Brigade Hotel Ventures Ltd Q4 FY26 Earnings Analysis

- Expect mid-teens to high-teens growth in RevPAR, driven by strong demand and limited new supply in core micro markets like Bangalore and Chennai. - Anticipate healthy ADR (Average Daily Rate) growth aligned with market trends, targeting better yield due to strategic positioning and steady high occupancy. - F&B revenue projected to grow in high teens, aligning with room revenue growth after stabilization from recent quarter fluctuations. - Development pipeline includes nine new hotels adding 1,700 keys by FY 2030, nearly doubling portfolio and supporting long-term revenue growth. - Capex of approximately INR 400-500 crores planned in FY 2027 for expansion, with larger investments back-ended to FY 2029 and 2030. - Continued focus on operational efficiencies and guest experience expected to support sustainable sales growth. - Strong demand visibility from corporate and MICE segments, with growth potential in conference and social event business.

- Brigade Hotel Ventures expects mid-teens to high-teens percent growth in RevPAR and F&B revenue going forward, driving strong earnings growth. - PAT grew by 126% YoY in Q3 FY’26 and 273% in the last 9 months, indicating improving profitability trends. - Operational efficiencies and cost control initiatives support EBITDA margin expansion, currently at 35.9%. - Capex of INR ~1,500 crores planned for FY ‘26 and ‘27 to add 9 new hotels, with fresh debt to fund expansion but a strong balance sheet with net cash of INR132 crores currently. - ROCE stands at 13.1%; long-term growth supported by a well-phased development pipeline nearly doubling keys by FY30. - Debt to EBITDA ratio expected to peak around 4x-4.5x in FY29-30 but will improve as new hotels commence operations. - Overall, Brigade is confident of sustainable growth and delivering long-term value to stakeholders through balanced portfolio expansion and strong demand visibility.

- For FY’26, Brigade Hotel Ventures has planned a capex of about INR265 crores, with approximately INR230 crores already spent in the first 9 months. - FY’27 capex is expected to be around INR500 crores, with a significant portion of total planned capex (~INR3,600 crores for nine upcoming hotels) back-ended to FY’29 and FY’30. - The company has started construction on two Fairfield hotels; the Grand Hyatt Chennai awaits environmental clearance to begin construction. - Capital investments include acquisition or long leases of land for nine upcoming hotels, with about 10% of total capex allocated to land acquisition. - Fresh debt will be raised to fund these expansions; net debt is currently negative due to IPO proceeds repaying past debt. - The company is in negotiations about contract renewals with Marriott for one hotel expiring December 2026. - Capex plans include ongoing maintenance and upgradation of existing properties alongside new developments.

- No current debt on the books as IPO proceeds were used to repay all debt. - Net cash surplus of INR132 crores currently. - Existing loan of about INR148 crores from the parent company planned to be repaid. - For upcoming expansion, plan to raise fresh debt; no asset recycling or selling existing portfolio. - Debt expected to fund construction costs for new hotels, likely starting in the coming fiscal year. - Peak debt-to-EBITDA expected around 4-4.5x in FY'29 and FY'30, supported by strong DSCR. - No mention of imminent equity fundraising; focus is on utilizing IPO equity proceeds and raising debt for capex.

- Brigade Hotel Ventures Limited has a development pipeline of nine new hotels planned over the next five years. - The pipeline involves an investment of close to INR 3,600 crores. - These additions aim to nearly double the current portfolio, adding approximately 1,700 keys, reaching a total of 3,300 keys by FY30. - Among these, the Courtyard by Marriott at Chennai World Trade Centre (45 keys) is expected to become operational in FY27. - Capex deployment so far includes about INR 158 crores in FY24 and FY25, with over INR 230 crores invested in the last 9 months of FY26. - Remaining capex of approximately INR 3,200 crores is expected to be deployed mostly in FY29 and FY30, reflecting a back-ended spending pattern. - No asset recycling or sale of existing portfolio assets is planned; expansion will be funded through fresh debt.