Royal Orchid Hotels Limited (NSE: ROHLTD) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Chander K. Baljee — Chairman and Managing Director.
Arjun Baljee — President
Amit Jaiswal — Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
Unidentified Participant
Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team I welcome you all to the Q1 FY26 post earnings conference call of Royal Orchid Hotels Limited. Today on the call from the management team we have with us Mr. Chandar K. Bahalji, Chairman and Managing Director. Mr. Arjun Balji, President. Mr. Keshav Balji Non Executive Director and Mr. Amit Jaiswal, Chief Financial Officer. As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded. We will begin the call with an opening remark from Mr. Chandra Balji followed by key performance and financial highlights. The growth plan and vision for the coming year. Post which we will open the floor for Q A. Over to the management team.
Chander K. Baljee — Chairman and Managing Director.
Dear friend, good evening and a warm welcome to each one of you to our Q1 FY26 post earning conference call. A few weeks ago I was at our resort in Bangalore watching the final touches being put on our new 28 cottages getting ready to welcome guests. It was a reflection of Royal Orchid Hotels renewed, stronger and ready for the next phase of growth. We spent the last few years building, strengthening and fine tuning our foundations. And now like that resort, we are stepping into a new chapter pressure, stronger and ready to grow faster than ever before.
This is our inflection point. Our Q1 result proved that this transformation is well underway. Consolidated revenues grew 8% y and y. PBT rose 24.5percent y and y. Net profit after associates jumped 28% y and y. This performance is driven by 6% growth in room revenue, 7% growth in FNB revenue and 20% 24% growth in other services. Our average occupancy for JLo Hotels held steadily at 69% while ARRS improved 6% to 5,488 from 5,168. Last year managed hotels achieved 4,031 rupees ARR versus 3,823. That is 5.5% over the last year. With new managed properties ramping up, we expanded our footprint this quarter by taking our signed portfolio to 9605 keys comprising 591 JLo 1268 leased properties, 7746 managed and franchised property.
Today Royal Orchid stands at 118 plus hotels across India. Looking ahead Vision 2030 is our North Star. Tripling our hotels from 150 to 345. Growing keys from 9605 to 22,000. We will achieve this through sharper brand architecture consolidating under five strong brands. Swift execution proven by Iconica Mumbai. Project completed in just 12 months. Sustained profitability maintaining 19% plus ROCE at company level. Financial underscore this momentum. Consolidated revenue of 78.8 crores, that is plus 8%. EBITDA 23.7 crores that is plus 11%. Packed before exceptional items at 11.2 crores. From 8.7 crores. A stellar 28% growth. Our asset light continues to deliver high growth with strong returns backed by a healthy balance sheet and robust cash flows.
Friends, this is more than incremental progress. This is a gear shift. We are entering a phase of compounding growth where scalability, technology and unforgettable gas experience will define us. We will extensively use AI to meet our objectives. By blending Indian warmth with operational precision, we aim to be amongst India’s largest and most admired hotel companies in the next five years. We have the foundation, we have the momentum and we are just getting started. Thank you.
operator
Thank you. We’ll now open the floor for Q A. I request all participants to raise their hand or put your request in the chat box before we go to. Q A. Arjun, would you like to talk a bit about Iconica?
Arjun Baljee — President
I’m more than happy to. Thank you. Would you want a quick. I think everybody would want to see a quick presentation of the hotel.
operator
Sure. Just a minute.
Arjun Baljee — President
You can put that up.
operator
Yeah, that’s the hotel brochure.
Arjun Baljee — President
Good evening everyone. I’m Arjun Bali and I was entrusted with the job of getting this hotel done in under a year and within budget. So we. Iconica has 291 keys. The hotel is now soft launch. I think we’ve been asking about when, when, when for the last four quarters and I think we’re very, very happy to say that we’re soft launched. We’re seeing, you know, in our limited way to get in guests and get feedback from paying customers. They are. The feedback has been extremely positive and I’ll just run you through the quick hotel brochure to explain what we’ve done over the last year.
