 to 45% GOP. Okay. Actually let’s put it as a range that generally a hotel does 35 to 45% GOP depending on the various things. So the company Thomas Hotels, whatever may be the revenue will get comfortably anywhere. Between. 12 to 18% back apart from the rev share.
Niraj Mansingka
Okay. So you can.
CS Nikhil Singh
From 12 to 20%. 12 to 20% back apart from the rev share network get commerce will get. It could get anywhere between 12 to 20%.
Niraj Mansingka
Okay. Of the total revenues that the property will accrue. Right.
CS Nikhil Singh
Of the total revenue.
Niraj Mansingka
Okay. And what will be the approximate rate range of rate that the error for that?
CS Nikhil Singh
So we expect to. We obviously will start it off with introductory prices. You know starting from the range of 12,500 to 17,500 in the different seasons. But we targeting that we should do an average of 15,000 rupees is our expectation.
Niraj Mansingka
Wow, that’s, that’s, that’s very nice actually. It’s a good, good, good error for you. It’s a good update actually.
CS Nikhil Singh
Actually honestly speaking, Honestly speaking that is my very conservative target to my team is more because Rishikesh is a very booming market. It has great potential. And our property also Rishi one is right in the middle of the forest just off the main road. So it is a very prime location. And the new train tunnel is coming just their station. So basically that station, the train which will go from Rishikesh towards the Madrinath and all those places that new tunnel. Is there that should open in the next two years. So that is very near. Only a kilometer odd from our hotel. So that time it should do even better because coming to our hotel will be even more easy. And that’s I think a kilometer, kilometer and a half is a station called as brt. So this will be a real game. Changer for the whole state and even for all the. Because you will have all kinds of Yatris and bam. You know, getting more accessible. So this is a very conservative occupancy. ARR we are looking from our team. I think we should achieve if not exceed that. So definitely because that Rishikesh is that kind of beautiful place and beautiful market.
Niraj Mansingka
Right. So would you also have a higher FNB in this property considering or targeting the marriage functions?
CS Nikhil Singh
Yeah, during marriage functions definitely we expect a higher FNB because the demand for my wedding is much more as compared to a normal fit. But there will be all kinds of plans which we call AP plants means all inclusive plans, map plans which is breakfast and dinner or breakfast and lunch. So we will have all kinds of plans options also even for our regular guests. So that could be a interesting thing. For us in terms of FNB mix also.
Niraj Mansingka
Okay. And just wanted a broad guidance from you on FY26 and 27 on the revenue and EBITDA range.
CS Nikhil Singh
On the. On the overall.
Niraj Mansingka
Yeah, yeah.
CS Nikhil Singh
Okay. So we should basically be definitely looking. At 400cr this year. Okay. That is definitely what we have. Considering Sindhur, considering other things, we definitely have 400cr as our listing and our. Margin should remain in the same range. That we are in right now.
Unidentified Speaker
We’ll obviously try to beat them. But broadly this is the thing
Niraj Mansingka
means 30 last year. 29.
CS Nikhil Singh
Yeah, 29. 29. 30%.
Niraj Mansingka
Okay, great. Okay, great. Thank you very much. And yeah, I’ll come back.
CS Nikhil Singh
Thank you sir.
Unidentified Speaker
Thank you.
operator
Thank you. A reminder to participants, if you wish to ask a question, you may press star and one on your touchstone phone. The next question is from the line of Gurvinder Junaija from Fortuna pms. Please go ahead.
Gurvinder Juneja
Thank you sir. Thank you sir for taking my call and my question. Two questions. One is wanted a quick sense from you. You’ve updated on the plans for Rishikesh and Dehradun. Also wanted a quick update from you on where the Hyderabad, Bhavnagar, Gwalior and Kudi new properties. What’s the timeline looking like to you? And the second is a question to Smitaji about the interest entry on the P and L just wanted to understand the debt is now close to 100 crores. So wanted to get a sense of the interest cost that is showing up in Q1.
Smita Nanda
Interest cost is coming nearly 1.1.6.
CS Nikhil Singh
Our debt is right now sitting at 95cr just for your knowledge. Okay.
Gurvinder Juneja
Okay.
CS Nikhil Singh
98. 98 2.86. And this is currently at 10% which the company intends to bring. This to 9% or below that in the coming time. Right.
Gurvinder Juneja
Okay sir. And your and your updates on some of the other properties that that are on the table that likely timelines to open.
CS Nikhil Singh
Yes that we have shared in our PPT which is basically the what we’re looking to that Bhavnagar and Dwarka will open by September. The Orchid Panchgani will open by September. The era by Orchid at high tech city Hyderabad. That 60 room hotel that should open by. Actually we can open it by August. I’ve been given to told that you know by maybe by the 15th of August we can open it. But the still we rather we like to make sure that certain things are done. But we might insert that we open by September. But we might open it by third week August.
