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Royal Orchid Hotels Ltd Call Transcript 2026
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Call Transcript
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ROYAL ORCHID HOTELS LTD.,
Regd. Office :
1, Golf Avenue, Adjoining KGA Golf Course,
HAL Airport Road, Kodihalli, Bangalore - 560 008, India.
T +91 80 41783000, F : +91 80 252 03366
www.royalorchidhotels.com
CIN : L55101KA1986PLC007392
email : [email protected]
Date: May 29, 2026
To,
The Manager,
Department of Corporate Services,
Bombay Stock Exchange Limited
Floor 25, P. J. Towers,
Dalal Street,
Mumbai – 400 001
BSE Scrip Code: 532699
To,
The Manager,
Department of Corporate Services,
National Stock Exchange of India Limited,
Exchange Plaza, Plot no. C/1, G Block
Bandra Kurla Complex, Bandra (E)
Mumbai – 400 051
NSE Scrip Symbol: ROHLTD
Dear Sir/Madam,
Re: Transcript of the Earnings Conference Call for the Fourth Quarter and Year ended March 31, 2026
Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, please find enclosed the transcript of the Post Earnings Conference Call for the Fourth Quarter and Year ended March 31, 2026.
The above information is also available on the website of the Company www.royalorchidhotels.com.
This is for your kind information and records.
Thanking You.
Yours Faithfully,
For Royal Orchid Hotels Limited
AMIT
JAISWAL
Digitally signed
by AMIT JAISWAL
Date: 2026.05.29
13:30:41 +05'30'
Amit Jaiswal
Chief Financial Officer
Encl: As above
Royal Orchid Hotels Ltd.
Q4 & FY26
POST EARNINGS CONFERENCE CALL
May 26, 2025 12:00 PM IST
Management Team
Mr. Chander K. Baljee - Chairman and Managing Director
Mr. Arjun Baljee - President
Mr. Keshav Baljee - Executive Director
Mr. Amit Jaiswal - Chief Financial Officer
Call Coordinator
KAPTIFY
Strategy & Investor Relations Consulting
Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Presentation
Vinay Pandit:
Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q4 and FY26 post earnings conference call of Royal Orchid Hotels Limited.
Today on the call from the management team we have with us Mr. Chander K Baljee, Chairman and Managing Director; Mr. Arjun Baljee, President; Mr. Keshav Baljee, Executive Director, Mr. Amit Jaiswal, Chief Financial Officer and the finance team.
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.
I would now request the management to brief us about the business and performance highlights for the period ended March 2026, the growth plan and vision for the coming years, post which we will open the floor for Q&A. Over to the management team.
Chander K. Baljee:
Good afternoon, ladies and gentlemen, valued shareholders, investors and partners. It gives me great pleasure to welcome all of you to Royal Orchid Hotels earnings call. Royal Orchid Hotels is not simply growing with Indian hospitality industry anymore. We are now building capability, scale and execution strength to shape the future of it. Over the last few years, we have transformed ourselves into a far more agile, disciplined and future ready hospitality company, one that is driven by profitability, operational excellence and sustainable expansion.
Today, Royal Orchid stands stronger than ever before, stronger financially, stronger strategically and significantly more scalable for the future ahead. FY26 is a year of strong momentum. FY26 has been a defining year for Royal Orchid Hotels. Despite the highly dynamic market environment, we delivered strong growth while maintaining financial discipline and operational efficiency.
On a consolidated basis for FY26, revenue from operations increased to INR384 crores from INR319 crores last year. EBITDA stood at INR110 crores, reflecting the resilience and efficiency of our operating platform. Profit after tax reached INR33 crores after exceptional items. Earning per share stood at 11.74 rupees But more importantly, these numbers reflect the quality of our business model. Our growth today is being driven by sustained demand across business and leisure travels, increasing contribution from managed and revenue share properties,
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
stronger ancillary revenues and disciplined execution across the network.
This is not accidental. This is structured growth. This is scalable growth and this is profitable growth. Building a stronger hospitality enterprise, as Chairman and Managing Director, what gives me the greatest confidence is not only our performance today, but the foundation we are building for the next decade. Royal Orchid Hotels today has a stronger balance sheet, an improved operating leverage, expanding brand visibility and a significantly larger strategic pipeline.
Our consolidated asset base has now crossed INR1,041 crores, reflecting the scale and strength we are building into the organization. At the same time, we remain deeply committed to disciplined capital allocation, sustainable returns and long-term shareholder value creation. In line with this confidence, the Board has recommended a final dividend of INR2.5 per equity share. This reflects our belief that our growth and shareholder value must move together.
Execution is becoming our biggest differentiator. In hospitality, strategy alone does not create leadership. Execution does. And this is where Royal Orchid Hotels is increasingly separating itself in the market. The launch of ICONIQA Mumbai is not just another addition to our portfolio. It represents our ability to execute faster, optimize investment intelligently, operationalize efficiency and create high quality hospitality assets with precision. This capability has become a major competitive advantage for us.
Across our brands, Regenta, ICONIQA, Crestoria, Z and the Place, our approach remains very clear. We are not pursuing expansion for headline. We are building a portfolio that is profitable, scalable, differentiated and resilient across market cycles. India's hospitality opportunity is just the beginning. India is entering one of the most exciting hospitality growth cycles in its history. Domestic travel is accelerating. Aviation connectivity is expanding rapidly. Corporate mobility is strengthening. And customer expectations are shifting decisively towards branded, experience-led hospitality.