So this isn’t a usual five star hotel. We’ve decided that we’re going to look at the guest first and build up and as we’ve been saying so in each of the rooms, I think with the world’s first Hotel that has an in room smart laundry closet that is a game changer and a huge benefit to the customer. So gone are the days where you have to call up laundry and get your shirt ironed or use that clunky ironing board. In the rooms we’ve the smaller pain points like take away include a non alcoholic mini bar.
All our rooms come with espresso machines with our own unique blends. And we’ve gone to the details of how to make beds more comfortable and more supportive and actually gone to the depths of designing the sheets and mattresses to aspec. The hotel has four different FNB offerings. As soon as you enter there’s. You can go to the next slide please. So those are the rooms. Rooms are in seven different categories. We have four different dining options. We have a Pan Indian exciting modern restaurant. We have a bar on the ground floor which serves Asian food.
We have a rooftop day club which is has Japanese and Mexican. And I think in Mumbai we are this, we are the largest swimming pool on the roof and we have the largest jacuzzi. So. And you know, so I, I think from a guest amenity perspective we’ve really tried to see how you can make an exciting hotel to compete with the larger luxury offerings that are there within our neighborhood. But also ensure that we create this hotel at a cost that meets one of the three targets which is the high return on capital. So I’d invite you all to come and stay with us and when you’re in Mumbai next and actually experience Iconica which we’re very happy to say that is now soft launched.
Questions and Answers:
operator
Thank you Arjun. We’ll now take questions. All those who wish to ask a question use the option of raise hand. We’ll take the first question from Chirag. Chirag, you can go ahead please.
Unidentified Participant
Yeah, thanks for taking my question. First of all, congrats on good set of numbers. My first question is on the cash profit calculation. So you know when we, what we are doing is we are adding the depreciation to the pat to arrive at the cash profit. But if my understanding is correct we are not reducing the lease liability principal amount which is actually part of depreciation to arrive at the cash profit. So if I remove. So for instance for FY25 that number was 8.6 crore. Now if I remove that from the cash profit that we have reported that number drops from 68 odd crs to 60 crores. So is this the right understanding? First of all I wanted to clear that is this the right understanding that the cash profit Is should be adjusted for the lease liability principal amount.
Chander K. Baljee
Yeah. So Chirag, let me tell you the cash profit what we are showing in our presentation. If you really look at it. I’ll just go to the slide. Slide one which is the slide number. 19. Slide number 19. 19. One second slide number 20. You can if you see the slide number 20. No. Yeah, if you see the slide number 20 dot yeah. So we have shown the cash Profit rightly there 8.6 was is the Q1 of. Okay.
Unidentified Participant
Yeah. So I have seen that number. So for FY25 the number that you have reported is 68.2 crores. And that number would have arrived.
Chander K. Baljee
I have given the India’s and without India’s both I have given.
Unidentified Participant
Yeah. So I think. So there is one slide in which you have given cash profits. Right. In which for FY25 reported 68 crores. But that does not. It is before removing the principal amount.
Chander K. Baljee
Obviously I understand. That’s why we have started giving the India and without India. So without India’s is what you are speaking about. And with India’s is that.
Unidentified Participant
Got it. Okay. So my second question is an extension to this one. Now we have 60 crores as the you know cash profit base from our current hotels. And the expansions will add further to this. I want to understand you know broadly what are you thinking in terms of capital allocation. So you have a 60 crore base of say free cash out of this some. You know let’s say 6, 7, 8 crores will go towards some fixed asset purchase or some renovation etc. Etc. So say broadly you have 55 watt crores of free cash coming from the current operations which will increase because of all the ongoing expansions. So could you give me like a breakup that.
Chander K. Baljee
No. Let me tell you Chirag, please understand. The company is on a growth path and we are using the cash profit for that growth. If you really look at it, in Bombay hotel itself we have pumped in lot of cash our money which will again come back in a year’s time. Okay. So we are using it very deliberately our cash for the growth of the company. We are signing lot of revenue share hotels for which we need cash. However, you know, to start a revenue share hotel where there is no capex requirement but there is a working capital requirement of 4 to 5 crores in any even in the smaller hotels. So we are using our internal cash flow for that.
