Royal Orchid Hotels Limited has informed the Exchange about Investor Presentation
ROYAL ORCHID HOTELS LTD.,
Regd. Office : 1, Golf Avenue, Adjoining KGA Golf Course, HAL Airport Road, Kodihalli, Bangalore- 560 008, India. T +91 80 41783000, F : +91 80 252 03366 www.royalorchidhotels.com CIN : L55101KA1986PLC007392 &mail : investors@royalorchidhotels.com
Date: November 09, 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 I Madam,
Sub: Investors Presentation
To, The Manager, Department of Corporate Services, National Stock Exchange of India Limited, Exchange Plaza, Plot no. C I 1, G Block Bandra Kurla Complex, Bandra (E) Mumbai- 400 051 NSE Scrip Symbol: ROHLTD
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in continuation to our letter dated November 08, 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 j \OTELS LIMITED
~
9&•~l·~ Jaiswa:
ief Finay cial ~fficer
/ Encl: As abU
Royal Orchid Hotels Ltd. Q2 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 ME D A B A DB E N G A L U R U C H E N N A I N EW D E L H I G U R U G A M
N O I D A
G O A
H YD E R A B A D J A I P U R
K O L K A T A
MU MB 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
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 Royal Place Regenta Inn
75+ 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
75+ Hotels Across India
75+
2001
2006-07
2012-13
2018-19
TODAY
Corporate HQ 07 Hotels
07
40+
40+ Hotels Across India
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.”
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. 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. 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 - Company 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
Mr. Shiwam Verma – VP Ops (Goa) Mr Shiwam has over 25 years of experience with Pride Hotels & Sarovar Hotels Graduate from Magadh University, Bihar
•
•
•
•
•
•
•
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
JV
t e s s A
o i l o f t r o P
5 Star
4 Star
Service Apartment
Resort/Heritage/MICE
3 Star / Budget
268
-
-
-
_
-
250
67
101
83
139
130
-
54
-
Managed / Franchise
-
1805
159
655
835
Total
407
2185
226
810
918
Total Keys
268
501
323
3454
4,546
Growth in rooms
6000
5000
4000
3000
2000
1000
0
5,685
5,450
5,010
4,763
4,520
4,358
3,980
3,733
3,917
3,980
2,988
2,882
591
591
591
591
591
591
387
439
439
439
501
574
Owned
Leased
Managed
TOTAL
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
% Growth
+ Signed Hotels
+ Signed Hotels
+ Signed Hotels
+ Signed Hotels
+ Signed Hotels
Property breakup with rooms
No of Keys
FY21-22
Q2 of FY21-22 Q2 of FY22-23 H1 of FY22-23
Management / Franchisee Contracts
3258
105
JV
Owned (Domestic)
Owned (Overseas)
Leased
Total KEYS
Average Occupancy (JLO)
Average Room Rate (JLO) (Rs)
Average Occupancy rate (Managed)
Average Room Rate (Managed) (Rs)
396
195
-
433
4282
57%
3572
48%
3214
-
-
-
-
105
65%
3,088
49%
3005
-
-
-
-
-
-
75%
4,769
56%
3,619
3454
323
268
-
501
4546
76%
4889
62%
3623
Upcoming Hotels by March 2023
Regenta Central Regenta Saptapuri Regenta Gulabkothi Regenta Resort Regenta Inn Regenta Resort Regenta Resort Regenta Inn Regenta Central
1 2 3 4 5 6 7 8 9 10 Regenta Inn 11 Regenta Inn 12 Regenta 13 Regenta Place 14 Regenta Place 15 Regenta Place 16 Regenta Place 17 Regenta Place 18 Regenta Place 19 Regenta Central 20 Regenta Resort 21 Regenta Inn 22 Regenta Central 23 Regenta 24 Regenta Place
Candolim, Goa Varanasi Varanasi Hoskote, Bangalore Mahadevpura, Bangalore Coorg Gulbarga Gangtok Digha - West Bengal Nellore Koramangala Dharamshala Mohali Jhansi, Gwalior Road Amritsar Phagwara Raipur Bhopal Dehradun Pushkar McLeod Ganj Varanasi Vadodara Juhu, Mumbai
24+ Hotels
1200+ Keys
Competitive Advantage
Balanced portfolio having presence in over 48 locations and 11 states
Strong sales presence across major source markets in India
Affordable luxury having plethora of options for modern travelers
Financial Overview
Quarterly & Half Year Highlights and Financial results
Margins
Consolidated Income Statement & Balance Sheet snapshot