We don’t want to lose any date because Hyderabad is a booming market the same way you know the other also Rishikesh like we had mentioned will be opening by August. So, August and August third week, August ends. So these are all what we have already in the pipeline. You want to know about. Also what we signed like Nashik and all which I’ve also mentioned before. That’s in April we’re looking at thereafter we are targeting to open by December. Also the orchid value we intend to open it by December. So this year we should be comfortably.
With 24 to 25 operational eras and orchids in in our kitty. But that is our current in pipeline rather than the current thing. But we are confident that we might touch the third not might we will touch the 30 hotel mark by this year. If opportunities come even further than that then we will take up. But as of now 30 hotels is our buy March our target to open in an open book.
Gurvinder Juneja
Okay.
CS Nikhil Singh
Not size may be more which may like example the I’m not counting in this the Rishikesh this the Orchid rishik is the second unit which is right now 44 rooms but may go up to 60. So I’m not counting those hotels. I’m counting only what will open for this financial year. So that next financial year will get its full value and as asked by a previous participant we can hit 500 if not actually not hit, exceed. So that’s our endeavor.
Gurvinder Juneja
Okay sir, thank you very much. Point noted. Thank you sir.
CS Nikhil Singh
Thank you sir.
operator
Thank you. The next question is from the line of Anurag Janani from individual investor. Please go ahead.
Anurag Janani
Hello.
CS Nikhil Singh
Namaskar.
Anurag Janani
Hello. Yeah, Namaste. Congratulation. Good set of numbers. I think the recovery has been good. So I just wanted to, I mean I just wanted to ask one question. With respect to the revenue guidance. I mean I know a lot of. Earlier participants asked this question. I don’t know you have already given a response but just to accept particular discussion. So currently we are having close to currently up to what 19 properties and approximately 1800 fees. Right. So and in July 2526 we plan. To add seven or eight hotels which. Will add further 600 to 650 rooms. Existing set of room in May. So what I, so what I fail to understand is that in FY 1925, you know, the company did a revenue of 373 crores and we are guiding for a revenue of 400 crores in FY 2526. So that’s, that’s approximately a growth of 10%. So I mean so what, what, so what I, what I’m trying to understand is that when our inventory levels are going up by approximately 35%. So I mean why is it that we are guiding a revenue increase of only 10%? Is it, I mean are we guiding this revenue estimate on a conservative basis or I mean are we planning to do a much larger, are we going to do a much larger revenue than what the management has guided? Because I mean the room inventory is expanding.
We are having plans to expand our ARR from 6,500 to 7,200. Right. So there is going to be a 10% increase in the ARR that the company will be able to realize then. I’m sure the way the economy is growing, I mean there would be a lot of traveling. This travel and hospitality sector is growing. So the occupancy levels I’m sure, I mean the company would aspire to increase their current occupancy levels from 65% to maybe, maybe, maybe 70 or maybe 68%. So I mean, you know, considering all these factors and I find the revenue estimate to be a little on the conservative side. So what do you have to say about that?
CS Nikhil Singh
Thank you sir. I totally agree with you that revenues. On conservative side for multiple reasons. The first reason is that had operation Sindhu not happened and the month of May not been so, not so good. It would have definitely, you know, been a revised estimate. 1. Secondly, the number of groups which are. Being added, if you notice, all are being added around September, around September, which. Means that we’re only getting the half year benefit. And in that also not a full. If I suppose hypothetically I was to open in April, I can take a wedding for the month of November, December. But if I open in September, the chances of me getting a wedding in. November, December are limited. I will get fit business, but I will not necessarily get the kind of wedding business and other things which I. Was targeting, which I would get if. I was opened earlier.
That is why next year, next year, based on our current position performance, 500. May become much more. Sir, it could be this thing today. So I’d rather, I’d rather give my listeners this thing and keep revising it based on what happens now. Nobody knew this nonsense would happen of this, you know, this tragedy which these idiots. I mean, very upsetting. But nobody knew that this would happen. And out of the blue it came. And at that time, it is our duty to, you know, support the government and not crib and cry like how some people have done. We have to, we have to accept it because our cause was bigger than the situation.
So I totally. But had that not been the case definitely, sir, then our conservative estimate of 400 would not have been there. So definitely the company is only out to break the overestimate. Sir, then that is also not fair. So we felt that we are listing. It, but it, it is our endeavor to break this, what we have given you Target.
