Royal Orchid Hotels Limited has informed the Exchange about Investor Presentation
Date: August 05, 2022
To, The Manager, Department of Corporate Services, Bombay Stock Exchange Limited Floor 25, P. J. Towers, Dalal Street, Mumbai – 400 001 BSE Scrip Code: 532699
Dear Sir/Madam,
Sub: Investors Presentation
To, The Manager, Department of Corporate Services, National Stock Exchange of Limited, Exchange Plaza, Plot no. C/1, G Block Bandra Kurla Complex, Bandra (E) Mumbai – 400 051 NSE Scrip Symbol: ROHLTD
India
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in continuation to our letter dated August 03, 2022 please find enclosed herewith Investors Presentation.
The aforesaid presentation is also available at the website of the Company at http://www.royalorchidhotels.com/investors.
You are requested to take the above on record.
Thanking you,
Yours Sincerely,
For ROYAL ORCHID HOTELS LIMITED
Ranabir Sanyal Company Secretary & Compliance Officer
Encl: As above
Royal Orchid Hotels Ltd. Q1 FY 2022-23
Disclaimer
Statements made in this Presentation describing the Company’s objectives, projections, estimates, predictions and expectations may be ‘forward-looking statements’, within the meaning of applicable securities laws and regulations. As ‘forward-looking statements’ are based on certain assumptions and expectations of future events over which the Company exercises no control, the Company cannot guarantee their accuracy nor can it warrant that the same will be realized by the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments or events or for any loss any investor may incur by investing in the shares of the Company based on the ‘forward-looking statements’.
Table of Contents
01
02
03
04
Industry Overview
Company Overview
Business Overview
Financial Overview
Industry Outlook
PROPOSED BRANDED HOTEL ROOMS ACROSS MAJOR CITIES
2020/21
2025 / 26
1 3 9 7 1
1 0 9 3 1
2 9 8 5 1
1 8 1 5 1
9 6 9 9
5 5 6 9
7 1 8 4
8 7 8 3
8 7 8 3
5 4 0 2
5 3 4 7 1
0 3 3 4 1
1 6 0 9
9 3 0 7
7 2 8 7
0 2 4 7
9 9 2 7
4 1 7 5
2 4 4 5
3 3 9 4
8 1 7 7
5 1 9 6
6 2 6 7
3 4 6 5
2 6 5 2
3 2 4 1
A G R A
A H M E D A B A D B E N G A L U R U
C H E N N A I
N E W D E L H I
G U R U G R A M
N O I D A
G O A
H Y D E R A B A D
J A I P U R
K O L K A T A
M U M B A I
P U N E
Source: India Hospitality Trends & Opportunity report by Hotelivate
A report by hospitality consulting firm Hotelivate shows expected rise in branded hotel rooms by 2025 given the increasing trend in the per capita income.
Key Growth Divers
Robust Demand
Attractive Opportunity
Policy Support
Boosting Hospitality
International tourist arrivals in India expected to reach 30.5 million by 2028.
Diverse portfolio of with focus on niche tourism products – cruises, adventure medical, wellness, sports, MICE, eco-tourism, films, rural & religious tourism
Government has allocated 100% FDI in Tourism & Hospitality sector under automated route.
Swadesh Darshan scheme has 13 thematic circuits across the country selected for development of tourism infrastructure
Under the Budget 2021- 22, the government has allotted Rs. 1088.03 crore (US$ 148.2 million) for development of tourism infrastructure under Swadesh Darshan for the entire Northeast region.
Key Industry Challenges
Competition Entry of Travel aggregators intensifies competitive landscape
01
Infrastructure Limited land availability at the desired location
Rising property prices
04
02
Regulatory Delays in getting approvals and licenses leading to increasing project cost
03
Funding Increasing cost of debt
Medium to small size hotels, not favourable to PE, VC funding
Company Overview
WHO WE ARE?
OUR JOURNEY
MANAGEMENT TEAM
OUR PRESENCE
Who we are?
