SAMHI Hotels Limited (SAMHI) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q1 FY '27 Earnings Conference Call of SAMHI Hotels Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Ashish Jakhanwala, MD and CEO of SAMHI Hotels Limited. Thank you, and over to you, sir.

Good morning, everyone, and welcome to SAMHI Hotels Quarter 1 Financial Year 2027 Earnings Call. Thank you for taking the time to join us today. I am joined by our CFO, Rajat Mehra; our EVP and Head of Investments, Gyana Das; and Nakul Manaktala, VP of Investments. Our Investor Relations partners, Strategic Growth Advisors are also on the call. We have uploaded our quarter 1 financial year '27 financial results, investor presentation and the Excel sheet on the exchanges and on the website, and I hope everyone has had a chance to go through them. Before I get into specific company level details, let me spend a moment on the environment we operated in, in this quarter because it speaks directly to why we have built the SAMHI we have. We are a firm believer in and investor in the urbanization story of India, and we have deliberately built our portfolio in some of the most dense office markets in the country. That thesis held up well in quarter 1. Net office absorption across our core markets was approximately 11 million square feet during the quarter on top of approximately 58 million square feet for the full financial year '26. And leasing momentum, especially in global capability centers remains strong with Bangalore, Hyderabad and Pune, together accounting for more than 65% of the quarter leasing activity. On aviation, passenger traffic did dip early in the quarter as the geopolitical situation escalated and more so because of the limitations with the gulf carriers, but the later half of the quarter saw a clear recovery and quarter 1 FY '27 passenger traffic came in essentially flat year-on-year for the quarter as a whole, a good illustration of how quickly underlying travel demand in our markets reassert itself once the disruption passes. Against that backdrop, our own operating metrics were strong. Same-store RevPAR grew 9.6% year-on-year to approximately INR 5,220 with portfolio occupancy at 79.3%, which was up from 74.2% in the year ago quarter. Domestic travelers now make up 82% of the room nights we sold, up 78% a year ago. This more resilient domestic cohort is precisely what insulated our top line from the disruptions to international arrivals that we saw through the quarter. Encouragingly, 36% of the days in the quarter saw occupancy in excess of 90%, which tells us underlying demand compression is intact even with softer international business. Let me now hand over to Rajat to take you through the quarter financial performance in detail, and I'll come back to you to talk through our growth pipeline. Over to you, Rajat.

Thank you, Ashish. Good morning, everybody. Let me start with the 3 items that bridge our reported performance for the quarter to comparable performance as that truly demonstrates the health of the business and gives a clearer guidance on the way forward. Total income for Q1 FY '27 was INR 308.3 crores, which was on a reported basis, up 7.3% on a year-on-year basis. However, there is approximately INR 9.3 crores of onetime other income that was included in our Q1 FY '26 base relating to a subsidiary capital restructuring as a part of the GIC transaction. Therefore, on a comparable revenue growth basis, we were up 10.8%. This includes same-store growth of approximately 9.1% and the balance came from the new opening last year. Similarly, Q1 FY '26 base also included approximately INR 2.1 crores as a onetime expense related to the GIC transaction, which reduced the reported EBITDA for that quarter. Operating expenses in Q1 FY '26 include an approximate impact of INR 9.2 crores from the change in the GST regime from 12% with the input tax credit to 5% without the input tax credit. This impact is in the current year and is not a base period adjustment. Therefore, while we reported our EBITDA, which was lower by 4% on a year-on-year basis, the same on a comparable basis was healthy at about 12.1%. Finance costs for the quarter declined by 12.5% on a year-on-year basis -- sorry, 25.5% on a year-on-year basis to INR 37.7 crores, resulting in a PBT of INR 32.7 crores, up by 26.4% over the same period last year. Net debt as on June 30, 2026, was approximately INR 1,490 crores. Our net debt to EBITDA stood at approximately 3.2x on a trailing 12-month basis and approximately 2.4x for operating assets, excluding the capital deployed towards growth. Our effective interest rate is at 7.8%, approximately 300 basis points lower than that at the time of our IPO. Our credit rating remains A+ stable, both by ICRA and CARE, unchanged since our last upgrade during the financial year of 2026. We remain firm on the trajectory outlined last year with the forecast to generate a cumulative cash flows of more than INR 2,000 crores over a period of FY '27 to FY '31. This enables us to fund our committed growth CapEx, while maintaining a strong balance sheet. However, we have 2 uncertainties in our business, the external environment and the growth opportunities that may come our way. But as we promised, the balance sheet needs to remain strong irrespective of either the 2 or both playing out. So it is critical that the Board has the flexibility to act in time. And therefore, we are enabling resolution for a capital raise during this meeting, although the business actually stands very well capitalized as we speak. With that, let me hand over the word back to Ashish.

