Kamat Hotels India Ltd (NSE: KAMATHOTEL) Q3 2025 Earnings Call dated Feb. 04, 2025
Corporate Participants:
Vishal Vithal Kamat — Executive Director
Smita Nanda — Chief Financial Officer
Analysts:
Nupur Jainkunia — Analyst
Raj Saraf — Analyst
Jay Kant Beria — Analyst
Ankur Kumar — Analyst
Rusmik Oza — Analyst
Pankaj Tibrewal — Analyst
Maanvardhan Baid — Analyst
Komal — Analyst
Trisha Kansara — Analyst
Vedant S. — Analyst
Randeep Kapoor — Analyst
Kaushik D — Analyst
Chandan Mishra — Analyst
Gunit Singh Narang — Analyst
Prashant Sethia — Analyst
Prakash Andilya — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 and Nine Months FY ’25 Conference Call of Kamat Hotels India 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 star then 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 Valorem Advisors. Thank you, and over to you.
Nupur Jainkunia — Analyst
Thank you. Good afternoon, everyone, and a very warm welcome to you all. My name is Nupur Jainkunia from Valorem Advisors. We represent the Investor Relations of Karmath Hotels India Limited. On behalf of the company and Valorem Advisors, I would like to thank you all for participating in the company’s earnings conference call for the 3rd-quarter and nine months ended of financial year 2025. 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. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management’s beliefs 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’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 opening remarks. We have with us Mr. Vishal Vithal Kamat, Executive Director; Ms. Smita Nanda, Chief Financial Officer; and Mr. Nikhil Singh, Company Secretary and Compliance Officer. Without any further delay, I request Mr. Vishal Vithal Kamat sir to start with his opening remarks. Thank you, and over to you, sir.
Vishal Vithal Kamat — Executive Director
Thank you very much, Nupur. Numaskar, everyone. Thank you all for being here on this afternoon, and welcome to our earnings call to discuss the Q3 and the nine months FY ’25 results. The results along with the comprehensive presentation have already been shared with you also on the stock exchanges for your review and for you to look at. And based on that, I’m assuming many of you are here. So thank you for being here. As you may have noticed, the company has delivered a very good performance in the 3rd-quarter across the various metrics, shown growth also year-on-year and quarter-on-quarter. Apart from growth, it’s also shown some improvements on the various other factors, which we will take-up further in the call. As per our long-term plan in terms of strategic and we intend to extend our footprint to many more geographies and which we can deliberate a lot more in the detail to come. Mainly our Puna which has been going on in terms of certain upgradations than the Goa hotel, our hotel in Goa has commenced operations on 17th of January. So we are very happy about that also coming on. It was a little delayed, but it’s there. Then there are also expansion facilities happening at certain places, which will further improve our revenue and along with that, our EBITDA also. So the company is also dedicated to enhancing additional efficiencies in terms of reducing the electricity, HLP, which we call certain labor costs by using various technologies and also enhancements to make the same efficiency and while also at the same time, keeping the service factors in mind. So our customer-centric focus, that’s what Commerce is known for, our customer-centric focus as in terms of family and corporate as a company, which we focus on. We are committed to that along with the environment because we are Asia’s first five-star pioneering chain of environmentally sensitive hotels and our customers recognize for that. And that is why we have a very-high repeat of 34% repeat customers in our entire. So 34% of our sales, which comes is from repeat customers. So we are very grateful to our high repeat guests. With this, I’d like to hand over the call to our CFO, Mrs. Smita Nanda, who has done a fantastic job in terms of various aspects and she will take you through the financials for these year two companies. Thank you for the current results. Thank you.
Smita Nanda — Chief Financial Officer
Thank you, sir, and good afternoon, everyone. Let me briefly touch upon the key performance highlights for the quarter ended 31st December 2024. The consolidated revenue for the 3rd-quarter was INR111 crores, representing an increase of around 29% year-on-year basis. The EBITDA for Q3 FY ’24 was INR44 crores, reflecting the growth of around 70% year-on-year basis with the EBITDA margin reported 39.77%, which comes to 40%. The profit-after-tax for Q3 FY ’25 stood at INR26 crores, decreased from INR42 crores in Q3 FY ’24, that is because of the last year we have contributed exceptional item, Ira Mumbai sales. For the nine months of financial year 2025, the consolidated revenue stood at INR570 crores, representing the growth of 22.8% year-on-year basis. The total EBITDA stood at INR80 crores, which rose by 18.3% year-on-year with EBITDA margin reported 29.63%. The profit-after-tax was INR36 crores, which is 16.6% lower than the previous year Q3 FY ’24 on account of the same exceptional items, which we related to the Ira Mumbai. PAT margin stood for the period at 13.19%. With this, I conclude my remarks and request the moderator to open the floor for a question-and-answer session. Thank you, sir.
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 R&1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press R&2. 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’ll take our first question from the line of Raj Saraf from Finvesta. Please go-ahead
Raj Saraf
So very good morning, sir, and congratulations on this very great sets of numbers.
Vishal Vithal Kamat
Thank you, sir.
Raj Saraf
Sir, two, three questions I have. So first of all, that as we know I’ve seen in the past that our Q4 is generally nice. So can I assume that our guidance, which was lowered from INR400 crore to INR350 crore in the course of this financial year. So now we are on-target to overachieve our INR350 crore and EBITDA, I think more than INR100 crore.
Vishal Vithal Kamat
So sir, definitely, we had given a revised guidance because of the certain outlooks at that particular juncture because we always want to be as candid and transparent as we can based on what we outlook. But this quarter has been very good. I am very proud of our boys and girls, our team members who have done a great job supported by our admin at HO and other levels because of which we had a really good processing. And definitely we seem to be on-track in terms of the EBITDA for INR100 crores.
Raj Saraf
Okay. So sir, this 40% EBITDA in Q3, close to 40%, is it sustainable going-forward or sir, what could be the outlook going-forward from here on?