Royal Orchid Hotels is strategically positioned at the centre of this opportunity. Our diversity drives presence, business hotels, leisure hotels, life-size properties and managed hotels. These are both rich and resilient. Today we are operating 80 cities, nearly 11,000 keys including signed hotels. We are steadily building one of India's most scalable hospitality platforms. Vision 2030 is to build an enduring institution.
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Our ambition for the future is bold and extremely clear. By 2030, we aim to reach 345 hotels, grow to 22,000 keys, strengthen our asset light business model, deeply integrate AI and technology into operations and build stronger connected loyalty ecosystem through Regenta Rewards. Our number, our larger vision is even more important. We are building Royal Orchid Hotels to become an enduring Indian hospitality institution, one that combines warmth, operational excellence, design intelligence, customer trust and long-term value creation.
Over the years, I've learned that great institutions are not built by speed alone. They are built through consistency, discipline, strong relationship and ability to evolve ahead of the market. This is exactly what Royal Orchid is doing today. We are growing in confidence. We are executing with discipline. We are positioning ourselves for a significant larger future. To our shareholders, investors and partners, thank you for your trust and your support and your continued belief in Royal Orchid Hotel. I can say this with complete conviction. The next phase of Royal Orchid Hotel will be bigger, stronger and far more valuable than anything we've built so far. We are only getting started. Thank you.
Question-and-Answer
Moderator:
Thank you. [Operator Instructions] We'll take the first question from Sucrit Patil. Sucrit, you can go ahead.
Sucrit Patil:
Yeah, good afternoon to the team. I have two questions. My first question to Mr. Baljee is, what type of strategic levers is Royal Orchid prioritizing in FY26-'27 to expand its portfolio beyond the 120 plus hotels, while managing risk from regulatory changes, rising costs and competitive pressures in the industry? What type of growth corridors are being targeted for the next six to nine months as the company adds 1,800 plus keys and how is asset light expansion being balanced with own property? That's my first question. I'll have a second question after this. Thank you.
Chander K. Baljee:
One of the things which we are doing is that we have an upcoming hotel pipeline which has signed hotels. There are a large number of hotels, there are 52 hotels which are signed and comprising of 3,600 rooms and we have beefed up our development team also now. So they are going around scouting properties. What has happened is over the last 2, 3 years, people are also approaching us. It was the other way around earlier that we had to chase people when we introduce ourselves that we
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
are a Royal Orchid and we are based in Bangalore. All the other chains are based in Delhi and Bombay. So they had a greater reach and now with our Bombay Hotel, we have a good reach and in Delhi also our hotel in Gurgaon is doing pretty well. So, I think our reach, our brand is getting to be stronger and stronger. So I think the growth should continue on this asset-light strategy.
Yes, out of the most hotels that we have, a large number will be managed, a few will be franchised and a few will be on revenue share that is called as a flexi-lease. We pay a minimum guarantee and we take over the hotel. So, we're going to expand on all the fronts.
Sucrit Patil:
Thank you. My second question to Mr. Amit is, what type of financial frameworks are being applied in FY2027 to align debt majorities and refinancing schedules with project cash flows given consolidated PAT of about INR25.11 crores for 9 month FY2026? What type of instruments and safeguards including maybe hedging models, escrow structures or liquidity buffers or whatever you might have planned are planned for deployment over the next 2 to 3 years to secure execution, discipline and protect margins? Thank you.
Amit Jaiswal:
Okay. So, I would like to throw some light on our balance sheet. Okay. If you really look at our balance sheet published yesterday, our cash equivalents is around INR88 crores in our consolidated balance sheet and this excludes one of our associates whose result we don't consolidate, just the profit we consolidate below the line. So, there also around INR14 crores of cash equivalent is there which means the group is having almost INR100 crores of cash equivalent today with us to lead the company forward.
Second thing, if you look at our borrowings actually, the bank borrowings is around INR91 crores including the INR45 crores of the new ICONIQA Bombay. So, we are not that great borrowings which we are having and we are planning to use the funds for the further growth of the company. We can become debt free even today also in one shot but there is a plan that we will grow the company and as Mr. Baljee already said that we are following an asset-light strategy wherein we sign hotels on management and then there are some flexi leases. So we will be needing some funds for all these flexi-leases. Okay. Whereas, we don't hold any asset. So the kind of funds what we have, it's quite sufficient for the company to grow as per the target what we have done in our projections.
Sucrit Patil:
Thank you, and best wishes.
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Chander K. Baljee: Thank you.
Moderator: Thank you. We will take the next question from Bharat Gianani. Bharat, you can go ahead.
Bharat Gianani: Yeah. Thanks for the opportunity. Sir, two questions from my side. One is what was the impact of the West Asia crisis in quarter four and especially related to the ICONIQA Mumbai property since that is very close to one of the busiest airports in the country? So, that is the first question. And the second question is considering the growth plans that we have highlighted, just wanted to understand the medium-term guidance if any management would like to highlight for say for FY27-'28 on the revenue and EBITDA side.
