Strong RevPAR growth offset by margin compression; foreign headwinds ahead

Delivered 14.5% YoY; RevPAR grew 14% (11,352 to 12,801) but EBITDA grew only 6.2% (195 to 207 Cr)

Trident RevPAR growth confirmed 13.8% vs upper-upscale industry 9.2%; Mumbai hotels (TNP 585 keys, BKC 430 keys) drove performance; RGI improved 155 to 162

Oberoi growth 8.2% vs luxury segment 13.2% confirmed; Rajgarh drag acknowledged; ex-Rajgarh 11.4% cited, though still below 13.2% (indicates other factors)

Delivered OPM 25.4%; call shows EBITDA 207/698 = 29.7% (different definition); margin compression real; management identified 5+ cost headwinds; labor code impact also cited

OFS revenue 154 Cr confirmed; CFO stated 'OFS was profitable. I would not say it impacted much on margins'; new flights and international airlines drove growth

Delivered PAT 120.3 Cr; call acknowledged ₹110 Cr one-time impact last year; on adjusted basis PAT growth is modest

2028 → 2029 due to unforeseen structural safety upgrades (fire/structural compliance) and 2-month construction stoppage after June incident (15 deaths, all Kolkata construction halted). Demobilization/remobilization impact noted.

Presentation showed 2028 but Annual Report says late 2029; confirmed by MD as Annual Report baseline; 1-year push indicates execution/regulatory hurdles.

23 managed hotels in 5-year window; 1 hotel (60 keys) has slipped beyond 2032, removed from guidance. Signals some pipeline uncertainty.

Management cautious on forward guidance; cites business on books positive for Q2 but stops short of full-year outlook, citing macro uncertainty (West Asia, foreign recovery timing).

Renovations timed in lean months (Apr-Oct); negligible revenue loss. Rajgarh ramp-up is summer-slow (new leisure hotel); expects strong winter. Renovation costs capitalized; write-offs done. Outlook: no significant renovation Q3-Q4, but Rajgarh stabilization takes 3 years.

Typically don't give forward guidance. Q2 business on books vs pcp 'very positive.' Large events (BRICS, Aviation show) have ripple effects across cities; expect Q3-Q4 benefit if foreign recovery happens.

Heritage restoration of old building required unforeseen structural safety compliance (fire, seismic). Also, June incident (15 deaths, construction halted 2 months) caused demobilization/remobilization. Authorities still assessing individual buildings. Our site has no safety issues but delays are beyond our control. Committed to opening; will be benchmark heritage hotel.

OFS revenue ₹154 Cr in Q1 with healthy growth from new flights and international airlines (direct Europe-India routes). OFS is profitable; I would not say it impacted much on margins. New flights and higher volumes from international carriers drove growth.

Oberoi attracts higher % foreign business, impacted by West Asia crisis. Rajgarh drag also; ex-Rajgarh Oberoi is 11.4%. Trident benefited from strong Mumbai demand (TNP 585 keys, BKC 430 keys, large properties). RGI Trident improved 155→162.

Leisure hotels take 3 years to stabilize typically. Rajgarh is in ramp-up phase; summer is slow (hot climate, new hotel). Expect considerably better in winter months starting October. Travel partners' promotion of hotel/destination takes longer lead time.

Qualifying bid date changed from Aug 26 to Sep 10. There are two parts: qualifying bid then live auction. Cannot disclose bid details at this stage.

Hard to quantify %; hotel scheduled to open Sep 2028. Civil/structural work faster than interior finishes; interior finishes take considerable time. Hopeful of Sep 2028 opening.

Annual Report is the fair reference for opening dates. Goa confirmed late 2029, not 2028.

Yes, fundamentally margins should expand with rate hikes. Impact mainly from mixed change (OFS, lower-margin segments), marketing spend (₹4Cr to drive domestic bookings), IT spend, and renovations (₹6-7 Cr write-off). Rate hikes benefit, but these headwinds offset.

Mumbai market strong; we've done better than market. Always endeavor to do better than market. Cannot commit to 20% outperformance going forward; best effort is to drive RevPAR (occupancy + ARR).