Vishal Vithal Kamat
So the company’s historic performance even before the last two years, which is basically been where we have been out of our financial challenges, the company’s historic performance has always fluctuated between 33%, 35% and 40-odd percent, if you’ve seen. And in the last two years when since we came out of various financial challenges, we were using the — whatever things to clean-up and smoothen all our — in fact, the new balance sheet when you will see it, will be much thinner than the previous one because various things which were contingent liabilities and other aspects, all that has been cleaned up systematically. And we will come back to our normal efficiency, which is ranging between 35% and 42%, that will come back. So it’s more or less, I would say it’s fair to assume 35% to be our standard benchmark, which in the last few years or last 15 months has not necessarily been the case because like I explained, a lot of things have been done, streamlined, smoothened because of which the company is now neat and clean in that regard.
Raj Saraf
Okay. And sir, the last one is, sir, we have —
Vishal Vithal Kamat
Well, I would be sir in the interest of that other people also. May I request — we normally give one guest question per the thing. We have already given two.
Raj Saraf
Yeah, okay. Thank you. Thank you, sir. Thank you very much. I will join the queue.
Vishal Vithal Kamat
We have to be back-in line, sir. Thank you. Thank you.
Operator
Thank you. We’ll take our next question from the line of Jay Kant Beria from IIFL Securities. Please go-ahead.
Jay Kant Beria
Hi. First of all, thanks for the opportunity. So I had a question on the state-of-the Pune market. It’s one of the key markets for us besides Mumbai. So just wanted to know your opinion on how do you see it going-forward?
Vishal Vithal Kamat
The Pune market is a fantastic market. It used to be a terrible market about in 2012, 2014, but Pune as a city and hotelliers over there, along with various other private players have been able to make it into a really fantastic commercial hub plus my city, plus it is a fulcrum city more than Mumbai is to various other B-town cities around in that zone of, say, 100, 200 250 kilometer radius. So people from Kolapur, people from, people from other places all prefer to go to Puna rather than even Mumbai. And Puna has become that fulcrum of business also, education also and when it comes to hospitality, mice, events, conferences, exhibitions, have we actually share in Mumbai, Meh Baja and is. So it has certain plus points which Mumbai at times may not have, which is basically geographic more than anything else. And there is a little more comfort and emotional connect which Puna as a city has with the certain Magar and all. So Kuna market will continue to thrive. It is extremely well-supported by a lot of GCCs coming in, a lot of other kind of businesses which are coming in, which are not only manufacturing, but service-oriented also. So the long-term prospects for Puna are very robust and we are very bullish on Puna in battery. Thank you.
Jay Kant Beria
Sure. Just one follow-up question on that.
Vishal Vithal Kamat
I would guess you to please come back. We would only go like to go with one question, one. Thank you. I appreciate you that. Thank you, sir.
Operator
Thank you. We’ll take our next question from the line of Ankur Kumar from Alpha Capital. Please go-ahead.
Ankur Kumar
Yes, sir. Congrats for a good set of numbers. So Mujay, open or ARR or occupancy you are in Hamari this quarter say guidance is around INR7,500 or better occupancy go high. But this quarter we are at 6377 with 65% okay. This is what is our plan to increase both.
Vishal Vithal Kamat
So, sir, one of the things one of the reasons the ARR is not a very good metrix to take is because the ARR is a combination of all the brands of Orchid. Now today, the average ARR in Orchid, Mumbai is sitting at around INR8,000 to INR9,000, but it is still showing as a metrics on a whole as Orchid brand at INR6,000 like you mentioned. The reason being that there are certain other hotels which are either they are new or they are in a low ADR competitive market, but the ARR is not only driving the revenue. The revenue is being driven by F&B and ARR, banqueting, and rooms business apart from any kind of missionate income, which may be there, which has also grown, simple thing like rentals, it’s not a very big line-item, but Boon, Banta Sagar as a lot of the boost which has happened. So while ARR of the brands we give because people ask your brand case of citywide, like example, Era has a competitively lower ARR shown, but Ira is doing an average INR10,000 ARR, okay, INR9,000 to IN 10,000 going up to INR11,000 fluctuating between that. Same way Ira Mumbai is doing anywhere between 7,500 to again 9,000 between that. So the brand as a whole, we have given these metrics, but it is not a true reflection of every property’s individual performance.
Ankur Kumar
So it means that how many future KHIL 3.0 future strategy, how many you number the SS 7,500 that is like possible overall Group Khana, yeah, that will take some time, sir.
Vishal Vithal Kamat
It is very much possible once now other hotels also in those brands mature, like example, recently, we have opened the Orchid Pasaros in Goa, which is at. It used to be Lotus. It is now Goa — and sorry, it is now the Orchid. Earlier the average rate over there was INR3,300. Today, the average selling rate in Goa is around 7,000 tonnes or 500. So that jump will definitely reflect in the times to come. And that is why the — and this is just now. We have just now opened the — what do you call hotel and this is the ARR. So if the ARR we expect to obviously go north of 7,000. So this systematically the ARR which you see will definitely increase as hotels stabilize and mature. And that is also on the reasons of the better performance that many of the hotels which opened last year have this year done their view and added to the overall KT. Thank you, sir.
Ankur Kumar
Thank you, sir.
Operator
Thank you We’ll take our next question from the line of Rusmik Oza from 9 Rays EquiResearch. Please go-ahead.
Rusmik Oza
Thanks for the opportunity, sir. Just wanted to understand the timeline for the expansion of Pune property rooms from 410 to 500? And also the number of rooms now in Goa has gone up to 58. Is it right?