• Royal Orchid Hotel Ltd (ROHL) was incorporated in 1986 under the name of Universal Resorts Ltd.
•
Promoted by Mr. Chander K Baljee
• ROHL is engaged in business of managing hotels under flagship brands – Royal Orchid, Royal Orchid Central, Royal Orchid Suites, Regenta Central, Regenta Resort, Regenta Place & Regenta Inn
• The no of hotels under Royal Orchid & Regenta
Brand as of June 2022 is 73 Hotels.
SERVICE APARTMENTS Royal Orchid Suites Regenta Suites
4 STAR Royal Orchid Central Regenta Central
5 STAR Hotel Royal Orchid
RESORT / HERITAGE Royal Orchid Resort Regenta Resort
BUDGET Regenta Place Regenta Inn
73+ Hotels & Resorts
48+ Locations
11 States
4,546 keys
2.6+ Lac Loyalty members
Our Journey
First Hotel Hotel Royal Orchid
01
19 Hotels Across India
19
73+ Hotels 4546 Keys - Across India
73+
2001
2006-07
2012-13
2018-19
TODAY
Corporate HQ 07 Hotels
07
40+
40+ Hotels Across India
Board of Directors
Mr. Chander Baljee, Chairman & Managing Director
Royal Orchid Hotels is promoted by Mr. Chander K Baljee, a P.G Graduate from Indian Institute of Management (Ahmedabad) with over 4 decades of experience in the hospitality industry
Non-Executive Directors
Mr. Sunil Sikka Managing Partner of Houzz N Dezins a leading Floor covering sourcing solutions provider.
Mr. Keshav Baljee Co-promoter of Royal Orchid Hotels Limited also founder of Spree Hotels, which is one of India's fastest growing and most loved mid-market hotel brand.
Independent Directors
Mr. Naveen Jain Fellow member of Institute of Chartered Accountants of India as a Hospitality professional with over 35 years of experience, Mr. Jain has held several leadership positions across various functions with leading hotel companies.
Ms. Lilian Jessie Paul With over two decades of experience as a marketer. She was Global Brand Manager of Infosys, headed marketing for iGATE (now a part of CapGemini) and was Chief Marketing Officer of Wipro Technologies.
Mr. Bhaskar Pramanik An accomplished management leader and professional from the Technology Industry. He has held National and Global Leadership positions in leading Multinational Technology Companies. He has worked in India, Singapore, and the US.
Management
Mr. Amit Jaiswal, CFO Mr. Amit Jaiswal has over 30+ years of experience in Finance with Manufacturing & Hotel Industry. B.Com, MBA in Finance & BA - LLB
Mr. Prashant Mehrotra, COO Mr. Prashant Over 20+ years of experience with OYO, Lemon Tree Hotels & The Oberoi, BA, Hotel Management & Catering Technology from IHM, Gwalior
Mr. Perkin Rocha, Sr. VP Ops (North) Mr. Perkin Rocha Graduate from IIAS, Darjeeling with 20 years experience with Lemon Tree Hotels, Duet Hotels, Park Royal International Hotel & Hotel Royal Orchid
Mr. Shiwam Verma – VP Ops (Goa) Mr Shiwam has over 25 years of experience with Pride Hotels & Sarovar Hotels Graduate from Magadh University, Bihar
Mr. Vikas Passi, VP Ops (West) A Hotel Management graduate from Mangalore University and MBA in Sales & Marketing from Pune University, having 16+ years of vast experience in hotel operations and sales.
