Royal Orchid Hotels Ltd

- There is no explicit mention of any current or future fundraising through debt or equity in the provided transcript of Royal Orchid Hotels Ltd.’s Q1 FY25 Earnings Conference Call. - The management highlights a strong capital deployment strategy aimed at strengthening the company and producing good financial results, but no specific plans for raising funds via debt or equity were detailed. - Investment plans mentioned include commitments to existing projects like Bangalore Resort, Goa, and potentially the Mumbai hotel, indicating internal funding or reinvestments rather than new external fundraising. - The focus appears to be on cautious expansion and leveraging revenue share and managed hotel models rather than immediate capital raising.

- The company has committed significant investments in ongoing and upcoming projects including: - Bangalore Resort and Goa property expansions requiring capital investment. - New 300-room hotel in Mumbai nearing completion with expected opening by end of December or January. - Yelahanka property expansion with 28 rooms operational by November; Goa expansion awaiting plan sanction and expected to yield results by end of next financial year. - Investment in refurbishments and renovations continue, with phased room renovations over the next two quarters to upgrade inventory. - Digital and IT initiatives ongoing, including a high-end loyalty program and exploration of Metaverse opportunities, involving strategic technology investments. - Disposal of a piece of land in Maharashtra (Tillari) under consideration to optimize capital allocation. - Targeting a mix of managed and revenue share/lease hotels, with approximately 10% of new signings as revenue share or lease requiring some investment. - Strategic focus on acquiring larger, higher-quality assets expected to yield better returns.

- Target top line growth to ₹370-₹380 crores for FY25, up from ₹312 crores last year (including Jaipur hotel). - Ambitious goal to cross ₹500 crores in top line by next year (FY26). - Plan to hit around ₹100 crore PAT by FY26, targeting rapid growth within 2-2.5 years. - Expect significant revenue addition of ₹100-150 crores from revenue share hotels by FY26, largely driven by new Bombay property. - Opening approximately 30 new hotels this year with around 1,900 new keys, majority under management. - Growth driven by upscale, larger hotels, more Tier 1 city properties, and increasing banqueting/event business. - Expansion focus on managed hotels (~80-85% share) with some revenue share and owned properties. - Ongoing loyalty program and IT/Metaverse initiatives expected to boost brand visibility and repeat business.

- Target to reach ₹100 crore PAT within 2 to 2.5 years (by FY26) driven by expansion and better asset quality. - Revenue expected to grow from ₹370-380 crores in FY25 to cross ₹500 crores in FY26. - PAT guidance for FY25 around ₹55-58 crores; expected to increase to around ₹70 crores in FY26. - Focus on improving profitability by shifting towards higher-quality, larger hotels yielding better returns. - Earnings growth may be impacted by IndAS accounting adjustments, but cash profits remain strong. - Banqueting and event management revenues are seen as a growing segment contributing positively to food & beverage and overall earnings. - Expansion includes about 30 new hotels with ~1,900 keys, mostly managed properties, with some revenue share and owned hotels in Mumbai and Gurgaon. - Company aims for a robust balance sheet and sustained margin improvement going forward.

- Royal Orchid Hotels has around 26 upcoming hotels in their orderbook with approximately 1,900 keys. - Majority of these hotels are under management contracts, except two: one in Gurgaon (revenue share model) and one in Mumbai (owned). - Targeting to add around 30 hotels this year. - Focus on signing hotels that yield substantially higher revenue than smaller inns. - New hotel signings will be approximately 10% revenue share or lease hotels, with the balance being managed hotels. - Investments already committed for Bangalore Resort and Goa properties; potential investment for Mumbai property as well.