Vishal Vithal Kamat
Yes, sir. You’re absolutely correct. We have taken the number of rooms up. Right now it is 57, one-room is pending because that is sort of different and a unique room and that will take a little longer. But we are at 57 right now, but it will eventually be 58. So it will just be a couple of months more for that one particular room. But that said and coming to Puna, Puna will take approximately anywhere between 12 to 15 months-to come to the 500 mark. The reason being that the current rooms also of Puna will be upgraded upscale to a very upper category, okay, whereby that’s why basically while we will have some of the rooms ready, we will be taking out some inventory and at any given point of time, the hotel will always operate with 350 crores to 380 rooms depending on floor-to-floor, so that we don’t lose revenue because Puna Orchid last year also did almost INR80 crore rupees and we intend to take that upwards towards the crossing of 100 systematically. So for us to do that, we don’t want to lose the number of rooms. So that is why we will add these rooms, but yet while we add certain rooms, say, we add 30 40, 50 rooms, we will take-out also 30 40, 50 rooms based on that to balance out and make sure that we always have around 350 rooms because Puna Orchit being a nice destination always is having a high-demand for bulk rooms. So we do a lot of events where there are a lot of bulk rooms required, which normal hotel cannot. So a normal business practice of a prudent good hotel will always not give more than 50% of the inventory. Even if you’re doing a wedding or you’re doing a conference or you’re doing something unless it’s a resort, they will not give you the full inventory because they don’t want to upset their routine guests and regular guests. On an average, any hotel does 60% to 80% occupancy. So you don’t want the 60% to get upset because you are giving the whole hotel to someone. So we are lucky that as having such a huge inventory of 380 rooms, we can give up to almost 200 rooms and still maintain our corporate relationship where they are not unhappy that, to, that doesn’t work. That doesn’t happen. So that is a plus point which the size of Puna and same advantage is therefore Mumbai also. So this is where basically the expansion will take about 12 to 15 months of the additional, but it will always operate with 350 to 380 rooms approximately.
Rusmik Oza
Thanks. I have some questions. I’ll come back-in the queue, sir. Thank you..
Vishal Vithal Kamat
Thank you, sir. I appreciate that. Thank you, sir.
Operator
Thank you. Next question is from the line of Pankaj from Affluent Assets. Please go-ahead.
Pankaj Tibrewal
Thanks. Am I audible?
Vishal Vithal Kamat
Yes, sir, you are, sir.. Understood.
Pankaj Tibrewal
Sir, congrats on very good set of numbers. Just wanted to understand whether this is sustainable, which earlier we used to have our top-line in the range of INR80 crore INR90 crores. This quarter we have reported INR110 plus. So where do you see quarterly revenues going-forward? And is this sustainable along with the margins which we have reported 40%.
Vishal Vithal Kamat
Sir, it is only sustainable if we continue to do what we’re doing, which is one, we expand new hotels which come in will add to it. Two, existing hotels who are there to make them sweat better, the team has done a very good job. This in fact, considering that previous to this quarter — previous to this result, the last four months and five months, there have been various reports on consumer sentiments being down, other aspects being this and that and x and Y. So when there has been not necessarily the same kind of buoyancy which we would see in terms of people stock in 2022 and yet we have done these numbers, which goes to show that our brand is appreciated, our customers appreciate us. We are able to hold them, retain them, give them the right kind of deals, which are helping us and them both. And that’s basically why it has to be sustainable if we have to answer your question, it has to be sustainable because of, like I said, expansion, existing sweating of assets and not being complacent. While you might think it’s excellent, we think it’s good. We don’t want to get into the euphoria or the Chakia because this is not our standard. Our standard is even better than this, which we will work towards driving. Thank you.
Pankaj Tibrewal
Just wanted to ask whether there’s any question, please.
Vishal Vithal Kamat
Please one question. Thank you.
Operator
Thank you. Next question is from the line of Jay Kant Beria from IIFL Securities. Please go-ahead.
Jay Kant Beria
So just a follow-up question on my previous part. So on the Pune market, so as you mentioned that you see it to perform really well. But we do hear a lot of industry experts who say that Pune is a very rate-sensitive market and that majority of the business is driven by corporate. So what — what is it for your hotels? What is the mix? And do you think that there is some stickiness around ARR?
Vishal Vithal Kamat
So, sir, ARR is always, as I’ve said in my past also, ARR is not in my hands. It is a function of the market and ARR boost is always a function of the market. If the market is buoyant, you will have a better ARR, okay? Occupancy is in my hands because based on how the market is behaving, I can drop the prices, I can get customers in, I can do whatever I want. But ARR is always a function of the market. If there is a conference, like example when there was a Play conference, the entire city got booked out regardless of the category, whether it was travel agent, whether it’s corporate, whether it is FIT, FIT means, people who are free with individual travelers or family, family individual person going on its own accord. So ARR is definitely something to keep a track of because it shows you the kind of robustness of the demand, which is why the hospitality as a whole, when I was asked two years back, will these ARR sustain? I said, no, they will grow. But why you said that is because I could see the future pipeline, I could see my competitors and earlier hotel were insecure. They were like Jaga. So today says Danda come on in because Uskemi has Uskemi challenges them. So ARRs will sustain and continue to grow. Obviously, they will continue to grow. Whether they grow in leaps and bounds, that is the different perspective. But overall, what scenario we see is here to stay. Again, micro car climate wise, it will definitely grow. Like example, in certain cases like today is the IoT,, the ARR is stabilized and is going to continue to grow on this stability because as we are maturing in that market, we are understanding the trend. Next year, I wouldn’t be surprised to see a 20%, 15% minimum growth in ARR next year because this is our first year of operations. On, we started and this Ramdawni in April will be our one-year completion. So we know the entire cycle that when do people come there, why do people come there, how do they come there, how are they coming, how are they going, how many flights are there? The flights such would have been not only stable, but going full. So ARR aside, overall the operations which we see and coming to a mix broadly, broadly, all our hotels operate on a mix of right — which I feel is right, sir. I feel right is 30% corporate 20% — assuming that we are going 100% full, 30% to 35% corporate, 20% travel agents, around 30% to 25% to 30% being 48, then approximately 10% to 15% being our own website, our own channel, which is basically our market reward members who are there. We have so many repeat customers like I mentioned. Our channel itself also, sir, is very robust in that regard. So around 10% to 15% of our own, so that’s the calculation, maybe I’m missing out somebody. Then in some cases, we have some airline business also, which is your anger business, which could be around 5% to 7%, okay. And broadly this some segment — and FIT, balance are FIT. Now FITs are basically the pillars which give you a higher ARR. They don’t have a corporate tie-up, they have not come to a travel agent who has tied-up. They have not come to — or they have not seen your website, they’ve just landed up at the door. So on the — even if they come through the website, they come to FIT. So that is basically the broadly, sir, I’ve given us. It again changes from hotel to hotel and even like resort destination may not have any corporate resort destination will have higher FIT higher travel agent and higher OTA. That’ll be.