Dr. Ranabir Sanyal - Com Secretary & Compliance Officer A qualified Company Secretary & Law Graduate with 20 years experience having worked in brands Like Fermenta Biotech Ltd, DHFL Group & Reliance Retail Group
Our Presence
•
•
•
•
•
•
Business Overview
Our Business Structure
Our Business Model
Our Offerings
Competitive Advantage
Our Business Structure
By Business Portfolio
Owned hotels
Managed & Franchised Hotels
Leased Hotels
Royal Orchid Hotels Limited (ROHL)
By Legal Entity
Subsidiaries Companies
Our Business Model -Asset Light Model
Steadily gaining strong foothold through focus on Management contracts which will lead to high growth
Facilitates expansion plans and ramping up presence
Creates brand visibility at a faster rate
01
05
02
Key factors
04
03
No upfront requirement of capex
Maintenance Capex required - Minimal
Break even of Operating profit in just 1 year
Revenue Model
Category
Owned
Leased
Managed / Franchise
Total Keys
FY 2019
591
433
2,361
3,385
FY2020 591
433
2,758
3,783
FY2021
Q1 - FY2022
591
501
3,392
4,484
591
501
3,454
4,546
t e s s A
o i l o f t r o P
Category
5 Star
4 Star
Service Apartment
Resort/Heritage/MICE
3 Star / Budget
Total Keys
Owned
Leased
268
-
-
-
_
268
-
249
-
101
83
433
JV
139
130
-
54
-
323
Managed / Franchise
-
1,802
159
655
838
3,454
Total
407
2,181
159
810
921
4,546
ARR & Occ% for Owned & Managed Hotels
FY21 Q1
FY21-22
FY22 Q1
Average Occupancy (Owned / Leased)
28%
57%
78%
Average Room Rate (Owned / Leased) (Rs)
2,769
3,572
4,880
Average Occupancy rate (Managed)
24%
44%
68%
Average Room Rate (Managed) (Rs)
2,536
3,191
3,660
Properties Opened Q1 - 2022-23
Regenta Place Manali • • 02 Banquet Hall & Lawn • 02 Restaurants
37 Keys
Regenta Place Hill Stop, Shimla
25 Keys
• • 01 Banquet Hall • Pinxx - All day dining Restaurant • Shimla’s Only One Revolving Restaurant
Upcoming Hotels by 2023
1
2
3
4
5
6
7
8
9
Regenta Resort
Hyderabad
Regenta Inn
Mahadevpura, Bangalore
Regenta Resort
Hoskote, Bangalore
Regenta Resort
Coorg
Regenta Resort
Gulbarga
Regenta Inn
Gangtok
Regenta Central
Digha - West Bengal
Regenta Central
Calangute, Goa
Regenta Central
Varanasi
10 Regenta Central
Dehradun
11 Regenta Resort
Pushkar
12 Regenta
Vadodara
13 Regenta Central
Solapur
14 Regenta Central
Nanded
15 Regenta Inn
16 Regenta Inn
17 Regenta Inn
Nellore
Varanasi
Varanasi
56
49
75
14
88
35
45
73
106
84
50
80
50
60
41
14
10
17+ Hotels
1000+ Keys
Competitive Advantage
Balanced portfolio having presence in over 47 locations and 11 states
Strong sales presence across major source markets in India
Affordable luxury having plethora of options for modern travellers
Financial Overview
Quarterly & Full Year Highlights and Financial results
Margins
Consolidated Income Statement & Balance Sheet snapshot
Shareholding
Consolidated Quarter and FY2021 -22 highlights
Quarterly
FY 2021-22
70 60 50 40 30 20 10 0 -10 -20
180 160 140 120 100 80 60 40 20 0
Rs. In crore
Total revenues
EBITDA
PAT
63.44
46.95
24.02
11.62
31.66
14.23
17.69
Q1 FY22-23
Q4 FY21-22
Q1 FY21-22
-1.71
-11.17
Revenue from operations
EBITDA
PAT
155.93
40.36
YE 21-22
26.78
Consolidated Margins
Rs. In crore
EBITDA
PBT
PAT
31.66
