Occupancy resilient, but rate growth muted; FY28 targets push back

Delivered 9.1% comparable same-store revenue growth (call states same-store RevPAR 9.6%)

Delivered revenue 305.2 Cr +12.1% YoY; call adjusts for Rs. 9.3 Cr one-time other income Q1 FY26

Delivered PAT +29.7% YoY; call shows PBT +26.4% pre-tax, consistent with deleveraging progress

International arrivals disrupted by West Asia crisis; domestic mix up to 82%; rate recovery deferred

Reported EBITDA-negative margin impact from Rs. 9.2 Cr GST regime change (12% ITC → 5% no ITC), verified

Prior: 2.5x net debt-to-EBITDA within 12-18 months (from FY26 call). Now: FY28 (next year). Current 3.2x trailing, 2.4x operating basis.

Q4 FY26 flat, Q1 FY27 +2.6-2.7% vs. historical double-digit; West Asia crisis hollowed international premium (10-20% on rates)

Rs. 47 Cr invested (disclosed new: Itmenaan +Rs. 12 Cr estate = Rs. 60 Cr total); targeting Rs. 35-40 Cr EBITDA in 2 yr with 5x ROCE potential

Rs. 3,000 Cr cumulative FCF FY27-31 (management clarified Rs. 3,000 not Rs. 2,000); funds committed pipeline + optionality via Rs. 750 Cr enabling resolution

RARE asset-light; incremental capital negligible. Total allocation stays ~10-12% zip code. Value creation disproportionate; arbitrage in capital vs. room rates (experiences/distribution-driven).

H1 occupancy-driven, H2 rebalances domestic/international for rate recovery. July stronger; seeing rate growth now. But one month not representative.

Sign-ups ahead of expectation. Pace constrained by prior platform contracts (10-12 hotels), property reviews, licensing. No issue with hoteliers.

Board optionality for uncertainties (geopolitical shocks, unexpected M&A). Financial discipline + balance sheet strength non-negotiable. Precedent in capital-intensive sectors.

79% occupancy is strong, not soft. West Asia crisis disrupted international (10-15% premium lost). Focus on same-store revenue, not ADR alone. H2 rate recovery expected as crisis stabilizes.

International mix down (78-79% to 80-83% domestic). Restaurant renovation in Bangalore. Event cancellations moved to July-Aug. Will recover as events pick pace and mix rebalances.

GIC has 35% right in new upscale post-JV agreement. Navi Mumbai, W Hyderabad 100% SAMHI (seeded prior to GIC JV). IKEA-Ingka Noida only opportunity signed since GIC deal.

Raw ARR flat 3.5-4% across all segments. Midscale outperformed on RevPAR (+13.7%) due to 81.3% occupancy vs. upscale 78.4%. Upscale recovering; Q2+ trends 'far ahead' of Q1.

Midscale volume-driven Q1-Q2; GST impact larger. Q3 onward equalizes YoY (prior also bears 5% regime). But H2 impact <H1. Closer to 2% expected.

Fee/commission on bookings. Some hotels offer extended agreements (revenue share model). Fee income recognised as SAMHI revenue. Hotel owner keeps room revenue. Commission on booking channels.

Stabilized: Rs. 100-120 Cr topline, ~35% margin (EBITDA Rs. 35-40 Cr), 100% NOI yield on Rs. 47 Cr investment in ~2 years. Core ROCE ~18-19%; asset-light should be 2-3x, targeting 50-55%.

Not double; should do ~5x. Rs. 47 Cr invested earning Rs. 35-40 Cr EBITDA, minimal depreciation/finance cost; 95% flow-through to PBT. Expecting 50-55% ROCE.

Q1 FY26 had Rs. 9 Cr other income (GIC revaluation). Rs. 9.2 Cr GST impact Q1. Comparable basis shows revenue +11%, EBITDA +12.5%. Q2 eliminates one-time, Q3 eliminates GST; will normalize.

No. Target is FY28, not FY27. Driven by stable net debt + EBITDA growth. More credible timeline given current 3.2x.

Precedent in capital-intensive sectors; protects optionality. Cannot disclose mix (enabling only, not deliberated). Focus on balance sheet discipline, opportunities via distressed acquisitions.

Target operational distress deals (renovation, rebranding, management turnaround). Even in peak cycles, Bangalore Whitefield, Hyderabad, Noida opportunities found. ROCE discipline maintained.

All prior issues fully resolved. Statutory approvals progressing (first set in coming months). Design development next quarter. Groundbreaking 1st Apr 2027. Delivery 3-4 years. Capital ramp FY29-30 (FY28 small).

Delivered 9.1% comparable growth Q1. Reaffirmed on call. Headwinds (West Asia, ADR softness) acknowledged but domestic resilience (82% mix, 79% occupancy) supportive. H2 rate recovery expected as international stabilizes.

W Hyderabad S2 FY28, Courtyard Pune back-office renovation ongoing, Navi Mumbai groundbreaking Apr 2027 (3-4 yr delivery, capex ramp FY29-30). Regulatory/execution risk flagged.

Near-term: GST headwind ~Rs. 9.2 Cr Q1, continues H1 (lesser), eases Q3. Upscale mix shift (60% by FY30) immune to GST (5% rate); midscale gets hit. Comparable EBITDA +12.1% on operational leverage.

Reasonable given financing costs. Multi-year leverage to 2.5x will reduce finance burden. New upscale hotels higher-margin; portfolio mix shift accretive.

Rs. 300+ Cr annual FCF target (internal accrual-funded). Navi Mumbai (largest project, dual-branded, 3-4 yr delivery) capex-heavy FY29-30 (post-RCC structure); FY28 capex small. Committed pipeline Rs. 1,660 rooms.

West Asia geopolitical crisis reduced international arrivals; international travelers premium 10-20% on rates, 15-20% on F&B. International mix fell from ~22% to ~18% room nights. ADR growth stalled at 2.6-2.7%.

GST regime changed from 12% with input tax credit to 5% without ITC on rooms ≤₹7,500/night. Midscale (23% of revenue) disproportionately hit. Rs. 9.2 Cr negative impact Q1; continues Q2, eases from Q3 (prior-year comparison normalizes).

Net debt-to-EBITDA at 3.2x (trailing 12M) vs. 2.5x target. Management clarified target pushed to FY28 (not FY27). Requires Rs. 550 Cr annualized EBITDA run-rate to hit target; currently Rs. 100 Cr quarterly (~Rs. 400 Cr annualized), needs ~37.5% growth.

Navi Mumbai (flagship dual-branded project, 3-4 yr delivery) groundbreaking slipped to Apr 2027 (from 'end of FY27'). Regulatory approvals remain risk; first set expected in coming months. W Hyderabad S2 FY28; Courtyard Pune renovation ongoing. Capex ramp concentrated FY29-30.

RARE invested Rs. 47 Cr (now Rs. 60 Cr with Itmenaan), targeting Rs. 35-40 Cr EBITDA in next 2 years. Portfolio of 75 hotels with 40 on Marriott Outdoor Collection; only 53% enrolled. Model depends on commission income + fee expansion. Hotels operate at Rs. 15K-70K ARR; occupancy 25-75%; heterogeneous.

Rs. 750 Cr enabling resolution passed; management signals annual practice going forward. Overhang of dilution unnerves investors. GIC platform (35% right on new upscale) + enabling resolution together create unclear capital allocation path. Promoter holding slightly lower.