Any current/future new fundraising through debt or equity?

On page 17, Amit Jaiswal mentioned a ₹40 crores refundable deposit related to a flexi lease model. Additionally, around ₹15 crores will be invested in crockery, cutlery, and small items. Working capital requirement is approximately ₹15 crores. Together, this sums up to an investment of around ₹70 crores. There is no explicit mention of any new fundraising via debt or equity in the provided transcript. The focus seems to be on investment from internal resources rather than raising fresh capital. No direct statements about future plans for debt or equity fundraising were disclosed.

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

Royal Orchid Hotels have paid a ₹40 crores refundable deposit for the Mumbai ICONIQA hotel. Additional capital expenditure includes approximately ₹15 crores for crockery, cutlery, and small items. Working capital investment for ICONIQA is around ₹15 crores. Total investment in ICONIQA hotel is estimated at ₹70 crores (₹40 crores deposit + ₹15 crores other capex + ₹15 crores working capital). The company is actively expanding with a pipeline of 40+ hotels in addition to 115 operational hotels. Vision 2030 aims for 3x growth in five years with 345 hotels and 22,000 keys, up from 115 hotels and u

Future growth expectations in sales/revenue/volumes?

Royal Orchid Hotels aims for 3x growth by 2030, targeting 345 hotels and 22,000 rooms, up from 115 hotels and about 9,000 rooms currently. They anticipate top line growth to ₹550-600 crores within two years, up from ₹340 crores now, based on signed confirmed pipeline alone. Expansion driven by multiple brand tiers including Regenta Z (value-priced, budget), ICONIQA (upscale lifestyle), and others to cater to diverse market segments. Regenta Z expected to grow rapidly with 50-80 hotels within 6-12 months as an asset-light, franchise model. Loyal customer base with Regenta Rewards (~500,

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

Royal Orchid Hotels projects topline growth from ₹340 crores to ₹550-600 crores in two years, driven by signed confirmed hotel pipeline. Operating EBITDA grew by 2% YoY in FY '25 to ₹96.8 crores; margins impacted recently due to investments post-COVID. Aim for sustained Return on Capital Employed (ROCE) of 25%+ by FY 2030. Earnings per Share (EPS) for FY '25 stood at ₹17.23 with PAT at ₹47.5 crores; PBT up 5.5% YoY. Growth strategy includes scaling from ~9,000 keys to over 20,000 keys by 2030, with 345 hotels planned from 115 currently. Expect occupancy ~75% and ADR uplift driven by

Current/ Expected Orderbook/ Pending Orders?

The company currently operates 115 hotels with a total of approximately 9,583 rooms. They have a signed confirmed pipeline of 40+ hotels adding about 963 rooms in FY '25. The plan includes growing from 115 hotels to 345 hotels by FY 2030. Room count is expected to increase from around 9,000-10,000 rooms currently to over 20,000 rooms by FY 2030. The growth includes a focus on different brand segments, including premium and neighborhood hotels. This pipeline is confirmed and signed, reflecting a secured order book rather than speculative planning.

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Royal Orchid Hotels LtdQ1 FY25Leisure Services

Royal Orchid Hotels Ltd Q1 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

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Royal Orchid Hotels aims for 3x growth by 2030, targeting 345 hotels and 22,000 rooms, up from 115 hotels and about 9,000 rooms currently.
→They anticipate top line growth to ₹550-600 crores within two years, up from ₹340 crores now, based on signed confirmed pipeline alone.
→Expansion driven by multiple brand tiers including Regenta Z (value-priced, budget), ICONIQA (upscale lifestyle), and others to cater to diverse market segments.
→Regenta Z expected to grow rapidly with 50-80 hotels within 6-12 months as an asset-light, franchise model.
→Loyal customer base with Regenta Rewards (~500,000 members) driving 14-18% repeat stay rates, reducing acquisition costs and increasing revenue.
→Average Daily Rate (ADR) growth target around ₹9,000 with occupancy expected around 75%, improving overall revenue.
→Focus on premiumizing product offerings to meet stakeholder/customer demand, expanding both geographic presence and brand categories.

Margin guidance

Category 3

→Royal Orchid Hotels projects topline growth from ₹340 crores to ₹550-600 crores in two years, driven by signed confirmed hotel pipeline.
→Operating EBITDA grew by 2% YoY in FY '25 to ₹96.8 crores; margins impacted recently due to investments post-COVID.
→Aim for sustained Return on Capital Employed (ROCE) of 25%+ by FY 2030.
→Earnings per Share (EPS) for FY '25 stood at ₹17.23 with PAT at ₹47.5 crores; PBT up 5.5% YoY.
→Growth strategy includes scaling from ~9,000 keys to over 20,000 keys by 2030, with 345 hotels planned from 115 currently.
→Expect occupancy ~75% and ADR uplift driven by flagship ICONIQA hotel targeting ₹9,000 ADR.
→Regenta Rewards loyalty program (0.5 million members) expected to enhance repeat business and profitability.
→Forecasted top-line growth includes new revenue share hotels and premium brand expansion.

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Fundraise plans

→On page 17, Amit Jaiswal mentioned a ₹40 crores refundable deposit related to a flexi lease model.
→Additionally, around ₹15 crores will be invested in crockery, cutlery, and small items.
→Working capital requirement is approximately ₹15 crores.
→Together, this sums up to an investment of around ₹70 crores.
→There is no explicit mention of any new fundraising via debt or equity in the provided transcript.
→The focus seems to be on investment from internal resources rather than raising fresh capital.
→No direct statements about future plans for debt or equity fundraising were disclosed.

Order book

Yes

→The company currently operates 115 hotels with a total of approximately 9,583 rooms.
→They have a signed confirmed pipeline of 40+ hotels adding about 963 rooms in FY '25.
→The plan includes growing from 115 hotels to 345 hotels by FY 2030.
→Room count is expected to increase from around 9,000-10,000 rooms currently to over 20,000 rooms by FY 2030.
→The growth includes a focus on different brand segments, including premium and neighborhood hotels.
→This pipeline is confirmed and signed, reflecting a secured order book rather than speculative planning.

Capex plans

Yes

→Royal Orchid Hotels have paid a ₹40 crores refundable deposit for the Mumbai ICONIQA hotel.
→Additional capital expenditure includes approximately ₹15 crores for crockery, cutlery, and small items.
→Working capital investment for ICONIQA is around ₹15 crores.
→Total investment in ICONIQA hotel is estimated at ₹70 crores (₹40 crores deposit + ₹15 crores other capex + ₹15 crores working capital).
→The company is actively expanding with a pipeline of 40+ hotels in addition to 115 operational hotels.
→Vision 2030 aims for 3x growth in five years with 345 hotels and 22,000 keys, up from 115 hotels and under 10,000 keys currently.
→New brands like ICONIQA represent a premium upscale lifestyle segment requiring strategic capital deployment.
→Investment also includes developing the Regenta Rewards digital loyalty program with ₹57 lakhs spent on technology and automation.
→Emphasis on smart execution and return on invested capital guides future capex decisions.

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