Jay Kant Beria
Sure. Thank you very much. Thank you.
Operator
Thank you. Next question is from the line of Maanvardhan Baid from Laurel Securities Private Limited. Please go-ahead.
Maanvardhan Baid
Hello, Namaskar, sir. So sir, at our end there are multiple lease properties. Can you share the sort of the return metrics for these lease properties, the terms of these lease properties, when are these lease expiring and the nature of these leases from property to property so that one can understand the whole business in detail.
Vishal Vithal Kamat
Mostly our lease are signed between 12 to 15 years, some may be a little longer than that. So none of the lease are expiring anytime soon because they’re all, like I said, new leases entered in either one or two years-old and the minimum life-cycle of this minimum is 12 years to 15 years. So all those are the same. Secondly, sir, it depends broadly what the thing is, generally a hotel if it does a 35% EBITDA and your revenue-share is 20%, then broadly you will take-home 15%.
Maanvardhan Baid
Okay. So broadly, this is the ballpark that one should work with for these leases on an
Vishal Vithal Kamat
Ideally broadly, this thing can become 10, 12%, but broadly this is the ballpark to work with. It’s a fair metric if suppose someone’s 20%, it’s become 21%, 22%, 25%. Broadly this would be the matrix to work with. Within this also, sir, I mean, yeah, that’s broadly how I would break this down.
Maanvardhan Baid
Okay. And on the expiry of these leases, where do you see this business going because of let’s say, 10 years down the line, there’ll be five or seven expiries. So then —
Vishal Vithal Kamat
Why do we feel that there’ll be expiry? Why don’t you feel that the owner is so happy with us that is renew and we just continue renewing on a revenue-share? So that way, sir, 10 years down the line, we don’t know whether I would want to continue that hotel. Maybe by then that hotel may not be worth continuing for. So these are all things for 10, 12 years down the line. Let us sir, my horizon is the next three to five years because the world is so dynamic, you don’t know what is going to happen every four years in America and every five years in India, then we need to see both and balance it out. Trump has come with now all these trade warfare and other things, whatever he is doing and it is working in his favor. Now if it is working in his favor and he is finding that people are posturing and then giving in to him, all the more the world will be a very world. So we should take everything as a short inning rather than thinking of a test match. And that’s why my horizon last is basically more important to see 18 months, three years and a little of fires in terms of strategic where we want to grow as a brand, which are the Tier-2 cities, Tier-3 cities in Tier-1, what is the long-term? If I’m especially acquiring an asset, then I’m looking at a decade horizon. But otherwise, sir, in terms of rental it’s not necessary that we need to worry about 15 years from now because it is not our asset. Thank you, sir.
Operator
Thank you. We’ll take our next question from the line of Ankur Kumar from Alpha Capital. Please go-ahead.
Ankur Kumar
Thank you for taking my question. Sir, if I look at Q4, more generally Q3 gave a because there are a lot of demand in Q4 also. So what are our guest sense on that, sir?
Vishal Vithal Kamat
So sir, Q4 is always a little lesser than the Q3, I don’t think that it will be that little — it might be little lesser than little lesser. But if in a practical sense, I’m saying, I don’t want to — while the books look robust, I don’t want to unnecessarily give you any great guidance. I would like to tell you that while this month has been good, the month of January has been very good. The month of February always is very good. It is a traditional — the is the budget time that’s when a lot of travel happens and then it’s historic that February is one of the best months even though it has 28 days. So again, I would not necessarily base it on what has happened in Q3. But at the same time, if I was to say that will it be better than probably next year’s Q4, it could be. As of now, the signs are positive that I would say that even if we achieved last year’s Q4, still the overall net result of our operations is very interesting.
Ankur Kumar
Sure, sir. And sir, up now full-year next year guidance saying against guidance FY ’24 was just nine —
Vishal Vithal Kamat
This nine months, we’ll see sir in that and accordingly. Okay. More important than guidance is basically being able to — which I mentioned that earlier also that we will do INR100 crores plus EBITDA. There were some skeptics and they are right to be skeptical because it technically it did not make sense, see, how can it be in Q2 that we will achieve 100 and there were a lot of skeptical people. But I think my team has done me a great favor in terms of proving me correct by seeing what we saw on the books. Ultimately, sir, we have to see our business on books along with that our experience and pray that it comes perfectly together and that basically is what has happened here also. The conviction we had in our team, the conviction we saw in our books and based on that what the team has done. And that is why when I saw before also, I mentioned 100 that time, of course, there were some of whom on the call also would have felt that way and they are absolutely right in. So yeah, I would not because see, I’m day doing it. You guys are analyzing us only once in a quarter when the quarter come out and you have hardly any knowledge other than what is shared in terms of the balance sheet or the prison, whereas I day-to-day I’m in the grind. So I would obviously having firsthand knowledge more on certain things, which gives me that confidence to say, so I don’t want to do or give any higher expectations. I would say, sir, eight quarters at here. So I say next quarter give you and we’ll make sure that INR100 crores of EBITDA has already been touched as per me, which I have promised my investors and all you people who take the time or to listen to us. So that I’m at least grateful for. Thank you, sir.
Operator
Thank you. We’ll move on to our next question from the line of Komal from Tradewalk Research, LLP. Please go-ahead.
Komal
Hi, I just had couple of questions. The first, in one of your interviews, you mentioned plan for overseas operation. Is that still under discussion
Vishal Vithal Kamat
Sorry, pardon me in the middle, I could not hear you a little. Could you please repeat, sorry?
Komal
In one of your interviews, you mentioned plan for overseas operation. Is that still under discussion?
Vishal Vithal Kamat
In my interview plans for overseas operations. Okay, I’m really sorry. It may not be in the recent — is it a recent interview.