Unidentified Participant
Correct. So my question was that only that out of this current sustainable 55 watt crores of free cash that we have which will increase because of Iconica and other hotels. Broadly, what is the thought process in terms of how much would you want to retain going forward out of this 55 watt crores current base for let’s say, you know, as you said you need to have like,
Chander K. Baljee
like in 26. There will be a little growth in the cash profit which will be around 70 crores. So and next year there will be a substantial cash profit.
Unidentified Participant
Right.
Arjun Baljee
So how much Chera just to, just to add to that, I think to say how much of that 55 free cash flow we want to retain towards, let’s say towards growth versus in the company. Right. This is an opportunistic market today. If you look at what is. If you look at the opportunities we are sitting on and look at the hotels that were added on, let’s say revenue share as well over the next one year the revenue shares per se will take between 25 and 30 crores off investment. From our side, this is between let’s say the Gurgaon Hotel and a few others that we’ve.
That say four others that we’ve added. The other piece is. So that’s on the growth side. So let’s, for, for argument’s sake, let’s assume that you know, 40% of the cash is going towards growth. Then there’s the renovation of the existing hotels that we currently have which we are investing in consistently.
Chander K. Baljee
We are also adding, sir, we are also adding facility in our Goa hotel there also.
Arjun Baljee
We’ll use the, if you look across. The board, let’s say about 40% is going towards growth, 40% is growing today towards, you know, internal improvements. Okay, so does that give you a rough idea of where capital will be allocated out of the 55 for this coming year?
Unidentified Participant
Yeah, that, that was really helpful. So broadly what you are saying is 70, 80% will be retained for growth as well as let’s say renovations and brownfield expansions including Go Hotel and all the rest. You know, you can look at either distributing it to the shareholders or based on. So that was the number that I was looking for. Like how much you.
Arjun Baljee
Yeah, well last year as well there was a dividend declared. Right. So the question is, do you, you know, at the appropriate time, of course shareholder value is consistently being created and I think you’ll see more value out of this. I guess the company performing better and growing better than distributing. Anyway, that’s a, that’s a call that the board takes along with the shareholders.
Unidentified Participant
Right. And this 25, 30 crores what you mentioned which will go for this year, which will be spent in this revenue sharing, you know, the new hotels that are coming under revenue sharing model. So based on the ARRs and occupancy and all those things that you would have considered based on the current market rates, what is the payback that you see for this 2530 of roads that you’re investing in the revenue sharing model?
Chander K. Baljee
Very difficult to really say that because what happens when you start the hotel, for example, revenue share hotel, when you sign, the execution or opening of the hotel depends on the owner because he has to finish the project. Now sometimes the project will take one year, sometimes project two years, sometimes project will take six months. So this will be very difficult for us to say, but we would have not invested only maybe advance would have been paid to the owners. And once we start then the payback is pretty good. And of course at that time if unfortunately there is some circumstances beyond our control, some war, for example, there was a war this year and April and May, two months had an impact on north hotels, north and western hotels, Gujarat and all that.
And now we don’t know what’s going to happen with the Trump, you know, tsunami, what is coming. So things are so. I can’t tell you exactly that what is the payback. But our attempt is that whatever as far as revenue share is concerned, we get our returns indefinitely. In two, three years or so we’ll get our money back and then after that is all profit.
Unidentified Participant
Understood that that was helpful. I’ll get back in the queue. Thank you. Thank you.
operator
Thank you. We take the next session from
Unidentified Participant
audible, sir.
Chander K. Baljee
Yes,
Unidentified Participant
yes sir. Thank you. So for the opportunity, sir, my first question is when is the new property Iconica in Mumbai is getting started, full fledged this year. And what is the revenue that you’re looking in profits for FY26 from this hotel.
Chander K. Baljee
Go ahead.