Amit Jaiswal: Okay. Bharatji, good afternoon. Good to see you here. Let me tell you one thing, Bharatji. See, we had lot of plans. Like we will be adding lot of revenue share hotels and all. But as far as the guidance is concerned, keeping the geopolitical issues in place, how it is going, it has become very, very difficult for us to give any guidance. However, we are pledged to improve our performance. Okay. This year, if you -- numbers, if you see, that is why I have given the numbers with ICONIQA and without ICONIQA also. ICONIQA being the first year, there were one thing which has hit us is the, the Ind AS, INR15 crores -- INR16 crores Ind AS hit has come, which is notional and which is not in cash. However, the growth, the PAT growth without ICONIQA has been around 16.8%. Okay, the PAT growth, excluding ICONIQA. But because of ICONIQA first year, we have been hit, the PAT has been hit because of the Ind AS 15 crores. But we are on a growth path. However, last one month post-war, definitely the business has got hit. The ADRs is in challenge, the occupancies are in challenge, and it continues to grow, you know, it continues to be the challenge like that.
So unless and until this geopolitical issues, come to a you see the newspaper every day, the cost is going up, this cost is going up and all. Even in today's Bangalore, if you see Times of India, Bangalore, there's a big article on the cost going up, and increase in the labour wages and all the stuff. So keeping that in view, it is very difficult for us to give the guidance, what you are asking. However, after the first quarter, we'll be in a better position to give you a guidance, what we will be doing in '27-'28. But be rest assured, the company is in the growth path, and we will continue to grow, grow the company the way we had planned.
Bharat Gianani: Okay, sir, thanks and all the best.
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Moderator:
Thank you. We'll take the next question from Chirag. Chirag, you can go ahead.
Chirag Singhal:
Yeah. So my first question is on this INR5.5 crore write-off that we have taken pre-expense write-off in ICONIQA. So was this fully taken in Q4 or this is for the entire year?
Amit Jaiswal:
See, what happens, Chirag, see in the quarters, the auditors do a limited review. So and the year end, they do a full audit of the entire year. So they have done all the transactional audit for the entire year. And it was found that around INR5.5 crores of pre-operating expenses, which we thought we can capitalize it, but they didn't agree. So we had to take that hit.
Chirag Singhal:
So there was one more write off of INR 2crores that we have taken in Q2. So for the entire year, total INR7.5 crore is in write-off.
Amit Jaiswal:
Yes, INR7.5 crores pre-operating expenses. Q2, we had taken it ourselves. But when the complete audit happened, the auditor were in disagreement. So we can't go against the auditor. So we took the hit. However, it was in capital in nature, but not strictly capital. That's what their view was there. So we had to take the hit.
Chirag Singhal:
Are all write-offs taken, you know, whatever are there or there will be further review next year and there will be some more write-offs?
Amit Jaiswal:
It's all taken. It's all taken. This was the first year of operations, Chirag. So we had to, you know, do all this.
Chirag Singhal:
Okay. And what was the occupancy of ICONIQA during Q4?
Amit Jaiswal:
So the occupancy of ICONIQA during Q4 was around, one second, I'll just tell you. 62%. Yeah. So the occupancy of ICONIQA was 62% in Q4. See, Jan and Feb went off very well, but there were a lot of cancellations in March. March, when the war began, there were a lot of cancellations were there.
Chirag Singhal:
Sir what was the occupancy in Jan and Feb? If you can...
Amit Jaiswal:
Jan was, I think, around 80% was there. Tell me the Jan and Feb occupancy.
Chirag Singhal:
So Jan was 80% and what about Feb?
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Amit Jaiswal:
I'll just tell you.
Amit Jaiswal:
Feb was, I think, 75.
Amit Jaiswal:
Yeah, Feb was around 73%.
Chirag Singhal:
Okay. Okay. One question on managed hotels. So, recently we opened a 70-key hotel in Hyderabad. So if I take, some assumptions for ARR and say around 60% 64%-odd occupancy, maybe this hotel would generate INR40 lakh, INR50 lakh in top line and as in the our share, whatever 4%, 5% management fee that we get. And if you take 50% odd bottom line that you have guided for the managed segment, it comes to INR20 lakhs, INR25 lakh for this hotel. So why are we still taking up small managed hotels? I mean, isn't it better to set a minimum threshold now since we have...
Keshav Baljee:
I can take that. Yeah. So look, I fully agree with you that small hotels will not be the way forward for moving the needle, but it's a portfolio strategy. Basically we have the Regenta brand, which will be typically 80 keys and 60, 80 keys and upwards. The Regenta Place brand, which is what this hotel opened under, which is going to be typically 40 to 80 keys. And Z by Regenta, which is primarily we're going to grow by franchise, which is around 50 keys on average. So while you are right, we have set minimum thresholds by the way. So the numbers that you are suggesting on a per month basis is actually going to be maybe double of that on this hotel especially. But there are per month thresholds that we have set as minimum fees for each hotel, which is going to be increasing every year.
If you look at the pipeline that is coming up, and I advise you to look at the pipeline screen on the presentation that we shared with you, a lot of those hotels are larger now. So we are looking at signing bigger hotels as well. But keep in mind, it is a portfolio strategy. In a city like Hyderabad, we will have 6-8 hotels, maybe even 10 hotels in the period of 2 or 3 years. So we will have a combination of slightly larger hotels, smaller hotels, et cetera. But what we are doing to increase the top line as well as the bottom line of the company is taking flexi-leases, what the Chairman mentioned as well. And these flexi-leases are at a lower investment, but they will allow us to increase our top line as well as the bottom line.
So I think it's a combination strategy. You'll find it playing out quite well. And I think the numbers will start to showcase now that the
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
operating leverage will start to kick in because we've got a lot of hotels in certain clusters where we will not have to invest substantially more to add more properties.
