Royal Orchid Hotels Limited has informed the Exchange about Investor Presentation
~-
/~' ROYAL ORCHID HOTELS LTD.,
Regd. Office : 1, Golf Avenue, Adjoin ing KGA Golf Course, HAL Airport Road, Kodihalli, Bangalore - 560 008, India. T +9 1 80 41783000, f: : +91 80 252 03366 www.royalorchidhotels.com
GIN : L55101KA1986PLC007392 email : investors@royalorchidhotels.com
Date: August 07, 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 India Limited, Exchange Plaza, Plot no. C / 1, G Block Bandra Kurla Complex, Bandra (E) Mumbai- 400 051 NSE Scrip Symbol: ROHL TD
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 August 03, 2023 please find enclosed herewith Investors Presentation.
The aforesaid presentation is also available at the weBsite of the Company at htt p: 1/ \\rv;rw.royalorchidho tels.com/investors.
'·'·.~;:t~\-t.J·-
You are requested to take the above on record.
·Thanking you,
Yours Sincerely,
HOTELS LIMITED
er
/
Royal Orchid Hotels Ltd. Q1 2023-24
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 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 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
(ROHL) was incorporated in 1986 under the name of Universal Resorts Ltd.
Ltd
SERVICE APARTMENTS Royal Orchid Suites Regenta Suites
4 STAR Royal Orchid Central Regenta Central
•
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
5 STAR Hotel Royal Orchid
94+ Hotels & Resorts
60+ Locations
14 States
5626 keys
2.6+ Lac Loyalty members
RESORT / HERITAGE Royal Orchid Resort Regenta Resort
BUDGET Royal Place Regenta Inn
Our Journey
First Hotel Hotel Royal Orchid
01
19 Hotels Across India
19
94+ Hotels Across India
94+
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
FY22-23
Q4 of FY22-23 Q1 of FY22-23 Q1 of FY23-24
Management / Franchisee Contracts
3,775
184
Leased
Owned (Domestic)
Management (Overseas)
JV
Total KEYS
Average Occupancy (JLO)
Average Room Rate (JLO) (Rs)
Average Occupancy (Managed)
575
268
-
323
4,941
77%
5,370
63%
Average Room Rate (Managed) (Rs)
3,795
-
-
-
-
184
77%
5,657
63%
3,833
62
-
-
-
-
65
78%
4,880
68%
3,660
628
72
-
55
-
755
78%
5,227
64%
3,941
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
2099
2625
67
-
101
54
71
838
138
993
83
-
1380
1463
Total Keys
268
647
323
4388
5626
Growth in rooms
8000
7000
6000
5000
4000
3000
2000
1000
0
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
% Growth
+ Signed Hotels
+ Signed Hotels
+ Signed Hotels
+ Signed Hotels
+ Signed Hotels
+ Signed Hotels
6,739
6,478
5,461
5,313
4,358
3,980
3,733
2,988
5,450
5,010
4,763
3,980
591
591
591
591
591
591
439
439
439
501
574
687
0%
26%
4%
5%
Owned
Leased / JV
Managed
TOTAL
Upcoming Hotels by - 2023
SI No Hotel Name
Regenta Resort 1 Regenta Inn 2 Regenta Inn 3 4 Regenta Resort 5 Regenta Central Javaji 6 Regenta Resort Regenta Inn 7 Regenta Inn Tezpur 8 9 Regenta Inn 10 Regenta Inn 11 Regenta Resort 12 Regenta Inn 13 Regenta Central 14 Regenta Place 15 Regenta Inn 16 Regenta Inn 17 Regenta Central 18 Regenta Central 19 Regenta Central 20 Regenta Resort 21 Regenta Place 22 Regenta Resort Chitwan
City / Location Gulbarga Nellore HRBR, Bangalore Coorg Mysore Sakleshpur Gangtok Assam Gurgaon, Sector 47 Raipur Pushkar McLeod Ganj Varanasi Shogi, Himachal Pradesh Tezpur Jaipur Puri- Orissa Solapur Nanded Gir Igatpuri Nepal
22+ 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
Standalone Quarter Ending June 2023
₹ In Crore
50.00
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
-
Q1FY23-24
Q1FY22-23
45.58
39.44
13.67
14.53
9.22
6.16
6.88
4.66
Total revenues
EBITDA
PBT
PAT
Consolidated Margins for Quarter Ending June 2023
₹ In Crore
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
-
Q1FY23-24
Q1FY22-23
73.72
63.44
22.92
24.03
13.54
