occupancy nosedived.
check slide 14 at https://www.bseindia.com/xml-data/corpfiling/AttachLive/caa51247-3435-4c9b-ba01-13617c685882.pdf. ARR is okish Orchid alone caused total occupancy reduction of 15% of revenue de growth.at same occupancy they would have around 18% revenue growth.
I would wait for management commentary. less worried now since i have been at their properties and am sure occupancy would be recovered.
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transcript. this is re assuring. if they can achive 400 crore revenue in FY26 as stated in Kamat 3.0 that would lift the investors mood.
Kamat Hotels -
Q2 FY 26 results and Concall highlights -
Q2 outcomes -
Revenues - 75 vs 85 cr, down 12 pc
EBITDA - 8.5 vs 22.5 cr, down 62.5 pc
PAT - (-) 2.2 vs 8.3 cr, down 74 pc
H1 outcomes -
Revenues - 157 vs 159 cr, down 1 pc
EBITDA - 25 vs 36 cr, down 26 pc
PAT - 2 vs 9.5 cr, down 78 pc
Brand wise ARRs in Q2 -
Orchid - 5979 vs 5698, up 7 pc
IRA - 4749 vs 4971, down 4 pc
Lotus - 5331 vs 5150, up 4 pc
Jadavgarh Fort - 8286 vs 8323, flat YoY
Brand wise occupancy in Q2 -
Orchid - 47 vs 66 pc, down 29 pc
IRA - 65 vs 77 pc, down 16 pc
Lotus - 38 vs 44 pc, down 14 pc
Jadavgarh Fort - 20 vs 28 pc, down 29 pc
Currently operational hotels -
Orchid Hotels - Mumbai, Lonavala, Pune, Shimla, Manali, Jamnagar, Chandigarh, Toyam, Goa, Rishikesh, Panchgani ( out of these - 2 hotels are owned, 6 are leased, 1 is on a revenue share model and 2 are managed ). Orchid Pune and Orchid Mumbai are the owned hotels. Orchid Lonavala is a managed property
IRA by Orchid - Mumbai, Bhuvneshwar, Nashik, Shambaji Nagar, Ayodhya, Noida, Hyderabad, Dwarka, Goa ( 6 are leased, 3 are on a revenue share model )
Lotus resorts - Konark, Murund ( both are leased )
Heritage hotels - Fort Jadhavgarh, Madhodadhi Palace ( both are leased )
Total - 24 hotels ( 2100 keys )
Orchid Chandigarh started operations in last week of April 25
IRA by Orchid @ Hyderabad, Dwarka, Porvorim ( Goa ) and Orchid Panchgani and Rishikesh went live in Q2
Upcoming Properties -
Orchid Dehradun - Apr 26
IRA by Orchid Bhavnagar - Apr 26 ( delayed - was scheduled to open in Q2/Q3 FY 26 )
Orchid Gwalior - Mar 26
Orchid Nahsik - Apr 26
Orchid Rishikesh 2 - Mar 27
Orchid Puri - Dec 27
Orchid Mandvi - Dec 27
All the a/m properties shall be on lease / revenue share mode except Orchid Mandvi which is on a management contract
Debt on books @ 115 cr ( as on 30 Sep )
IRA by Orchid @ Hyderabad, Dwarka and Orchid Panchgani went live in Q2 + starting of Q3
Orchid Mumbai ( 370 rooms ) and Orchid Pune ( 410 rooms ) are their 2 large hotels - both doing exceedingly well ( managing hotels > 250 rooms requires good management skills - its a kind of testimony to their operational excellence )
H1 EBITDA margins in Q1 stood @ 16 pc. H2 is generally far stronger
Q2 was bad due - washing away of roads near Manali + Shimla had a really bad impact on company’s 2 properties at these places in Q2. Even Chandigarh hotel was adversely impacted due excessive rains in HP + Punjab. Also, company opened 5 new properties in Q2 which led to additional expenses without kicking in of commensurate revenues. Excessive rains in Pune and Mumbai regions ( from where company derives bulk of its revenues ) also impacted their Q2 performance
In Q3, business @ Chandigarh hotel has picked up
Orchid Pune’s renovation now stands paused ( wef 15 Nov ). Most parts of the hotel shall go live wef mid Nov. Rest of renovation shall take place in Apr 26
Q3 in current FY is expected to be far better vs Q3 in FY 25
Should be able to clock 400 cr + kind of revenues for current FY ( management is still confident despite a weak H1 )
Wedding season demand for company’s older hotels continues to be strong. For newer Hotels, demand shall build up as they establish their reputation over a period of time
Company has land banks @ Kottayam, Pune. In talks for developing the land bank near their hotel @ Pune
In Q2, Orchid Shimla had Zero occupancy for 40 odd days and Orchid Manali had zero occupancy for entire 90 days ( Shimla + Manali have 100 + 50 = 150 rooms )
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
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I am.tracking some of kamat hotels like in ayodhaya , pune , rishikesh etc and their arr is comparable to some of indian chain like clarks inn and lemon tree..in fact higher than that. I also see higher dynamic pricing by them on various ota. In concall ,.mgmt said that a large pool of sales are coming via offline channel and their own sales team since they dont want to fully dependent on ota.