Chander K. Baljee:
See, these managed properties, you're right, they give you a small, but it's a matter of scale. If you really look at it, all companies are not looking at that. Taj is looking at expanding Ginger. Then Marriott is looking at expanding other smaller brands. Hilton is coming with Spark by Hilton. So I think what strategy we've been adopting now, others are copying that. So I think we are well-placed here. Our risk is very little. So it's a matter of scale. If you have 100 hotels giving you INR3 lakhs to INR5 lakhs per month, then it adds up to a lot. And the GOP, Gross Operating Profit on that is substantial. So we are at the take-off stage as far as this business is concerned. And we'll continue to grow that.
Chirag Singhal:
Okay. That would be it from me. Thank you.
Moderator:
Thank you. We'll take the next question from Udit. Udit, you can go ahead.
Udit Sehgal:
Yeah, good afternoon, sir. Sir, we see that we are doing a lot of efforts in expanding our hotel base. From when can we see the actual inflection in numbers, on the cash level as well as the PAT level?
Amit Jaiswal:
So see, if you really look at it, the cash level, you can see the growth is there. We are doing INR602 crores-plus cash at the cash level. But PAT level also, this is the first year of the bigger hotel that is ICONIQA, which has added some notional cost of Ind AS into the financial. That is why our PAT, what we are seeing is down, because of the Ind AS effect of almost INR16 crores of one hotel, which has come. So if you see our result without Ind AS, yes, I will not say that we have grown a lot, because last month became a very disaster for the entire industry. But we are in a growth path. And definitely in the coming years, you will see a better result.
Udit Sehgal:
So can we see like the cash PAT going up to say like INR100 crores by FY28?
Amit Jaiswal:
Cash PAT by INR100 crores?
Chander K. Baljee:
I don't think we should give any statements like this. At this stage, because of this uncertainty in the world, I will refrain from giving any forward-looking statements.
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Udit Sehgal:
Okay, sir. That's it from my side.
Moderator:
Thank you. We'll take the next question from Rahul Bhangadia. Rahul, you can go ahead.
Rahul Bhangadia:
Yeah, thank you for taking my question, sir. Just wanted to understand this ICONIQA number as kind of reported in this thing, without Ind AS number that you have reported from Q-on-Q basis, roughly a INR17 crore top line goes to a INR24 crore top line. I'm just rounding off the numbers here. But the swing on the EBITDA side is negative even after account -- is not that great, even after accounting for that INR5.5 crore hit that you may have taken. So you're essentially moving from a INR1 crore negative EBITDA to let's say a EBITDA breakeven situation. For a Q-on-Q swing of almost INR7 crores of top line, we would generally assume in this business with fixed cost, the swing on the bottom line should be much higher. Just trying to understand this now.
Amit Jaiswal:
No, see Rahul, I'll tell you one thing. First year of operation, we are also a new market, Bombay market and all. So what has happened is, there are a lot of marketing expenses which we would have incurred. The real result of that will come in time. So initially when you launch a property, launching expense and then the marketing expense, then there are a lot of stuff which has gone. That is why you are not able to see in ICONIQA a very favourable EBITDA. But a big property of almost 300 rooms with so much F&B and all, so unless we launch it with -- and all these launches cost money. Unless we launch it in a big way, we will not be able to see a big result. See, every day if we start seeing at the profit and all, so then we will not invest. See, technically in accounting standard, these all expenses what we have done in first 6 months can be termed as operating expenses.
But if you really ask me in a business sense, it is not an operational expense, it's an investment which we have done in the property which will yield the result in time to come. That's the logic I can give it to you, Rahul.
Chander K. Baljee:
When we started the hotel, actually November is the time when we got our license. Our bar license got in November. So till that time, we were just operating like trial runs, we were doing that. Then we were hit by this airlines chaos, Indigo chaos. Now yeah, although the thing lasted only a couple of days, but there's fear factors there. So occupancies across the group went down for about almost 15 days. So I think that is also caused and then to add to it, all this war issue has started and there will be a lot of cancellations for fear. So I think, we hope that all that is
Page 10 of 22
Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
now behind us. But then right now, if you look at it, the season is over. You have the winter season and the summer season for all hotels. So we are tightening our belts and making sure that in the summer months also, we don't hit any headwinds. So we are working on that. I think everybody is aware of the fact that this, yeah, you're right, the new hotel will take some time to stabilize.
Keshav Baljee:
I just want to give one point is that the hotel is hit number one on TripAdvisor in Mumbai out of over 800 hotels, which all of you can also verify.
Rahul Bhangadia:
Yes, that we saw, and that is really commendable.
Keshav Baljee:
That's a good sign that good things are coming. I just wanted to point that out. Yeah, thanks.
Rahul Bhangadia:
Yeah, sure. I understand that some of the things are really and in the last six months, there have been quite a few things that are really completely out of the control, whether it is the Indigo fiasco or the war situation, completely out of the control of anybody who's operating the hotel industry. So yeah, all the best, sir, for everything that you do in the future. Thank you.
Chander K. Baljee:
Thank you.
Moderator:
We'll take one question from the Q&A box, which is from Mr. Raju Pathak. This is regarding the auditor's qualification mentioned.
Amit Jaiswal:
I'm answering it. I'm answering it.
Moderator:
Yeah, if you could answer that. Could we take the next question in the meanwhile?
Amit Jaiswal:
Yes.
Moderator:
Yeah. We move to Tanya Kalra. Tanya, please go ahead.
