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