Komal
Yeah, a couple of months back
Vishal Vithal Kamat
No matter, I can assure you, I’m very happy in be India by India. I’ve already been abroad. I know-how it is over there. There. Today, when God is giving me so much opportunity over here and today, thanks to the kind of push the government is giving, both statewise, central wise, elective state means Orissa state government are grateful to Maharashtra government is there, the Himachtra government also has been doing, doing especially the previous government was doing a lot. I mean, I don’t have much to complain about in terms of within India. So I’m very happy doing business here. I don’t think it might be my interview, Adam, because I’m very clear that I am not surely very keen right now to go abroad because of so much opportunity and work happening here. I mean, within India also, we are having some more sign-ups to come up, which we will announce at the subsequent time once it is on the dotted line. What is in the pipeline I don’t want to speculate on, but it’s — let me tell you a very robust pipeline because what has happened is also has come out of its shadow and as a brand also has come out of its shadow, whereby we are — today hoteliers are giving us rather potential tie-up partners are giving us our due. So I don’t think I mentioned about it. It might be — it might be a similar name person, but not me by. And I don’t know who are is because I would definitely not very sure that keen, I’m not very keen and I know very clearly. There is a traveling within India, Madam, I feel like sometimes I’m an Indigo or India staff member. They know me, I kid you not, they know me now by so well because randomly you fly and the same people are the same circuit. So that I don’t want to add to my pain of traveling approach.
Komal
Okay. And are we looking for any progress in terms of adding keys going-forward?
Vishal Vithal Kamat
Adding keys? Yeah, yes, madam, of course we are not like right now we have so many hotels. Chandigarh will open by March. So we will get a full financial working of the year for Chandigarh Hotel. It’s a fantastic five-star hotel and really come out beautifully. We are really, very proud of how the business. So it got delayed, but it’s come out fantastic. Hyderabad will open within the first-quarter of this thing and it’s a high-tech city, which is a prime area. So I’d rather tell you also as I tell you where exactly location that it open. Then also will open by around October. By December ending, our Dehragon hotel will open. Also will open by December ending. Our Puri hotel will open by December ’26, work is going on in swing on that property also. So when we have all these things in pipeline, which is in-hand. Apart from this, we have properties coming up in Sambalpur. We have properties coming up in various other locations in Orissa. We have some more signing-ups, which like I said, once it’s signed-up, I will inform you all that. So the pipeline is quite robust.
Komal
Okay. Thank you. That’s all.
Operator
Thank you. We’ll take our next question from the line of Trisha Kansara, an Individual Investor. Please go-ahead.
Trisha Kansara
Yeah. Hi, sir. First of all, congratulations on a very good set of numbers. First, sir, I wanted to understand the breakup between, let’s say, our new properties versus the old legacy properties that we had. So whatever growth we are seeing in this quarter or let’s say, even for the nine months in FY ’25, how much was contributed by new properties, which were, let’s say, opened in last 12 to 15 months versus how much was contributed by our old properties? The growth as well as the profitability.
Vishal Vithal Kamat
So you are saying the new properties are opening. 65%, right? I thought you was more now is properties. Around 65% 35% that is what Smitaji has just updated me. I thought it was around maybe 75% 80, but no, the company has balanced itself very well in terms of revenue from new properties coming to INR35, which is very good actually. Thank you, Smitaji for highlighting me also. I would also have the wrong impression because this shows that the company is moving away from its dependency on its traditional core hotels and balancing out with now new infusion of. So that means we are deleveraging, de-risking and at the same time-being able to get additional revenue streams. So this is already in a 65 35, then by next year too, I would not be surprised if it comes to almost 50-50 or so, which is a really great thing. So that’s reason. Thank you,.
Trisha Kansara
Okay. Thank you, sir. Sir, I have one follow-up question.
Vishal Vithal Kamat
Afterwards, please aftermath. Thank you.
Operator
Thank you. Next question is from the line of Vedant S. from KG Securities. Please go-ahead.
Vedant S.
Hello, sir. I wanted to check, are you planning to expand your rewards program to include some banks whereby your customers can pay and their customers — common customers can book by reward points or something like that?
Vishal Vithal Kamat
That’s a very good question. Actually, we have been pushing our agency who handles our program and we have been telling them that we don’t want to only restrict our members to only hotels, era hotels, doctors hotels and for. We want this program to be that if you were an reward member, you should get benefits in various other firms, banks, various restaurants. So they are already working on this in time even looking at time and end to do this whole thing in fact, but that did not materialize due to certain other financial and other challenges. But in terms of the bank, yes, there are certain banks also who are in now because, see, we have almost 8 lakh members and it’s 8 lakh members to have a co-branding car or to have various other benefits, ad points and redeem. And we want people to not only earn and burn-in our ecosystem, we want them to either earn and burn-in any ecosystem, but they should either earn with us or burn with us. So this is also something which is basically, let’s see.
Vedant S.
Okay, sir. Any timeline sir when we can see that materialize?
Vishal Vithal Kamat
Sorry.
Vedant S.
Any timeline by when we can see this materialize.
Vishal Vithal Kamat
No, sir. This is something which is part of the — this thing, what do you call — it’s part of the all — this thing, what do you call the time that you take to negotiate with also we are pushing. There are actually some other hotels also who would like to be a part of the well and we might in the near-future have some properties which are not exactly owned or managed by us, but a part of our program because they are also excellent operators and they also want business and then we also should be able to send our members and probably earn some revenue stream from this also. So look at that. If we can have a revenue stream. See today, it is not only money. Today it is something about more than money. It is about being able to connect and have that person come to you again and again. Even if I don’t earn a rupee, but if through my Orchid reward program, I’m able to send someone to an exotic location or if I’m able to send someone to a resort which is in-line with where he wants to expire and he goes there, then automatically what we remember, as an Orchid member, I was able to go here. So my repeat customer in my own hotel, see, we have to see the long game where today if we are proud that almost 34% of our repeat customer is coming back to us, I want to see how is he coming to me more-and-more even if he does not always use me. So — because obvious — but naturally, how many times will he go to Jagar, one-time, two times, he might find it the best place in the world, but then he’ll try something else. But when he goes to that other place he tries through our program, he is remembering, he is remembering so that’s how basically we look at it’s a more open — more iOS type of thinking rather than it’s a more Android type of thinking rather than a closed system iOS thinking. So that’s how we are looking at. So let’s see how it goes, sir. Thank you.