Tanya Kalra:
Thank you for the opportunity. Sir my first question is that what percentage of future EBITDA does the management expect to come from fee-based management income?
Keshav Baljee:
You're talking about this coming financial year or you're talking about in the future, like four or five years down the line?
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Tanya Kalra:
In the future. In the future.
Keshav Baljee:
I would say it would probably be a third of our total, but it does depend on how many flexi leases we sign. We are obviously, I mean the idea right now is that for every 10 hotels we sign, one would probably be a flexi lease, maybe two would be a franchise, seven would be management. That would be the rough sort of cadence that we're -- I mean, the split that we're thinking about. But obviously the flexi lease, we take 100% of the economics when it comes to the revenue. And then of course, our EBITDA numbers are different there. So at this point, we would assume that, you know, because we have some of our own hotels, we will be growing the JLO segment. The EBITDA calculation would be somewhere one third to half, but I mean, maybe it's going to be tough to tell, depends on how much we sign up in the next three to five years.
Tanya Kalra:
Okay. Sir, my next question is, what is the planned CapEx outlay for FY27 and FY28?
Chander K. Baljee:
Plan of development?
Keshav Baljee:
CapEx outlay for FY26 and FY27?
Chander K. Baljee:
CapEx, as we have mentioned, our business model is very, very, you know, asset light. So we don't anticipate large CapEx only in the revenue share hotels, which are, I can see about five of them coming up in the next one year. It may be something coming up, which is under discussion, but at the moment, which is signed only is about five. Those do not require more than INR 5 crores to INR10 crores as a CapEx, which company has the money. It doesn't have to resort to any borrowing or anything like that. We have a war chest, as Mr. Amit had mentioned, that we have got over INR100 crore cash within the company. So I don't think we require anything. We won't be short of the expansion.
Keshav Baljee:
There is some CapEx, which is more maintenance CapEx and also renovation CapEx required for a couple of our existing hotels. So that is ongoing. I think we'd already announced that in the past. And that is ongoing, renovation as and when we can refurbish or renovate some rooms to keep them current. So that is additional.
Chander K. Baljee:
Most of it you know example, a resort in Bangalore, we added 28 wooden cottages. We did it through our internal, we had a loan sanctioned of INR15 crores for that, but there was enough surplus available in that company. So we didn't throw our internal resources
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
only. And now we are taking up the banquet halls and the restaurants there also. Hopefully, we should not, we should be doing through our internal resources. And of course, if there's a larger capital investment required, then we may resort to taking some loans from the banks, which of course most of our companies are now debt free.
So I think banks are more than willing to come and lend us in those companies. So I think on CapEx front, we don't have anybody, unless we have another opportunity like a revenue-share, which is a large opportunity like ICONIQA, which we have. But we don't see that in the immediate future right now.
Tanya Kalra:
Okay. Sir, one last question. Could you share the EBITDA margin levels for matured properties versus for the newly launched hotels?
Amit Jaiswal:
Yes. See the EBITDA, we have given one presentation, if you really look at it, the slide, I will tell you the Slide number 7, which is the slide we have given, with ICONIQA and without ICONIQA. Yeah, Tanya, if you look at the slide number 7, what I've done is I've given you the financials of Royal Orchid Consolidated. I've also given ICONIQA separately and the existing property of Royal Orchid other hotels. So if you look at the EBITDA of other hotels is around INR103 crores. Okay. And so there I've given it separately. Other than ICONIQA, the EBITDA was INR103 crores and ICONIQA EBITDA was INR7.3 crores. And if you go to slide number 19, in the slide number 19, so I've given the separately the managed hotel performance also.
Tanya Kalra:
Okay, sir. That's it from my side. Thank you. All the best.
Moderator:
Thank you. We'll take the next question from Anubhav Jain. Anubhav, we can go ahead.
Anubhav Jain:
Hello. Yeah, am I audible?
Amit Jaiswal:
Yes. Yes.
Anubhav Jain:
Okay. So my question is, when do you expect ICONIQA Mumbai to become profitable at the PAT levels?
Amit Jaiswal:
So as far as PAT level profitable is concerned, it will be profitable in '26, '27 itself. But the Ind AS, there is a provision which comes because of Ind AS. So we'll have to evaluate that also in this year. Probably this year also PAT will be negative and maybe in '27-'28, we will move to a profitable position. The notional Ind AS if we remove.
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Anubhav Jain:
Okay. And my another question is the room rate growth coming mainly from better pricing or because of more premium hotels in the portfolios?
Amit Jaiswal:
Come again, Anubhav, I couldn't hear you.
Anubhav Jain:
Okay. Is the room growth coming mainly from better pricing or because of more premium hotels in the portfolio?
Amit Jaiswal:
No, no. See, if you look at our slides, I have given you the pricing also. So we have done a considerable growth as far as the ADRs are concerned. The average rate has grown in our presentation I have given. So from 5,800, we have grown to 6,000 and odd. However, the occupancy remained the same for last year. So occupancy would have grown a notch above had the market not hit because of the war. So in the current year, it is very difficult. However, we are looking at a growth in the ADR, but occupancy depends on the market scenario.
Anubhav Jain:
Okay, sir. Thank you.
Moderator:
Thank you. We'll take a follow-up question from Chirag. Chirag, you can go ahead.
Chirag Singhal:
What's the occupancy for ICONIQA in the current quarter? How is the trend looking like?