Arjun Baljee
Sure. Okay, you can take that. So we hope that the hotel is fully operational in the next three weeks. That is our internal target to get it done. The property is ready, it’s being tested. There are software, you know, and by tested I really mean that, you know, with 291 keys across hotel, you have to go and test each and every room to say that they are guests ready. You know, we’re fortunate that the project is now opening post the rains. So we’ve been able to test it for, you know, immense amounts of rainfall in Mumbai.
So let’s say it opens in September. So September to March, you’re looking at roughly between 65 and 70 crores of top line revenue is what we hope to achieve in these nine months is that eight months. Amit, would you like to add anything to that?
Amit Jaiswal
So, so the margins, you know, first year we would like to first target is to break even in next three months. And once we make break even then we will do a good margin. As far as the yearly, you see we make budgets yearly. So you know after these six months the, you know we, we are looking at 100 crore top line from this hotel with the 15 margin after the lease rent.
Unidentified Participant
That’s helpful. And my second question sir is that besides this Iconica launch as most of the additions that we going to look for growth are in management contracts. How much incremental revenue and profits does the company expect from other management contracts for the next two to three years?
Amit Jaiswal
See as far as management contracts are concerned, please understand the revenue of my managed hotel doesn’t come get into our books. We only get the management fees. The top line of the only the revenue share hotel which around 15, 20% of it will be in revenue share. That will definitely get into our books and in the consolidated revenues. And as far the guideline is concerned, we have already given it in our presentation. Okay. For next three years guideline, it’s already there in the investors presentation. You can refer to that. And this is quite in detail.
Unidentified Participant
Okay. Sir, Royal Orchin plans to add more Iconica properties over next one to two years. Would this be under lease agreements or management contract? Given that a lease contract would contribute more to the ARR and profits.
Arjun Baljee
Can I just, just make one. Mr. Maji, just one thing. While it is a question of adding ARR and you said yes, the lease comes with its own set of challenges, right. Which is obviously it’s a capital outflow and from an, from the Mumbai experience, we built this hotel and we built a new brand not with the intention of keeping it as one. The hope is that we expand Iconica but we expand Iconica with what the brand stands for and what it should be. So I think, you know, Mr. Balji can add to this. I think there are opportunities that are coming our way to expand the brand both in terms of lease and in terms of management. It’s a question of capital allocation and for us to see, you know, bandwidth as well.
Chander K. Baljee
See there are a lot of people approaching us that okay, give us, give us Iconica as a brand and all that. But we are very clear in our mind that it should be a five star hotel. It should be, you know, lifestyle hotel. And so it has to really give the feel, look and feel that we are trying to give and the service delivery and all that we will be giving, which will really be iconic. So we are working on that. So we’ll be very choosy in giving the Iconica brand, you know, to some other properties or putting other things unless they meet certain basic standards.
So we are very clear about that. This will be, you know, other brands are Genta and Magenta Place, we have clearly mentioned that. And so there won’t be any ins and all that. They’ll be then Regenta Z brand which will cater to the Gen Z, which is the growing, growing market. And there we may even look at franchise also because we have some franchise hotels which will be probably gradually converted into the Z brand. And then of course we also have another brand called Crestoria which will be more boutique kind of a hotels where there’s no cookie cutter thing and they are unique in their own ways.
Some hotel is there, you know, which doesn’t fall into the Iconica Regenta, all these places. So there we are going to be having Crestoria because it’d be nice hotel to have and in our portfolio. So basically like all big chains are doing this kind of a thing. We’ve also done this and with the hope that in each of the brands we will grow. In fact, a lot of Regenta places are coming up now and this also is very design specific. We’re making it like a very nice look and feel to the hotel. We already have two or three hotels in this place and some Z brands are coming up.
So total brand architecture is being relooked at along with the design and experience and the value proposition which each brand will give. And of course across the board we have a commitment that, yes, we’ll be, you know, we’ll have to provide value to the customer and that will be our distinguished feature.
Unidentified Participant
So the growth would majorly come especially in this Iconica through lace model. Right. Rather than that of, yeah, leaves.
