Royal Orchid Hotels Limited has informed the Exchange about Investor Presentation
Date: May 30, 2023
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
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
Dear Sir/Madam,
Sub: Investors Presentation
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in continuation to our letter dated May 26, 2023 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
Amit Jaiswal Chief Financial Officer
Encl: As above
Royal Orchid Hotels Ltd. Q4 & Year End 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 2022-23, the government has allotted Rs. 2400 crore (US $ 309.13 million) for development of tourism infrastructure under Swadesh Darshan Scheme for the growth of tourism infrastructure in India
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
90+ Hotels & Resorts
58+ Locations
11 States
5442 keys
2.6+ Lac Loyalty members
Our Journey
First Hotel Hotel Royal Orchid
01
19 Hotels Across India
19
90+ Hotels Across India
90+
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 5 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. 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.
Mr. Ashutosh Chandra Joined the Indian Revenue Service in 1982 - Held various positions in the Income tax Department under Ministry of Finance, Govt. of India also as Director of Investigation, Assessment, Audit, Appellate Commissioner, Director in CBDT & Principal Commissioner 1 Bangalore
Ms. Leena S Pirgal An Marketing & Communications expert and comes with 15 years of experience. She was Senior Territory Head (South) at Zee Enterprises leading content integration & Business Director at Rephrase.ai
Management
•
•
•
•
•
•
•
•
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
Property breakup with rooms
No of Keys
FY21-22
Q4 of FY21-22
Q4 of FY22-23
FY22-23
Management / Franchisee Contracts
3,431
Leased
Owned (Domestic)
Owned (Overseas)
JV
Total KEYS
Average Occupancy (JLO)
Average Room Rate (JLO) (Rs)
502
268
-
323
4,524
57%
3,572
Average Occupancy rate (Managed)
44%
Average Room Rate (Managed) (Rs)
3,191
82
67
-
-
-
149
62%
4,035
63%
3,375
184
3,775
-
-
-
-
184
77%
5,657
63%
3,833
575
268
-
323
4,941
77%
5,370
63%
3,795
Revenue Model
Operational as on Date
Category
Owned
Leased
JV
268
-
139
-
Managed / Franchise
Total
407
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
-
-
-
_
396
130
2053
2579
67
-
101
54
71
853
138
1008
83
-
1227
1310
Total Keys
268
647
323
4204
5442
Growth in rooms
7000
6000
5000
4000
3000
2000
1000
0
6,591
5,450
5,010
4,763
3,980
5,354
4,358
3,980
3,733
2,988
591
591
591
591
591
439
439
439
501
646
0%
33%
25%
23%
Owned
Leased / JV
Managed
TOTAL
2018-19
2019-20
2020-21
2021-22
2022-23 % Growth
+ Signed Hotels
+ Signed Hotels
+ Signed Hotels
+ Signed Hotels
+ Signed Hotels
Upcoming Hotels by - 2023
Hotel Name Regenta Resort Regenta Inn Regenta Inn Regenta Resort Regenta Central Regenta Resort Regenta Inn Regenta Place Regenta Inn Regenta Inn Regenta Central Regenta Resort Regenta Inn Regenta Central Regenta Central Regenta Place Regenta Inn Regenta Place Regenta Resort