Amit Jaiswal:
In the current quarter, we are doing 81% occupancy, Chirag.
Chirag Singhal:
Is this the current occupancy or average so far?
Amit Jaiswal:
No, no. April and May I am talking.
Chirag Singhal:
Okay. All right. Thanks.
Moderator:
We'll take one question from the Q&A again from Amit Kumar. What is the share of international travellers in the Royal Orchid guest mix and what would be the same for guests from the Middle East region if you track this data?
Amit Jaiswal:
See, as far as the international travellers are concerned, I have given you the figures, detailed figure in the guest breakup list. If you really look at it, Q4FY26, 30,000 means almost 19% guests were international travellers as against 80.8% guests in domestic.
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Moderator:
His question is, do you have data, how much of this would be from Middle East, the international travellers?
Amit Jaiswal:
Middle East data is very difficult to say right now. We don't have the data, how much?
Arjun Baljee:
Sorry, Arjun Baljee here. I just want to highlight, it isn't so much as the Middle Eastern travellers as much as the market share of Middle Eastern flight arrivals into India. And you've got most of the travellers kind of connecting through the Middle Eastern carriers. And just remember that the Middle Eastern carriers had close to 40% market share of inbound into India. So, that I think is that is what was disrupted because of the war.
Moderator:
Thank you. We'll take the next question from Bharat Gianani. Bharat, you can go ahead.
Bharat Gianani:
Yes, thank you for the opportunity. Sir, just wanted to check on slide 24, you have given the upcoming pipeline. So, which says that 52 hotels and about 3,600 keys approximately. So, just wanted to check out of this pipeline, what would be the key count of revenue share? I can see that there are five properties on revenue share. So, what would be approximate key count that you're looking at revenue share? And if you can provide the timeline for the same?
Chander K. Baljee:
So, it's very difficult right now to say that, because you see what happens is revenue share projects, they are, the control is not in our hands of the date of opening and the quality of the product. We do monitor. But sometimes what happens is that owner has the final say. He may have some constraints in terms of this thing. So, at this stage, we won't hazard a guess.
Keshav Baljee:
Yeah, we've got about 522 keys on revenue sharing, which is what we have discussed, which is roughly that's what it is.
Bharat Gianani:
Okay, thanks.
Amit Jaiswal:
Bharatji, around 500 and odd keys will come in revenue share. And we are hopeful that that would should come within this year. But as Mr. Baljee rightly said they are on the construction stage. So, when it will come exactly, very difficult to say.
Keshav Baljee:
Yeah, unfortunately construction also has been relatively disrupted due to the war. A lot of the costs have gone up. So, there is some slowdown
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Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
in construction in general. I'm not saying specifically to our hotel, but in general. So we could anticipate certain impacts, a few quarters down the line, which is what we are, that's why we are not hazarding a guess as to the opening dates due to that.
Chander K. Baljee: Like, there's been a problem in sourcing tiles from Morbi because of the LPG crisis. So, one of the projects had got delayed because of that. So, there are various factors. So, I would not like to give you specific dates of what will happen, but we are doing our best.
Amit Jaiswal: And whenever we open the hotel, we do an announcement.
Bharat Gianani: Okay. Sir, just a general feedback, if you could, in future, give a key wise split and expected announcement. Obviously, I understand that this situation is a bit different, but in a normal course, if you can incorporate that things in the presentation that would be of great help.
Amit Jaiswal: Key wise we can give, no problem.
Bharat Gianani: Okay, sir. Thank you. All the best.
Moderator: Thank you. We'll take a follow-up question from Rahul Bhangadia. Rahul, you can go ahead.
Rahul Bhangadia: Sir, if you could just give us a sense on the subsidiary numbers, which manages which is in the managed side of the business. I think last year we had some INR38 crores or INR39 crores of top line there. What is the number for FY26?
Keshav Baljee: You talked about Regenta Hotels Private Limited?
Amit Jaiswal: One second, Rahul. One second, I'll just give the number.
Rahul Bhangadia: Yeah, yeah.
Amit Jaiswal: So, there we have done a top line of almost INR55 crores -- INR56 crores.
Rahul Bhangadia: And what would be the profitability there, sir? Because that, we are from.
Amit Jaiswal: Around 20, INR20 crores is the profitability.
Rahul Bhangadia: INR20 crores is the PBT number or...?
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Amit Jaiswal:
No, INR20 crores is the EBITDA number. And after that, we transfer 5% as the brand fee to the parent company. So the PBT numbers is around INR17 odd crores.
Rahul Bhangadia:
So, that business has really turned out well in the sense that from what we saw three years or four years back when it used to be a INR15 crores, INR20 crore top line.
Amit Jaiswal:
Yes, absolutely. Absolutely.
Rahul Bhangadia:
That INR15 crores, INR20 crore top line has now become a INR55 crore top line with actually a bottom line of almost a PBT of INR20 cr. INR2.5 crores being transferred to the parent is a different issue. But I'm saying it's a INR20 cr., INR20 cr. PBT.
Amit Jaiswal:
Yes, yes, yes.
Rahul Bhangadia:
Okay. Okay.
Amit Jaiswal:
And it will grow further, Rahul, as we add so many hotels which are there in the pipeline which we add, it will grow further.
Rahul Bhangadia:
Yeah. Okay. Then maybe it's worthwhile thinking, sir, of kind of, I don't know if there is a situation to unlock that value somewhere there because that I am assuming it's going to be a very high ROC piece with no major capital requirements at all because it's a managed piece.
