EIH Limited ($EIHOTEL)

Good morning, ladies and gentlemen, and thank you for attending this virtual meeting. I'm pleased to welcome you on behalf of EIH Limited and SKP Securities to EIH Limited's Q4 FY '26 and FY '26 Earnings Webinar. We have with us Mr. Vikram Oberoi, Managing Director and Chief Executive Officer; and Mr. Vineet Kapur, Chief Financial Officer. Friends, this virtual meeting is being recorded for compliance reasons. And during the course of discussion, there may be certain forward-looking statements. These must be viewed in conjunction with the risks that the company faces. We'll have the opening remarks and a presentation by the management followed by a Q&A session. Thank you, and over to you, Vikram.

Ladies and gentlemen, good morning, and a warm welcome. Vineet will be going through the presentation. But prior to that, I may just very quickly just look back at the year. Actually, this year, and if you see our results, that may not be entirely reflected, but it was a very challenging year. We had tensions between India and Pakistan that resulted in operation Sindoor. And of course, the crisis in the Middle East, not to mention things like heavy rains and disruptions of certain airlines during peak winter months. But having said that, we've coped with the situation. The fundamentals for our industry still looks strong and our EBITDA performance has been the highest in our history. But that's not to undermine the fact that we had challenges in the year. And our hope is that things stabilize soon that the crisis in the Middle East has an impact on every business, every industry, including hospitality. And of course, we will do our best to mitigate that and drive domestic business to the extent possible in the coming year. With that, I'll pass over to Vineet for the presentation, and then we'll be happy to answer your questions. Thank you once again.

Good morning, everyone, and thank you for joining us. Thank you, Vikram, for the opportunity. We will begin with a brief overview of our performance for the period, followed by key business updates, and then we will open the floor for questions. We'll cover the industry performance for Q4 and full year. Q4 industry occupancy was at 67% to 69%, which was below last year, mainly due to impact of West Asia war, which started end of February. Though ARR grew at 6% to 8%, RevPAR was 5% to 7% less than last year. For the full year, FY 2026 was a very volatile year for the industry. Starting with Operation Sindoor in April, Middle East conflict in May, extended monsoon, and rains in Q2. We had flight cancellations in the month of December, which impacted both December and January and at the end of the year, we got impacted by the Middle East war at the end of Feb. In spite of all those disruptions, we saw that the hotel industry was very resilient. On a full year basis, though occupancy was almost flat to last year, but there was a healthy growth in ARR of 9% to 10%, which resulted in a RevPAR growth of 10% to 12%. We'll move into the operational performance for Q4. In terms of our competition set, EIH continues to maintain leadership over the competition set. In FY 2026, EIH Hotel occupancy improved versus competition, while there was a drop in [indiscernible]. With the number of hotels we had in the STR, we have 13 out of 15 hotels which are ranked first and second in STR benchmarking. We have 7 hotels which are ranked first and 6 hotels which are ranked second. This slide reflects the RevPAR growth for the Oberoi Brand, which falls in the Luxury segment. Luxury segment saw a growth of 6%, while Oberoi Hotels saw a growth of 4.2% in Q4. Oberoi Brand was lower in Q4, mainly due to the new addition of Oberoi Rajgarh, which was in the ramp-up stage in Q4. For the full year, though, Oberoi Hotels saw a growth of 10.4%, while Indian Luxury segment RevPAR growth was at 6.4%. Both RGI at 204 and RGI of 191 were better than last year in terms of RevPAR performance. This slide reflects RevPAR growth of Trident Brand, which falls in upper upscale. For full year, this segment saw a growth of 5%, while Trident Hotels had a growth of 10.2% on account of both occupancy and ARR being higher than the competition and versus last year. If you look at the Q4 occupancy trends per month, and this is all domestic hotels, including managed. Occupancy definitely got strained in the month of March, mainly because of the West Asia impact. Though the ARR still continued to grow. We had a very good healthy growth of ARR in February, which also continued the trend in the month of March, though on an occupancy level, we got impacted. With that, even with the benefit of the ARR and lower occupancy, our RevPAR still grew from INR 23,648 to INR 26,536 for the quarter. And it's the same thing for EIH-owned hotels, where we saw the similar trends where occupancy went down in the month of March, and though we were lagging across for January, February and March saw a steep drop. And this impacted -- the ARR still saw a healthy growth which resulted in a -- though the occupancy was lower, but we increased on RevPAR. So RevPAR for Q4 increased from INR 24,548 to INR 28,198 for Q4 for EIH-owned hotels. Moving on to the next slide. This is the RevPAR growth by city for Q4. So all cities have shown a very healthy growth in RevPAR. Delhi NCR had a very high growth in Q4, mainly because of the AI Summit, which took place in Q4. [ Bhubaneswar ] had a good increase due to business and government activity, as compared to last year, which was on a dampened state, but this year their activity grew. Mumbai was high due to high occupancy, and we also had the T20 World Cup, which boosted the RevPAR, as well as boosted the occupancy as well as the ARR for the quarter. Bengaluru got impacted by lower foreign bookings due to West Asia war, and Udaipur was down due to lower weddings we had this year. The international hotels did very well. We grew on RevPAR, for Q4, we grew at 13%, and the increase happened both across the hotels where Mauritius, The Oberoi [indiscernible], Sahl Hasheesh, and [indiscernible] did well in Q4 in terms of RevPAR. On room revenue trends, we are seeing similar trends to last year. MICE and direct segment witnessed growth while Corporate and Leisure were flat. I'm going to jump into the financials for Q4 and FY 2026. So revenue growth in terms of Q4 consolidated performance, revenue growth was 10% in Q4, while EBITDA grew only by 1%. Mainly because of the mix change we had because of higher OFS business, as well as we had higher expenses in Q4, along with the impact of Wage Code, while PAT was down due to the tax impact. If we look at the Q4 standalone performance, revenue growth was at 14%, while EBITDA was flat, again, due to the business mix change as well as the higher expenses and Wage Code impact. The PAT was down because of one-time impact of [ Mashobra ] fair value which we had last year. That benefit we didn't have in the current year. But if you look at versus the FY 2024 from INR 159, we are still growing to INR 200 in terms of PAT growth for a 12-month consolidated performance.