Q1 saw fall in international guests (West Asia crisis). Q2 expect trend to continue given West Asia situation. Hope things stabilize for Q3-Q4. If stabilization happens, foreign business should be strong.

Entire cost of renovation capitalized. Per Companies Act, buildings/furniture/fixtures depreciated separately. If renovation leaves asset with remaining life unused, that's written off to P&L.

F&B revenue increased vs last year; no degrowth. OFS added growth, room revenue high teens. F&B grew 6-7% excluding Rajgarh impact. Rajgarh impact in Q1 but was not in pcp.

South Bombay: 120 keys, 4 floors, finishing 1 month ahead (Sep vs Oct). Oberoi Bombay: 1 floor at a time. Q2: 18 rooms Bangalore, 57 rooms Trident BKC. All finished before October. Renovations in summertime when occupancy low; minimum revenue impact.

No. Employee costs impacted by: headcount increase vs pcp, increments, labor code compliance (2026). Rajgarh a factor but not entire delta. Conscious decision to reduce working hours, improve employee welfare — increases cost but essential for retention, service quality.

We don't disclose segment details at that level. Dissecting P&L at property level not feasible.

Delays do have cost impact (small or large depending on cause). More significant: delay in ability to go to market and earn revenue/profitability. Delays cost in both construction and lost earnings.

Management cautious; 'business on books very positive' for Q2 but no full-year outlook given geopolitical uncertainty. MICE events (BRICS, Aviation show) cited as Q3-Q4 tailwinds; foreign recovery expected Q3-Q4 'if things stabilize'.

Management cited 5 headwinds compressing Q1: Rajgarh drag, renovations ₹7.5 Cr, marketing ₹4 Cr, IT spend, fuel surge. Q2+ should see some relief as renovations complete, but labor code wage inflation is structural.

Expansion pace: most openings 2027-2031 (Q4 FY26 showed Rajgarh, Bandhavgarh opened). Hebbal 2 hotels + mixed-use (1.3M sq ft) flagship. Execution risk visible: Kolkata delayed 2028→2029, Goa pushed to late 2029, Grand still under construction.

Oberoi (luxury) has 50%+ foreign business exposure; Trident lower. International rates higher; loss of foreign guests disproportionately impacts EBITDA. MD expects recovery Q3-Q4 but timing uncertain.

Kolkata heritage restoration delayed 1 year (2028→2029) due to unforeseen structural safety compliance and Jun 2026 construction halt (15-death incident, all Kolkata construction frozen 2 months). Goa pushed from 2028 to late 2029. Grand: 2 years under construction, interior finishes timeline vague. Delays cost (demobilization, inflation) and defer revenue/profitability.

Q1 EBITDA +6.2% vs revenue +15% reveals 5 headwinds: Rajgarh ramp-up drag, renovations ₹7.5 Cr write-off, marketing ₹4 Cr (incremental to drive domestic bookings), IT spend (automation/AI), fuel costs up (Hormuz crisis). More fundamentally: labor code compliance (reduced working hours mandated) forcing higher headcount/wages to maintain service. This is structural, not one-time, suggesting margin recovery harder than claimed.

Rajgarh opened Nov 2025 (5.5 months in operation by Q1 end). Leisure property; summer slow (hot climate, new property); winter recovery expected. MD: 3-year stabilization typical for leisure hotels (vs <3 years for city hotels). Q1 already dragging Oberoi brand RevPAR (8.2% vs 11.4% ex-Rajgarh). Pipeline adds 23 managed + 7 owned; each ramp-up will dilute blended margins temporarily.

Despite strong occupancy growth (+2 pts MPI from 106 to 108) and full hotels, ARI remained flat YoY. Implies rate hikes not being realized; occupancy gains offset by rate pressure. Competitive upper-upscale segment (Taj, Hilton, Marriott, ITC all present) limits pricing power. Q1 had domestic tailwind (MICE, business travel) but foreign guest willingness-to-pay high; loss of foreign revenue-mix reduces average pricing.