Thanks, Rajat. So this operating performance that Rajat just spoke about, which is largely anchored around the 9% same-store RevPAR growth and also around same level of total revenue growth for the same-store asset has remained within our expected long-term revenue growth forecast of 9% to 11%, even with repeated headwinds. This is very reassuring and allows us to focus on the growth ahead. We are excited about the strong growth pipeline we have secured across cities such as Hyderabad, Bangalore, Chennai, Noida and Navi Mumbai and with marquee brands such as the W, Westin and the Marriott. This will deepen our presence in key office and aviation markets and allow us to benefit from the urbanization trends and opportunities that India offers. It is also worth standing how the portfolio mix matters as much as the growth rate. Last financial year, on a same-store basis, our upper upscale and upscale hotels earned almost 4x in revenues what our mid-scale hotels earned on a per key basis. This is exactly why our portfolio mix matters. Most of the 1,660 rooms across 7 new hotels in committed pipeline sit in the upper upscale and upscale segment. Add to that around 400 rooms -- 450 rooms that rebranding from upper mid-scale to upscale. And our upscale share of revenue moves from approximately 40%, 41% today to approximately 60% by financial year 2030. The recent GST changes make the shift even more valuable since it impacts our mid-scale rooms far more than the upscale ones. Put simply, every new upscale key we now add brings in more revenue per key and a better margin than the mid-scale, it often replaces or sit along. This gives us an asymmetric growth, a bigger jump in revenue and profit than our room count alone would suggest. However, at the same time, Mid-scale remains valuable for cyclical resilience as is evident from its RevPAR growth in quarter 1. Beyond our core business, we continue to support the experiential leisure platform through RARE India. The RARE portfolio now stands at 75 hotels with 1,046 rooms across 15 states. It's a curated collection of heritage palaces, wildlife lodges and boutique resorts. RARE is an asset-light model. RARE owns the platform, not the underlying hotels and its economics will come from 3 sources: the fee income from the business it generates for its hotel partners, additional incentive fee in select hotels and selective opportunistic investments, one such being an 8-acre estate in Uttarakhand that we have opportunity to acquire for around INR 12 crores. This was a rare hotel. The owner wanted to dispose as they were leaving the country, and we find such opportunities to be attractive. The entry capital is low relative to asset potential and much of the value creation will come from the RARE model itself. So while RARE and the broader leisure thesis will use a very small part of capital, we see it having the potential to create a relatively larger value for our shareholders, although it will take some time. Marginal cost to marginal return ratio seems to be attractive, opportunity is scalable and the RARE platform gives us a sectoral knowledge and talent pool. In summary, our expectation from the market is modest, 9% to 11%, and we have delivered that for several quarters despite headwinds. Our portfolio growth is promising, both in scale and in terms of segments we are growing, allowing us to materially strengthen our core business in urban centers, and we have an opportunity to create totally asymmetrical returns from RARE while remaining nimble on capital allocation. Thank you for your time today. We will now open the floor for questions.

[Operator Instructions] The first question is from the line of Karan Khanna from AMBIT Capital.

Two questions from my side, Ashish. Firstly, can you talk a bit more about the Itmenaan Estate acquisition in Binsar, Almora? While the reviews appear quite strong on Bookings, TripAdvisor, et cetera. But if I look at the revenue performance for the past few years, it's been fairly ordinary. And more importantly, with RARE India and now Itmenaan, you've already deployed INR 60 crores towards leisure as a segment. And with further expansion at Itmenaan, it appears leisure capital allocation will continue growing in your portfolio. So given that context, in your 2030 outlook, how are you thinking of leisure as a part of your business? And if you can also talk a bit more about opportunities within RARE India that you are currently evaluating?