15.67
10.73
11.53
Total revenues
EBITDA
PBT
PAT
Standalone financials for Quarter Ending June 2023-24
₹ 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 PAT Other Comprehensive Income/(Loss) Total Comprehensive Income Net Profit Margin (%) EPS (In Rs)
Q1FY23-24 24.41 16.00 4.20 44.61 0.97 45.58 4.67 8.76 4.41 2.92 11.16 31.91 13.67 30% 3.71 9.96 3.79 6.16 1.50 4.66 - 4.66 10% 1.70
Q4FY22-23 26.76 16.16 4.60 47.52 1.15 48.67 4.61 7.82 3.24 3.42 12.91 32.01 16.66 34% 3.06 13.60 3.92 9.67 2.50 7.18 0.05 7.23 15% 2.62
Q1FY22-23 21.90 12.97 3.21 38.08 1.36 39.44 4.16 6.23 3.61 2.52 8.39 24.90 14.53 37% 2.62 11.91 2.70 9.22 2.34 6.88 - 6.88 17% 2.51
YE FY22-23 93.67 61.71 14.57 169.95 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% 10.27
Consolidated financials for Quarter Ending June 2023-24
₹ 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 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)
Q1FY23-24 Q4FY22-23 Q1FY22-23 YE FY22-23
35.70 24.01 9.18 68.89 4.83 73.72 6.95 17.08 5.55 3.04 18.18 50.79 22.92 31% 4.76 18.16 4.62 13.54 3.34 10.20 0.53 10.73 -0.03 10.70 15% 3.53
38.36 23.97 10.22 72.55 3.99 76.54 6.91 15.69 4.18 3.42 20.54 50.73 25.81 34% 4.83 20.98 4.77 16.21 4.17 12.04 1.09 13.13 -0.14 12.99 17% 4.62
32.46 20.46 7.52 60.45 2.99 63.44 6.31 12.16 4.73 2.63 13.59 39.41 24.03 38% 4.35 19.68 4.01 15.67 4.04 11.63 -0.10 11.53 0.37 11.91 19% 4.03
137.79 93.20 32.57 263.55 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 2.29 49.23 0.77 49.99 18% 17.15
Standalone & Consolidated Cash Profit Quarter Ending June 2023
₹ In Crore
Q1FY23-24
Q1FY22-23
15.63
16.47
9.63
9.96
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
-
Standalone
Consolidated
*Cash Profit
*Effect of INDAS 116 has been removed in computation of cash profit.
Detail of Other Income - Standalone
₹ In Crore
Particulars
Interest income
- from bank deposits
- on management fee
- on other deposits
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
Sale of SEIS Licence
Net gain on foreign currency transactions and translations
Miscellaneous
Total other income
Q1FY23-24 Q4FY22-23
Q1FY22-23
0.36
0.20
0.11
0.05
0.09
0.04
-
-
0.12
0.97
0.43
0.18
0.10
0.05
0.01
0.05
0.28
(0.06)
0.12
1.15
0.34
0.13
0.15
0.05 0.09
0.05
-
0.46
0.08
1.36
Detail of Other Income - Consolidated
₹ In Crore
Particulars Interest income
- from bank deposits -on income tax refund - on other deposits
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 Miscellaneous Total other income
Q1FY23-24 Q4FY22-23 Q1FY22-23
0.95 0.02 0.31 - 2.04
0.09
- - - - 1.41 4.83
0.92 0.03 0.27 (0.11) 2.29
0.01
0.01 0.02 0.28 (0.06) 0.34 3.99
0.44 - 0.28 0.11 1.47
0.09
0.01 0.00 - 0.46 0.12 2.99
Revenue Breakup including Associate
₹ In Crore
Standalone
Q1FY23-24
Q1FY22-23
30.00
25.00
24.41
21.90
20.00
15.00
10.00
5.00
-
16.00
12.97
1.41
0.89
2.79
2.31
Consolidated
Q1FY23-24
Q1FY22-23
39.63
35.58
27.11
22.60
6.74
5.71
2.61
1.95
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
-
Room nights
Food and beverages
Other services Managed Hotels
Room nights
Food and beverages
Other services Managed Hotels
Consolidated Revenue Breakup including Associate - Segment Wise
₹ In Crore
30.00
25.00
20.00
15.00
10.00
5.00
-
Q1FY23-24
Q1FY22-23
28.06
20.31
21.12
20.48
20.99
18.53
Owned
Lease / Revenue Share
Joint Venture/ Associate
Managed hotels
6.74
5.71
Shareholding
5%
63%
32%
Foreign Portfolio Investors
4.65%
Promoter
63.60%
Others
Total
31.75%
100%
Foreign Portfolio Investors
Others
Promoters
Hotel Royal Orchid, Bangalore
Royal Orchid Brindavan Garden Palace & Spa, Mysore
Regenta Arie Lagoon, Sri Lanka
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 Investor Relations / Consulting T: +91 8452886099 E: contact@kaptify.in W: www.kaptify.in