35.00
30.00
25.00
24.02
20.00
15.00
10.00
5.00
-
(5.00)
(10.00)
(15.00)
15.66
11.62
14.23
5.78
Q1 FY22-23
Q4 FY21-22
Q1 FY21-22
(1.71)
(11.01)
(11.17)
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
-
EBITDA
PBT
PAT
40.36
26.78
4.82
YE 21-22
Sustainable Growth – Consolidated Numbers FY 2021-22
Rs. In crore
T O TAL R E V E N U E S
219.04
219.74
199.83
155.93
88.84
FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
C AS H P R O F I T 27.43
24.06
18.23
21.17
60.00
50.00
40.00
30.00
20.00
10.00
-
(10.00)
E B I T D A AN D E B I T D A M AR G I N S
22% 48.81
21% 45.32
20%
39.73
26%
40.36
-4%
FY17-18
FY18-19
FY19-20
(3.11) FY20-21
FY21-22
EBITDA
EBITDA margins
30%
25%
20%
15%
10%
5%
0%
-5%
R A T I O S
Net debt to equity
Interest coverage
3.00
2.00
1.63
2.61
1.68
1.00
0.63
0.57
0.56
0.78
1.30
0.64
FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
(13.44)
-
(1.00)
(2.00)
FY17-18
FY18-19
FY19-20
FY20-21
FY21-22
(1.37)
250.00
200.00
150.00
100.00
50.00
-
30.00 25.00 20.00 15.00 10.00 5.00 - (5.00) (10.00) (15.00) (20.00)
STATEMENT OF CONSOLIDATED FINANCIAL RESULTS - QUARTER ENDED 30 JUNE 2022
Rs. In Lacs
Particulars
30 June 2022 (Unaudited)
Quarter ended
31 March 2022 (Audited)
30 June 2021 (Unaudited)
Year ended 31 March 2022 (Audited)
Income (a) Income from operations (b) Other income
Total Income
Expenses (a) Cost of materials consumed (b) Employee benefits expense (c) Rent expense (d) Power and fuel expense (e) Other expenses
Expenses before depreciation and amortisation and finance costs
Earnings/(Loss) before depreciation and amortisation, finance costs and taxes (1-2) (EBITDA)
Finance costs Depreciation and amortisation expense Total expenses (2+4+5)
Profit/(Loss) before exceptional items and tax (1-6)
Exceptional items (refer note 4)
Profit/(Loss) before tax (7+8)
Tax expense/(credit) (a) Current tax (credit)/charge (b) Prior year taxes (credit) (c) Deferred tax charge/(credit)
Total tax expense/(credit)
Net Profit/(Loss) for the period (9-10)
Share of profit of associate
Net Profit/(Loss) for the period and share of profit of associate
Other Comprehensive Income/(Loss) Items that will be reclassified subsequently to profit or loss Income tax relating to items that will be reclassified to profit or loss Items that will not be reclassified to profit or loss Income tax relating to items that will not be reclassified to profit or loss
Total Comprehensive Income/(Loss) for the period (12+13)
6,044.80 299.22
6,344.02
631.08 1,215.60 262.56 472.56 1,359.44
3,941.24
2,402.78
401.02 434.55 4,776.81
1,567.21
-
1,567.21
382.10
-
21.90
404.00
1,163.21
(9.97)
1,153.24
37.16
- - -
37.16 1,190.40
3,953.03 741.79
4,694.82
458.57 1,017.16 191.58 328.54 1,274.62
3,270.47
1,424.35
388.31 457.48 4,116.26
578.56
2,675.34
3,253.90
(16.80) (0.72) 104.33
86.81
1,435.97 332.67
1,768.64
297.27 574.50 54.93 229.78 783.10
1,939.58
(170.94)
453.90 476.40 2,869.88
(1,101.24)
-
(1,101.24)
1.42 -
14.48
15.90
3,167.09
(1,117.14)
-
-
3,167.09
(1,117.14)
33.48
- (27.74) 3.51 9.25 3,176.34
- - - - - (1,117.14)
13,852.39 1,740.74
15,593.13
1,727.99 3,468.31 686.35 1,345.76 4,328.83
11,557.24
4,035.89
1,609.71 1,944.33 15,111.28