City / Location Gulbarga Nellore HRBR, Bangalore Coorg Mysore Sakleshpur Gangtok Bhopal Gurgaon, Sector 47 Raipur Dehradun Pushkar McLeod Ganj Varanasi Lucknow Shogi, Himachal Pradesh Tezpur Juhu, Mumbai Sri Lanka
20+ Hotels 1100+ Keys
Competitive Advantage
Balanced portfolio having presence in over 58 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
₹ In Crore
Y-o-Y 152% 82% 68%
Standalone financials for Quarter and Year Ending March 2023
Particulars - 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 Other Comprehensive Income/(Loss) Total Comprehensive Income Net Profit Margin (%) EPS (In Rs)
Q4FY22-23 Q3FY22-23 Q4FY21-22 YE FY22-23 YE FY21-22 Q-o-Q 8.58 212% 10.94 48% 3.65 26%
37.23 33.83 8.68
26.76 16.16 4.60
26.41 16.27 4.10
93.67 61.71 14.57
47.52 1.15 48.67 4.76 7.82 3.22 3.42 12.78 32.01 16.66 34% 3.06 13.60 3.92 9.67 2.50 - 7.18 0.05 7.23 15% 2.64
46.79 1.60 48.39 4.91 7.62 3.23 3.72 11.55 31.03 17.36 36% 3.06 14.30 2.76 11.55 3.35 - 8.20 - 8.20 17% 2.99
23.17 3.40 26.57 2.82 4.91 2.39 1.82 6.12 18.06 8.51 32% 2.22 6.29 2.32 3.97 1.19 - 2.78 -0.12 2.66 10% 0.97
169.95 6.67 176.62 17.77 28.56 13.53 12.45 42.46 114.76 61.85 35% 11.33 50.52 12.06 38.46 10.29 - 28.17 0.05 28.22 16% 10.29
79.74 105% 113% 8.51 -22% -66% 83% 100% 88.25 11.08 60% 69% 16.23 76% 59% 9.02 50% 35% 6.70 86% 88% 21.68 96% 109% 77% 77% 64.71 96% 163% 23.54 31% 7% 27% 8.55 33% 38% 237% 116% 14.99 8.86 36% 69% 6.13 143% 527% 1.84 459% -5.02 -0.72 158% 3996% -0.12 140% 140% 172% 3432% -0.85 48% 1765% -1% -0.31 172% 3421%
109%
Consolidated financials for Quarter and Year Ending March 2023
₹ In Crore
Particulars - 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 Share of Profit of associate Net Profit/(Loss) for the period and Share of Profit of associate Other Comprehensive Income/(Loss) Total Comprehensive Income Net Profit Margin (%) EPS (In Rs)
Q4FY22-23 Q3FY22-23 Q4FY21-22 YE FY22-23 YE FY21-22 Q-o-Q Y-o-Y 69.34 116% 99% 52.51 46% 77% 16.62 89% 96%
137.79 93.20 32.57
17.72 16.39 5.42
38.38 25.47 8.64
38.36 23.97 10.22
72.55 3.99 76.55 6.91 15.69 4.18 3.42 20.55 50.74 25.80 34% 4.83 20.97 4.77 16.20 4.17 - 12.03 1.09 13.12 (0.14) 12.98 17% 3.84
72.49 4.04 76.53 7.46 14.78 4.27 3.99 18.29 48.79 27.75 36% 4.85 22.90 3.68 19.23 5.23 - 14.00 1.19 15.19 0.14 15.32 20% 5.30
39.53 7.42 46.95 4.59 10.17 3.29 1.92 12.75 32.70 14.24 30% 4.57 9.67 3.88 5.78 0.87 26.75 31.67 - 31.67 0.09 31.76 68% 11.59
263.55 16.14 279.69 26.72 55.97 17.65 12.91 68.41 181.66 98.03 35% 18.37 79.66 16.05 63.61 16.67 - 46.94 2.28 49.23 0.76 49.99 18% 15.96
17.41
17.28 34.68 13.46 6.86 43.29
138.52 84% 90% -46% -7% 155.93 63% 79% 51% 55% 54% 61% 27% 31% 78% 88% 61% 58% 115.57 55% 57% 40.36 81% 143% 26% 11% 35% 19.44 6% -6% 20.92 117% 281% 16.10 0% 23% 4.82 180% 1220% 3.09 381% 440% 0% 0% -62% 75% 0% -59% 84% 0.09 -256% 723% -59% 86% 4% -67% 49%
26.88 17% -75%
25.05 26.79 - 26.79
10.71
0%
Standalone Quarter and Year Ending March 23
₹ In Crore
QTR 4
FY 22-23
Q4FY22-23
Q3FY22-23
Q4FY21-22
48.67
48.39
26.57
16.66
17.36
8.51
9.67
11.55
3.97
7.18
8.20
2.78
Total revenues
EBITDA
PBT
PAT
YE FY22-23
YE FY21-22
176.62
88.25
61.85
23.54
38.46
6.13
28.17
Total revenues
EBITDA
PBT
PAT
(0.72)
60.00
50.00
40.00
30.00
20.00
10.00
-
200.00
150.00
100.00
50.00