[Foreign Language] in this quarter etc.

I think somebody's speaking. Somebody's not on mute.

Apologies, Vineet. I have muted the participant. Please go ahead.

Okay. No problem. Thank you. Revenue growth, if you look at the 12 months consolidated performance, revenue growth of 8% over last year. EBITDA growth was 3% due to change in business mix on account of higher OFS growth, as well as OAS business not being there as compared to last year. PAT was lower due to a one-time Wage Code impact of INR 30 crore, along with the one-time impact, what we had on fair valuation on Mashobra in the month of June. On a 12-month standalone performance, the same impacts. Growth revenue still continues to grow, while we had EBITDA growth was in the low-single digits, while the PAT got impacted because of the one-time impact, both exceptional impact of fair value deal Mashobra last year and also the Wage Code impact which we had in the current year. On the funds flow, we continue to add our funds position. Once the current cash flow, cash funds with the company have grown to INR 1,335 crores versus INR 1,051 crores at the end of March 2026. And if you look at our funds flow as to what considered that increase in the funds flow. We had a cash flow from operations to the tune of INR 993 crores. Income from investments was another INR 113 crores. While we did investments on CapEx, which was around INR 680 crores in the current year, and we also had dividends of INR 97 crores, which resulted in a funds balance of INR 1,335 crores by the end of the year. Coming on the financial statements. On Q4, when we look at our revenue, we grew at 10% in terms of revenue, while EBITDA grew at 1%. And what I mentioned before, mainly because of the change in business mix, and also we had one-time expenses which were higher in Q4. Mainly on account of higher business expenses, as well as we had higher airport levy on account of OFS business, which impacted in Q4, along with some legal expenses and [indiscernible]. Sp looking at that, our profit and loss from operations was down by 5% due to mainly coming on account of the tax expense, which was higher, though our EBITDA was almost flat. Sorry. On the consolidated performance for 12-months, our revenue grew at 8%. EBITDA grew at 3% due to the change in business mix and higher expenses on administrative and other side for the year. Though the profit and loss from operations was down, mainly because of the exceptional items. We talked about the fair value gain, fair value impact which we had in the month of June because of Mashobra, as well as the Wage Code impact of INR 30 crores. If we exclude those one-timers on profit and loss, we have grown by 2% versus last year. This lists out the awards and accolades for the business, which we have received during the year. Our hotels continue to be recognized for the exceptional quality and service standards maintained across our hotels. We continue to get awards and accolades with main features being that our hotels were rated as in the MICHELIN Key Hotels guide, both for two keys and one key. We got a number of awards both from the Travel + Leisure awards as well as the [ Condé Nast Traveller ]. So coming on our expansion plans and the upcoming projects. This is the pipeline which we have for our owned hotels. By 2030, we'll be adding 825 hotels, 825 keys to our hotels portfolio. Starting from Trident Vizag which opens in 2027, which is through our EIH Associated Hotels, it's an associate company of EIH. For the remaining hotels that are part of EIH, including Hebbal, where we have a mixed-use development, which includes commercial with a space of roughly 7.63 lakhs square feet available by 2030. When we look at the pipeline summary for managed hotels, we are going to add 24 hotels with 1,893 keys. Of this, most of the keys would be domestic, but there'll be also international addition to our keys through managed portfolio. The business footprint, we continue to have 3,800 keys with the addition of Rajgarh, which happened in Q3 of the current year and international keys, we have 100 keys across different countries. So that's it. With that, I come to end of my presentation, and we leave the floor open for questions, please.

Thank you, Vineet. [Operator Instructions] We'll take the first question from [ Deepak Saha ].

Yeah. Thanks for the opportunity. I'm audible?

Yes, Deepak, you're loud and clear.