Vedant S.
Thank you, sir.
Operator
Thank you. Next question is from the line of Pankaj from Affluent Assets. Please go-ahead.
Pankaj Tibrewal
Sir, just wanted to understand if we own the royal outside Mumbai airport? And secondly, can you please repeat the new hotels program which you recently mentioned?
Vishal Vithal Kamat
So Madame Royal Orchid is not part of Group, Royal Orchid basically lost the case. They cannot use the word Orchid. Actually, no one in India can use the word Orchid with or as per the Supreme Court and this is a landmark judgment we won many years back. That is why they only open their hotels under the name of or others. They don’t open any — only the 12 which are there, which again as per the order is in as part of the suit. So there are only 11 or 12 Orchid hotels which they have called as Royal Orchid Hotels, which are there. And those also as if they remove the name or if they shut them down, like example, one of their hotels in Bangalore was Royal Orchid, but now it has become another brand hotel. So it become a Lemontree. So now they cannot reuse and take that name elsewhere. So that’s the condition of the court. So they are Royal Orchid, we are commerce hotels and we own the brand Orchid in India. So I hope that lays your query to rest.
Pankaj Tibrewal
So Mumbai Airport, okay, property.
Vishal Vithal Kamat
So that is the. That is the Mumbai, sir. That is the Mumbai.
Pankaj Tibrewal
So it is with us, right?
Vishal Vithal Kamat
Yes, yes, that is with us. Yes. You mentioned Royal, so I thought I’d just clarify that sir.
Pankaj Tibrewal
Thank you. Okay,
Vishal Vithal Kamat
Okay, sir. Thank you.
Operator
Thank you. We’ll take our next question from the line of Randeep Kapoor from Investair Investments. Please go-ahead.
Randeep Kapoor
Yeah, hi. My question is regarding the joint-venture, which was for the Pouri. What’s the latest update of that
Vishal Vithal Kamat
Unfortunately, we could not continue with the joint-venture. It is better to have a positive and amicable happy separation or I would say a discontinuation rather than have. So we had a discussion, there were certain things that it’s very dynamic. So based on that, they had thought that they would like to participate, but we are still moving ahead on that and we have some other things in-line. Let us get back to you, sir once we have some more details on that.
Randeep Kapoor
But the hotel is coming up and by December, yes, sir.
Vishal Vithal Kamat
Yes, sir. Yes, sir.
Randeep Kapoor
It’s a joint-venture or it’s totally by yourself now. Okay.
Vishal Vithal Kamat
Sir, it will be a joint-venture still. It will still be a joint-venture. I will share the details once that is first approved by the Board and other thing once that — then we can share to the public.
Randeep Kapoor
Okay, okay. Thank you so much.
Vishal Vithal Kamat
Thank you, sir.
Operator
Thank you. Next question is from the line of Kaushik D, an Individual Investor. Please go-ahead.
Kaushik D
Yes. Good afternoon, sir. So I was just your right properties. The room rates are showing in the range of 15,000 to 20,000. So can you throw us a light on the occupancy and the average room rate for this month of January and Feb as part of Mahakum?
Vishal Vithal Kamat
Right now, sir, your number, I was, yes, yes, yes. Yeah. I was just we are selling anywhere right now between INR15,000, INR20,000, it is fluctuating because a lot of people are going to Maku and myself, I’m trying to go on 13 to 15, but it’s very difficult. I don’t know who are these INR40 crore people who are reaching there because such this year, because I’m finding it’s difficult to go there. I must appreciate the UP government. It is a phenomenal achievement. And actually not only UP government, it is a testament to all of our — all Indian how you know, amazing the whole place has been in terms of whatever feedback I’ve got, what my friends have gone and seen. So that is also affecting us positively in because from to, our hotel is only four hours, maximum 4.5 hours. So people are going on a circuit, they’re going to Varanasi, they are going to, they’re going on a tour. So overall UP apart from business is benefiting and booming. So I think that’s something which is there. And occupancy wise, sir, right now, we are going at 90 plus occupancy. And hopefully, sir, we’ll give you some more good news of some additional hotels in. At the right time we will announce that because we are doing so well that we are right now the number-one hotel in terms of the government people. We have all various kinds of Central minister staying with us, even though we are not the biggest hotel there, we are the second-biggest and yet we have a lot of central government people who’s who of anyone if UP government wants to showcase because our food is so much appreciated that people have been coming and staying with us. MR. The staying with us. I mean, the list of illuminaries are huge because again our food, our personal connect with most of them and again, the overall team that is doing a great job in that location. So — and it’s just only what, 2.5 kilometers from the temple. So hardly in 10, 15 minutes you’re there. So it’s a perfect location, a perfect things of all come together. Thank you, sir.
Kaushik D
Thank you. Thank you so much sir, all the best.
Operator
Thank you. Next question is from the line of Chandan Mishra from Finvesta. Please go-ahead.
Chandan Mishra
Good afternoon, sir. First of all, congratulation on great set of numbers. Sir, my question is my question related to sir, pellet, sir. It has seen a decrease in occupancy rate from last year and as well as it has seen average room rate also decreased from year-on-year and the Q-o-Q. What is the reason for that, sir?
Vishal Vithal Kamat
And sir, unfortunately, that project behind, we are not able to command the kind of rates that we expect because the property right now the 25 rooms which are on, that is on basically because behind there is a work going on. There is a project work going on because of which we are not able to necessarily command that kind of demand from the jet. And we understand that because it’s only 25 rooms. So 25 rooms has no major consequence. Even if our occupancy over there is — even if the ARR has double, those 25 rooms are not going to give us any kind of return as compared to when the whole hotel of 160 rooms along with banquet and all that comes in. So we are willing to sacrifice those 25 rooms, it’s just that we don’t want to shut it. Ideally we have shut it also, but we don’t want to shut it. That is why those 25 rooms are on and we are doing the work. So it’s not exactly in the scheme of our things right now to focus on its ARR or anything because we don’t want guests to be unhappy. Those guests who are willing to compromise, then they are expecting a rate also compromise, which are okay with because right now it’s running in a very simplistic fashion. Okay, but once it’s done up and upscale, that will shut these 25 rooms also and it will be upgraded into the luxury heritage hotel.
