EIH Associated Hotels Ltd Q1 FY26 Earnings Analysis

- Revenue growth driven by increasing room rates and occupancy, with strong demand expected to continue. - Pipeline of 21 new hotels (1,500 keys) coming online in the next 2-3 years, including 12 domestic and 9 international properties, supporting volume growth. - Focus on India and the Indian subcontinent for expansion, with international growth in select markets like Middle East, Marrakesh, and Mauritius. - Expectation to meet or exceed pre-COVID foreign tourist business levels in FY25. - Flight catering business is growing, aiming to compensate for loss of airport lounge business with increased airline catering demand. - Full-year consolidated revenue grew by 11% (FY25), with EBITDA growth of 13%, underpinned by strong industry-wide air traffic growth (9% in Q4). - Expansion and growth strategies include brownfield projects, acquisitions, and partnerships, with cash surplus of ~1,000 crores for future investment.

- EIH Ltd expects continued growth driven by rate increases, occupancy, and new hotel additions over the next 2-3 years (Page 16, 13, 6). - Room additions of ~1,400-1,500 keys across 21 hotels (12 domestic, 9 international) planned in 3-4 years to drive revenue (Page 6). - Strong focus on driving higher Average Room Rates (ARR), with a belief that current pricing is significantly underpriced compared to global city hotels, enabling upside potential (Page 14, 13, 3). - Potential growth through inorganic routes such as acquisitions or brownfield projects is being explored to supplement organic growth (Page 13). - FY25 foreign tourist bookings expected to meet or exceed pre-pandemic levels, supporting revenue recovery (Page 16). - EBITDA and PAT showed healthy growth; PAT growth was impacted by some exceptional items but overall remains positive (Page 6). - Strong demand outlook with buoyant air traffic and tourism trends supporting sustained growth (Page 5, 9).

- Current capex includes investments in Oberoi London, Rajgarh property (upcoming), renovation at Trident Nariman Point (four floors), long stay apartments at Oberoi Mumbai, Oberoi Goa, and Oberoi Grand. (p.16) - Total capex for the year mentioned is ₹480 crore (consolidated) and ₹270 crore (standalone). (p.16) - Additional minor capex expected towards the end of the year in London subsidiary, but no sizable amount. (p.9) - Future expansion: 21 properties with approximately 1,500 keys to be added over 2-3 years; 12 domestic hotels and 9 international. Total keys to increase from 4,200 to around 5,700. (p.6) - Open to inorganic growth including brownfield projects and acquisitions to complement organic growth and protect against muted growth in room rates. (p.13) - Strategic objective includes seeking a 49% partner for the London hotel near its opening to reduce risk. (p.9)

- There is no explicit mention of any current or planned new fundraising through debt or equity in the transcript. - The company has a strong cash surplus of approximately ₹1,000 crores as of March 31, 2025, providing a good position for future growth and expansion. - Vineet Kapur (CFO) mentioned that most of the investment for the current year, particularly related to the London subsidiary, has already been made, with only some minor additional funds to be infused by year-end. - The company is open to options for growth including brownfield projects and acquisitions, but no specific fundraising plans were detailed. - Overall financial health and cash surplus suggest no immediate need for fundraising through debt or equity for planned expansions.

- EIH Ltd has a healthy growth pipeline with 21 properties under development. - These properties will add roughly 1,500 keys over the next 2-3 years. - Out of the 21 properties, 12 are domestic hotels in India and 9 are international. - The total current footprint stands at about 3,700 keys in India and 500 keys internationally (approx. 4,200 keys total). - Most owned hotel portfolio additions are expected to come online in FY28 and FY29. - Until then, growth focus will remain on increasing room rates and occupancy. - The company is also open to exploring inorganic growth through acquisitions or brownfield projects as part of its expansion strategy.