Royal Orchid Hotels Limited has informed the Exchange regarding Investor Presentation
Date: August 09, 2019
To, The Manager, Listing Compliance, Department of Corporate Services, BSE Limited, Floor 25, P. J. Towers, Dalal Street, Mumbai - 400 001 BSE Scrip Code: 532699
Dear Sir/Madam,
Subject: Investors Presentation
To, The Manager, Listing Compliance, Department of Corporate Services, National Stock Exchange of Limited, Exchange Plaza, Plot no. C/1, G Block Sandra Kurla Complex, Sandra (E) Mumbai - 400 051 NSE Scrip Symbol: ROHL TO
India
In continuation to our intimation letter dated August 08, 2019 please find enclosed herewith the presentation for conference call to be held today i.e. Friday, August 09, 2019 at 5:00p.m. to discuss Q1/FY20 results.
This is for the information and records of the Exchanges.
For ROYAL ORCHID HOTELS LIMITED
RANABIR SANYAL COMPANY SECRETARY & COMPLIANCE OFFICER FCS: 7814
Encl: a/a
Royal Orchid Hotels Ltd Q1 FY20 Results Presentation
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
Industry Overview
Company Overview
Business Overview
Financial Overview
Industry Overview
Industry Outlook
Growth Drivers
Key Challenges
Industry Outlook - Current Trend
1. Disposable income on the rise
PER CAPITA NATIONAL INCOME (at Current Price)
86647
94731
9.60%
103870
8.60%
6.90%
79118 6.20%
70983
4.60%
114958 9.00%
12.00%
PRIVATE CONSUMPTION ON RESTAURANT & HOTELS (at Current Price)
126406
129318 138559 149064
116491
163937
180220
201499
10%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
250000
200000
150000
100000
50000
0
140000
120000
100000
80000
60000
40000
20000
0
Per Capita NNI (Rs crore)
Growth (Y-on-Y)
Expenditure on Restuartants & Hotels (Rs core)
Source: Central Statistics Office
Source: Central Statistics Office
Press Release dated as on 31st May, 2019 ( FY18 and FY 19)
Press Release dated as on 31st May, 2019 ( FY17, FY18 and FY 19)
2011-12 2012-13 2013-14 2014-15 2015-16 (3rd RE)
2016-17 (2nd RE)
2017-18 (1st RE)
India’s Per Capita National Income has increased at a CAGR of 10.1% over the last 6 years from 2012-13 to 2018-19
Private Final Consumption on Restaurants & Hotel has grown at a CAGR of 9.56% over the 6 years period 2011-12 to 2017-18
Industry Outlook
2. PROPOSED BRANDED HOTEL ROOMS ACROSS MAJOR CITIES
has
ROHL in Ahmedabad, properties Bengaluru, Chennai, Gurugram, Goa, and Jaipur
Top 10 Busiest Airports in India by Passenger Traffic (2017/18 -2018/19)
17093
16025
14724
12659
10086
9211
4346
3393
2568
2260
7373
5920
8471
7651
6741
6772
6314
5426
5229
3860
2002
1515
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Source: 2018 India Hospitality Trends & Opportunity report by Hotelivate
2017/18
2022 / 23 (P)
15922
13726
(Rs in Lakh)
2017/18
2018/19 % Change
Delhi (DIAL)
Mumbai (MIAL)
656.9
485.0
692.33
488.15
5.39%
0.65%
Bengaluru (BIAL)
269.10
333.08
23.78%
7124
6330
Chennai
Kolkata
203.60
225.44
10.73%
198.90
218.77
9.99%
Hyderabad (GHIAL)
181.60
214.04
17.86
Cochin (CIAL)
101.70
101.20
-0.49%
Ahmedabad
91.70
111.72
21.83%
Goa
Pune
76.10
84.67
11.26%
81.60
90.71
11.16%
A report by hospitality consulting firm Hotelivate shows expected rise in branded hotel rooms by 2023 given the increasing trend in the per capita income.
Key Growth Divers
tourist
• International
in India expected to reach 30.5 million by 2028. Medical tourism to touch $9 billion by 2020 (Source: IBEF)
arrivals
•Diverse portfolio of with focus on niche tourism products – cruises, adventure medical, wellness, sports, MICE, eco- tourism, films, rural & religious tourism
Robust Demand
Attractive Opportunity
Rising FDI
Policy Support
• Hotel & Tourism sector has received
cumulative FDI inflows of US$ 11.39 billion between April 2000 and June 2018 (Source: IBEF)
• Government has allocated 100% FDI in Tourism & Hospitality sector under automated route. • Swadesh Darshan
scheme has 13 thematic circuits across the country tourism selected for development of infrastructure
Key Industry Challenges
INFRASTRUCTURE
• Limited land
availability at the desired location
• Rising property prices
FUNDING • Increasing cost of debt
REGULATORY • Delays in getting
• Medium to small size hotels, not favorable to PE, VC funding
approvals and licenses leading to increasing project cost
COMPETITION • Entry of Travel
aggregators intensifies competitive landscape
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 managed as of April is 51
Present in 35 locations 11 states with 3,385 no of keys and 2.46+ lakh Royal Reward members.