Chandan Mishra
Sir, one follow-up question, sir, if you permit.
Vishal Vithal Kamat
If you can come back, that will be really great, sir. Thank you. Appreciate. I appreciate it. Thank you.
Operator
Thank you. Next question is from the line of Gunit Singh from CounterCyclical PMS. Please go-ahead.
Gunit Singh Narang
So firstly, I would like to congratulate you for the great work that you’ve done, which is also showing in the numbers. So in the investor presentation, you mentioned that we would be looking at 24 hotels by FY ’25. So I just want to understand what is the growth strategy going-forward? Are we targeting a certain number of addition of hotels every year as an internal growth strategy? And what efforts are we putting in to sort of increase the average room rates for our hotels? And how does the growth in our ARI compare with peers or before the industry on that.
Vishal Vithal Kamat
Sir, thank you,. I appreciate your wishes. Firstly, sir, the first strategy is basically to add number of hotels in the states that we are in and to use a kind of situation, like example, if I’m in, that’s why I would look at a Rishike, that’s why I would look at a, that’s why I look at a place around that, because I’m in that state, because only your hotel is not, you have them to do localizing, you have to have local connect, you have to have a lot of — you have to be able to add value to the local society and make sure that any issues are there, they are resolvable. So one is whenever we are now in Shimlabi and Manali, so we are looking at other locations in Himachal. So that is basically one of the strategies, somewhat like a hub-and-spoke style, though it is more the social connect and other aspects. So one is that. Secondly, sir, you said about increasing of ARR. We are spending a lot of money on technology. We spend a lot on social media. We spend a lot on tools of technology, which basically goes and tells you how to drive the traffic. Then we also have a lot of investment in Google Analytics. We are spending quite a bit of money with our OTA partners to work with them to help drive traffic to us, then we are spending a lot of money on our Orchid Reward members who we regularly contact, give them schemes, offers because of which it is very commendable that a company of our size and a hospitality player in general has a comparatively very robust direct webpage booking, which normally does not happen for even a couple of people because most people prefer to go to OTA. So how to bring them to us, it’s a constant effort. So this all helps you systematically bring your ARR up also along with that, because as your books build-up, then you can start selling better and better on the things. So overall which is there this basically is the kind of tools that we use. So we have a lot of technology at the back-end for all this.
Gunit Singh Narang
All right, sir. Got it. So a follow-up question if you allow me. Let’s — sir, quick one, please, sir, because what percentage of the total bookings would be from direct website? And also in this quarter, our revenues went up drastically Q-on-Q and Y-on-Y as well, but I observed that the expenses are still in that range, about 67 65 CR. So sir, I would like to understand that is this the — is this economies of scale coming in that expenses should not — I mean, would not go up with the current hotels that we are about, say, 65 cros and anything we earn-in revenues would like to translate into EBITDA. Is that a fair understanding?
Vishal Vithal Kamat
Sir, a lot of — a lot of the — basically boost has also come from the F&B, the F&B business, wedding business that has helped. I did not exactly get what — you meant. What exactly, sir? Apart from the rooms business and others, you’re asking the increase.
Gunit Singh Narang
So basically our — the values this quarter went to 111 CR from about 85 CR last quarter. But our expenses, operating expenses are went up from just 63 CR to 67 cR, which is just an increase of 4 CR CROK sir.
Vishal Vithal Kamat
Okay, I’ll add that — okay, sorry. I misunderstood. Sir, basically, when your lobby is your lobby, your lobby, when you’re doing a 50% occupancy or 100% occupancy will consume the same amount of electricity. So when you end-up doing more business, your basically metrics of these things come down. What will increase is your food cost if your party is tough 200 people and it becomes 300 people, max-to-max my food cost will increase, which has increased. But my light bills, my labor will more or less be the same or not same, but it will come in percentage terms down. So when you are doing more business, your profitability and EBITDA, that’s why what naturally will increase. That’s why EBITDA has gone up because the expenses remain almost same in most cases. So the rent is going to be the same, sir. The light is going to be the same, the labor is going to be the same. Your — your elasticity of expenses becomes better as compared to when you’re running the same-show with lesser occupancy or lesser banquet utility. So that is basically how the reason the profitability is also enhanced and the costs have gone up incrementally not exponentially in-line with the revenue. It’s actually a good question, sir. Thank you for asking that. I’m sure that will help a lot of the other people on the call also. Thank you, sir.
Gunit Singh Narang
Right, sir. Also, probably 65 to INR75 would be like a saturated saturation of expenses, even if go further with a current set of it is, that’s a correct, right?
Vishal Vithal Kamat
So expenses will basically — I’ll end it at this one with you that expenses basically sir will go up based on new hotel addition also. As new hotels are added, there is an increase in the expenses, which affects the exit of that time, but after a year, it pans out because the EBITDA gets covered up in the profit that the hotel operates. So a lot of the hotels in the starting last — last year, three of them like say Jam Nadar, and others, which were new, those basically have taken a hit on our EBITDA at that quarter, but they get panned out like right now you’re seeing them adding positively to the EBITDA. So this is but natural, sir. Thank you. Very sir.
Gunit Singh Narang
Thank you very much. Wish you all the best. Thank you, sir.
Operator
Thank you. Next question is from the line of Prashant Sethia from Hastakshar. Please go-ahead., sir.
Prashant Sethia
Can you hear me? Yes, sir.. Yeah. I just had a question, given the legacy that we have and the brand loyalty, are there any plans to sort of get into high-growth like standalone F&B or Cloud Kitchen, etc? And secondly, what is the mix in terms of leased and owned property in the existing portfolio and the upcoming portfolio. Thank you.