First question is, when we look at the quarter numbers, especially January and February, right? February, we understand, your ARR growth would be closer to 25% plus. All I'm trying to understand, for the month of February, what led to that kind of a growth? Is the heavy lifting was it because of the AI Summit? Now that is for Delhi market, but for rest of the other markets, what drove that kind of a 25% kind of an ARR growth? And my another question is for the month of January, right? I mean, if I see your January, February, March, within that January was the only month where we had negative 6% kind of a RevPAR growth. Hadn't we have that number, then our overall quarter RevPAR growth would have been much more better. So if you can explain the January numbers as well along with February?

Deepak, thank you and good morning. I'll start with January. Actually, January really puzzled us. And we can only hypothesize what the reasons for the January numbers are. I'll get into our hypothesis, although it's difficult to validate that even well before January came along, when we were looking at our business on books and also doing our forecasting. We saw that there were deficiencies in January. Business just wasn't picking up. We ran various promotions to try and drive business with limited success. And when we had an internal debate on this -- the only conclusion we could come to, albeit not validated, is that at that time, India got, unfortunately, a lot of very negative publicity in the international press on the very poor quality of air we have in North India. This was covered by international media in Europe and North America. And whether that had any impact on international travel to India, or what that impact would've been, is hard to assess, but that's what we came up with. I'm sorry I can't give you a clearer answer, but that's our limited understanding of what may have caused the demand to be so suppressed. Coming to February, actually, February is a buoyant month, and perhaps -- one reason could be for the increase is that people who went who were planning to travel to India in the winter months actually chose February rather than January. Air quality is significantly better. The weather is -- probably November and February are the two best months to visit India, and that would have had an impact. We saw strong demand in February across geographies in India. And the AI Summit certainly contributed, but that wouldn't be the only contributor. There was strong demand elsewhere as well, including our Leisure hotels, our City hotels, et cetera. So Deepak, I hope I've answered your question.

Yes. That's really helpful. My second question is, sir, if we see FY '27, FY '28 pipeline, right, on the owned keys side, I mean, obviously, EIH Associates is having its own addition. But barring that, there's nothing meaningful at least from FY '27, FY '28 point of view. Now what I'm trying to understand when we model our growth numbers, if you can help us understand the drivers for the same because if we are not having addition of keys FY '27, but FY '28, we will have Kolkata Oberoi coming back, right, with 200 keys. So -- and on the RevPAR side, then probably ARR is the only way we drive our growth from. So if you can share some color, how should we build in the growth drivers? And what would be those drivers up until FY '28? That's my second question, sir.

No, I think it's a very fair question you asked, Deepak. And with with existing inventory, there are really two options only. One is to drive revenue and our objective has always been to drive it through average room rates given our premium positioning. And that will continue to be our efforts. And the second thing, to the extent possible is to look at our cost structures and eliminate waste wherever possible. We don't believe in just cutting costs. The problem with cutting costs is that either your guests suffer, your team suffers or the upkeep of the hotel suffers. So really, our endeavor is to really eliminate waste to the largest extent we possibly can and therefore, improve profitability. But you're absolutely right, those are the two levers. And I would still like to think that there's headroom in terms of ARR if the market remains buoyant. And if we just take last year, last year, like I said, was a very difficult year. But despite that, the industry has held strong. Occupancies may have been either flat or come down marginally, but there was a strong increase in average room rates. And that will continue to be our focus.

Got it. Sir, one last question before I follow back on the queue. If I see FY '25 base, we had the [indiscernible] services business, we had some impact -- to some extent, the impact of Oberoi brand Kolkata, right? Now FY '26, all these are normalized, right? And also margins have also kind of found its base. So now for FY '27 -- am I audible now?

We lost you for a moment.

Repeat your question please.

Sure. I'll do that. I'll do that. So my question is, if we see FY '25, we had the higher base of lounge services business and as well as, to some extent, Oberoi Kolkata brand, right, at least first half. Now that part is normalized for FY '26. So -- and margins because higher contribution from Oberoi Flight Services, margins have also would have found its base at least. Given that for FY '27, incrementally, things should look much more better, right? I mean we should have -- we shouldn't have the base problem. So considering that for FY '27, both on the margin side and growth side, we have enough levers to improve, right?

I think you summed it. I would agree with that.

The next question is from another Deepak. Deepak [indiscernible]. [Operator Instructions] Let's move on to the next participant. We'll take the question from [ Minerva Hirawat ].

Yes. So my question was, how has April and May been in terms of ARR and occupancy? How has the trend been for these months?

If I was to just put it -- we don't -- the quarterly results will come out. But if I -- is it okay for me to make a very broad statement? But broadly, it's been better than what we've expected just given what's happening in the world. And I think that's -- or not that I think that has been led by strong domestic demand.

Okay. And that leads me to my next question. What is your foreign tourist mix for this quarter? And in the month of March, did it decline a lot? And did you see domestic share increase substantially?

