Sound sleep providers ..CYCLE is on HOTELS

Investing Strategies
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EIH Q2 concall highlights -

Sales - 552 vs 417 cr, 32 pc

EBITDA - 165 vs 101 cr, up 66 pc

PAT - 94 vs 22 cr, up 256 pc

Net cash on balance sheet @ 509 cr

Out of the total revenues, revenues from flight catering and airport lounge business @ 100 vs 56 cr, EBITDA @ 37 vs (-) 3 cr

City wise Rev Par growth (YoY) for EIH properties in Q2 -

Agra - 60pc

Delhi NCR - 38 pc

International - 28 pc

Jaipur - 28 pc

Bhubneshwar - 26 pc

Chennai - 23 pc

Mumbai - 19 pc

Kolkata - 12 pc

Hyderabad - 12 pc

Bengaluru - 9 pc

Udaipur - 7 pc

Cochin - (-) 11 pc

Chandigarh / Shimla - (-) 35 pc - due floods

EIH Domestic hotels ( including managed ) vital stats - Q2 (YoY) -

ADRR - Rs 16500, up 23 pc

Occupancy - Flat

RevPAR - Rs 11865, up 20 pc

National presence -

12 Oberoi branded hotels

10 Trident branded hotels

Total rooms @ 3772

International presence -

07 Oberoi branded hotels

Total rooms - 497

Growth in ADRRs (YoY) in luxury / 5 Star part of the Industry is in 20s vs low teens for 2-3 star properties

Current number of 5 star and above rooms avlb in India @ 1.65 lakh. New supply coming on stream till FY 28 @ 0.55 lakh. Basically the demand - supply dynamics look good for next 5 yrs !!!

CWC should help the company in Q3 wrt rates, occupancy

Q3 - recovery in Shimla has been promising specially at The Cecil. The Windflower hall is taking slightly longer for full recovery as Cecil receives greater chunk of foreign tourists ( specially from UK due to its Historical value )

Middle East properties are seeing some pressure due to the ongoing Israel - Hamas conflict

EIH - vision for 2030 - minimum 50 more hotels with additional 4500 keys ( including managed Hotels ) - Confident of achieving the same. 03 hotels already in pipeline - Tirupati, Rajgarh, Vizag

Business in H2 should be good

According to Mr Oberoi- despite sharp increases in ARRs across 5 star properties, there is still a lot of head room for further growth

RIL has announced that 03 of its properties ( 02 in Mumbai and 01 in UK ) shall be managed by EIH in near future. The UK property is a 47 room hotel, purchased by RIL in 2021. The two groups shall also develop a new property in Gujarat the details of which are not yet known

RIL owns 19 pc in EIH. Another 14 pc is owned by ITC

Disc: holding, biased, tempted to add more, not SEBI registered

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Some key Highlights and answer by management on Concall 06.11.2023
Question: any updates on upcoming projects?
Answer and thread of the answer is interesting:
 Mr. Vikram Oberoi – MD and CEO, EIH Limited: Actually, I just wanted to I think I saw a question from Sanjay as well, I will take that question now, Sanjay’s comment was on the strategy for 2030. And what I would like to mention is we have a vision EIH vision for 2030 which is at a very minimum 50 more hotels with about 4500 additional keys and we are focused on achieving that. You will see there will be some hotels that you will see in our annual report, more recently we announced a Trident Hotel in Tirupati which is done with Mumtaz Hotels and with EIH Associated Hotels in Vizag. As and when we announce projects we will as per stock exchange guidelines inform the stock exchange but we have a number of hotels that are coming to fruition and we will be able to make announcements I hope on an ongoing basis.
 Mr. Amit Agarwal – Participant:
 You said 15 or 50?
 Mr. Vikram Oberoi – MD and CEO, EIH Limited:
 50.
 Mr. Amit Agarwal – Participant:
 50 in the next 7 years?
 Mr. Vikram Oberoi – MD and CEO, EIH Limited:
 That’s correct.
 Mr. Amit Agarwal – Participant:
 How many will be managed and how many will be owned?
 Mr. Vikram Oberoi – MD and CEO, EIH Limited:
 It will be a combination of owned and managed.

Question 2
Mr. Saurabh Patwal – Participant:

  • Yeah. Yeah. So, thanks a lot for highlighting the big picture of your expansion. I just wanted your thoughts on two things. One is, our strategic partnership with Mandarin, which is the past you have highlighted, and also Reliance Industries announced three hotels in partnership with EIH. What would your thoughts and what’s EIH contribution to that partnership?

  • Mr. Vikram Oberoi – MD and CEO, EIH Limited:

  • So, would you like me to answer for both?

  • Mr. Saurabh Patwal – Participant:

  • Yeah.

  • Mr. Vikram Oberoi – MD and CEO, EIH Limited:

  • Okay. Yes, that’s correct, there was three hotels Reliance had made a press release and those details are in that and we look forward to developing those hotels and also other hotels with Reliance, I hope, in the future. As of now, it’s only those three hotels that Reliance had announced. As far as Mandarin goes, really the objective was to bring benefit to our guests and Mandarin guests, to bring benefits to our colleagues. So, there would be learning opportunities from each other. And those were really the two objectives and we continue to work on those fronts so that we can offer greater value, greater experience to Mandarin guests and vice versa and also enrich the experience of our colleagues, both for Oberoi group and for Mandarin.

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ITC including Russell Credit: 16.13%

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Hi!
I was unable to find any details on INDHOTEL on valuepickr. Any particular reason for this?

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Hi - there is a thread here: Indian Hotels--for long term portfolio stability - #81 by harmeshthakker