Royal Orchid Hotels Limited (NSE: ROHLTD) Q3 2025 Earnings Call dated Feb. 18, 2025
Corporate Participants:
Chander Kamal Baljee — Managing Director
Unidentified Speaker
Analysts:
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, I welcome you all to the Q3 and nine months FY ’25 Conference Call of Royal Hotels Limited. Today on the call from the management we have with us Mr Chandra, Chairman and Managing Director; Mr Arjun Balji, President; Mr Keshav Balji, Non-Executive Director; Mr Philip, Chief Operating Officer; Mr Amit Jeswal, Chief Financial Officer and the management team. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to detail us about the business and performance highlights for the quarter and nine months ended December 2024, the growth plans and vision for the coming year, post which we will open the floor for Q&A. Over to the management team.
Chander Kamal Baljee — Managing Director
Good evening and warm welcome to everyone. Thank you for joining us for the Royal Hotels Limited Earnings conference call for the 3rd-quarter results for the financial year ’24-’25. Please note that Q3 results, press release and revamped investor presentation with lots more details are available on the exchanges. I hope you have had the opportunity to browse through the highlights of the performance. In this quarter, we started slowly in the month of October because of various holidays, post which we had very good months in November and December. Overall, the quarter we did well. In the 3rd-quarter, we have added four hotels with 165 keys. The company is growing with a strong business model and effective risk mitigation strategy. We are working hard to post better margins in the coming quarters than what our company has witnessed in the recent past. Financial highlights of the company in the 3rd-quarter ’24, ’25 on a consolidated basis are as follows. Consolidated income for the 3rd-quarter ’24-’25 was INR94.86 crores as compared to INR86.61 crores in ’23 ’24, a growth of 9.52%. Consolidated EBITDA for 3rd-quarter for ’24 ’25 was INR13.61 crore as compared to INR29.43 crores in ’23-’24, a growth of 3.99%. Consolidated PAT for the 3rd-quarter was INR18.11 crores as compared to INR15.70 crores in ’23, ’24, a growth of 15%. Before I would explain the performance of the company, I would like to state that the company’s EPS remained strong at INR6.49 per share for the quarter as against INR5.6 per share in the same quarter last year. This shows a 15.94% growth. We are working at a fast pace to complete our new 300 room hotel in Mumbai and hopefully we should be able to start the operation towards the end-of-the current financial year.
Now I understand that you must be thinking that however, the consolidated income of the company has grown by 9.52%, but why the consolidated EBITDA has grown by only 3.9%. The primary reason for the same versus was the effect of IndAS we have uploaded in our investor presentation and the result with IndAS and without IndAS. A of the same will reveal that without IndAS, our PAT for the quarter would have been 17.4% instead of INR1635 crores as-reported by us. This Index industry need to be done as per accounting standard how they are not cash-in nature. Hence, you will find that the company has got very good cash profit. Also, you can see the company’s growth — company is growing and hence to support the above growth, the company is required to increase of operation for which is required to increase the workforce in different nature. Which the company is.
The costs are above stated immediately, whereas the share will come in and to come next week. For this, company incurred additional cost of by about INR60 lakhs in compared to the last year same quarter. This is a prime reason for gross escalation and which would be seen as investment for the future growth. We are refurbishing some of our assets for which we started last year because it is being done in operating hotels, hence it has been done slowly without shutting the hotel. The same results in increase in the repair and maintenance cost of INR1.15 crores, but the same was necessary to remain in competitions. The management has set-out a strategy to diversify the product offering, provide unique customer experience and work towards a robust balance sheet.
I would like to conclude my remarks by saying that the company is doing well. And in the long-run, we will be a company to reckon with. We are also looking to get new hotels under revenue-share model as well under management route. We have a good — very good capital deployment strategy, which will make our company very strong and we will produce very good financial results as we move ahead during the current financial year. Thank you. And now we can throw the floor open for questions.
Questions and Answers:
Operator
Thank you, sir. All those who wish to ask a question use the option of these hand. In case you don’t have the option, please drop a message on the chat and we’ll invite you to ask the question will take the first question from Mihir. Mihir you can go-ahead, please.