Yes. So domestic share has increased substantially. As far as foreign business goes, the April is still a good month for foreign travel into India historically, and that's been impacted by what's happening in West Asia. Having said that, that's been more than compensated by strong demand from the domestic market. But the only silver lining is that the summer months are anyway periods where foreign travel into India is at its lowest. Foreign travel really picks up in October out through to March. And with April being somewhat strong, maybe not as strong as the winter months, but still reasonable. So at least the impact that we'll see because of higher airfares, reduction in routes, et cetera, even internationally will be limited in the summer months just because the base is much smaller.

Also the Indian rupee devaluation also impacts foreign foreign travel and vacation becomes expensive almost 15%, 20% because of the devaluation impact. So that all plays in our favor.

Yes. Deepak, our assessment is that with everything happening in the world, I hope that as Indians will spend more time within our country rather than going overseas. And I think that will be good for the travel and tourism industry as a whole.

Do you have a number for your foreign tourist mix for domestic hotels for the March quarter?

I don't have that with me, but maybe we can take it offline, and we can share that with you for -- at least historically, we can share that with you.

Sure, I appreciate that.

Sure, Deepak. If you could just maybe -- if we can get your e-mail address, then we can send you that information.

Deepak, maybe you can just drop me a mail. My e-mail is on the invite we forward it to the management and get back to you on this.

Sorry, it's -- you should have corrected me. I really apologize. Sorry. And you should have really corrected me, I apologize.

Deepark Verma please go ahead. [Operator Instructions]. We take the next question from Vaibhav [indiscernible].

My first question was on our Flight Catering business. Can you share the exact revenue for this quarter?

Do you want to do that? Vineet will just do that. Just give us a second.

So for Q4, our business for OFS segment was around INR 145 crores.

Okay. Understood. And was this led by the existing airlines? Or have you onboarded any new clients?

Largely existing airlines have been with increased flights and larger market share of some of their business, including domestic airlines. That's what's really driven it.

Understood. Secondly, Vikram, on Oberai Rajgarh property, which we launched in November. Now how has been the response in the first 6 months?

So it takes time for a hotel to pick up occupancies. The rate has been strong right from the beginning. So rate hasn't been an issue. But having said that, the hotel has done better than what we had budgeted.

Understood. And going forward, what kind of delta do you expect from this property in terms of improvement in occupancy and ARRs?

Yes. So one of the key challenges with the destination is -- and the destination is [indiscernible]. Cajurao typically has flights from Delhi that operate in the winter months and flights stop operating in the summer months. Fortunately, in Q1, IndiGo has operated a flight from Delhi even now, and that stops in -- at the end of June, if I'm not mistaken. So July, August and September, there will be no flights as of now, unless there's a change in -- or an Indigo announced discontinuation of that flight. And I think in winter also challenge -- the real challenge with -- sorry, there's just somebody in the back.

Sorry, Vikram, We have just muted the participant.

No, no, it's not a problem at all. The main challenge with [indiscernible] is that there's only one flight from Delhi in the winter. I hope with the hotel opening and that impacting demand that there will be a flight perhaps even from Bombay. If connectivity improves, the hotel is absolutely incredible. It certainly is, I would say, our finest overall Leisure Hotel. And feedback has been beyond anything we could have imagined. So there will be strong demand. And if connectivity improves, there's no reason why the hotel will do a strong rate and a strong occupancy. Just one other word I'd add is that it typically does take a few years for a hotel to position itself in the market and for occupancies to really pick up. And even with other Oberoi Leisure Hotels, the other glasses, it does take time for that to happen. So I think we should be patient. We should upkeep our standards, up keep our levels of service and give it time for the hotel to perform.

Last question, if I may squeeze in, regarding our expansion pipeline. If you can just share the status of the own properties that we are planning to launch and about Oberoi Grand as well. We were supposed to launch 50 keys, I think, in September this year. So if you can share an update on that.

Yes. So I'll maybe start with the Obero Grand. The Oberoi Grand renovation is well underway and pressing on its full speed. The hotel is, as you know, a very old hotel and no structural intervention has taken place in the hotel as far as I know, ever or for the longest time. So when we started the renovation process, we have discovered many structural issues with the hotel, and we must make the hotel absolutely safe for our guests and our colleagues. So those interventions are also underway so that the hotel is, in all respects, keeping in market or hopefully ahead of market. And we'll keep you updated and we'll keep our Board updated on the progress of the renovation at the Oberoi Grand. As far as the other hotels go, that's in our deck, and you would have seen that there are a total of 7 hotels that are either EIH Hotels or EIH Associated or [indiscernible] hotels. Those are the 3 companies that are doing the -- developing these 7 hotels. Maybe I'd just like to focus a little bit on [indiscernible]. And I don't think we've shared this information previously. And although it is in the presentation deck, I may want to just highlight that the total we can build about 1.3 million square feet. That's the development of this 8-acre site in [indiscernible] Lake in Bangalore. And that will include an Oberoi hotel, a Trident Hotel and about 7.6 -- just over 7.6 million square feet of commercial space, which will include commercial and some F&B as well and some retail as well. And I think that's a very promising development for EIH. It's the first mixed-use development that we're doing. We have a commercial office in Gurgaon, which is about 100,000, 110,000 square feet, but this is at a very different scale at a prime location in Hyderabad. So we look forward to that. Otherwise, all the other hotels are mentioned in the presentation desk. And unless you have any specific questions about them, you can refer to the list, the opening dates and the number of keys.