Our Brands
5 Star
4 Star
Service Apartment
Resorts/ Heritage
Budget
Hotel Royal Orchid
• Royal Orchid Central • Regenta Central
Royal Orchid Suites
• Royal Orchid Resorts
• Regenta Resorts
• Regenta Place • Regenta Inn
Our Journey
2001 Hotel Royal Orchid Bangalore
2003 Royal Orchid Central Bangalore
2004 Royal Orchid
Metropole, Mysore
2006 Listed on 6th February
Royal Orchid Resort & Convention Centre, Bangalore
2007 RO Golden Suites, Pune
RO Central, Jaipur
RO Brindavan, Mysore Nationwide Sales Offices
2008 Royal Orchid Central, Pune
Royal Orchid Beach Resort & Spa, GOA
2008 Royal Orchid Suites, Bangalore
Royal Orchid Central, Ahmedabad
2010 Royal Orchid Central, Grazia, Navi Mumbai Royal Orchid Central Kireeti, Hospet
2011 RO Central, Shimoga & Vadodara, RO Resort, Mussorie, RO, Jaipur Central Blue stone, Gurgaon
2012 Regenta MPG Club, Mahabaleshwar
Regenta Central Ashok, Chandigarh
2013 Regenta Central, Jaipur
Regenta Central Harimangla, Bharuch Malaika Beach resort, Tanzania
2014 Regenta, Ahmedabad
Regenta Resort, Bhuj Regenta Central, Rajkot
Regenta Orko’s Haridwar
Hotel Royal Orchid, Nairobi
2015 Regenta Al-meida , Chandigarh, Regenta Orko’s Kolkata, Regenta Central Jhotwara, Jaipur, Regenta Camellia Resort & Spa, Shantinekhetan
2016 Regenta Central, Amritsar, Regenta Inn, Bangalore, Regenta Resort Varca Beach, Goa Regenta Resort Vanyamahal, Ranthambore, Regenta Central Deccan, Chennai Regenta Resort Tarika, Jim Corbett
2017 Regenta Central-Kolkata, Regenta Central-Vadodara, Regenta Central - Ludhiana, Regenta Central - Ahmedabad
2018 Regenta Resort-Pushkar, Regenta Central Somnath, Regenta Resort- Nashik, Regenta Central-Srinagar, Regenta Central-Dahej, Regenta Central-Bharatpur, Regenta Central Nagpur
2019 Regenta Central, North Goa, Regenta Central, Zirakpur, Regenta Central, OMR Chennai, Regenta Inn, Kullu Manali
Key Management
Mr. Chander Baljee, 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
Mr. Amit Jaiswal, Chief Financial Officer Mr. Amit Jaiswal is a Commerce graduate from Calcutta University MBA, BA LLB. He has vast experience of 25 years in different industries including Finance, Manufacturing and Hotels.
Mr. Ranjan Gupta, Vice President Operations (South) A Hotel Management graduate from IHM, Mumbai, having 30+ years of vast experience in hotel operations and development.
Mr. Vikas Passi, Vice President Operations (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.