Amit Jaiswal:
Yes, definitely.
Rahul Bhangadia:
Great. Thank you so much. Thanks.
Moderator:
Thank you. We'll take the next question from Majid. Majid, you can go ahead.
Majid Ahamed:
Am I audible sir?
Amit Jaiswal:
Yes, yes. Please go ahead.
Majid Ahamed:
Yes, sir. Thank you for the opportunity. Sir, my first question that I have is majorly what has led to the divergence in occupancy between JLO and managed hotels? I think the occupancy looks higher in JLO and...
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Amit Jaiswal:
See, managed hotel, what happens, Mr. Majid, is that there will be a lot of hotels which we would have added in the current year. Okay. So, those hotels -- see, any hotel when you open, it takes little time to grow the occupancy. That is why if you really look at the existing hotel, managed hotel which were existing last year also, they are doing well. They are in the 60%, around 67%, 68% occupancy. But it's the new hotel which has just started. So, their occupancy averages out the managed hotel occupancy. That's you're seeing at 62%.
Chander K. Baljee:
Some of the hotels, managed hotels are in resort locations or leisure. So, by nature, the occupancy of those hotels will be seasonal. So, it won't match the city hotels.
Majid Ahamed:
Got it, sir. And secondly, regarding the F&B cost, we have seen some kind of spike from 27% to 30% in the quarter. So, going forward, how are we looking? Because the pace of growth has also moderated in F&B revenues and the cost has gone up. So, how are we looking to manage that? Do you see the pressure is expected to...?
Amit Jaiswal:
No, no, Majid, if you really look at the F&B cost, it has gone up because of the new hotel ICONIQA which we have opened. Okay. So some, as you rightly said, those write-offs where lot of F&B was involved, if you really see the write-off as earlier we discussed, INR5.5 crore pre-operating expenses. So, lot of F&B costs were there. That is why you have seen. Otherwise, we will be hovering around that percentage only what we have been doing.
Majid Ahamed:
So, marjorly is it an inventory write-off, of F&B or what rate of business it was.
Amit Jaiswal:
Yes, yes. ICONIQA, we opened 290 keys hotel in Bombay.
Majid Ahamed:
Got it, sir. And so, then recently we have made a Hilton partnership. So, when do we expect any kind of opening or any timelines?
Keshav Baljee:
Yeah, that's a long-term 10-year partnership for the Hampton by Hilton brand in 6 states in India where we are going to be opening about 125 hotels with them. But obviously, keep in mind these hotels are going to be signed this year onwards and therefore they will start to open in a phased manner. But so, yeah so we will be happy to give you the announcements when we have the first Hampton signed. But we are working on it and we do anticipate some signings in the current year as well.
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Majid Ahamed:
Sir, if you can give some ballpark on how many keys or how much hotels are we looking this year?
Keshav Baljee:
Yeah, honestly, like, because we have just signed the contracts with Hilton, we are in the process of rolling this out. We will definitely come back to the investors with a more concrete business plan as we roll out our first property with them because we'd also want to understand the entire life circle of signing a property, opening a property with them before we kind of know exactly how we are going to ramp up. Also, we are getting market feedback, et cetera. So, it would be wrong for me to give you an exact ramp up unless we, you know, do a little bit of the homework there which is ongoing. It's happening and we'll come back to you very shortly with that. But like I said, there will be a couple of signings this year that you can expect. Typically, the average Hampton hotel will be somewhere around 75 keys. So, that should give you some sense. But like I said, I cannot hazard forecast much more than that as of now.
Moderator:
Hello? Thank you. We'll take a follow-up question from Chirag. Chirag, you can go ahead.
Chirag Singhal:
Yeah, thanks for the follow-up. So, on managed hotels, you mentioned INR55 crores top line for this year and INR20 crores EBITDA, correct?
Amit Jaiswal:
Yes.
Chirag Singhal:
So, this is flattish if I compare the last year numbers. I think last year we did INR53 odd crores total income and the EBITDA would be around INR20 crores, INR21 crores. So, what is the guidance for FY27 for managed hotels since we are adding 500, 600 keys every year?
Amit Jaiswal:
See, as of now, it looks good only. But as Mr. Baljee also rightly said and seeing the scenario, okay, the way things are going, okay, it is very difficult right now to make a comment. And I told you earlier that it's only after the first quarter I'll be in a better position to make any comment on that how the business moves and all.
Chirag Singhal:
So, any particular reason why the numbers were flat? So, we added 500, 600 odd keys in FY26 and our ARRs are slightly up. Occupancy is similar to what it was last year. So, if you could provide the breakup of this 500, 600 keys, like how many keys opened in first half of the year? How many keys opened in the second half of the year?
Amit Jaiswal:
No, I'll tell you.