Anurag Janani
Okay. Okay. I mean, I, I totally understand that. I mean, where is it that this conservative estimate is coming from? But no, I would, I mean, I, as an investor as well as a fund manager, I would still know. I mean, I would still ask the management to relook at the estimates because I think the, the kind, the way we are expanding the inventory and the way we are trying to position our position, our brand after the debt restructuring is done. I mean, I feel that, you know, I mean that’s, I mean, the estimate provided by the management is not the reflection of the kind of efforts and the hard work that is going into building this particular common brand.
CS Nikhil Singh
So appreciate you, sir. I really appreciate your genuinely, your support, your deal. I really appreciate and definitely we will not let you down. If today we have said 400, then we will definitely work towards, I mean.
Anurag Janani
In the entire Indian hospitality and the tourism sector. I think Kat Hotels, you know, if we keep aside some of the premier and the elite brands like eisl, IPC Hotels, I mean, I think, I mean the kind of valuation that you know, that we are, that we as a company have been for the past so many years, I think that valuation doesn’t justify the kind of brand that we are trying to build. So just, I mean, you know, as an investor I thought of just bringing this to your notice so that 400 crores is like, I mean, you know, even if you would not have expanded the inventory probably we would have ended up achieving 400 crores.
CS Nikhil Singh
And that’s why sir, we will definitely work to definitely go higher than this. Because.
Anurag Janani
Something, some figure, I mean some. Figure which is reasonably estimate. I know that Kamas Hotels is a very judicious brand and they are very particular, you know, when they communicate, you know, any, anything to the investor. But I mean 400 crores, you know, is, you know, is too conservative. No a number for, for the investors to actually feel excited about all the developments that are happening in the company. So just, I mean, you know, just on the estimate part, I mean I would, you know, I would want, if the management can relook and you know rework on this particular estimate considering you know, whatever tragedy and whatever, no, whatever mishap has happened in the last couple of years which kind of, which kind of, which has kind of dented the sentiments, you know, that were there in the aviation as well as in the hospitality sector.
So just, just, it’s a request for myself.
CS Nikhil Singh
We will do that sir. We will review. We will introspect and review and we. Will definitely do the refund. Thank you. Oh thank you sir. Namaskar.
operator
Thank you. A gentle reminder to participants, if you wish to ask a question you may press star and one on your touchstone phone. As there are no further questions from the participants I now hand over the conference over to management for their closing comments.
CS Nikhil Singh
Madam, I think there are two questions. One Mr. Amish and one Mr. Neeraj just asked a question. Mr. Mansika G. Again a question and. Mr.
operator
Okay sir, the next question is from the line of Amish Kanani from Novice Investment Manager. Please go ahead.
Amish Kanani
Thanks for the opportunity sir. I just wanted, I just wanted to. The corporate action about you know, one of the property which we had kind of proposed to merge and there was some NCLT approval which was awaited. If you can just give us some sense of that corporate action, sir.
CS Nikhil Singh
Yeah, thank you sir. That’s a very good question. You asked it so I can apply everybody also about the same. We have already got the NSE and the BSC approval. So now the same has to go to nclt. So formerly a lawyer has been appointed from. Even if they. And regarding the same the company will. Proceed with what process has already been started and will the same in MCNT then for the members approval also you know, in terms of, you know, upgrading ourselves and everything. So I think all the things will go out well.
Amish Kanani
Okay. Okay.
CS Nikhil Singh
Thanks a lot.
Amish Kanani
Thank you sir.
operator
The next question is from the line of Neeraj Mansingha from White Pine Investment Management. Please go ahead.
Niraj Mansingka
Yeah, thank you for the opportunity again.
CS Nikhil Singh
Thank you.
Niraj Mansingka
Two questions. One, to relate to the participant earlier on the merger side of the entity earlier can you share what’s the value proximately range of appreciation of land that will happen for comma total. So that’s one. And second on the Puri side you had earlier a Puri Beach Fort Mahabali hotel. I think you told in the past also. Can you. Can you just remind us what is the status of that? Because we are moving to a larger 156 room property later in 2027. So these two questions.
CS Nikhil Singh
Thank you Neerji. Basically first let me take up the valuation. One, our valuation of the entity to be merged has shot up drastically because it is very near the Wadwan port and near the new airport which is coming. So the valuation of our property has shot up drastically. That is a very good news that we have for ourselves and as shareholders also as this thing also as an. As a dual interested party. Someone asked me if what if the merger does not happen, I’m still happy. What if the merger happens, I’m still happy. I buy because in both the cases what I want is basically the value to go up.
If the value today, even if the value of my private property has become much, much more important three times, four times without going into speculation. Even if the valuation has gone up and if it had this old value, whatever has been done at that value. Also it comes in still as a shareholder of Commod, I’m happy. So I when people have come and asked us and after understanding and they have gone back satisfied that yes, by this coming in K hotels also value goes up and this whole property also. Which has been valued at a, you know, old thing. So I’m quite so in both cases the promoter is.