-
(50.00)
Consolidated Quarter and Year Ending March 23
₹ In Crore
QTR 4
FY 22-23
100.00
80.00
60.00
40.00
20.00
-
300.00 250.00 200.00 150.00 100.00 50.00
-
Total revenues
EBITDA
PAT
76.55
76.53
25.80
13.12
27.75
15.19
46.95
31.67
14.24
Q4FY22-23
Q3FY22-23
Q4FY21-22
YE FY22-23
YE FY21-22
279.69
155.93
98.03
40.36
49.23
26.79
TOTAL INCOME
EBITDA
PAT
Consolidated Margins
₹ In Crore
Quarterly Margins
FY 2022-23 Margins
EBITDA
PBT
PAT
31.67
120.00
YE FY22-23
YE FY21-22
27.75
25.80
100.00
98.03
19.23
15.19
14.24
16.20
13.12
5.78
Q4FY22-23
Q3FY22-23
Q4FY21-22
80.00
60.00
40.00
20.00
-
63.61
40.36
49.23
26.79
4.82
EBITDA
PBT
PAT
35.00
30.00
25.00
20.00
15.00
10.00
5.00
-
Sustainable Growth – Consolidated Numbers FY 2022-23
₹ In Crore
300.00
250.00
200.00
150.00
100.00
50.00
-
70.00 60.00 50.00 40.00 30.00 20.00 10.00 -
(10.00) (20.00)
T O T A L I N C O M E
E B I T DA A N D E B I T DA M A R G I N S
219.04
219.74
279.69
155.93
88.84
120.00 100.00 80.00 60.00 40.00 20.00 -
(20.00)
40%
30%
20%
10%
0%
-10%
FY18-19 FY19-20 FY20-21 FY21-22 FY22-23
FY18-19
FY19-20
FY20-21
FY21-22
FY22-23
EBITDA
EBITDA margins
C A S H P R O F I T
65.31
27.43
24.06
21.17
FY18-19
FY19-20
FY20-21
FY21-22
FY22-23
(13.44)
R AT I O S
Net debt to equity
Interest coverage
3.00
2.00
2.61
1.63
1.68
1.00
0.57
0.56
0.78
0.64
1.30
0.44
-
(1.00)
(2.00)
FY18-19
FY19-20
FY20-21
FY21-22
FY22-23
(1.37)
Consolidated Assets & Liabilities – Snapshot As on 31st March 2023
₹ In Crore
Particulars Assets Property, plant and equipment Capital work-in-progress Goodwill Right-of-use assets Other intangible assets Other non-current assets Total Non-current assets Current Assets Assets classified as held for sale Total assets
Equity and liabilities (a) Equity share capital (b) Other equity Total Networth Non-Controlling Interests Secured Loan and other non current liabilities Total Non-current liabilities Current Liabilities Total equity and liabilities
FY 22 - 23
FY 21 - 22
115.91 1.46 73.20 17.64 0.06 84.33 292.61 116.69 14.82 424.12
27.43 145.46 172.88 24.05 147.14 344.07 80.05 424.12
114.48 0.39 60.49 17.64 0.12 72.71 265.83 82.14 14.82 362.80
27.43 97.77 125.20 21.83 138.45 285.47 77.32 362.80
Detail of Other Income - Standalone
Particulars
Interest income
- from bank deposits
- on management fee
- on other deposits
Other income
Interest on Compulsorily Convertible Debentures
- from subsidiaries
Interest income earned on Financial Assets that are not designated at fair value through Profit or Loss
Commission on corporate guarantees provided to subsidiaries
Liabilities/Provision no longer required, written back
Sale of SEIS Licence
Net gain on foreign currency transactions and translations
Miscellaneous Total other income
₹ In Crore
FY 22-23
FY 21-22
1.59
0.61
0.51
-
0.19
0.32
0.21
-
0.96
0.96
1.32 6.67
1.35
0.41
-
-
0.46 0.32
0.22
5.20
-
0.34
0.21 8.51
Detail of Other Income – Consolidated
₹ In Crore
Particulars
Interest income
- from bank deposits -on income tax refund - on other deposits
Other income
Income on account of rent concessions Recovery from managed properties Interest income earned on Financial Assets that are not designated at fair value through Profit or Loss
