Royal Orchid Hotels Ltd

- The management did not explicitly disclose any current or planned fundraising through debt or equity in this call. - They mentioned having a gross debt of around ₹78 crores (consolidated) and sufficient cash reserves (around ₹260 crores cash equivalent) to fund upcoming expansions like the Goa room addition and Mumbai hotel. - For the Mumbai hotel, a refundable deposit of ₹240 crores was given for a 25-year lease, with additional investment of around ₹215 crores expected. - They indicated no plans to take loans for the Goa expansion, instead using existing cash. - The company is focusing on revenue-sharing models and flexi leases that mitigate fixed risks and reduce upfront capital investments. - Any future decisions on raising funds via share issuance (split/bonus) are under consideration but no immediate plans were announced. Overall, capital deployment is planned from internal cash flow rather than new fundraising at present.

- Royal Orchid Hotels is undertaking CapEx in Goa to add 30 rooms with an estimated investment of around ₹225-230 crore. Clearances are expected in a few months, and new rooms should be ready by October 2025. - Renovation and room additions planned in Bangalore (28 rooms addition to a 54-room resort) expected by April; 25 rooms renovated last quarter with another 25 rooms set for renovation by March-April 2025, targeting significant business growth. - New Mumbai hotel lease investment: ₹240 crore refundable deposit over 25 years plus ₹215 crore in CapEx for interiors and setting up; awaiting final licenses for operation. - Revenue-sharing model hotels involve CapEx by asset owners; Royal Orchid manages operations and shares revenue, with some minimum guarantees. - Overall, focus on refurbishing existing assets, scouting new properties, and expanding presence in east and south India.

- Revenue growth is expected from the commissioning of new rooms and hotels, including the addition of 28 premium rooms at the Bangalore resort by April next year and renovation of flagship hotel rooms by Q2 FY2025-26, leading to substantial incremental business. - The new 300-room hotel in Mumbai is anticipated to contribute significantly, with a top line of approximately ₹2100 crore once operational. - Expansion continues with leased and revenue-sharing models, including 10 leased hotels slated to open in 2025, adding around 1,200 rooms, enhancing top line and profitability. - Managed hotels segment aims to cross ₹50 crore revenue in FY2025-26, with a pipeline of about 20 hotels, targeting ₹100 crore over three years. - Average room rates have increased from ₹5,675 to ₹6,317, bolstering room revenue. - The loyalty program, Regenta Rewards, shows promise with over 360,000 members and 12-13% repeat business, enhancing future volumes. - Overall, strong focus on expanding room inventory, increasing average rates, and leveraging new business models for sustained revenue growth.

- The company expects substantial revenue growth primarily from new hotels opened in the last two years as they stabilize, with significant results anticipated in the next financial year (FY 2025-26). - Managed hotels segment aims to cross ₹50 crores in revenue in FY 2025-26, progressing towards a ₹100 crore target over three years, with approximately 46-47% PBT margins. - The new Mumbai hotel is expected to add significantly, with a top line potential of around ₹2100 crores once fully operational. - EBITDA growth has been modest recently due to costs associated with new properties stabilizing, increased staff, and refurbishment expenses; these costs are investments towards future growth. - Shareholders may see rewards like dividends; decisions on split or bonus are under consideration but no firm statements yet. - The focus on improving average room rates and revenue from lease and managed hotels supports improved operating earnings going forward.

- The company has around 20-odd hotels in the pipeline for managed hotels. - They are targeting to cross ₹50 crores in managed category revenues in FY 2026. - The top line from the new Mumbai hotel alone is expected to be around ₹2100 crores. - Around 10 lease hotels are scheduled to start in 2025, adding significant capacity (exact room count not specified). - Renovations and room additions are planned at owned hotels and leased hotels, contributing to near to medium-term growth. - The company focuses on both brownfield projects (under construction) and conversion of existing running properties. - Expansion efforts include opening 4-5 hotels in the near to medium term. Overall, the order book and pipeline appear robust with multiple managed and leased hotels lined up for launch and revenue generation over the next few years.