Shareholding
Consolidated Quarter and H1 2022 -23 highlights
Quarterly
H1 22-23 & 21-22
70.00
60.00
50.00
40.00
30.00
20.00
10.00
-
140
120
100
80
60
40
20
0
-20
63.17
63.44
20.45
9.28
24.02
11.62
36.09
8.75
0.55
Q2 FY22-23
Q1 FY22-23
Q2 FY21-22
Total revenues
EBITDA
PAT
126.61
44.47
20.9
H1 FY22-23
53.78
7.04
H1 FY21-22
-10.62
Revenue from operations
EBITDA
PAT
Rs. In Crore
Consolidated Quarterly Profits
EBITDA
PBT
PAT
30.00
25.00
20.00
15.00
20.45
12.50
24.02
15.66
11.62
10.00
9.28
8.75
5.00
-
(5.00)
0.55
Q2 FY22-23
Q1 FY22-23
Q2 FY21-22
(0.39)
Consolidated – Profits H122-23 & H1 21-22
EBITDA
PBT
PAT
50.00
40.00
44.47
30.00
28.16
20.90
20.00
10.00
-
(10.00)
(20.00)
7.04
H1 FY22-23
H1 FY21-22
(11.40)
(10.62)
Rs. In Crore
Standalone H1FY2022-23 Financial Results
Q2FY22-23
Particulars Q1FY22-23 - Room nights - Food and beverages - Other services Income from Operations Other Income Total Income Cost of Material Consumed Employee Benefits Expense Power and fuel Expense Rent Expense Other Expenses Total Expense EBITDA EBITDA Margin (%) Depreciation EBIT Finance Cost PBT Tax expense Exceptional Items PAT Total Comprehensive Income Net Profit Margin (%) EPS (In Rs)
22.37 12.37 2.82 37.56 2.56 40.12 4.06 6.89 3.45 2.78 9.64 26.82 13.30 33% 2.59 10.71 2.68 8.03 2.11 - 5.92 5.92 15% 2.16
21.90 12.97 3.21 38.08 1.36 39.44 4.16 6.23 3.61 2.52 8.39 24.91 14.53 37% 2.62 11.91 2.70 9.21 2.34 - 6.87 6.87 17% 2.51
Rs. In Crore
Q2FY21-22
H1FY22-23
H1FY21-22
9.98 7.08 1.58 18.64 2.67 21.31 2.42 3.88 2.40 1.52 5.23 15.45 5.86 27% 2.12 3.74 1.88 1.86 -0.81 - 2.67 2.67 13% 0.97
44.27 25.33 6.04 75.64 3.92 79.56 8.22 13.12 7.06 5.30 18.03 51.73 27.83 35% 5.21 22.62 5.38 17.24 4.45 - 12.79 12.79 16% 4.67
14.53 11.24 2.23 28.00 4.40 32.40 4.91 6.50 3.95 2.39 8.59 26.34 6.06 19% 4.24 1.82 4.46 -2.64 -0.65 -3.32 -5.31 -5.31 -16% -1.94
Consolidated H1FY2022-23 Statement - Snapshot
Particulars
Q2FY22-23
Q1FY22-23
Q2FY21-22
H1FY22-23
H1FY21-22
Rs. In Crore
- Room nights - Food and beverages - Other services Income from Operations Other Income Total Income Cost of Material Consumed Employee Benefits Expense Power and fuel Expense Rent Expense Other Expenses Total Expense EBITDA EBITDA Margin (%) Depreciation EBIT Finance Cost PBT Tax expense PAT Other Comprehensive Income/(Loss) Total Comprehensive Income Net Profit Margin (%) EPS (In Rs)
32.36 19.34 6.36 58.06 5.11 63.17 6.03 13.35 4.47 2.88 15.99 42.72 20.45 32% 4.35 16.10 3.60 12.50 3.22 9.28 0.34 9.62 15% 3.22
32.46 20.46 7.53 60.45 2.99 63.44 6.31 12.16 4.73 2.63 13.59 39.42 24.02 38% 4.35 19.67 4.01 15.66 4.04 11.62 0.37 11.99 19% 4.03
17.10 11.28 3.47 31.85 4.24 36.09 3.93 8.35 3.73 1.75 9.58 27.34 8.75 24% 5.30 3.45 3.84 -0.39 -0.94 0.55 - 0.55 2% 0.61
64.82 39.81 13.88 118.51 8.10 126.61 12.35 25.51 9.20 5.51 29.58 82.15 44.46 35% 8.69 35.77 7.61 28.16 7.26 20.90
20.90 17% 7.25
24.31 16.90 5.00 46.21 7.57 53.78 6.90 14.09 6.03 2.30 17.41 46.73 7.05 13% 10.06 -3.01 8.37 -11.38 -0.78 -10.60 - -10.60 -20% -2.49
Consolidated Assets & Liabilities - Snapshot
Rs. In Crore
Particulars
Assets
Property, plant and equipment
Capital work-in-progress
Goodwill
Right-of-use assets
Other intangible assets
Other non-current assets
Current Assets
Assets classified as held for sale Total Assets
Equity and Liabilities
(a) Equity share capital
(b) Other equity
Total Net Worth
Non-Controlling Interests
Secured Loan and other non current liabilities
Current Liabilities Total Equity and Liabilities
As at Sept. 2022
FY 2022
FY 2021
112.97
1.08
57.36
17.64
0.07
77.46
105.94
14.82 387.36
27.43
118.35
145.77
22.87
134.12
84.60 387.36
114.48
177.47
0.39
17.64
60.49
0.12
73.03
81.82
14.82 362.79
27.43
97.77
125.19
21.83
138.45
77.32 362.79
0.94
17.75
47.13
0.17
47.17
64.18
64.12 418.93
27.43
112.97
140.40
32.61
145.14
100.77 418.93
Shareholding
Others 29%
Bodies Corporate 2%
Foreign Portfolio Investors 4%
Promoter
Foreign Portfolio Investors
Bodies Corporate
Others
Total
65.38
4.31
1.55
28.65
100
Promoter 65%
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