Unidentified Participant
Hello, sir. Thank you for the opportunity. Can you throw some light on the new Mumbai hotel, its revenue potential and the cost structure? Yeah. So see the new hotel in Mumbai, we have taken it on lease. It is not that we are owning it.
Chander Kamal Baljee
So our investment is very minimal. However, we have given a INR40 crore deposit, which is refundable over the period of 25 years. And our — apart from the deposit, the investment will be around INR15 crores. Okay, sir. And my next question is by when will the revenue start flowing in and what will be its positioning like five-star or four-star, which typical hotel will you be competing with this — in this category? I request Mr Ajun to take this call. Now on-mute. Thank you.
Unidentified Speaker
Well, the hotel is positioned as an upscale lifestyle product. It is, let’s say, it’s a step below JW Marriott and in the classified as a five-star. The product’s delivery in terms of there you go, that’s the building from the outside you can see it when you land at Terminal 2 it will be the project will be ready in the next I want to say two weeks and then we’re just waiting for licenses and the moment we get licenses we are ready to go
Unidentified Participant
Okay sir thank you I’ll join back the queue
Operator
Take the next question from Chirag singer. Chirag you can go please.
Unidentified Participant
Yeah. So first question is on a recent media article. So as per that article, there are at least 10 lease hotels that are scheduled to start in 2025. So can you provide some additional details on the same in terms of total number of rooms at these 10 hotels and what kind of top-line addition and net profit margin that we should be expect from at optimal occupancy levels?
Chander Kamal Baljee
See, that will be a very forward-looking statement. Generally, you know, we are not disclosing that at this point of time unless the hotel starts. As and when the hotel starts, then we tell that what kind of top-line or the margins it will do. However, to keep you all posted on the issue, our Bombay hotel itself will get us a top-line of almost INR100 crores, okay. So like that, there are a lot of hotels which will be coming up in time to come. And moreover, please understand that the timing of opening of the hotel is very difficult to say on. It can go a little bit here and there because lever is involved with the hotel has to be ready to our standards and all. So that’s why it is very difficult to at this point of time to tell what will be the top-line and the bottom-line.
Unidentified Participant
Right. So I’m just like reading what the article says, which is 10 hotels in the lease category in 2025, hence I asked about the details.
Chander Kamal Baljee
So at least on the number of rooms front, any details that you can share like total number of 10 rotors, you can always take roughly around 100 and 1,200 rooms. Okay. And this will be under the lease category that we are in more or less. Revenue-share be the — what we use is the revenue-share where we don’t have an affixed amount to be paid to the owners. It depends on the revenue earned by the hotel.
Unidentified Participant
Okay., you just mentioned that the Mumbai hotel should be ready in the next two weeks and then we’ll be waiting for various licenses. So any tentative timeline like when do you expect those licenses to come in when the hotels should start?
Chander Kamal Baljee
You know, Chirag, I wish I could tell you it is really an everyday battle with, I guess, the municipality over here. One date is fire, one date is something or the other. We have all our in-principle approvals, but it’s just a — it just depends on them, right? It just depends on when they decide to wake-up on the right-side of the bed and come and give us the licenses. And just to add to what Mr Jeswal was saying, a lot of these hotels that we’re doing, see, the Flexi lease deals are actually hotels that are where the interiors and all of that stuff is being done to our spec. Now because they have been done to spec, there is construction involved, there’s interiors involved. So that’s one-side of things. The second whole bit is, of course, the licensing piece, licensing staffing, yada, yada and the list just goes on, right? So we are really at the mercy of — towards the end of it all, even if we get our projects done on-time, we are at the mercy of the municipalities around us and therefore, you know, there are namely one municipality in the country that gives a license to you before time, right? It doesn’t happen. So that’s just how we’re at MRC. That’s it. That’s all — and hence predicting the exact date of up.
However, however, Chirag, we are trying to open the hotel in the — sometime in end of April or so. We will soft sooner, but you know real revenue will actually kick-in message as well so one question on the managed hotels. So in one of the previous con-calls, we mentioned that we — INR100 crores of top-line is doable over three years in this particular category. So can you break this down for me in terms of how much should we be looking at in FY ’26, ’27 and ’28 FY ’26, we are targeting to cross INR50 crores. That’s our first target, okay. Then it all depends how many hotels we are able to open like right now around 20 odd hotels are there in the pipeline. So like that, if the speed is there, definitely it is reachable at least. Okay. And on this INR50 crores of managed category revenues, what kind of PBT margins that we should be looking at? Roughly around 46% 47% it comes. PBT margins.