Chander K. Baljee
It can be managed also, but you know, we’ll have to have a total control over the property because we can’t let you know, something come up. And then we know that the standards are not being maintained. So we’re going to go with kind of a cautious approach, you know. Right. So you can’t expect a hundred Iconic to come up. No, it will be gradual. Whereas as far others are concerned, you know, like the pyramid, there will be, you know, more growth in Regentas, more growth in place, more growth in Z, limited growth in Iconica and Crestoria. All right. In terms of numbers.
Unidentified Participant
Got it, sir. Thank you. Sir, thank you so much. Thank you. All the very best.
operator
Thank you. We take the next question from.
Unidentified Participant
Thank you for the opportunity sir. Sir, if I see a new hotels added there are only two managed hotels. The Mumbai hotels isn’t mentioned here. So does this signific signify hotels which give which have long which have gone live or which have been tied up or does the average Occupancy on slide 34 and a mentioned is with respect to these two hotels.
Arjun Baljee
Yes, these were the two hotels opened last quarter and therefore they’ve been reported here which is 145 keys. And if you look at the next slide obviously this gives you our portfolio and number 34 tells you basis what is opened for last quarter. Iconica and a slew of other hotels that I guess have been announced in the press as well that we have opened are will be announced obviously will come into this quarter’s reports.
Unidentified Participant
My another question is like if Iconica is a lease total and in five star category we don’t see mention of that on slide 33 under leased category. When and where will be Mumbai? When and where will be the Mumbai hotel will be visible.
Arjun Baljee
Okay so Mumbai hotel as I said will open formally next month and therefore it will only come into this quarter’s report. I can’t have put it in the last quarter because it’s not yet open. So in this asset portfolio mix this was for last quarter as on date. Right. If you look at the upcoming hotels which is on slide 35. The slide 35 tells you that there’s 2577 keys that are coming up and that is from last quarter ended onwards. So what has happened over the last couple of months is obviously you know this, this, this data changes. Right. So Iconica opens in the next couple of weeks and so on and so forth. There’s hotels that will open in the next few months out of this list.
Unidentified Participant
Okay. And how has the accounting has been done for the deposit paid and capex done towards the Mumbai hotel? How much of this has been done by us and how much by an asset owner.
Arjun Baljee
Message as well. You’re on mute.
Amit Jaiswal
See the entire property is the asset owner. It is of the asset owner only. We are a lessee and we have given them a refundable deposit of 40 crores. That is reflecting as a refundable from the owner which will be directing in due course of time from the rent.
Chander K. Baljee
Yes, some investment which is regarding operating supplies and other things. Roughly, roughly around we have to make which we are going to be making. But most of the expenses have been given as a deposit or advance rent to the owners and which will be accounted for during the course of the next year.
Unidentified Participant
Okay. And sir, in spite of marginally lower average occupancy in JLo the ARR have been strong improvement yoy but quarter on quarter it has been a drop. What’s the reason?
Chander K. Baljee
For the same first two months were not too good because the war situation and you know. And this time also There is A.
Amit Jaiswal
Mr. Balji, I would like to come in here. See, Q4 and Q1 are not comparable. Mohit, please understand in. In our industry what happens is 40% of the revenue comes from the first six months and 60% comes from the last six months. So the industry and Q3 and Q4 are always much better than Q1 and Q2. Historically it is that. That’s how the trend of the industry in our country.
Unidentified Participant
Okay sir, got it. I’ll join back the queue.
Arjun Baljee
Thank you.
operator
Thank you. We’ll take the next question from the chat box. Bharat Dani, I request you to unmute and ask a question.
Unidentified Participant
Yes sir. Thank you very much for the opportunity. Sir, just one clarification in the hotel pipeline that we have given as you mentioned the upcoming hotels. So 2577 keys are. Is mentioned in the presentation. So just wanted to get a breakup. Out of that 2600 odd keys that you plan to open, how much would be under revenue share and lease basis? Although we have indicated the property but we have not given the keys details. So if you can share like how much would be under revenue share lease basis and how much would be under management contract.
Amit Jaiswal
See out of these three are least on a revenue share basis. One is you know 190 +124 and another is 220. So all these three item will be on lease revenue share basis. Balance will be managed
Arjun Baljee
about 650 keys under lease under out of this 2577. Sure.