Thank you, Karan. So in terms of performance, you're absolutely right. The performance of this hotel took a little bit of a hit in the last year, 1.5 years because the owners had moved to Canada. So since they moved out, of course, the hotel was pretty much in a state of being kept operational, but not really see any active marketing. It also has gotten delisted from RARE for a period of time and will now get relisted. So what you see as the near-term performance is not reflective of where this hotel needs to be. The Kumaon area, because of RARE, we now get some exceptional data. The Kumaon region now has these small experience-led hotels, which drive rates anywhere between INR 20,000 to INR 40,000. And we feel with the combination of RARE and potentially outdoor collection by Marriott Bonvoy and the unique asset that Itmenaan itself is, it should reclaim that price positioning and therefore, it will reflect in the financials also. So that's part one. Part 2 in terms of capital allocation, I think, Karan, it's fair to say that we like the RARE story as asset-light. That's why we invested in it. And to that extent, the incremental capital in RARE is negligible. Whatever we had disclosed is where we stop. Actually, the total capital investment in RARE is around INR 40 crores, right?

INR 47 crores.

INR 47 crores. And now with RARE -- with Itmenaan which is an add-on, it's about INR 60-odd crores, right? If you take a 4-, 5-year view, it's hard to put a number, but we like to believe that it will remain to be a relatively small portion of our capital allocation, I think in the ZIP code of 10% plus/minus. But Karan, what is important is we don't need to be apologetic about capital allocation because we think the value some of these assets will create will be far more than the percentage capital allocation they seek from us. And the reason is the underlying thesis that we are now understanding through RARE India that these hotels have an arbitrage where the amount of capital they require and the level of average room rate they produce are totally disconnected. So if you take a core business hotel, there's kind of a correlation between segment cost per square feet and the average room. But the hotels we've seen through RARE India, a large part of rate is realized through experiences and distribution. So even though the capital allocation current will remain really small, we like to believe, and it's early days that the value it will create for the shareholders will be disproportionate. But I think we need to be clear that the amount of capital they suck up today and in the future may not really pass the code around 10%, 12%.

Sure. And secondly and lastly, if you look at the RevPAR performance, it appears ARRs were largely flat on a Y-o-Y basis. So there was 2 or 3 percentage point improvement in that. But for the rest of FY '27, when you think about growth, how much of that is being penciled in by ARRs and how much of that will be occupancy led? And also for July, have you seen a sharp recovery in July or are similar to what you've seen in last quarter?

So 2 points. One is how do we see FY '27 growth structured in terms of rate versus occupancy? I think current in the first 6 months, you'll see occupancy driving the total revenue growth and occupancy continues to remain extremely, extremely robust. I mean, if you had asked me 5 years back, can you underwrite a 79% occupancy for a business hotel portfolio, I myself would have been reluctant. And I'm sure you and I had this conversation some time back, right? But today, it's easy to underwrite 70s, early 80s occupancy for business hotels. Having said that, don't forget that the domestic share of occupancy has gone from 78%, 79% to about 82%, but it comes at a certain cost because my international business always came at a premium of 10%, 15%, 20%, depending on the segment you operate in. So as towards H2, we rebalance the domestic versus international, that rate growth will automatically come to our portfolio. That's part one. Part 2, I will give you the answer, but I'll also caution that 1 month is never representative of either a quarter or the balance of the year. But July is quite strong. And I won't want to give specific numbers because we've not done that before as a practice to give -- but I can assure you that July is trending far ahead of where we ended the previous quarter. And also, we are seeing a growth in rate now, which we had not seen in quarter 1. So the trends that we are seeing are quite encouraging. But Karan, I will caution everybody, it's 1 month of the 3 months of this quarter, and we still have 8 more quarters to go before we end this year.

The next question is from the line of Jinesh Joshi from PL Capital.

Am I audible?

Yes, Jinesh.

Yes. Sir, my question is on RARE. I think we have mentioned in the presentation that out of 75 hotels, roughly about 40 hotels have agreed to be a part of the Marriott Outdoor collection program. Now given the parentage, were we expecting the number to be in this trajectory? Also, what could be the reason for not signing to the Marriott program because essentially the hotel gets the brand, right, which helps boost his occupancy and ARR. So any specific reason why the sign-ups apparently appear to be slightly lower?

