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 email : investors@royalorchidhotels.com
Date: 08/11/2023
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 Sandra Kurla Complex, Sandra (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 November 07, 2023 please find enclosed herewith Investors Presentation.
The aforesaid presentation is also available at the website of the Company at http://www. royalorch id hotels. com/investors.
You are requested to take the above on record.
Thanking you,
Yours Sincerely,
ROYAL ORC~O HOTELS LIMITED
--
J .
L OFFICER
Encl: As above
(cid:0) (cid:19) (cid:0) (cid:28) (cid:0) (cid:18) (cid:0) (cid:20) (cid:0) (cid:20) (cid:0) (cid:18) (cid:0) (cid:21) (cid:0) (cid:19) (cid:0) (cid:21) (cid:0) (cid:22) Royal Orchid Hotels Ltd. Q2 & H1 - 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 2025/26 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
95+ Hotels & Resorts
60+ Locations
14 States
5633+ keys
2.6+ Lac Loyalty members
RESORT / HERITAGE Royal Orchid Resort Regenta Resort
BUDGET Regenta Place Regenta Inn
Our Journey
First Hotel Hotel Royal Orchid
01
19 Hotels Across India
19
95+ Hotels Across India
95+
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 Independent Directors
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
Mr. Rajkumar Thakardas Khatri Served as a member of Indian Administrative Service (IAS) for over 33 years. Worked as Additional Chief Secretary (ACS) Commerce & Industries Department, ACS Education Department, as well as ACS Labour Department, Karnataka Cadre.
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
Segment Wise Occupancy, ARR & Keys
No of Keys
FY22-23
Q1 of FY23-24* Q2 of FY22-23 Q2 of FY23-24*
Management / Franchisee Contracts
3,775
628
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
*Addition in the quarter
72
-
55
-
755
78%
5,227
64%
3,941
-
-
-
-
-
-
75%
4,769
56%
3,619
74
-
-
-
-
74
73%
5,087
54%
3,747
Revenue Model
Operational as on Date
t e s s A
o i l o f t r o P
5 Star
4 Star
Category
Owned
Leased
JV
268
-
139
-
Managed / Franchise
Total
407
Service Apartment
Resort/Heritage/MICE
3 Star / Budget
-
-
_
130
396
-
-
67
101
54
2147
2673
71
763
138
918
83
-
1414
1497
Total Keys
398
647
193
4395
5633
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
6,898
6,478
5,450
5,010
4,763
3,980
5,692
5,313
4,358
3,980
3,733
2,988
591
591
591
591
591
591
439
439
439
501
574
615
7%
0%
7%
6%
Owned / JV
Leased
Managed / Franchise
TOTAL
Upcoming Hotels
SI No Hotel Name Regenta Inn Regenta Resort Regenta Resort Regenta Inn Regenta Central Regenta Inn Regenta Inn Regenta Place Regenta Inn Regenta Inn Regenta Central Regenta Resort Regenta Inn Regenta Place Regenta Inn Regenta Resort Regenta Resort Regenta Central Regenta Central Regenta Resort Chitwan Regenta Place Kathmandu Regenta Central Lalitpur
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
City / Location Nellore Sakleshpur Gulbarga Tezpur Assam Puri-Orussa McLeod Ganj Gurgaon, Sector 47 Panchkula,Haryana Raipur Gwalior Varanasi Pushkar Jaipur Vasco, Goa Jamnagar Dapoli Gir Solapur Nanded Nepal Nepal Nepal
22+ Hotels 1250+ 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 and H1 2023 -24 highlights
₹ In Crore
Quarterly
50.00 40.00 30.00 20.00 10.00
-
45.50
40.12
Q2FY23-24
Q2FY22-23
14.02
13.30
6.63
8.02
4.94
5.92
Total revenues
EBITDA
PBT
PAT
Half year Ended
100.00
91.07
80.00
60.00
40.00
20.00
-
H1FY23-24
H1FY22-23
79.56
27.69
27.84
12.79
17.25
9.60
12.80
Total revenues
EBITDA
PBT
PAT
Consolidated Quarter and H1 2023 -24 highlights
₹ In Crore
Quarterly
Half year Ended
80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00
-
200.00
150.00
100.00
50.00
-
70.07
63.18
Q2FY23-24
Q2FY22-23
18.94
20.44
9.53
12.49
7.67
9.38
Total revenues
EBITDA
PBT
PAT
H1FY23-24
H1FY22-23
143.79
126.62
41.86
44.47
18.40
20.91
Revenue from operations
EBITDA
PAT
Standalone & Consolidated Cash Profit H1 of 2023-24
₹ In Crore
H1FY23-24
H1FY22-23
29.35
30.74
19.44
18.88
35.00
30.00
25.00
20.00
15.00
10.00
5.00
-
Standalone
Consolidated
*Cash Profit
*Effect of INDAS has been removed in computation of cash profit.