Unidentified Participant
And just one more question from my side. Well, you have given the revenue guidance for 2627 and you have also given the the return ratios. You’ve given a long term vision of 2030 as well. Just wanted to check on the margin side. For last two years probably the margin has been under pressure. We understand that it’s partly due to the investment in the leadership team that you have done. And also the innovations that were pending at the time of COVID We’re not able to. I mean post Covid we’re not able to like invest in times of COVID And then we sort of invested in renovations. So on the margin side given or any guidance that you would like to give for FY27.
Amit Jaiswal
See FY27 margins will be much better. You know. But the only thing is that we will have to see the impact of the India. See you know, B that you know, any revenue share, hotel we take the. The biggest impact comes from the India but without India’s I can definitely see that our margins will grow at. At a fast pace somewhere around 75cr. India’s effect we will have to evaluate.
Unidentified Participant
Okay. Okay. Okay sir. Thanks and all the best.
operator
Thank you. We’ll take the next question from Dhul Bhangadia.
Unidentified Participant
Congratulations on a very good set of numbers, sir. And just two. One is that does this quarter account for any of the costs that you may have incurred in Iconica in terms of running cost?
Amit Jaiswal
No, because. No. Except. Except some corporate costs like our travels and blah blah things. Unit costs are not reflecting here.
Unidentified Participant
That is one second sir. The, the Bangalore, the flagship Bangalore property has been undergoing renovation for maybe a year, year and a half. Is that all through now or are we still in that phase where you. Know, some bit is left,
Amit Jaiswal
some bit is still there.
Chander K. Baljee
Very little, very little. Which we have kept on hold because now is the oncoming season. The few rooms actually most of the hotel is updated and spies there. About 40 rooms have been done. Other rooms have been spruced up. All areas are now totally spick and span about I would say over 13 rooms which would be just left for renovation. We added some five or six rooms. So we are now over 200 rooms. We were 195 rooms. So five rooms have been added. So all that has happened. So I think this minor renovation which will be taken up post March.
Unidentified Participant
So this quarter did have any, any impact of some room closures or something on the standalone front?
Chander K. Baljee
No, no, I don’t think so. I think we should do well, you know.
Unidentified Participant
Okay. Okay. And while you have mentioned this in, in the, in the conversations before. That. Situation in April May kind of may have affected you on the overall, overall, let’s say top line side or occupancy side. Any. Anything that you have there or you just left it like that.
Arjun Baljee
So there were. There were, you know, some adverse impacts. Right. One is the war situation in north India which obviously scared people away to all hell stations and that during the summer months if happens, I mean it was created to scaremonger and kind of scare away tourists and it successfully did that. That was one impact. The second impact obviously is with the situation that happened in Goao. That’s an ongoing situation and if you look at across the board all hotel companies would have liked to have done better in the Goa market. And you know it, it wasn’t the boom that we expected purely because of you know be the taxi mafia or so on and so forth that you know severely impacted it. And it was all over the news. So there were these.
Chander K. Baljee
And Thailand, Thailand and Sri Lanka opening up aggressively, you know, so. And giving good value for money. So Goa business has been impacted but of course this is minor glitches which we will definitely overcome.
Unidentified Participant
Right sir? Yeah, that’s all I had in mind. Thank you so much for answering that. Thank you.
Arjun Baljee
Thank you.
Chander K. Baljee
Thanks.
operator
Thank you. We’ll take the next question from Pooja Kadam.
Unidentified Participant
Hello.
Arjun Baljee
Hi.
Chander K. Baljee
Hello.
Unidentified Participant
Yeah, thank you for the opportunity. Sir. Sir, if I want to see with your vision would you be able to share how will the keys and hotels be spread out between these brands? With which brand within your brand portfolios.
Arjun Baljee
Pardon me, could you repeat that question?
Amit Jaiswal
I’m sorry, we can get your question please.
Unidentified Participant
Would you be able to share how will the keys and hotels be spread out between those brands?
Chander K. Baljee
And we can offend when we would rattle it out but we’ll be able to share it with you. There’s not a problem at all. It’s all in public domain.