481.85
2,505.34
2,987.19
82.62 (0.72) 226.83
308.73
2,678.46
-
2,678.46
33.48
- (27.74) 3.51 9.25 2,687.71
STATEMENT OF STANDALONE FINANCIAL RESULTS - QUARTER ENDED 30 JUNE 2022
Rs. In Lacs
Particulars
30 June 2022 (Unaudited)
Quarter ended
31 March 2022 (Audited)
30 June 2021 (Unaudited)
Year ended 31 March 2022 (Audited)
Income
(a) Income from operations (b) Other income
Total Income
Expenses (a) Cost of materials consumed (b) Employee benefits expense (c) Rent expense (d) Power and fuel expense (e) Other expenses
Expenses before depreciation and amortisation and finance costs
Earnings before depreciation and amortisation, finance costs and taxes (1-2) (EBITDA)
Finance costs Depreciation and amortisation expense Total expenses (2+4+5)
Profit/(Loss) before exceptional items and tax (1-6)
Exceptional items (refer note 4)
Profit/(loss) before tax (7+8)
Tax expense/(credit) (a) Current tax (b) Deferred tax charge/(credit)
Total tax expense/(credit)
Net Profit/(Loss) for the period (9-10)
Other Comprehensive Income/(Loss) Items that will not be reclassified to profit or loss Income tax relating to items that will not be reclassified to profit or loss Total Other Comprehensive Income/(Loss)
Total Comprehensive Income/(loss) for the period (11+12)
3,808.04 135.68
3,943.72
416.00 622.68 252.30 360.65 838.78
2,490.41
1,453.31
269.55 261.57 3,021.53
922.19
-
922.19
260.00 (25.80)
234.20
687.99
- - -
687.99
2,317.05 339.81
2,656.86
284.06 90.95 181.71 238.35 610.92
1,805.99
850.87
231.96 221.58 2,259.53
397.33
-
397.33
-
119.17
119.17
278.16
(17.16) 4.77 (12.39)
265.77
935.97 172.21
1,108.18
248.72 262.24 87.20 155.34 335.53
1,089.03
19.15
257.85 211.57 1,558.45
(450.27)
(331.66)
(781.93)
-
15.96
15.96
(797.89)
- - -
(797.89)
7,973.90 851.27
8,825.17
1,110.31 1,622.96 670.40 900.96 2,166.86
6,471.49
2,353.68
885.76 854.87 8,212.12
613.05
(501.66)
111.39
-
184.03
184.03
(72.64)
(17.16) 4.77 (12.39)
(85.02)
Shareholding
Others 27%
Bodies Corporate 1%
Foreign Portfolio Investors 4%
Promoter
Foreign Portfolio Investors
Bodies Corporate
Others
Total
67.68
3.79
1.23
27.30
100
Promoter 68%
ROHL Vision
Our Vision is to operate 100+ profitable and responsible hotels where guests love to stay, dine and celebrate. We wish to create hotels which have a soul, a reflection of our distinctly warm Indian Hospitality.
In this journey towards 100 hotels, we will also empower the youth of our country. The ones who wish to join hospitality industry, but are limited by financial means. We will provide skill development training to 10,000+ students over the next three years, thereby making them employable, and so they can in turn strengthen the Indian hospitality workforce.”
Hotel Royal Orchid, Bangalore
Royal Orchid Brindavan Garden Palace & Spa, Mysore
Royal Orchid Resort & Convention Centre, Bangalore
Hotel Royal Orchid, Jaipur
Royal Orchid Central, Hampi, Hospet
Regenta Resort, Belagavi
Regenta Kabini Springs Resort, Kabini
Regenta Resort & Spa Mashobra, Shimla
Regenta Resort, Vanya Mahal, Ranthambore
Royal Orchid Fort Resort, Mussoorie
Royal Orchid Beach Resort & Spa, Goa
Manali
Regenta Inn, Manali
Thank You