Perfectly understood, sir. Just on the Oberoi Grand part that you mentioned, any specific time line in terms of partial opening now, which was September earlier?

Currently, we're sticking to that. [indiscernible] change, we'll update the Board and of course, update you on an investor call.

We'll take the next question from Madhav Agarwal.

So sir, my question was on the renovation plan for the upcoming fiscal ongoing.

Yes. So your question is what are we doing this year in terms of renovation? So we have renovations going on in a number of locations. I'll cover just the key ones for EIH. We are renovating approximately just under 90 rooms at the Oberoi Bangalore. That will happen in blocks of 18 rooms each over the summer months. That is already ongoing. We will be upgrading food and beverage at Trident [indiscernible], and that will happen late in the year and a complete change in the food and beverage at that hotel, including all the F&B outlets. That hasn't started, but that will happen this financial year. And the last one I'd mentioned, which is significant is 4 floors at Trident [indiscernible] Point, which are also being renovated and that work has commenced and another 4 floors at the Oberoi Bombay as well. So those are the most significant ones, in Trident [indiscernible] let me not cover Trident because it's a separate company. But these are the EIH hotels where there is significant renovation taking place.

One more question. So in 2030, you are having 5 Trident hotels, right, in the managed on a cumulative basis you have mentioned [indiscernible]. So I believe would one be Trident Goa one in [indiscernible] that you had previously mentioned in previous presents. So apart from that, have you added any hotels in the managed keys?

Yes. We've added 2 hotels in the managed piece. One is in Amritsar, that's 150 Trident hotel. And the other one is in [indiscernible], which is not far from Bombay on [indiscernible] Lake, which is again 150 Trident hotel, both are management contracts. And those were -- those agreements were signed between the last quarter between Q3 and Q4.

Before we start the round of follow-up questions, Vikram take the questions on the Q&A board, please?

Sure.

Deepak Verma, who has been facing some issues with the audio. How does the management see the revenue growing in percent terms in the next 3 to 5 years?

I really will not comment on that. I think the analysts should be able to do that. I'm sure they are quite detailed models on each one of our hotels, so they should be able to predict that. I'm not going to comment on that.

Also, how is the development pipeline coming along? Are we on track so far and for next 3 years?

Yes. I think we've shared those details. I think the only thing that I will say is that there have been some delays with management contracts, and we don't control those. It really depends on owners. They're not significant delays, but there is slippage on management contract hotels. And that's absolutely -- I think people who know the industry will know that well because slippages do take place. As far as our hotels go, we've provided that in the presentation document. And if there are any changes, of course, we will keep you updated.

[ Vishantul ] asks, can you tell what is the customer split by foreign tourists versus domestic typically compared to this quarter?

In this quarter, so Q4 or Q1? Q1, I presume?

Q1, I don't think we can speak about it.

Q4, do you have that? We -- I don't have it with me. But perhaps we can continue and Vineet can look that up and give you the answer. Sorry, for Q4. But what is it historically? Okay. So it's approximately 50%.

Amit Agarwal, can you update construction status of Goa, London and Bengaluru projects? Are they coming up as per schedule or if we can expect some delay? What about [indiscernible] project? Has the substitute land been allotted?

Some tough questions, right? I'll take the easy one first. The [indiscernible] land has been allotted and designed because the site is slightly different, we've had to relook at the design of that hotel, and that process is well underway. As far as the hotels go, our presentation gives you the dates. And like I said, if there's any change in those dates, we will update the Board and, of course, update you as well.

Amit, I hope your questions on Goa, London, Bengal and clear answer. We take the next one that is from [ Ketan Sanghvi ]. Our occupancy seem to be stuck in the mid-70s. And if we were to take it to the 80s, how much foreign tourist arrivals, the [indiscernible], we would need to ramp up? Or putting it differently, what's the index level of FTAs today versus pre-2020 for the full year? How are we looking at India versus other South Asian destinations in terms of price, value equation, competitive benchmark? Too many questions. If you want [indiscernible].

I'll have a go. And if I fail to -- if I miss something out, you can remind me. So I think we answered the question, the first part, which is in Q4, it's approximately 50% foreign business. I think, again, if there's a silver lining, we've seen strong growth, and it's not only now, but year-on-year strong growth from the domestic market. Propensity to spend in India is going up. People are traveling more, and people are using luxury hotel products and services more, and we're benefiting from that in the premium segment. So -- and that -- there's no reason to suggest that, that trend will not continue. In terms of price benchmarking, if you take -- like we do, if you were to do a comp set for an STR comp set for international benchmarks, so not broad luxury or upper upscale, but really at the top end of the market, India will still be significantly underpriced in Europe, in North America and in many, many parts of Asia. So I still believe there is for the quality of hotels that we have, in India, us and others. I think we have exceptional hotels, Taj has exceptional hotels and Lila has exceptional hotels in the -- really in the luxury segment. I think there's considerable upside for all of us at that very upper upper end of luxury. Rates are today, nobody shies away from well over $1,000 rates, and we're currently well below that level.