Unidentified Participant
Okay.
Arjun Baljee
So Pooja, just to highlight over the last six months or the six months we’ve embarking on this entire brand rationalization plan today we’re at what 9,600 odd keys that we’ve signed. Now if you look at the presentation that was sent out in the presentation on say slide 30 it’ll tell you about what we are doing in terms of bucketing the hotels and how many we’re adding per brand. Okay so that will tell you that in so up to now we’ve it’s predominantly been Regenta hotels and you know we have 13 hotels that have a Royal Orchid brand on top so. And the rest have all been magenta. So in the next couple of months you’ll see the other brands coming up and starting with Iconica and you know we’ll disclose under each heading how many hotels locations and so on and so forth.
Unidentified Participant
Thank you sir.
operator
We’ll take a follow up question from Majid.
Unidentified Participant
Yes sir. Sir, I have just a one follow up question regarding the calculation of the ARR of the new managed hotels. I just want to know what is the revenue for that like of the 10 crore that you have mentioned how much is on the new which is work from effect from 1st April managed.
Amit Jaiswal
Total the revenues doesn’t come into our books. You only get the management fees.
Unidentified Participant
Yes. I want to break up between the older one and the new one which you have bifurcated in the ARR segment.
Amit Jaiswal
Okay. Number of hotels.
Unidentified Participant
Like you have mentioned in average occupancy, see 29% and room rate 3743.
Amit Jaiswal
Yeah, yeah.
Unidentified Participant
Slide number 34. I just want to know how much management fees that you’re earning from that segment and the number of keys both side.
Amit Jaiswal
See as far as that what we are telling the newer hotels, not 29 hotels. So the.
Arjun Baljee
The number of keys is 145 between Regenta Bharti Resort in Pun Puna and Regenta Resort in Dapoli. Right. Which are the two hotels that were soft launched.
Amit Jaiswal
It was open during the quarter and the management fees will be very, very negligible for first two, two months.
Arjun Baljee
And all the hotels typically take five to six months for the hotel itself to become popular and the customer to know that the hotel exists and for it to form its own place, you know, in the market. So while fees, you know, per hotel will be a couple of lakhs, it’s as Mr. Jaiswal said, it is negligible. And really at the start of a hotel, you know, it’s I, I don’t even think it’s, it’s fair to judge the hotel for the two months that it’s been operating.
Unidentified Participant
Okay. So got it sir. Thanks for the clarification sir. Thank you.
Arjun Baljee
Thank you.
operator
And you, anyone else who wishes to ask a question, please raise your hand or put it in the chat box and ask. Since there are no further questions. Sir, would you like to give any closing comments? Oh, we have a follow up question from Rahul. Rahul, you can go ahead.
Unidentified Participant
Mr. Jasper, just one final. Any one offs in the cost structure this quarter. Like last quarter we had a payment I think of license fee or something that we had completely kind of accounted for in one quarter. Any one of this quarter in the cost structure at all?
Amit Jaiswal
There is nothing. There is nothing one of this quarter.
Unidentified Participant
So all the cost structures that we see in this quarter are pretty much the running, running rates of cost structures, right?
Amit Jaiswal
Yes. Yes.
Unidentified Participant
Okay. Okay, thank you.
operator
We have one question in the chat box from Anim Jain. He’s asking how much cost have we incurred on Iconica excluding deposit?
Amit Jaiswal
See, the entire cost of Iconica is in the books of the owner. We have taken the only as a deposit refundable. Apart from that, you know, the internal like you know, certain soft thing like the, you know the linens, crockery, cutlery that all put together will come to around 15 odd crores.
operator
Thank you sir.
Amit Jaiswal
Which will sit in our books.
operator
Thank you sir. There is one more question from Misha. Just one clarification. Do we expect around 75 crores EBITDA for FY27 and 75 cr?
Amit Jaiswal
E. I’m not told. I have told the profit. The, the profit will be 75cr. That will be non India’s profit. I’m making it very clear that it will be non India’s profit of 75 crore. We are projecting for 27.
operator
We’ll take one follow up question from Bharat Ginani Bhat, you can go at this.