Amish Kanani
What was the value earlier when you had done the mergers that time you had assessed the value of the land.
CS Nikhil Singh
So total value which was there was of 70 crore rupees for it one is that it has a 16 acre. 16 odd acres. Is the land any land. And also along with that there is. Property which is of Mumbai which is. All about 1/4 of an acre. This is about 1.8 of an acre.
Amish Kanani
Only that 16 acre property would be what valued that time when he had done the mer.
CS Nikhil Singh
So that time I think its valuation was quite low. Yeah, can say about. I think around. Holistic value. But basically in court whatever the price. Of that time is was. Because that was almost a year or back. So definitely the value because like I said it is right near Palgar. That near the bad one and near the port and it’s a highway touch. Our property that the prices have gone up by 2.3x.
Amish Kanani
That’s right. Just wanted to know how much.
CS Nikhil Singh
Yeah, I. Honestly speaking I won’t know right now. But okay, I. I would know. I’ll find out. Please let us also for sing it. Secondly also for your Puri point. Our Puri property got delayed because when we had submitted our plans to the government our sub building was a 40 meter tower. But now with the new airport coming at Puri and the Puri airport height restrictions coming in our plan had to be revised. And now as per law the height has to come to 27 meter. So the problem is that we have to now change the building so the the number of rooms will still be the same.
Because it’s two and a half acres. So we don’t have a shortage in the number of rooms. We don’t have a problem in the number of rooms. What we do have is that earlier it would have been a little more efficient building as a tower. Now instead of a tower it will become a little shorter tower with a bigger base. So the area will go up of construction. But that’s basically why the company just. You know we are sitting with the architect to revise this plan. We want it to be as Modiji has pushed in Orissa the mice.
Tourism, wedding tourism. And that was his thing. So government over it also is very keen that we develop this 9,500 square foot banquet hall along with these all facilities. So keeping that demand also in mind which is there we are basically revising our plans for Puri. So that is why it has got delayed because of the height restrictions rule that has come. Aviation rule.
Amish Kanani
The 33 rooms, they are still working or they are just.
CS Nikhil Singh
Yeah, yeah, they’re operational. So 25 rooms, 24 rooms are operational. 24 rooms. But it is just operational. It is not a area of focus operational. It is just operational. Because we have the restaurant over there is fully operational which is doing very well. There is a restaurant over there which is doing very well. So that’s basically because of outsiders come. And eat it over there.
Anurag Janani
So by the time this Property starts commercials 156 rooms, this 33 rooms will be closed. Is it right? Right. Assumption.
CS Nikhil Singh
24 rooms can remain on even while the renovation while the new building is construction is going on. Because they are detached, they are not part of the same. They will only shut down. They will only shut down for around three months when the integration work will happen between both the tower and the heritage wing.
Amish Kanani
Okay, got it. This great. And. And this can be. This will be as similar for wedding destination. And what, what do you expect on the realization. Last question. What do you expect on the realization on Puri? I know it’s quite early stage. Right now.
CS Nikhil Singh
Also is a very high ADR market. It should be basically are looking at a ADR of around 10,000 rupees over there. And on an average Puri as a town, as a temple town has an occupancy of around anywhere between 60 to 75%. So it’s a very very good, very good place. Our Lotus Konark is doing exceedingly well. It’s only a 32 room eco resort. Property yet its ARR is in the 5,000 I think 5,800, 5,500. 5,500. And occupancy also is at 60% if this actually we are looking at the addition of rooms over there which should add more we’re looking at because that’s what you know will really even further take the occupancy up. So then we can take large conferences. We have a 3,000 square foot all. Over there which is underutilized because we. Have only 32 rooms. So once we take this up towards the 5060 mark, you know we’ll have even more confidences and the revpar and the this thing will go up drastically.
Amish Kanani
Got it? Got it. Thank you. Thank you. Very useful.
CS Nikhil Singh
Thank you operator. I think no one else has any other questions so we can conclude Madam.
operator
Okay. As there are no further questions from the participants I hand over the conference over to the management for their closing comments.
CS Nikhil Singh
So I really appreciate we had a very good turnout which we’ve been seeing in the last every call that we have. I appreciate all those who come and listen to us sincerely and patiently and especially all those who take the trouble to ask us these questions. I really appreciate some who push us like one of the gentlemen you all heard who was pushing us to do better. And that’s what we’re here for. We also require. And we also require that nudge. So thank you. I really appreciate all of you all and look forward to even better results in the coming quarter.
Thank you, Namaskar.
operator
Thank you on behalf of Comet Hotels Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.