A couple of more questions on the chat. Deepak Saha has a follow-up question.

Sir, two questions. One is if you can pinpoint the full year occupancy for the full year on the owned hotels for the owned hotels, the full year occupancy? And secondly, my question is for the Kolkata Grand [indiscernible], given Kolkata market demand is very buoyant, what do you think once we have this property live for the ramp-up, can we see faster ramp-up for this particular property given a typical trend of a ramp-up in a renovated or renovated property, right? Because the demand is very strong and this property has always been there. So no recognition issue. So just these two questions for the Kolkata property and full year occupancy.

So the full year occupancy for our own hotels was 76.8%, almost 77% for the year. And for Klkata...

For Kolkata -- so I'll actually rewind to answer Kolkata because I'll give you a similar example, and it's an actual case. So the overall New Delhi, as you know, closed for renovation for 20 months. And if I remember correctly, that hotel in the year before it closed down, and now I can give you that number was doing, if I remember correctly, about INR 65 crore GOP a year. That hotel today is doing over 2x of that number, in fact, well over 2x of that number, probably closer to 3x of that number. So -- and the ramp-up was very quick. The reason for that was it was a well-known hotel in Delhi. It was established. People knew the hotel. And therefore, when the hotel reopened, it didn't take the ramp-up period that a brand-new hotel would take. I would say that the Oberoi Grand will be a similar case. It won't take the same extended period of time that it would take. It was a brand-new hotel. The market is -- it's a historic hotel. It's well known to the market domestically as well as internationally for travel, and for the Leisure segment, our travel partners are very familiar with the hotel. So I would expect a quick ramp-up for the hotel. I think the only thing that I would point out is that the rates in Kolkata, which you know are not at the level of Delhi. So I think to achieve the same rates as the, let's say, the Oberoi Delhi achieves will not be possible in Kolkata. But having said that, I have no doubt it will be a world-class hotel, probably, I hope, amongst the finest historic hotels in the world, and we're doing everything to maintain its incredible history and legacy while upgrading the hotel. And I have no doubt that the hotel will perform very well in the Kolkata market and will be a market leader in Kolkata.

Got it. Sir, one last question, if I can very quickly squeeze in. Most of the luxury players, if we see majority of the supply is kicking in 2028, 2029, so FY '29 or FY '30, right? Just one question there. Do you see a risk -- I know it's kind of a micro market-specific thing, but do you see a risk since majority of the region [indiscernible] are happening FY '29, FY '30, right, or later end of FY '28, the occupancy is kind of taking a hit and as a reaction to that, ARRs might need to moderate beyond FY '28. So just your two pieces on that -- on this particular thing.

Yes. So I'm just trying to understand the question. When you say risk, what specifically you're referring to in that...

So when I say risk, so particularly in a particular micro markets when we are having, say, multiple newer properties coming in, right, and the demand might not keep pace with the supply addition. In that case, occupancies do you see for overall levels for those micro markets to come down? And as a reaction to it, ARR a little bit can go down for those particular years, say, FY '29, FY '30?

Yes. So first of all, let me try and answer that question in a slightly different way. And then you can tell me if I've answered your question. For any hotel, whether it's owned or managed, we do an extremely detailed projection of how we feel the hotel will perform based on our estimated capital costs we do. We calculate internal rates of return. We look at NTV values as well. We tend to be conservative in the assumptions we make even for owned -- certainly for owned hotels. And at least the modeling we do and the sensitivities we run on managed hotels are also showing enough headroom because we're taking somebody else's money. They're trusting us with that investment, and we have a commitment to delivering on our promise to them on the hotel's performance. So -- and we projected those numbers. I'd say again, if past is a prediction of future, we do a reasonably thorough job in this exercise. So I have no reason to believe that we won't achieve the rates and the occupancies that we have projected in -- for each of the hotels that are either owned or managed. And I hope we will outperform those numbers rather than just meeting those numbers. So I have nothing to be concerned about as of now. And we will deliver the performance figures that we commit to. In terms of one other thing, we typically go for a rate premium. And our rates are generally both for Oberoi and Trident amongst the highest in the marketplace where they -- or the cities where they operate. And because occupancy isn't strong, we typically wouldn't just discount rates. So our objective is to maintain rate premium positioning and occupancies will pick up over a period of time for a new hotel, for a renovation, like I explained for the Oberoi brand, it would be different. And given how well the brand is known in India and a strong Indian market, ramp-up for hotels, I hope, will be quicker than historically where domestic players have depended at least in the luxury segment on more international travel, and that is changing.

Continuous change in the demographic trends, what we are seeing in the Indian population, we just continue to see good demand and growth for luxury versus supply and maybe that gap will continue for the next couple of years.