Major reasons for increased in expenses at Consolidated level
Impact on EBITDA (Rs 274 lakhs)
Particulars
Higher commission for facilitation fee for management agreement for Sri Lanka property
Increase in employee cost due to revision in minimum wage rate
Increase in power and fuel on account of increase in electricity charges
Increase in advertisement and business promotion expense for development of the brand
Net impact leading to EBITDA lower by:
Impact on Net Profit (Rs 130 lakhs)
Particulars
Increase in Deprecation as per IndAs-116
Increase Interest Expenses as per IndAs-116
Rent expenses reversal as per IndAs-116
Net impact leading to PAT lower by:
Amounts (Rs Lakhs)
41
95
87
51
274
Amounts (Rs Lakhs)
316
243
(429)
130
Revenue Breakup including Associate
₹ In Crore
Standalone
Q2FY23-24
Q2FY22-23
25.29
22.37
15.35
12.37
1.34
0.81
2.53
2.02
Consolidated
Q2FY23-24
Q2FY22-23
45.00
40.00
38.71
35.81
35.00
30.00
25.00
20.00
15.00
10.00
5.00
-
25.48
21.06
6.36
4.75
2.33
1.77
Room nights
Food and beverages
Other services
Managed Hotels
Room Revenue
Food and beverages
Other services Managed
Hotels
30.00
25.00
20.00
15.00
10.00
5.00
-
Consolidated Revenue Breakup including Associate - Segment Wise
₹ In Crore
30.00
25.00
Q2FY23-24
Q2FY22-23
27.43
20.00
18.91
19.79
20.49
20.17
18.36
15.00
10.00
5.00
-
Owned
Lease / Revenue Share
Joint Venture/ Associate
Managed hotels
6.36
4.75
Rs. In Crore
Consolidated H1FY2023-24 Statement - Snapshot Particulars Q1FY23-24 - Room nights 35.70 - Food and beverages 24.01 - Other services 9.18 Income from Operations 68.89 Other Income 4.83 Total Income 73.72 Cost of Material Consumed 6.95 Employee Benefits Expense 17.08 Power and fuel Expense 5.55 Rent Expense 3.04 Other Expenses 18.18 Total Expense 50.79 EBITDA 22.92 EBITDA Margin (%) 31% Depreciation 4.76 EBIT 18.16 Finance Cost 4.62 PBT 13.54 Tax expense 3.34 Exceptional Items - PAT 10.20 Share of Profit of associate 0.53 Net Profit/(Loss) for the period and Share of Profit of associate 10.73 Other Comprehensive Income/(Loss) (0.03) Total Comprehensive Income 10.70 Net Profit Margin (%) 15% EPS (In Rs) 3.53
Q2FY23-24 35.10 22.97 8.53 66.60 3.47 70.07 6.62 17.86 5.41 2.87 18.37 51.14 18.94 27% 4.89 14.05 4.52 9.53 2.06 - 7.47 0.20 7.67 (0.46) 7.21 10% 2.49
Q2FY22-23 32.36 19.34 6.36 58.06 5.11 63.18 6.03 13.35 4.47 2.88 15.99 42.73 20.44 32% 4.35 16.09 3.60 12.49 3.22 - 9.27 0.10 9.38 0.40 9.78 15% 3.22
H1FY23-24 70.79 46.98 17.71 135.49 8.30 143.79 13.57 34.94 10.96 5.90 36.55 101.93 41.86 29% 9.64 32.22 9.14 23.07 5.40 - 17.67 0.73 18.40 (0.49) 17.91 12% 6.02
H1FY22-23 64.82 39.81 13.87 118.51 8.10 126.62 12.35 25.51 9.20 5.51 29.58 82.14 44.47 35% 8.69 35.78 7.61 28.17 7.26 - 20.91 0.00 20.91 0.77 21.68 17% 7.25
Standalone H1FY2023-24 Financial Results 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)
Q2FY23-24 25.29 15.35 3.87 44.51 0.99 45.50 4.41 9.26 4.24 2.72 10.85 31.48 14.02 31% 3.82 10.20 3.57 6.63 1.69 4.94 - 4.94 11% 1.80
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
Rs. In Crore
Q2FY22-23 22.37 12.37 2.83 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 8.02 2.11 5.92 - 5.92 15% 2.16
H1FY23-24 49.70 25.33 6.04 89.12 1.95 91.07 9.07 18.01 8.65 5.63 22.01 63.38 27.69 30% 7.53 20.16 7.37 12.79 3.19 9.60 - 9.60 11% 3.50
H1FY22-23 44.27 25.33 6.04 75.64 3.92 79.56 8.22 13.12 7.06 5.30 18.03 51.72 27.84 35% 5.21 22.63 5.38 17.25 4.45 12.80 - 12.80 16% 4.67
Consolidated Assets & Liabilities - Snapshot
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
Rs. In Crore
As at 30th Sept 2023
As at 31st March 2023
114.91 0.39 101.51 17.64 0.06 89.31 323.82 120.73 15.80 460.35
27.43 156.08 183.50 25.94 158.06 367.49 92.85 460.35
114.91 0.75 73.20 17.64 0.06 84.16 290.73 116.28 16.87 423.88
27.43 145.54 172.97 24.05 146.92 343.94 79.94 423.88
Shareholding Pattern Q2 – 2023-24
4.18%
32.22%
Foreign Portfolio Investors
4.18%
Promoter
63.60%
63.60%
Others
Total
32.22%
100%
Foreign Portfolio Investors
Others
Promoters
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