Unidentified Participant
Okay. That would be it from mine. Thanks. I’ll job back-in the queue.
Operator
We’ll take the next question from the line of., you can your last question.
Unidentified Participant
Good afternoon, sir. First of all, hello. Yes. Am I audible? Yes. Yes, sir. Sure. Yeah. So first of all, it’s a great presentation and good sets of results. My question is, the improvement on quarter-on-quarter results. Could you guide a bit on what led to this Q-on-Q improvement.
Chander Kamal Baljee
Hard work would be the first thing, but there are obviously a couple of things one is retooling how we sell. That was one, right? And really going into the details of how each hotel is performing, what are the — we want to cut waste and not cost, right? So just going into the depths of, you know-how the salespeople are performing, what are they performing, where are they going and attacking the market. So I think it’s a revenue thing and our cost structures are pretty much the same. So the higher the revenue just flows to the bottom-line and you’ll see that in the numbers that have come through. There has been obviously India positivity, but I think this is more to do with the team really knuckling down over the last few quarters and making the most of it.
Unidentified Participant
Okay. My next question is, EBITDA has not grown over the last one year in-spite of room growth. So where are we spending, which is leading to a softer EBITDA growth? And by when do we see these expenses going up in?
Chander Kamal Baljee
Yeah. So first of all, let me tell you, sir, if you see our presentations, okay, that’s why this time I have addressed this question in advance. In the presentation, we have said that we have shown the numbers of the newly opened hotel, their occupancy as well as the average rate separately. So that you can understand that when we open a new hotel, it is not necessarily that the profit starts coming immediately, because it takes time for our hotel to stabilize, okay. So you might be thinking that the numbers have not grown. First of all, let me tell you, most of the hotel opened are in managed category where we get only the you know the management fees to our kitten and not the entire revenue, okay.
And second is that we are still in the stabilizing state. Whatever the hotels we have opened in the last two years, they will give us result in next financial year. That’s why I’m telling you that the substantial growth in the revenue will come in the next financial year and not this year. However, we have increased our revenues, but the ARRs have got — average rates have gone up in both the categories, our own hotels as well as the yellow hotel, but the newer hotel will take some time.
Unidentified Speaker
Rajiv, just to add to that to what Mr is saying, you know, hotels are opened and after April 2024, the managed category, right, for them to already be at a 50-plus percent occupancy is actually a pretty good feat, right? Hotels typically take about 1,000 days to stabilize and find their feet-in the particular market. So you’ll see these numbers obviously going up, right, as time goes by and efficiencies happen. But say with Mumbai and some of the other lease structure or like hotels that we’re putting in, there is obviously a capex that goes into manpower and corporate, right. All of that, if you see employee expenses has gone up, corporate expenses has gone up, right? And that’s all to do with kind of setting the stage for the next phase of growth and that phase of growth is are the leases and all of that we’ve signed, right?
Unidentified Participant
So we have to plan for that today my next question is, what led to the overall improvement in-room nights year-on-year and Q-on-Q, considering that we don’t include managed hotels in this revenue, correct?
Chander Kamal Baljee
Yes. So basically the increase is only from leased hotels. Increase in the average rates as put on in my presentation, the average rates have gone up. We have been able to increase the average rates. The last year, our average rate was 5,675, whereas this year it is now 6,317. So there is a considerable growth in the average rates that has added to the room revenue.
Unidentified Participant
Okay. Okay. Thank you, sir. That’s all from my side. Thank you.
Operator
We’ll take the next question from the line of Sajal. Sajal, you can unmute and ask.
Unidentified Participant
Thank you. So first of all, to the entire management team, thanks for all the continuous hard work I would say in making the Royal brand the brand to reckon with. And it is also good to see a very refreshing presentation this time. Pretty, pretty, I would say, impressive. Now my question is regarding the Regenta rewards, can you throw some light on how it is going, how many members do we have? Are we seeing repeat business from the members or what is the positioning that we are taking on rewards? You take that? Yeah. Well, lovely.