Commission on corporate guarantees provided to subsidiaries Liabilities/Provision no longer required, written back Sale of SEIS Licence Net gain on foreign currency transactions and translations Revenue arising from Government grant related to assets Miscellaneous Total other income
FY 22-23
FY 21-22
2.78 0.05 1.12 0.13 8.10
0.32
0.04 0.02 0.97 0.96 - 1.65 16.14
1.92 0.18 - 0.45 6.08
0.32
- 5.43 - 0.34 1.66 1.04 17.41
Revenue Breakup including Associate
₹ In Crore
Standalone
Consolidated
FY22-23
FY21-22
FY22-23
FY21-22
100.00
93.92
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
-
61.48
37.23
33.83
10.11
6.53
4.43
2.15
180.00
160.00
155.01
102.61
69.34
52.51
140.00
120.00
100.00
80.00
60.00
40.00
20.00
-
23.87
12.49
9.43
4.18
Room
Food and beverages
Other services
Managed Hotels
Room
Food and beverages
Other services
Managed Hotels
Consolidated Revenue Breakup including Associate - Segment Wise
₹ In Crore
120.00
100.00
80.00
60.00
40.00
20.00
-
FY22-23
FY21-22
88.86
96.39
81.80
41.32
43.78
40.93
23.87
12.49
Owned
Lease / Revenue Share
Joint Venture/ Associate
Managed hotels
Consolidated Revenue Breakup - Segment Wise
₹ In Crore
50.00
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
-
O P E R AT I N G M AR G I N
FY22-23
FY21-22
44.74
39.36
37.23
15.04
15.03
16.86
13.94
8.77
E B I T D A
FY22-23
FY21-22
46.93
27.20
15.76
14.62
10.30
11.45
8.14
3.98
50.00
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
-
Owned
Lease / Revenue Share
Joint Venture/ Associate
Managed hotels
Owned
Lease / Revenue Share
Joint Venture/ Associate
Managed hotels
Consolidated Revenue including Associate - Leisure & Business Hotels
₹ In Crore
250.00
200.00
150.00
100.00
50.00
-
213.55
77.38
73%
27%
96.98
41.54
70%
30%
FY22-23
FY22-23
%
FY21-22
FY21-22
%
Leisure destination
Business Hotels
Manpower Per Room
Hotel Name Hotel Royal Orchid Bangalore
Hotel Royal Orchid Jaipur
Regenta Suites Gurugram
Regenta Central Hotel & Conv. Cent. Nagpur
Royal Orchid Central Pune
Royal Orchid Beach Resort & Spa Goa
Regenta Central Imperial Candolim
Royal Orchid Central Kireeti Hospet
Regenta Place Bangalore
Royal Orchid Central Bangalore
Royal Orchid Resort Bangalore
Royal Orchid Metropole Mysore
R O Brindavan Garden Palace & Spa Mysore
Total
Location Bangalore
Jaipur
Gurugram
Nagpur
Pune
Goa
Goa
Hospet
Bangalore
Bangalore
Bangalore
Mysore
Mysore
No Keys 195
FY 22-23 1.18
139
67
47
115
73
73
136
83
130
54
30
24
1,166
1.17
1.40
2.74
1.02
1.68
0.95
0.72
0.83
1.07
2.39
2.17
2.25
1.27
FY 21-22
0.97
0.95
-
2.53
0.89
1.18
-
0.50
0.57
0.70
1.72
2.20
1.96
1.01
Return on Capital Employed (ROCE)
25%
20%
15%
10%
5%
0%
-5%
-10%
23%
11%
7%
7%
FY 18-19
FY 19-20
FY 20-21
FY 21-22
FY 22-23
-7%
Shareholding
5%
31%
64%
Promoter
Foreign Portfolio Investors
Others
Total
63.60%
4.84%
31.56%
100%
Foreign Portfolio Investors
Others
Promoters
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
CONTACT
Royal Orchid Hotels Ltd., Mr. Chander Baljee Chairman & Managing Director
Mr. Amit Jaiswal Chief Financial Officer M: +91 99020 00110 E: cfo@royalorchidhotels.com W: www.royalorchidhotels.com
KAPTIFY Consulting T: +91 8452886099 E: contact@kaptify.in W: www.kaptify.in