Current/ Expected Orderbook/ Pending Orders?

Currently, Royal Orchid Hotels has around 28 signed hotels totaling approximately 1,600 keys expected to open soon. In the next 1 to 1.5 months, 6 to 8 of these signed hotels are slated to open; the balance 22 hotels are planned for the following financial year. Additional 10 to 12 new hotels are expected to be signed during this period. The company aims to grow its total hotel count to about 138-140 hotels by end of FY25 (March 2025). Discussions and active scouting are ongoing for larger hotel properties to increase average hotel size. There is no current focus on greenfield projects like La

Any current/future new fundraising through debt or equity?

There is no explicit mention of any ongoing or planned new fundraising through debt or equity in the Q3FY24 conference call transcript. The company has been expanding using internal cash accruals, as indicated in the purchase of a 48.93% stake in a subsidiary for INR 34 crore funded internally. The focus appears to be on strategic growth by adding hotels and increasing room capacity while managing costs and investments prudently. No specific announcements or discussions about raising funds via debt or equity were highlighted during the call.

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

Royal Orchid Hotels is investing in expanding their owned properties: - Goa resort expansion: adding 40-44 rooms, expected completion by March FY25. - Bangalore hotel: adding 28 rooms, timeline aligned with Goa expansion. Focus on acquiring bigger hotels to increase average size, as larger hotels have started discussions with Royal Orchid. No major investments planned in greenfield projects like Lakshadweep or Ayodhya currently; strategy is to watch and wait rather than spread resources thin. Working on a robust balance sheet through planned and calculated steps including repairs, maintena

Future growth expectations in sales/revenue/volumes?

Royal Orchid Hotels targets adding 38 to 48 hotels over the next year, with 1,600 keys already signed and another 700 keys expected, totaling around 2,300 keys. Focus is shifting towards acquiring larger hotels, which were previously difficult to secure as a smaller player. Growth strategy includes increasing revenue share and lease agreements, especially targeting larger hotels post-March 2025 for exponential growth. The company expects revenue for FY24 to reach around INR 350 crores (including Jaipur hotel), with possible upside to INR 400 crores next year. Managed hotels are expected to con

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

Royal Orchid Hotels targets revenue growth to INR 390-400 crores next year from existing hotels, with room for additional hotels to increase this further. EBITDA is expected around INR 110-122 crores, including contributions from associate Jaipur hotel. Growth in revenue share hotels and managed hotels is key; aiming to add about 38-48 hotels (~2,300 keys) over the next year. Focus post-March 2025 is on larger hotels, primarily on revenue share basis, to drive exponential growth despite potentially fewer hotels. EBITDA margin in the managed category is about 50%, with management fees a

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Royal Orchid Hotels LtdQ4 FY25Leisure Services

Royal Orchid Hotels Ltd Q4 FY25 Earnings Call Analysis

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

Price: ₹343P/E: 23.9Market Cap: ₹892 CrSector: Leisure Services

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Order

Yes

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Royal Orchid Hotels targets adding 38 to 48 hotels over the next year, with 1,600 keys already signed and another 700 keys expected, totaling around 2,300 keys.
→Focus is shifting towards acquiring larger hotels, which were previously difficult to secure as a smaller player.
→Growth strategy includes increasing revenue share and lease agreements, especially targeting larger hotels post-March 2025 for exponential growth.
→The company expects revenue for FY24 to reach around INR 350 crores (including Jaipur hotel), with possible upside to INR 400 crores next year.
→Managed hotels are expected to contribute significantly to growth, despite thinner margins compared to owned hotels.
→Expansion spans across all hotel categories and markets, aiming to increase footprint and diversify portfolio.
→Management aims to sustain about 25% top-line growth per annum in the medium term, with focus on stable operations and improved occupancy.

Margin guidance

Category 3

→Royal Orchid Hotels targets revenue growth to INR 390-400 crores next year from existing hotels, with room for additional hotels to increase this further.
→EBITDA is expected around INR 110-122 crores, including contributions from associate Jaipur hotel.
→Growth in revenue share hotels and managed hotels is key; aiming to add about 38-48 hotels (~2,300 keys) over the next year.
→Focus post-March 2025 is on larger hotels, primarily on revenue share basis, to drive exponential growth despite potentially fewer hotels.
→EBITDA margin in the managed category is about 50%, with management fees around 6% of hotel revenue.
→The company anticipates EBITDA improvement and higher operating profitability through operational excellence and scaling up upmarket brands.
→EPS growth is implied with consistent PAT increases (3-13% q-o-q recently) supported by revenue and EBITDA expansion.
→Overall, the management expects faster growth trajectory post new brand launches and operational scale-up.

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Fundraise plans

→There is no explicit mention of any ongoing or planned new fundraising through debt or equity in the Q3FY24 conference call transcript.
→The company has been expanding using internal cash accruals, as indicated in the purchase of a 48.93% stake in a subsidiary for INR 34 crore funded internally.
→The focus appears to be on strategic growth by adding hotels and increasing room capacity while managing costs and investments prudently.
→No specific announcements or discussions about raising funds via debt or equity were highlighted during the call.

Order book

Yes

→Currently, Royal Orchid Hotels has around 28 signed hotels totaling approximately 1,600 keys expected to open soon.
→In the next 1 to 1.5 months, 6 to 8 of these signed hotels are slated to open; the balance 22 hotels are planned for the following financial year.
→Additional 10 to 12 new hotels are expected to be signed during this period.
→The company aims to grow its total hotel count to about 138-140 hotels by end of FY25 (March 2025).
→Discussions and active scouting are ongoing for larger hotel properties to increase average hotel size.
→There is no current focus on greenfield projects like Lakshadweep; the emphasis remains on revenue share and lease models.
→The sale of Multi-Hotels Limited shares is actively being pursued, potentially impacting future developments.

Capex plans

Yes

→Royal Orchid Hotels is investing in expanding their owned properties:
→ - Goa resort expansion: adding 40-44 rooms, expected completion by March FY25.
→ - Bangalore hotel: adding 28 rooms, timeline aligned with Goa expansion.
→Focus on acquiring bigger hotels to increase average size, as larger hotels have started discussions with Royal Orchid.
→No major investments planned in greenfield projects like Lakshadweep or Ayodhya currently; strategy is to watch and wait rather than spread resources thin.
→Working on a robust balance sheet through planned and calculated steps including repairs, maintenance, and strengthening the team to achieve operational excellence.
→Actively pursuing sale of shares in Multi-Hotels Limited for strategic capital reallocation.
→Expansion strategy includes signing and operating 138-140 hotels by March FY25, increasing managed properties with some expected on revenue share or lease models.

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