Chander Kamal Baljee
Okay. So the reverse platform was launched, but for soft launch four months ago, it is growing. We have a little over 360 odd members on the platform. What’s interesting is that we’re seeing about a 12% to 13% repeat business already, right, courtesy, the platform. So the — and that can be viewed through our earn and burn system. As over a period of time and as we add more hotels, our own internal hotels, right, onto the platform, you will see that the seamlessness of the technology that you can sit in the restaurant and redeem your points for a cup of coffee. That’s how seamlessness — seamlessness we want it to be, right? You will see the repeat business and you will see redemptions increase, right? So the purpose of the program really is that customers burn with you as well as on, right, and we’re seeing that go up month-on-month. Thank you, June. In fact, Arix clearly remember that was one of the ask that I had one year back-in Q3 2024 that we need to have a rewards program.
And, I also sent you a mail, probably I’ll send it again. Because what I noticed was there was an old reward program, which still comes through the Google search, which we might like to take care of, otherwise it takes to the wrong place. I know there’s a dead dummy page floating around somewhere oil rewards, which you sent me that I did look at it and you get it buried on the website or get the page removed. So hopefully now it shows a 404 error, but we’ll have that attended to, right? Thank you. Thanks for flagging that. That’s great.
Unidentified Participant
Thanks. The other question is, I recently visited Agoa property as well as Bharatpur property and feel those are well-maintained, but I felt that the staff is not very much kind of aware of the ROHL brand as such. So if that can be taken care of, that would be great. I felt the staff was very warm. They were — they were very forthcoming. The food was good as well. So everything is good. If we can take care of that probably we can even make a better impression on the on the clients.
Chander Kamal Baljee
Point really well noted. Thank you. We will take that up with your learning and development team. Thanks a lot.
Unidentified Participant
That’s it from my end.
Operator
You will take the next question from the line of area. Yash, you can unput.
Unidentified Participant
Hello. Yeah. Thanks for the opportunity and congratulations on the wonderful set of numbers. Sir, first question was on the Goa expansion that we were planning to add few rooms by doing a capex of say around 25 to 30 crores. So where are we on that and when do we expect it to you know, contribute to our top.
Chander Kamal Baljee
See, Goa as we all know that takes his own time, we applied for the conversion of the land. And so that has taken some time because the minister was traveling for the various elections Maharashtra direction Delhi election, but now I’m told that he’s back-in Salut and the matter will be taken-up shortly. And I think we are hoping that in the few months, we should get all the clearances. And after the clearances are got, it will take about a year for the new rooms to get commissioned. So I think it’s probably October of next year that the new room will kick-in. Of course, planning has all been done. And I think they should after this happened, the revenues will go up substantially.
Unidentified Participant
And sir, upcoming — in upcoming four to six months, what is the kind of cotton addition that we are looking at, both on the managed and on the revenue-sharing side. That will actually contribute to our top-line, not the signings, but the commercialization of properties.
Chander Kamal Baljee
We were looking at in this next quarter, we’re looking at commissioning of our 28 rooms in the resort in Bangalore, which at advanced-stage, of course, this also got delayed because of incessant rain. And so three or four months project got delayed, otherwise we would have been ready by now. But I think we hope that by April, these rooms will get ready. So that will be a substantial the hotel has at moment 54 rooms only. And if we add 28 rooms and these will be premium rooms, if we add that, they’ll increase the business will increase substantially. And in our flagship hotel, 25 rooms were already renovated last quarter, which has given us some good results this quarter. And the balance 35 rooms will be taken-up and probably in March-April renovation.
So that will take about two to three months-to renovate. So I think probably the Q2 of the next year, the whole hotel — flagship hotel will be totally renovated. So it should give us substantial improvement in the business. So these are as far as our own hotels are concerned. We will be taking up a phase wide renovation of our MG Road Hotel, which is coming in under a subsidiary called Icon Hospitality, which we bought last year. But because of the season, we didn’t take-up the renovation. So we will be taking up the renovation there also. So I think that will also bring in substantial business incremental business to our GLO hotel that is joint-venture leased and owned hotels. Apart from that, we are opening our Bombay hotel that should get us roughly around INR100 crores of top-line. Then we have couple of other lease hotel during the open scheduled to open during will also add considerable amount of the revenues. So if I can sum it up, so two renovation and addition of rooms in two of our own hotels, one Mumbai hotels will come and two on the lease side.