Vishal Vithal Kamat
So, sir, we have no intentions to go into Cloud Kitchen or into any segment like that. That segment, sir, is a different segment altogether and it is not something suited for us. We are a brand. So why would I want to hide my name in a cloud where I’m unknown? I’d rather in fact play front foot and say here is Orchid, here is, here is my South of India restaurant and take advantage of the fact that people want me. So we don’t have any interest in per se a cloud Kitchen. Secondly, in terms of the — what you asked in terms of the standalone restaurants, we do have some standalone restaurants. We operate a standalone restaurant at Sun Temple. We operate a standalone restaurant in Puri and near the beach. We operate a few standalone restaurants. We may also look at certain standalone restaurants further, but there is no active plan to go after it. It has to be able to, one, make financial sense to be extremely near us to be able to operate in an effective manner. But the problem when you do a standalone is that the cost and is okay. That is one-side. But the quality management becomes a big issue. So we would be basically the hotels we — the standalones we have right now are more or less where we have operational hotels, we can support it because we don’t want someone to come and not get the same what we expect them to. So standalone. And that’s how basically we are not looking at it actively, but a few opportunities have come and we have taken those, like I said, of these two places. So we also do by the way, which is part of the hotel budget, not budget, sorry, the hotel revenue, it’s not a separate ahead is we do caterings. We do some level of caterings, we do some level of outdoor caterings or some exclusive catering, but it’s a very niche thing, not a very big revenue stream and we are not focused on it, but we do that just to tell you. So that’s how the banquetting helps that way.
Prashant Sethia
So that’s — and the owned and leased properties, if you can just give more than. What do you want to break-up? The breakup is still not start — we have already start things the owned and leased is there mentioned in our — this presentation. So, sir, in interest of time because almost one-hour is over. So in interest of time, I would request that you can the charge. Thank you, sir. Thank you so much. Thank you, sir. Thank you.
Operator
Thank you. We’ll take our next question from the line of Rusmik Oza from 9 Rays EquiResearch. Please go-ahead.
Rusmik Oza
Yeah. Thanks for the opportunity. Sir, we are adding around 380 rooms next fiscal year. I just wanted a color on what could be the occupancy in the first year because these are all new destinations and three of them are and two are era. Just blended, what could be the occupancy in the first year of these properties? What could be the average room realization? And since these are new properties and as you said, there will be a lot of expenses in terms of promoting these properties, what could be the first year EBITDA margins of these new properties that are coming up in next fiscal year? That’s it, sir.
Vishal Vithal Kamat
So, sir, I’ll give you just a thumb-rule. Basically, broadly they will have around 60% to 65% occupancy because the first year stabilization takes some time. So it will be fair enough to take 60% to 65% occupancy. EBITDA you can take at around 30%, okay. And room revenues will be varying for each of the markets, okay, wherever they are opening based on whatever the markets would be. So that’s the broad take on that sir.
Rusmik Oza
Okay. Thank you so much. Thanks.
Vishal Vithal Kamat
Thank you, sir.
Operator
Thank you. The next question is from the line of Prakash Andilya, an Individual Investor. Please go-ahead.
Prakash Andilya
Thank you. Very good afternoon, sir. Namas., sir. And first of all, I must congratulate on setting a good set of numbers my question is regarding from sir, we are focusing on digital and strengthening the digital media, sales and online marketing. So what — my question is from that, sir, what is the revenue-share through digital media and media sales and what is the company’s target on that?
Vishal Vithal Kamat
From all-digital put together, sir, all the digital what you are seeing, okay, it would be prudent for me to say that approximately INR150 crores is all — is the revenue that comes from the digital streams, which includes your website, your reward program, your online marketing, travel agents like make my trip, booking.com,, Agoda,, all these people they have put together would be basically the broad figure which I have given.
Prakash Andilya
Okay, sir. I will join the queue, sir for my next question. Thank you.
Vishal Vithal Kamat
I really appreciate that about you, sir. Thank you, sir.
Operator
Thank you. Next question is from the line of Trisha Kansara, an Individual Investor. Please go-ahead.
Trisha Kansara
Hello. Yeah. So ma’am, I had a doubt in the INR100 crore guidance that the management gave. So I’m assuming that this INR100 crores guidance is excluding the one-time provision reversal that we took in this quarter, which is around INR8.8 crores. Just wanted to confirm that.
Vishal Vithal Kamat
Yes, matter. Okay.
Trisha Kansara
Okay, okay. Thank you.
Operator
Thank you. We’ll take our next question from the line of Chandan Mishra from Finvesta. Please go-ahead.
Chandan Mishra
Sir, my follow-up question regarding, sir, with respect to era occupancy rate, sir., sir, era occupancy rate reported this quarter is 71%, which has decreased Q-o-Q from 76% and yearly 77%. That is not a bad number, but is there some reason for this decrease, sir? Sir, basically the et-cetera without thinking of the?
Vishal Vithal Kamat
So sir, Kush,, some new hotels had also got the same added up Noida so Noida Kiata each quarter in November, May, then that has basically impacted the overall drop of the brand in terms of the occupancy or era by Noida is one of the reasons. But overall, sir, the occupancy has been very good in the other hotels. But we have shown a metrics, that is vice.
Chandan Mishra
Sure, sir, one more question, sir. Okay, sir. Revenues here from F&B segment, sir. If you give some light on that
Vishal Vithal Kamat
Is 40%, sir, broadly, hotel to hotel fluctuates between 30% and 45%, okay. We have also given it in our presentation, there is a metrix which is there, which is around 37 63 as a whole company, whereas we have also given this revenue mix of the things, it’s on page number sir or four of the company overview, you can please see that, sir. The other also details are there. Thank you, sir. Thank you, sir.
Chandan Mishra
Congratulation on
Vishal Vithal Kamat
I’m grateful, sir. I’m grateful. I also moderator G, if we can take maybe last one question and we can end because in interest of time. Thank you.
Operator
So there are no further questions. You may give your closing comments.
Vishal Vithal Kamat
So first then I think I’m very grateful to all who have taken the time-out today and midday and come to listen to us. Many good questions were asked and I’m very happy that some of the people who are there are repeat people, so they take so much personal interest and always they are there. So I’m grateful to all our well-bishers, all our supporters and all you people who take the time-out and follow us and guiding us to improve. So thank you with that. And I hope that this year ending will be again a happy time for all of us. Thank you,.
Operator
Thank you, sir. On behalf of Karmath Hotels India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.