So Jinesh, actually, the sign-ups are far ahead of our own expectation when we have done the transaction. And it's nothing to do about them liking or not. It's about the pace. So a bunch of reasons will relate to this. One is some of those hotels were on other platforms. And we obviously clearly don't want to interrupt existing contracts that any parties may have. So we're very mindful of that. So there is about 10 or 12 hotels, which currently are on other platforms, and they'll make their own decisions to be on Marriott Bonvoy. And for the balance, I think it's about just getting in touch with the owners, explaining benefit analysis, doing a bit of a property review to understand what highlight safety measures need to be taken. So it's just a time and a process. But I think in terms of the level of participation, the level of confirmations that we have received, it's a lot more encouraging than what we had anticipated originally.

Sure. Sir, just to understand this right, I mean, if a hotelier is on a RARE platform, does it imply that he cannot be on any other OTA? Is that understanding correct? Or --

No, no. He can be on a OTA. Jinesh, OTA, of course, is independent. All of our Marriott and Hyatt and IHG hotels are on OTA. Similarly, all RARE hotels, including the ones which will go on outdoor collection at their own discretion can or cannot be on OTA. There's no restriction to that. When I talk about other platforms, I'm talking about platforms like Mr & Mrs Smith, or which are very similar to Bonvoy. So because of it being a legacy company, there are about 10 or 12 hotels which are on these platforms. And I will reiterate, it's not our intent to ever get between contract of 2 parties. So we'll allow those owners to take their own calls. And we are focusing on the hotels which are currently unaffiliated with similar platform. OTA, there's no issue.

Understood. Sir, one last question from my side, and it pertains to the fundraise. I know this is just an enabling resolution that we have taken. But given the fact that the promoter holding is slightly lower and majority of our inventory addition is back-ended and given the free cash generation that we are seeing, which implies a limited funding needs in the near term, any specific reason to kind of go ahead and take this resolution of INR 750 crores?

So Jinesh, I think like Rajat articulated, there are 3 or 4 things we need to be mindful of. Number one is we've seen starting last year with Operation Sindoor, Indigo crisis, Middle East crisis. Every quarter, we've seen something that would have been termed as unpleasant, would have been termed as unexpected. I think what's very heartening is that SAMHI and largely the hotel industry, and we're not alone, has weathered these storms reasonably well on account of very strong domestic demand. But it does give you a sense of alarm about the fact that the world is clearly not normal. So that's part 1. Part 2, interestingly, sometimes when the world is not going right is when you get hit with some opportunities, not that we see anything right now in the horizon. You put the 2 together and often companies are motivated to let the financial discipline be diluted. We have that one promise that we will never violate, which is a financial discipline and balance sheet strength. Now as and when such problems or opportunities arise, Jinesh, we just want the Board to be capable to take their decisions in time. And therefore, I would think not just this year, you would see every year, we will take an enabling resolution as a practice just to provide a professional Board with financial flexibility to act in time if there is a need. So that's really the reason. And I think we should be ready that it is not just this year. We will make sure that the company's Board has the ability to act in time at all times.

The next question is from the line of Vikas Ahuja from Antique Stockbroking.

Am I audible?

Yes, Vikas, you are.

Yes, sir. So my first question, Ashish, I mean, if I look at the ADR growth, right, I mean, since we have listed, it's the lowest in last 2 quarters we have seen. I think last quarter was flat and this quarter, it's close to 2.6%, 2.7%. Compared with the early double-digit growth we were witnessing, is that primarily, it's because of the West Asia disruption and we have more of a Marriott-led inventory? And just to add on, if I look at the occupancy, it's now touching almost 79%. So is it more of a tactical play like we are just trying to -- because the travel is a little muted, especially in the southern cities, we are just trying to have lower rate and trying to bump up the occupancy.