Unidentified Participant
Got it. That’s it. So in near-term — near-to-medium term, we are looking at four to five orders to add real value to the top-line. Yeah. So managed orders will be over and above this. Yes, yes. Okay. And sir, this revenue-sharing that we will be going ahead with. I wanted to understand how the model will work. So the capex will be done by the asset-owner.
Chander Kamal Baljee
Yeah. We just give some deposit, refundable deposit and then we do the O&M of the hotel and a percentage of the top-line, we give it as rent to the orders.
Unidentified Participant
Okay. And so will there be a minimum guarantee kind of sharing somewhere it will be there and somewhere in case or in case. So what is the kind of breakeven occupancy that we’ll be looking at for these kind of hotels that above that occupancy,
Chander Kamal Baljee
We’ll be making money and below that occupancy, we might lose. 45% to 50% is 45% is our breakeven.
Unidentified Participant
Okay. Great. Thank you so much, sir. Thank you.
Operator
We’ll take the next question from the line of Taul. You can the last.
Unidentified Participant
Thank you for taking my question, sir, and the PPT is really good. It’s far more informative and relatively comprehensive.
Chander Kamal Baljee
So thank you very much for that as well. Sir, but one or two things, when you start a property whether on the managed side, they are typically properties which are fresh or you take-up running properties and kind of rebrand them and that is also. We do actually both. We take-over properties which identify the brownfield property which are under-construction so that we can give in our inputs, our brands that can be properly incorporated. Otherwise, we are taking over some properties which are already running, conversion, they are conversion properties. But there because also we are telling the owners that they have to renovate the property to our standards. But depending on the standards that we will brand our properties. So there are both cases where there is a conversion or there is a brownfield property. Of course, there is some greenfield also, but those are very long-term. We don’t know when really they’ll come up. So we are concentrating on these two categories.
Unidentified Participant
And a bookkeeping question for. Sir, if you could help us with the gross debt, consolidated and gross cash, I’m assuming we are net cash now given the cash profit that we are generating, but if you could help us with the numbers.
Unidentified Speaker
Yeah. So our gross debt on books in our balance sheet is around INR78 crores, okay, including the subsidiaries. Yes. Excluding the Jaipur one. Jaipur because we are not consolidating, so we’re not putting. In Jaipur, it is INR12 crores, but we have enough cash actually to handle it. But as you know that in Goa, we are have committed to add 45 rooms. So we’ll be using that cash there, okay? We’ll not be taking any loan there. Jaipur subsidiary itself has got INR12 crores loan, but it has got in cash of roughly INR15 crores. So we can settle that. And apart from that also, we have a. Yeah, so we have good and in Mumbai, we will need some margin money to open the hotels. So that’s why. So what would be the rough cash — cash equivalent number that we are setting on today? Consolidated number, Jaipur and Goa and all included. Around INR60 crores are there, around INR60 crores.
Unidentified Participant
Okay. Yes, yes. Right, sir. Thank you. Thank you very much for those answers. Thank you, Raul. Thank you so much.
Operator
Thank you. We’ll take the next question from the line of Singer yeah.
Unidentified Participant
The next set of questions that I have is regarding the channel partners that we have for getting the booking. So what is the percentage distribution? What all channels do we use and what is the percentage distribution on getting the bookings from them?
Unidentified Speaker
So if you look at the presentation, you have given that breakup. We’ve given you a very comprehensive breakup on Page 35, right? But what’s interesting to note is that 55% of hotels reservations come because of us, because of the Royal Orchid Hotels network, okay? And that is the Royal Orchid website, direct sales offices or the sales that we then send to the hotels and the hotels and convert them, right? About from a percentage basis, 25%. 25% comes from travel portals, right? And 27% comes from the unit directly, right, which is the unit sales goes out and gets business from local business, somebody goes and gives them a direct booking and all of that, right? So it’s an even split between external factors giving bookings to the hotel and Royal Orkid system, right, giving bookings to the hotels. And if you want to split it down among the travel portals, of course you got everyone, right? You got make my trip and booking.com and so on and so forth. So it’s an even split there. Yeah. Actually, where I was going with this is — I did notice this. This actually talks about the revenue that is being generated from different means. Where I was doing was like what is the number of rooms that are booked because I’m sure the revenue recognition is different from different channels.