We take a couple of questions on the chat. [indiscernible] asks, what is the CapEx allocation for the next 2, 3 years? Broad numbers is good enough.

Can we give CapEx allocation?

So overall, if you look at our investor update, we almost spent INR 600 crores to INR 700 crores of CapEx in the current year. We will test the new hotels and hotels which are coming. So we'll keep spending in that range in the next 1 or 2 years. And that will go up on -- I will not disclose the numbers, but it will go up higher towards '29, '30 when our [indiscernible] hotels come in.

[ Utam Jain ] would want to know, could you please clarify if there were any financial losses were incurred during Q4 due to geopolitical issues? If so, what is the total value of this impact?

So we have not really the impact considering what Vikram had mentioned that we definitely saw bookings going down on our foreign room nights. But at the same time, there was also a compensation which happened from our domestic business. So doing an impact for the financial loss, we have not done that and very difficult to do with the fact that some of the business of the foreign was actually taken over by the domestic business.

Deepak [indiscernible]. What would be the full year RevPAR on the owned hotels and growth over FY '25?

The full year RevPAR for our owned hotels was around INR 70,400, which was almost...

You're showing the growth over previous year.

So it was -- RevPAR grew almost by 8.5% versus this year.

Okay. We have time for a few more questions on the Q&A board. We'll take the next one from Amit Kadam.

I have a couple of starting with maybe for -- this could be for Vineet. I don't know whether it was covered for that other expenses have gone up 20% for the quarter. Is there some unique or some one-off sitting there because it is very different than the sequential run rate what we were clocking. So that's question number one.

Do you have another question or should I reply on that?

Yes. I have other -- maybe just start with -- the second one is that our international business RevPAR when I say, it's gone up by 13%, which is quite commendable looking at how the geopolitical situation was panning out for the quarter. So I just wanted to know your outlook here because the situation continues. Was it just because the March got affected, hence, that 13% and it could little get worse in the current quarter? Your outlook on this, how to look at the international business in the current situation? Third is whether the Moshobra thing will continue. The O&M contract will continue in FY '27, just your some inputs here will be helpful. And fourth is your managed hotels, just an observation, managed hotel pipeline is getting pushed to '29 and '30, which like -- and then all of a sudden, 27 is looking quite vacant there. Just what -- I understand because Vikram had already alluded that this is beyond our control, but what we are doing to tighten this thing because that's very important from a project execution point of view and how our numbers are expected to get delivered? So these are the four things. I can repeat if you need more help.

Let me start with answering what I remember and again will come back to you. In terms of expenses for the quarter, when you look at other expenses have gone up. One is, of course, because of the expenses have gone up because of the business has grown. Then we had -- and also because the OFS business has grown where we pay airport levy -- that particular percentage has also contributed to the expense being higher. Also at the same time, for the year-end, we had some higher repair maintenance expenses at the property. And also our CSR expenditure, we were catching up with the CSR expenditure for the year. So that resulted in a higher expenditure. At the same time, we had some legal expenses and some donation, which impacted for the. So that was the answer for -- on the expenses going up. On the next part of Moshopra, in Mashobra, most of the things are settled. The case already was settled in the month of June. Now beyond this, we should not see any impact coming on account of Moshobra. We continue to run the hotel which is valid for 6 -- months. So that will be October. We are still waiting for further development of that [indiscernible] and you ask what...

International business and management...

Do you want me to take the international one? So I think number one, if you look at where we are, Indonesia is the strong market is Australia. Now whether Australians are traveling closer to home to places like Indonesia and not -- and avoiding Europe, et cetera, or destinations where you have to fly over the Middle East, I can't say. But there's some impact there. Egypt, again, when you're either going to Egypt from Europe or from -- going to Morocco from Europe, you fortunately don't have to fly over Iran, and that will, I hope, help us in those locations. I don't know if that answers your question.

So just to give you a thing on Q4, our RevPAR was higher because our Mauritius as well as Oberoi [indiscernible] did very well in Q4.

And the outlook remains same, this particular -- what we saw in quarter 3 should should continue because ex Middle East, I think what Vikram sir also alluded would remain at least for now what the situation remain on that?

There is an impact, but very difficult to quantify it right now.

Okay. And under the managed hotels, what just observation is that things are getting pushed back to '29, '30 and then FY '27 looks a little bit. How do we fix this thing from a sheer project execution time lines then?

So with managed hotels, unfortunately, we don't execute the project. And I don't think -- and that is absolutely within keeping with industry norms. If I as an owner, I work with the operator to help with the design, working closely with consultants, et cetera. But eventually, I'm responsible as an owner to execute the project. And obviously, if there's a delay as an owner, there's an impact on me. So I want to avoid delays as an owner to the largest extent possible. But there are slippages that take place and what you see in the numbers are those slippages. So obviously, we're there to support any owner who we've signed a management agreement with and to avoid delays, but there's only so much that we can do.

We take the last two questions from [ Vaibhav ] and Madhav. [ Madhav ] please un-mute yourself.