So Vikas, I think a couple of things. A 79% capacity utilization or occupancy indicates anything but a very strong and resilient demand environment, okay? So I would actually see comfort in that number, especially for a company like ours, which is today predominantly business hotels. Two, you are absolutely right, the last quarters, the West Asia crisis, which has then led to disruption in international business travel or international inbound travel is leading to the rate growth being slightly soft. Having said that, I think we've always remained clear that we focus more on total revenue growth because operators will take their own decisions quarter-on-quarter about yielding the assets, sometimes through occupancy, sometimes through rate. And in terms of total revenue growth and remove all the noise in the clutter of new openings and onetime, the same-store is holy grail. The same set of hotels last year versus same set of hotels this year, the total revenue growth was around 9%, 9.5%. And that remains squarely in the ZIP code of 9% to 11% that we've guided for the long term. I must confess that's what we need to deliver our business plan, which is INR 3,000 crores of free cash, a lot of growth CapEx and the revenue growing 2.5x from where they were last year to where they should be in the next 4 to 5 years. So from our perspective, the total revenue growth remains pretty much healthy in the range that we expect it to. Capacity utilization or occupancies are quite heartening at 79%, 80%. Yes, there is a short-term dilution in the average rates because of the inbound. But I think, as I said earlier, both when that crisis starts to stabilize, I'm not even using the word the crisis gets resolved because honestly, we've seen the Russia-Ukraine war hasn't resolved. But so long as the crisis stabilizes and the world gets used to it and we move into H2, I think you'll start seeing some of that growth coming to through rate. And as I was responding to Karan's questions earlier, in July, we've already seen that starting to play out. But again, I will repeat my caution that 1 month is not representative of the balance 8 months that have to come. But in July, we've seen the total revenue growth split between half rate and half occupancy. So I think, Vikas, this quarter-on-quarter revenue management, we should remain focused on 2 or 3 things. One is total revenue growth, especially same-store and where the margin profile is heading. And I'm sure somebody will, at some point, ask that question, otherwise we will address it, that we also see the margin profile significantly improving, a, because of the GST impact; two, we had some of the new openings last year in the Holiday Inn Express platform; and c, of course, the fact that our increasing share of upscale will boost our margins because they don't get affected by GST. So those are 2 or 3 parameters that we track very closely. But yes, we'll keep you updated as we see the rate growth come in H2.

Sure. That's helpful. Ashish, sorry to ask the question again on this fundraising. But I'm just trying to understand because I remember in last Analyst Day, we did talk about investment surplus of INR 1,700 billion. I think that time, the growth guidance was a little higher, and it has come down for all the known reasons. But why we are talking about equity-led dilution and not taking an enabling resolution for debt instead?

Enabling resolution for almost everything. And I will repeat that it is just an enabling resolution to allow the Board to act in time. And Vikas, to answer your question, like Rajat said, we are taking this resolution to respond to what we don't know. If everything goes as per what we think, both on the problems and on the opportunities, then we have a clear path set. But I think we need to be prepared to respond to both problems if we continue to see them or opportunities that we don't know about today. But what I think this management is very clear is not will take a chance on is leading growth or getting into problems without a well-capitalized balance sheet. So therefore, the Board needs to have that ability, and it needs to have that ability every year so that it can act in a timely fashion. COVID has taught us one thing. If you're not prepared, you lose. So we'll keep the Board and the company prepared so that it can act in time. But you're absolutely right. All the numbers that we've shown to you, there are sum of parts, they're not buy-side forecast. We have not assumed any new acquisitions to lead up from INR 1,200 crores to INR 3,000 crores. So that whole part is available for everybody to see. There is no information asymmetry there. But I think we are just preparing ourselves for what we don't know.

The next question is from the line of Shrinjana Mittal from Capital.

Am I audible?

Yes, you are.

Yes. So you mentioned that the rate growth was slower in this quarter. But if I look at segment-wise, I see that upper upscale, the rate growth was slightly softer than midscale and what we would usually expect from the segment, right? So what I'm trying to understand is, is there a pattern that you expect to see that when the overall demand softens, the upper upscale tends to underperform a little bit because there is some sort of down trading which is happening? Yes, that is my question.

Okay. So RevPAR -- you would see softer in the upscale. Actually, the raw average room rate was in that ZIP code of 3.5%, 4% for all the segments. There is no disparity. But what you saw is that the mid-scale outperformed the broader upscale because of the RevPAR growth of 13.7%. That's led by very healthy occupancy levels. So if you see my upper upscale portfolio was at 78.4%, whereas the mid-scale portfolio delivered 81.3% occupancy. Also, what we need to bear in mind is last year same quarter, the occupancy levels for the was about 74%, but for the mid-scale, it was 73.8%. So year-on-year, that portfolio has made a really good improvement. And actually, I don't recollect that we discussed this in the past, but we did enumerate that for FY '27, we have 2 or 3 opportunities within our portfolio, which will remain outside of our dependence on the market. One was, of course, the broader mid-scale, which we felt had an opportunity to perform better. And we are very happy to report that in the first quarter, it has delivered as we thought it would. And that's why you see it's growing disproportionately. And second, there was a part of our portfolio, right, which we felt had underperformed in FY '26. Early indications are that part of the portfolio is performing really, really strong. And that's why we remain fairly bullish that quarter 1 is only a start. And the early trends that we are seeing for quarter 2 and beyond are actually far ahead of what we delivered in quarter 1.