Unidentified Participant
And I was trying to go towards what is the percentage of rooms that are booked by travel portals versus ROHL website and what is the ARR for each of those average room rate for each of those. Would we have that split?
Unidentified Speaker
No, we have that. It’s not that we don’t have, we have that, but you know, that’s a two detailed business disclosure that we need to do, which our competition also will look at. So we are… Let’s put it this way to just tell you that we have rate parity on all published rates across-the-board. So if it’s the same rate on the Royal website, it should ideally be the same rate on Make My Trip, right? That’s kind of the rate parity that our technology allows, right, or hotel technology allows. But what then goes into what a unit sells and all that, I don’t think that’s a fair disclosure to be made at this stage.
Unidentified Participant
Okay. Okay. Fair enough. I think that’s fair enough. The other question that I have is, while we have been talking about the business side of the things, let me let me assume the role of a shareholder, and one of the pending requests to the management has been either some reward to the shareholder. And the good part is since 2023, we are back on the dividend list. What about a split or a bonus that we can — can there be something that we can expect from the management to take a decision on?
Chander Kamal Baljee
So, see, Sajal, it is a very — you are asking a very important question, but that requires a thorough, you know, insight. We need to do it. And this year we will look at the insight and we’ll take advisors from the people involved in the whole process. Then only we can answer something. Right now, I cannot make a statement on that as far as that is concerned. Yeah. So I’m not expecting a statement,, sir, but it would be great if you can consider that. Yeah, sure, sure. From the shareholders and I’m sure absoluters in the call would resonate with that.
Unidentified Participant
Absolutely, absolutely. Yeah. Thank you.
Operator
We’ll take the next question from the line of., you can unmit our next question
Unidentified Participant
Congratulations on good set of numbers. Yeah. My first question is, can you explain a bit about your flexi lease structure and how does it move and how does it impact the P&L?
Chander Kamal Baljee
See, Flexi leases, what happens is we are not investing into the property. We are just giving some amount of refundable deposit and then the hotel does an ex revenue, say INR100 of revenue. So a percentage of the revenue we pay as lease-rent to the owner, okay. So here our — if the business goes up, both the owner and we get benefited. If it comes down, so we need to pay lesser amount. So it mitigates our fixed risk of making some losses out of it. So that’s how leases work.
Unidentified Participant
Okay, sir. And my next question is, the average occupancy is at 62% for managed and new ones is 51%. So what will be the occupancy average for older hotels?
Chander Kamal Baljee
The average occupancy for older hotel is 67%, man. Please have a look at our presentation, we have given a breakup of the occupancy. It is 67% for the hotels which were already there. Only the newer hotels we are showing as 51%.
Unidentified Participant
Okay, sir. And my next question is to Mr Arjun Baljee. What is the thought process and the theme on which ICONICA is being developed? And is it a typical five-star hotel? And how do you plan to stand-out versus competition in that area?
Unidentified Speaker
Great question. Well, it is a unique asset. So we’re positioning it as an upscale lifestyle hotel. So we’re nowhere in the normenclature are we saying that it’s a five-star, though as per Indian regulation, we classified as a 5-star, right? It’s a hotel where we’ve — when it does open and you see the marketing for it, it has vibrant F&B spaces that are designed very thoughtfully. Given the proximity to the airport, we need to figure out how the customer uses a hotel, right, and not just a bulk standard hotel box. We’re also looking at how the customer uses a hotel room, right?
Unidentified Participant
What are the key amenities they require in a room, right, be it an iron box or whatever, that’s what all other hotels do. What do we do differently? What’s the sort of sleep experience, right, what is the sort of bedding that you want.
Unidentified Speaker
So this hotel has actually been designed inward by putting the customer at the center and figuring out everything and how they use it, be it a day use coming into Bombay, spending 12 hours morning, evening, he is welcome. He has spaces to sit and use, work, conduct meetings, go away, right? If it’s a small wedding, we have that ability, right? You have — if you cater to the airline crew, what do air hostesses need most, right? So — so again, it’s the different customer segments that we’re actually looking at and trying to understand their needs and actually put that in the design. I’m not going to let too much out right now because I think in a month, the entire world will see what the brand is all about. But it is — it’s going to be a very different sort of a hotel experience than my neighbors around there, which are JW and Fairfield and now Hyatt and now Fairmont sir thank okay.
