Current/ Expected Orderbook/ Pending Orders?

The company currently has about 293 keys under development in the managed portfolio. They plan to add approximately 400 rooms in the second half of the fiscal year. Their goal is to add around 400 to 500 keys each year through organic and inorganic growth. On the lease model, 144 keys are expected to be added during the year across key locations such as Goa, Dharamshala, Manali, and Shimla. Additionally, 31 keys will be added on the ownership model, with the balance keys expected from asset-light models, totaling roughly 400 keys. The company is focused on expanding through acquisiti

Any current/future new fundraising through debt or equity?

The company has taken a line of credit of INR 105 crore for the acquisition of Zillion Hotels & Resorts from ICICI Bank. Total investment towards acquisition includes INR 130 crore, split as INR 80 crore on line of credit and INR 50 crore on equity. The net debt currently stands at INR 132 crore but is expected to move towards neutral by year-end. Management did not explicitly mention any new or upcoming fundraising through additional debt or equity in the transcript. The focus seems to be on organic growth and acquisitions funded through existing credit lines and internal resources. No specif

Any current/future capex/capital investment/strategic investment?

INR 52 crore allocated towards ongoing capex for Peak ASPHL. INR 130 crore invested for the acquisition of Zillion Hotels & Resorts at Juhu, including: - INR 105 crore line of credit from ICICI Bank for Zillion acquisition. - INR 80 crore towards takeover of creditors. - INR 50 crore equity infusion. Plans to develop 15 lakh sq ft of embedded Floor Space Index (FSI) on owned land banks, including a 6 lakh sq ft prime site on EM Bypass, Kolkata, comprising residences and a 200-room hotel. Organic growth focused on enhancing IT infrastructure, revenue management systems (Nor1, Oracle-based

Future growth expectations in sales/revenue/volumes?

The domestic tourism industry is projected to grow at a 13.4% CAGR over the next five years, driving double-digit growth in hospitality demand. ASPHL expects demand to grow at about 10.5%, with supply rising at 8.4%, leading to a continued demand-supply mismatch supporting growth. The company foresees a super cycle of double-digit growth in revenues driven by strong economic growth and limited branded room supply. Flurys brand revenues grew 22% and the expansion of outlets (targeting 200 by FY '27) will further boost sales. Organic growth capabilities built around AI-driven revenue management

Future growth expectations in earnings/operating earnings/profits/EPS?

EBITDA margins are expected to improve by approximately 100 basis points year-on-year, with H2 margins higher than H1, continuing a positive trend seen previously. EBITDA margins for mature Flurys café stores are around 12% annually post-lease expenses, with expected improvements ahead. The company aims for steady double-digit revenue growth driven by hotel and F&B expansions, organic growth capabilities, and asset-light strategies adding over 400 rooms in FY '26. Flurys brand revenue grew 22% with plans to expand cafes rapidly; Flurys EBITDA margin is in high single digits with expectat

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Apeejay Surrendra Park Hotels LtdQ3 FY25Leisure Services

Apeejay Surrendra Park Hotels Ltd Q3 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹123P/E: 29.9Market Cap: ₹2.5K CrSector: Leisure Services

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→The domestic tourism industry is projected to grow at a 13.4% CAGR over the next five years, driving double-digit growth in hospitality demand.
→ASPHL expects demand to grow at about 10.5%, with supply rising at 8.4%, leading to a continued demand-supply mismatch supporting growth.
→The company foresees a super cycle of double-digit growth in revenues driven by strong economic growth and limited branded room supply.
→Flurys brand revenues grew 22% and the expansion of outlets (targeting 200 by FY '27) will further boost sales.
→Organic growth capabilities built around AI-driven revenue management and upselling (e.g., Nor1 software) will enhance revenue.
→Strong growth in key metro and leisure markets where ASPHL operates is expected to continue.
→EBITDA margins are also expected to improve by approximately 100 basis points year-on-year, supporting profitable growth.

Margin guidance

Category 2

→EBITDA margins are expected to improve by approximately 100 basis points year-on-year, with H2 margins higher than H1, continuing a positive trend seen previously.
→EBITDA margins for mature Flurys café stores are around 12% annually post-lease expenses, with expected improvements ahead.
→The company aims for steady double-digit revenue growth driven by hotel and F&B expansions, organic growth capabilities, and asset-light strategies adding over 400 rooms in FY '26.
→Flurys brand revenue grew 22% with plans to expand cafes rapidly; Flurys EBITDA margin is in high single digits with expectations of further improvement.
→Strong organics growth driven by AI-driven revenue management systems (Nor1) and enhanced customer experience upselling will support profitability.
→The overall outlook indicates sustained growth with better quarter 3 and 4 performance expected, supported by industry tailwinds like weddings, events, and international concerts.
→The Park is committed to delivering continuous improvements in profitability and growth on both organic and inorganic fronts.

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Fundraise plans

Yes

→The company has taken a line of credit of INR 105 crore for the acquisition of Zillion Hotels & Resorts from ICICI Bank.
→Total investment towards acquisition includes INR 130 crore, split as INR 80 crore on line of credit and INR 50 crore on equity.
→The net debt currently stands at INR 132 crore but is expected to move towards neutral by year-end.
→Management did not explicitly mention any new or upcoming fundraising through additional debt or equity in the transcript.
→The focus seems to be on organic growth and acquisitions funded through existing credit lines and internal resources.
→No specific guidance or announcement was made regarding future debt or equity fundraising.

Order book

→The company currently has about 293 keys under development in the managed portfolio.
→They plan to add approximately 400 rooms in the second half of the fiscal year.
→Their goal is to add around 400 to 500 keys each year through organic and inorganic growth.
→On the lease model, 144 keys are expected to be added during the year across key locations such as Goa, Dharamshala, Manali, and Shimla.
→Additionally, 31 keys will be added on the ownership model, with the balance keys expected from asset-light models, totaling roughly 400 keys.
→The company is focused on expanding through acquisition selectively, along with significant development on its existing land bank with 15 lakh square feet of embedded FSI.
→Completion of ongoing projects and acquisitions remain on track to meet growth targets.

Capex plans

Yes

→INR 52 crore allocated towards ongoing capex for Peak ASPHL.
→INR 130 crore invested for the acquisition of Zillion Hotels & Resorts at Juhu, including:
→ - INR 105 crore line of credit from ICICI Bank for Zillion acquisition.
→ - INR 80 crore towards takeover of creditors.
→ - INR 50 crore equity infusion.
→Plans to develop 15 lakh sq ft of embedded Floor Space Index (FSI) on owned land banks, including a 6 lakh sq ft prime site on EM Bypass, Kolkata, comprising residences and a 200-room hotel.
→Organic growth focused on enhancing IT infrastructure, revenue management systems (Nor1, Oracle-based AI software), and online platform upgrades to reduce commissions and improve margins.
→Expanding lease and asset-light model, adding 144 lease keys in FY26, targeting 500 keys addition annually with 20-25% in lease model.
→Flurys outlet expansion adjusted to 30 outlets in FY26, with sustained growth plans towards 200 outlets by FY27-'28.

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