Unidentified Participant
Yes, just one follow up question actually. I mean I missed the, I mean the brand architecture that sir explained. So can you please I mean elaborate. What, what the brands, the different architecture that we have like uh, five uh brands that we have highlighted. So for each, I mean what’s this uh, what does each brand signify and like what positioning it actually uh deserves your, the strategy on.
Arjun Baljee
One second Mr. B. I just put.
operator
It up on the screen up will explain. Yeah, yeah, just, just give me one second.
Arjun Baljee
Thanks.
operator
Yeah.
Arjun Baljee
Okay Mr. Bat, if you look on the left you’ll see Regenta Z. Regenta Z is the Generation Z hotel. So it is in the economy segment. It is you know budget but tech driven. So vending machines and you know limited FNB could be outsourced. Fnb but it is a, you know it’s a really smart basic kind of hotel brand. The next one is Regenta Place which has you know again vibrant rooms designed a little better where there will be some fnb. It could be a restaurant, could be a bar. There could have some meeting spaces.
But again compact and you know interesting hyper local design in these hotels. Then you go to Regenta Hotels and Resorts which is the flagship for us or the largest. I, I want to say the most number of hotels that we have today are under the Genta. These are your traditional four star, you know, extremely familiar hotel brands. It’s a very familiar hotel brand. The refresh on the brand is you know in Lucknow we’re doing a 176 key hotel and Gurgaon 124 key Regenta and they’re both Regentas that are coming up that are large format but you know with conferencing, with banqueting, with multiple FNB with you know a swimming pool and possibly limited, you know there’s conferencing, banqueting, FNB but You know, and maybe limited wellness type facility.
You then go to Crestoria. Crestoria, the name comes from creating stories. So portmanteau on that, create stories. And the idea was that how do you create unique hotels? We have some of them in our portfolio today that deserve the love, deserve to be uplifted. And we’re in the process of doing that. So these are hotels that could be their unique boutique hotels that are experience led. So it could be in Ranthambore, it could be in Mysore, it could be sitting on a beach. But these hotels you come to unwind, you take your company retreat over there.
So the, you know, typically between the 30 and 60 room type of property. And then of course you come to Iconica, which is a big box upscale lifestyle product. The first of it that is opening in Mumbai. This is a very different sort of a hotel. As we said. It’s, it’s, it’s. We like to call it the unhotel because it’s designed, you know, we’ve turned the head on traditional hotel design. Right. So you walk into a bar and not into a hotel lobby to start with. But it’s a full service, full stack, has the wellness, has the, you know, the FNB has all the service, multiple FNB spaces, multiple banquet, multiple conference. So a really full service, traditionally classified as a five star but differently designed. So that’s, that’s the architecture that we’re, you know, currently embarking on.
Unidentified Participant
Oh, okay sir, thanks for the detailed explanation. Thanks.
Arjun Baljee
Another.
operator
Thank you sir. Somebody like to give any closing comments for the call.
Chander K. Baljee
Thank you very much for the enthusiasm and the questions which will help us also to focus, focus on profitability to deliver to the, our shareholders and our partners the best we can. And it’s our endeavor to do that. And as I mentioned in my opening remarks that some of the initiatives we have taken, well, we definitely start fusion in the next quarter. This quarter things are being done and but I think going from October onwards things are looking very well. And I think the company is growing at a very, very rapid pace. Development has speeded up a lot.
We are receiving inquiries almost every day. Some inquiries coming of course, out of every 10 inquiries or 20 inquiries, one may fructify. But the question is the flow of inquiry has been great. That means it shows the brand today is well known and recognized in the market. So that is where it’s happening. And we are also in fact hosting our All India Hotel Federation meeting in our hotel next month. So that means they chosen our hotel because they recognize that we are one of the established players. So with that, thank you very much for being with us, and we look forward to seeing you again next quarter.
operator
Thank you to the management for your valuable time, and thank you to all the participants for joining this call. You may all disconnect now. Thank you all. The recording has stopped.