Operator
If anyone else wishes to ask a question, okay, we’ll take the next question from the line of Rahul Bangadia.
Unidentified Participant
Rahul, you can end-up. Just in addition to the last question to Arjun. So iconica is going to be a one-off kind of thing or you’re just kind of once you make this, you will try and kind of see that you can replicate it somewhere else as well or more of it?
Chander Kamal Baljee
Absolutely. This — it is in our view is not a one-off. It’s not a — we own the brand. We own iconica.com. We want to be able to say that we are creating India’s first homegrown upscale lifestyle brand that competes with the likes of and all of that on the international scale. So it really is a scalable upscale product that we want to try and create. So would it be fair to say that you already started scouting or you already have a few more sites in mind and if you can share something there? It’s very fair to say, but it won’t be fair to put that out there right now, would it? Unless it is signed, sale delivered. That’s the only piece of the puzzle that you have to bite my tongue on, right?
Unidentified Participant
Right. I hope to hear it soon. Thank you. Thank you. If anybody else wishes to ask the question, please raise your hand. We take the next question from the line of. Sajay, you can unmute and ask.. So one last question from me, which is regarding — we are already present in around three countries. Is there any expansion plan to go beyond the current geographical regions? That is one part. The other part is within India as well, I see a paucity of Royal Orchid brand presence and in the eastern part of India, mostly. These two places, are we planning to look into these two areas.
Chander Kamal Baljee
We are definitely looking at the East and all the other states that we are not present in right now. So we have recently appointed a resource who is based in. We’ve got extensive experience there. So he started scouting around for properties in the East and the Northeast. So — and he is also going to be looking after whatever few properties we hire that to give the owners some better results. Also, we have appointed a Vice-President South with a mandate given to him, we have a very significant presence in Karnatika, but in Tamil Nad, Andhra and Telangana, we are weak. So that mandate has been given to him to start scouting around for properties there. As far as properties abroad is concerned, it will be purely if something comes our way on the management contract route, then we will take it in the immediate neighborhood, not something very far off because you know, there is so much opportunities in India today that you know, we should exploit that before we start actively looking outside, but we are not averse to looking outside.
So we are in Sri Lanka, we have lot of opportunities in Nepal coming up. And so we are open to other locations also. Sure. Thank you, sir. By the way, last-time I had requested for and thank you for taking that request. I see that is now going to be on the cards, if I remember correctly. The second thing is Prayagraj Tent City, just one suggestion because tend City is a time-bound kind of a thing, 450 days kind of a thing. I noticed that Prayagraj actually was not available on the site for a couple of days even after the starting of the Mahakum.
So if we can take care of getting our site updated, that would be great in a real-time kind of a thing. Yeah, we will do that. See, see everything — this opportunity just came our way and I said that it wasn’t a planned this thing. Somebody approached us that they’re putting out this doom city. And the project as we had mentioned earlier also, all projects get delayed. So the project did get a little delayed and the short window, but I must say that in the short window also, the amount of publicity that we’ve got is — in fact, I would want you to go myself to that because I’m not yet I’ve got a room. So now I’m planning to go next week, hopefully to get a room there. So I think it’s given us a lot of — and an experience in doing this kind of business also. The new business shift right, we’ve dipped our toes into this business. We’ve never done it before, but novadic kind of business, but I think it’s been a pretty, pretty much a success. So we hope to do many more such things in there in the future also. Looking-forward, sir, and thanks a lot to the entire management team for all the hard work once again.
Operator
Thank you. Since there are no further questions, I would like to invite the management to give that closing comments.
Chander Kamal Baljee
Thank you very much for the patient hearing and I’m very happy that you people took a note of the change presentation. And as we go-forward, we will be disclosing more-and-more and we’ll be coming up with various new ideas which will take this company to greater heights and we look-forward to your support. Thank you so much thank you. Thank you.
Operator
Thank you, sir. Thank you to all the participants and thank you to the management. You may all disconnect now.