I just wanted the revenue for the entire FY '26 will. Room revenue and [indiscernible] revenue [indiscernible] be sharing in the annual...

Room revenue for the owned hotels was INR 1,216 crores for the year. The F&B revenue was INR670 crores.

F&B revenue you need to [indiscernible].

The remaining information will be available in our financial statement.

Sir on a consolidated basis[indiscernible].

So that will be the consolidated information. Right [indiscernible]. That will be available in the financial statement.

We'll take the next question from [ Vaibhav ].

I just have two small follow-ups. First on the renovation pipeline that you mentioned for this year. What kind of impact do you expect on operational inventory and the duration, if you can highlight for the 4 floors that we are planning to renovate at Trident Nariman Point and Oberoi. So any sort of color on that?

Yes. So the Trident [indiscernible] Point is 6 months. And like I said, that's already underway. In the Oberoi Bombay, although it's 4 floors, we take one floor at a time. So it's not 4 floors all at once. And it's staggered.

And this will be done in the leaner months when we manage the occupancy. So the impacts are going to be minimal.

Maybe Vineet worth also saying that, yes, I think that's another fair comment that it's during the leaner months. And we -- when we did our budgeting, we estimate -- we obviously looked at what that impact would be. And I think Vineet's comment was absolutely right that the impact will be minimal.

And will that have any impact on the adjacent inventory as well because of the refurbishments that are going on?

Sorry, I didn't understand that because both the hotels are adjacent to each other. So we're doing...

I mean if you're renewing the 4 floors, will that have an impact on the adjacent flows as well in terms of -- because of the ongoing construction.

It absolutely. You're absolutely right. It does. And this is -- this includes redoing bathrooms completely. So there is noise and there is an impact. But we do manage that impact, and we do everything we can to minimize that impact. And that has been accounted for when I made the statement that despite that, the impact will be small. But you're absolutely right, there is an impact at both hotels. Even at the Oberoi Bombay, when you do 1 floor at a time, there is an impact, although the Oberoi Bombay work isn't as noisy, the bathrooms are being -- are not being changed. So there's no significant breakage in the Oberoi Bombay. But there still is some impact in that we minimize and organize in such a way that disruption is minimal.

Understood. Last small question on the Oberoi Grand Kolkata property. Earlier time line in Q3 that we mentioned was 2028, which we now have shifted to 2030. Why has there been a 2 years delay within a quarter?

Yes. Actually, we -- there was a slight change in the location of the site, which caused the delay. So in fact, the site is now -- has better views of the gorge and the lake beyond. And because of that, that involves some redesign.

We'll take the final question for the from [ Rajiv Bharti ].

In terms of INR 680 crores CapEx number which you have said in the presentation, how do we split across, let's say, various pieces, including the renovations which you have done and how much of it could be Rajgarh? And if you can quantify the maintenance CapEx we should assume the INR 700 crores numbers, which you have guided for in subsequent years.

Yes. So out of the expenditure, the maximum expenditure we spent was on Mumbai land conversion, which was roughly around INR 230 crores, where has been converted to freehold. We have spent money on our -- last year was a bigger amount of spend that we have gone and put in operation last year around INR 125 crores. We are spending -- we spent almost INR 100 crores in our continuous current renovations across Kolkata and the other properties. And so if I add the replacement CapEx, roughly the project CapEx would be in the range of INR 100 crores and the remaining would be replacement CapEx.

And let's say, Rajgarh when it stabilizes fully, what is the revenue potential we are looking from that a couple of years...

Difficult to give out at this point.

I mean the only thing I would say is that if you look at our Oberoi Leisure hotels, the [indiscernible], they're extremely profitable. And if that helps you in estimating what Rajgarh will be, that may be a good start to estimating those numbers.

Last question. Usually, we get, let's say, there's a diplomatic movement and India has the presidency of [indiscernible], I think this year. Usually Oberoi get benefit out of that, right? So I was expecting a much better performance in March because there was some diplomatic movement, and I think the market leader benefited out of it. Do we see potential of that in the subsequent [indiscernible]?

So we got the benefit in the Feb March AI for the AI summit. We foresee a bit happening in Q2 and Q3. Yes, we'll get some benefit for sure in that.

That was the last question for the afternoon, and I hand over the webinar back to Vikram and Vineet for their closing remarks.

No. Thanks, Naveen. And ladies and gentlemen, thank you once again. I hope we all get through the crisis that we all -- that has been faced in the Middle East or West Asia. And I hope that ends as soon as possible. And India [indiscernible] continues to show strong economic growth. That's really all I have to say. And I thank our colleagues, our shareholders and our partners for their support. We will continue to do the best we can to grow the company, to grow profitability and to run world-class hotels.

Vineet, anything from you?

No I echo the comments of Vikram. Thanks a lot.

On behalf of SKP Securities, thank you very much, Mr. Oberoi and Mr. Kapur for patiently taking all the questions. we and's look forward to hosting you again for the next quarterly webinar. Thank you, ladies and gentlemen, and have a wonderful day.

Thank you very much. Bye-bye.