Understood. No, that's very clear. Just one more question on the GST impact. This is -- this quarter, it's a little above 2% -- so this is just because of the mix because the upper upscale mix was a little bit lower and mid-scale was higher. Is that the right understanding?

That's right. That's right. So as you get a little bit of larger number of rooms being sold below 7.5%, what happens is your GST impact and larger in that quarter. So typically, quarter 1, quarter 2, you see volume-driven growth in any case in the sector, and you will see larger GST impact. Well, from quarter 3, interestingly, at least on a Y-o-Y basis, the GST impact kind of equalizes because prior period also will have that. But in terms of margin depression, it, of course, continues, but it will be lesser in H2 than in H1.

Right. So it would be closer to 2% -- ?

That's right.

The next question is from the line of Vaibhav Muley from Haitong India Securities.

Congratulations on a good set of numbers, sir. My first question was on our F&B revenue growth for this quarter. While overall room revenue has grown at a decent pace, F&B growth has actually seen a bit of slowdown with around 4% growth year-on-year. I wanted to get a bit more color on why was there a slowdown in F&B? And what are the initiatives that you are taking to boost the F&B growth that's my first question.

Yes. So very good question, Vaibhav. What we have seen as a trend is that international travelers tend to be a higher spender than food and beverage, especially in our upscale segment, right? We clearly have seen the business mix move from almost 78%, 79% domestic to 82%, 83% domestic. So that clearly -- and a large bulk of that, honestly, I'm talking about portfolio-wise, this data would be even more stark if which is to restrict ourselves to upscale, right? Second is we had a renovation in one of our key restaurants in Bangalore, which is now open again. And third, we had some event cancellations on account of the West Asia crisis -- some of them moved to July onwards. Like in Hyatt Regency, Pune, we had some events in June, which got moved to July and August. The combination of these 3 has led to around a 3.5%, 4% F&B growth against 9%, 9%, 10% -- actually, the total room growth is 14%. F&B is muted at 3.7%. That's why the blended average comes lower. So as the events pick pace, you will see that coming back.

All right. Second question, sir, on the GIC investment. You mentioned in the morning that you are evaluating a partnership with GIC for some of the new opportunities where -- can you highlight a bit more about this in terms of which assets are you looking at potentially invest incremental capital? And also if you can highlight, if any partnership is that you're evaluating for existing assets?

Okay. So second is easier. We're not evaluating any partnership for existing assets at this point of time, right? As per a GIC agreement, they have the right to participate to the extent of 35% in new upscale opportunities after we signed the joint venture agreement. The only opportunity that we've signed since our GIC JV is really the IKEA, the Ingka opportunity in Noida. And we will know in the next -- in due course of time, whether they'll come in into that opportunity or not. Other than that, on the prior hotels, clearly, there's no discussion at this point of time. For future acquisition opportunities, I'll repeat, the JV is constructed that we will continue to share 65%-35%, 65% in favor of SAMHI, 35% in favor of GIC. Also, what is important and pertinent here is that, that joint venture is extremely well capitalized. So it has the firepower to grow if we see any opportunities come our way, but no conversation on existing operating assets.

Sir, does new opportunity include your dual branded development in Navi Mumbai and W Hyderabad?

No.

Are these included?

No, no. No. Those are opportunities which were seeded prior to the GIC joint venture. So both Navi Mumbai and W Hyderabad are currently and proposed to be owned 100% by SAMHI.

The next question is from the line of Karan Kamdar from Choice International Equity. As there is no response from the current participant, the next question is from the line of Prashant Biyani from Elara Securities.

Sir, Hyatt Regency, Pune were thinking of repositioning it as Grand Hyatt. That should happen by when?

No, Prashant, there -- sorry, there's some background noise. Prashant, there was a very early discussion, but we are not pursuing that right now. We've already seen a significant change in the performance of the hotel. If you see Slide #27 of the presentation, which has been consistent for the last several quarters, that was not really the part of the plan. It was a discussion we had about 2.5, 3 years back. But since then, we've seen the hotel grow fairly rapidly without that incremental CapEx. So we are obviously not going that way.

And sir, secondly, W Hyderabad and Courtyard Pune, in which quarter of FY '27 can we see opening of these 2 hotels?