Early greenshoots..fy27 should established if kamat hotels group would emerge as one of leading player or not..
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Now Kamat hotel is almost at 10% discount to gross block that too when its asset light model.
There is another hotel stock which is below gross block valuation how ever Kamat is at mich better valuation on mcap /sales.
Axis credit card reward program has onboarded orchid rewards for kamat group orchid hotels which is in 10k arr category.
Company is struggling to increase occupancy while cost going up because of expansion.
Unless they are able to improve occupancy, stock will struggle.
Holding and will buy more once revenue growth comes back. .
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Kamat Hotels -
Q4 and FY 26 results and concall highlights -
No of operational Hotels -
Orchid ( premium ) - 10
Heritage Hotels ( premium ) - 3 ( Madhodhani + Jadavgarh + Toyam )
IRA ( mid premium ) - 8
Lotus ( mid premium ) - 2
Ownership status of Hotels -
Owned hotels - 02. These are - Orchid Mumbai and Orchid Goa
Leased hotels @ 13
Managed hotels @ 4
Revenue share hotels @ 4
Upcoming properties in 2026 -
Orchid Gwalior - Sep 26
Orchid Dehradun - Sep 26
IRA - Bhavnagar - May 26
Orchid - Nahsik - Sep 26
Orchid - Nahsik will be a managed property. Others are leased properties
Orchid Mumbai and Pune with 370 and 410 rooms are their biggest properties
Hotels operationalised in FY 26 included -
Orchid - Chandigarh, Panchgani, Rishikesh
IRA - Hyderabad, Dwarka, Porvorim ( North Goa )
Have added Banquets halls, upgraded all rooms, built additional 25 rooms @ Pune Hotel. Should go live next year and company should reap financial benefits on FY 27. An additional wing of rooms is also going to be added @ their Noida hotel - early next yr
Q4 outcomes -
Revenues - 110 vs 92 cr, up 19 pc
EBITDA - 32 vs 25 cr, up 28 pc
PAT - 17.5 vs 11 cr, up 59 pc
FY 26 outcomes -
Revenues - 385 vs 357 cr, up 8 pc
EBITDA - 97 vs 104 cr, down 8 pc
PAT - 38 vs 47 cr, down 17 pc
Brand wise ARRs for FY 26 -
Orchid - 6393
IRA - 5292
Lotus - 5912
Heritage - 8920
Brand wise Occupancies for FY 26 -
Orchid - 54 pc
IRA - 69 pc
Lotus - 58 pc
Heritage - 30 pc
Notes from Q4 concall -
MMR region continues to witness good demand trends. Opening of Navi Mumbai airport, other infra buildup in the city is a key positive
IRA @ Bhavnagar is expected to open in June. Orchid @ Gwalior, Dehradun, Nahsik - witnessing delays due steep hike in construction costs + non availability of key RMs
Their new Hotels @ Rishikesh, Porvorim, Chandigarh are now doing well
Barring external shocks - should see margin expansion in FY 27 vs 26 ( as 6 newly opened ramp up their occupancy )
Orchid is a popular choice for Akasa, Indigo airlines - for their staff’s stop overs
IRA Mumbai - now stands closed due expiry of lease and its non renewal
Should see much better occupancy @ Fort Jadavgarh hotel. Have taken a number of corrective initiatives to reverse the situation
Witnessing higher manpower costs - also attributable to implementation of new wage code + opening of 6 new hotels in FY 26. As these properties ramp up, better cost absorption should happen in next FY
Current RoI that they r paying on their Debt of aprox 90 cr is 9.75 pc. Cash on books @ aprox 40 cr
Disc: hold a small position, not SEBI registered, posted only for educational purposes, biased
It good to see Goes increasing stake in Kamat by 2%. In Normal circumstances that is brent falls below 100, then we can easily expect 360 cr fy27 vs 386 cr fy26. We can easily expect 400cr+ in fy28. Profit will be more if margin expands as stated by Mgmt, may be around 50cr. Real kick happens only if occupancy expands or key cross 2500. Hope new CFO who has rich experience will bring major changes to Kamat
The interest cost in the latest quarter was at 10 Cr compared to 7 Cr in the last quarter. what was the reason for this as the debt did not increase so much q on q?