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Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
Chander K. Baljee:
It's difficult at this stage. Like I said, a lot of those projects are coming up and like I know one project is coming up in Masoori, the work that comes totally to a standstill because non-availability of the tiles from ceramic tiles from Morbi. It's difficult to say that. Some people run into financial problems because that's not our call. We help them out in, of course, with our connections in the bank. We help certain people to raise money from NBFCs and financial institutions. We're very happy to give those to the owners. But I think at this stage to give a prediction is very difficult because of the uncertainty of the dates in which they'll open. And some hotels are opening much faster than what we anticipated. Tirupati Hotel is going to open next week. So, I suppose with God's blessings, our company should grow faster. And one more hotel in Kota is going to open very soon. And Kota is always in the news because of the number of students which are there. So, I think sometimes hotels open like Hyderabad hotel is going to open very shortly. So, these are some of the things which I think about 7, 8 hotels are going to open within the next 2, 3 months. So, sometimes go slow and sometimes this is really acceleration.
keshav Baljee:
This is a good year for us in terms of openings, substantially more than last year. So, I think when you look at it from that perspective, definitely the numbers will start to get better once the openings come in as well. We also anticipate towards the end of the year some upswing coming from also the signings from the Hampton Portfolio et cetera. So I think we are positive. We think that we are very well positioned for this business. There is some, I would say restructuring of the portfolio also that we are planning where we would like to have minimum fee thresholds for hotel, minimum key counts, those kinds of things as well. So, we are doing all of that. I think hopefully, we will see much better performance from this division going forward. We are very positive on this division as well.
Chirag Singhal:
Sir, is it possible to just quantify for FY27 based on whatever hotels you have opened in FY26? Because in '26, if I compare it with '25, the numbers are flat. So, I understand that how many hotels you are going to sign in '27 and on that front, it is difficult to give some estimate. But whatever hotels you have opened in '26, because clearly there is no contribution on the top line or bottom line for '26. So, what is the bare minimum growth that one should expect in this segment for FY27?
Keshav Baljee:
Chirag, as we said earlier, unfortunately, due to the war situation right now, we are restraining from giving any guidance in terms of numbers for each division or the company as a whole in this call. Unfortunately,
Royal Orchid Hotels Ltd.
Q4 & FY26 Post Earnings Conference Call
May 26, 2026 12:00 PM IST
that's something we are unable to do because keep in mind that the situation is quite fluid. And so, we are getting impacted in various different ways which we are not aware about right now. That being said, we believe it will be a better year than last year. We believe that we are working hard towards it. We are adding more hotels regardless of what happens. We are adding more hotels this year than last year. That's all that we can say right now. But the market impact, given what's happening in the war and it's not yet ended, et cetera. So we don't exactly know. We can't give you a very concrete number. We don't want to give you something that we will then walk back next quarter.
Chander K. Baljee:
This new labour code and the fuel prices have added to this thing and the labour code expenses are very, very high. And in fact, today, there is a news article in the Bangalore paper that they are planning to increase the minimum wages. And if they do that, it's going to be a disaster for the hotel industry. So, I don't know what the other states are thinking. But we all need to look at a situation where how do you manage the cost because you can't keep on passing on the cost increase to the customer because of the lot of options the customer today has. So, I think, we are in very, very turbulent times. So, but then I always tell my team that if you could sail through COVID, then you can sail through any sort of crisis. So, we are working toward that so that we can deliver value to our partners, stakeholders or partners, we can deliver that.
Chirag Singhal:
Okay, that would be it from me. Thanks and wish you all the best.
Moderator:
Thank you. We'll take another follow up question from Rahul Bhangadia. Rahul, you can go ahead.
Rahul Bhangadia:
Yeah, thank you. Once again, just a question on the Hampton bit. Now that we have signed that this thing, just a question on whether it becomes a part of that overall map of 20,000 plus rooms? Is this over and above that? And if you could just tell us if it is a technical structure, the structure here, is it a part of a subsidiary? Is it a JV? What is it exactly?
Keshav Baljee:
So, basically, our management contract business Regenta Hotels has signed a strategic licensing agreement, right? So, it's effectively a franchise agreement. So, for six days in the country, where basically we will be able to go to hotel owners just like we're going today to a hotel owner, we are offering the Regenta brands or ICONIQA or Crestoria or any of our brands. We can offer, also we can offer the Hampton by Hilton brand to these owners as an option today. So, it's an additional
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May 26, 2026 12:00 PM IST
option that is there. However, in terms of number of keys, for the 20,000 number, the 345 is very much part of our growth plan.
You know, and we think that Hampton and Z by Regenta, which is our focus service brand will sort of work complementary in certain markets. And that's what, any other questions I can answer if you don't mind?
Rahul Bhangadia:
No, just a point of view, like, let's say Hampton 125 hotels we're talking about, hypothetically, let's say it's 75 and that becomes about 8,000, 9,000 room kind of situation. So, I'm just asking whether that 8,000, 9,000 is a part of this 22,000 roadmap or it's over and above it? That's the only question.
Keshav Baljee:
It's part of the roadmap. The 125 hotels is signings in a period of 10 years. That's what we are looking at. Of course, the number of hotels to open will be probably half of that. So, over a period of 10 years. So, just to give you some sense of how things will ramp up. But yes, eventually, the idea is to have 125 operational Hampton by Hilton hotels. But that is over a period of 10 years. This Vision 2030 is obviously a shorter horizon.
Rahul Bhangadia:
Sure. Yeah, sure. Okay. Thank you.
Moderator:
Thank you. Since there are no further questions, I would request management to give their closing comments.
Chander K. Baljee:
Well, it was nice to hear all of you and you raised questions which are very thought provoking and it will motivate our team to see that how do we produce better results in spite of all the setbacks. Because every year there'll be some new googly coming up and we have to be prepared for that. So, I think we are poised to grow very rapidly. There is, that's assurance I can give you guys that and with all your support, which has been there. Thank you very much. And hope to see you very soon the next concall.
Moderator:
Thank you. This brings us to the end of today's call. Thank you to all the participants and thank you for management for giving their valuable time. You may all disconnect.
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