Mr. Perkin Rocha, Vice President Operations (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
50+
Hotels & Resorts
3600+
Luxury Rooms
35+
Cities Across India
Royal Orchid & Regenta Hotels Across India
Business Overview
Our Business Structure
Our Business Model
Our Offerings
Competitive Advantage
Our Business Structure
Royal Orchid Hotels Limited (ROHL)
By Business Portfolio
By Legal Entity
Owned hotels
Leased Hotels
Managed & Franchised Hotels
Subsidiaries Companies
Our Business Model -Asset Light Model
Steadily gaining strong foothold through focus on Management contracts which will lead to high growth
Key factors
No upfront requirement of capex
Maintenance Capex
required – Nil
Break even of
Operating profit in just 1 year
Facilitates expansion plans and ramping up presence
Creates brand visibility at a faster rate
Revenue Model
Category
FY 2018
FY2019
(%)
5 Star 4 Star Service Apartment Resort/Heritage/MICE
Total Keys
334 1,840 159 961
3,294
334 0% 1,861 1% 159 0% 1,031 7%
3,385 3%
Category Owned
Leased
JV
Managed
Total Keys
FY 2018 195
386
396
2,317
3,294
FY2019 195
(%) 0%
433 12%
396
2,361
3,385
0%
2%
3%
t e s s A
o i l o f t r o P
Category
5 Star
4 Star
Service Apartment
Resort/Heritage/MICE
Total Keys
Owned
Leased
JV
Managed
Total
195
-
-
-
195
-
245
-
188
433
139
130
-
127
396
-
1,486
159
716
2,361
334
1,861
159
1,031
3,385
Growth in rooms and loyalty members
No of Properties
20
23
26
34
42
47
49
51
Steady growth in rooms
Beginning of the year
Additions
88
1,557
298
1,645
281
1,943
389
2,224
546
2,613
135
91
314
3,159
3,294
3,385
F Y 1 3
F Y 1 4
F Y 1 5
F Y 1 6
F Y 1 7
F Y 1 8
F Y 1 9
F Y 2 0
Loyalty members
2,534
FY13
51,704
FY14
1,74,086
1,33,055
66,881
98,874
FY15
FY16
FY17
FY18
FY19
FY20
2,23,694
2,46,320
Property breakup with rooms
No of Keys
Management Contracts
JV
Owned (Domestic)
Owned (Overseas)
Leased
Total KEYS
Average Occupancy rate (JLO)
Average Room Rate (JLO) (Rs)
Average Occupancy rate (Managed)
Average Room Rate (Managed) (Rs)
FY19
2,317
396
195
-
386
3,294
74%
3,937
66%
2,836
FY20
2,361
396
195
-
433
3,385
70%
4,061
68%
3,054
Business Destinations
Current Locations
• Bangalore • Mysore • • •
Jaipur Shimoga Pune
• Bharuch • Ahmedabad • Rajkot • Chennai • Chandigarh
• Kolkata • Kanpur • Ludhiana • Vadodara • Vapi
Leisure Destinations
Current Locations
• Goa • Mysore • •
Ranthambore Jim Corbett
• Mussoorie • Bangalore • Jaipur • Bhuj
Pushkar
• • Hampi • Mahabaleshwar
Wedding Destinations
Current Locations
• Bangalore • Mysore • Goa • Mussoorie
• Jaipur • Dehradun • Amritsar •
Ranthambore
• Bhuj • Mahabaleshwar • • Nagpur
Ludhiana
Religious Destinations
Current Locations
• Amritsar • Ajmer • Haridwar • Rishikesh*
*Opening Soon
Wildlife Destinations
Current Locations
Ranthambore Jim Corbett
• • • Haridwar •
Pench National Park*
*Opening Soon
Competitive Advantage
Balanced portfolio having presence in over 35 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
Consolidated Income Statement & Balance Sheet snapshot
Margins
Shareholding
Consolidated Quarter and Full Year highlights
Quarterly
Full Year
70.00
60.00
50.00
40.00
30.00
20.00
10.00
-
250.00
200.00
150.00
100.00
50.00
-
52.56
59.41
49.80
10.65
2.36
0.80
12.03
5.66
2.95
10.71
3.76
1.89
Q1FY20
Q4FY19
Q1FY19
Total revenues
EBITDA
PBT
PAT
219.05
198.38
48.82
21.29
13.12
38.28
7.77
2.41
FY 2019
FY 2018
Total revenues
EBITDA
PBT
PAT
Rs. In crore
Margins
Quarterly Margins
Full Year Margins
25%
20%
15%
10%
5%
0%
20%
20%
22%
10%
5%
8%
4%
4%
2%
22%
22%
15%
11%
13%
10%
25%
20%
15%
10%
5%
0%
Q1FY20
EBITDA
Q4FY19 PBT
PAT
Q1FY19
FY 2019
FY 2018
EBITDA
PBT
PAT
Standalone Q1 FY20 Financial results
Particulars (Rs in Crs) Q1FY20Q4FY19 Q1FY19 Q-o-QY-o-YIncome from Operations 27.44 29.53 25.50 -7%8%Other Income2.15 3.60 1.26 -40%71%Total Income29.59 33.13 26.76 -11%11%Cost of Material Consumed 3.31 3.32 2.51 0%32%Employee Benefits Expense 6.67 6.23 5.33 7%25%Power and fuel Expense 3.84 2.95 2.76 30%39%Rent Expense 2.35 3.48 3.01 -32%-22%Other Expenses7.35 10.60 7.64 -31%-4%Total Expense 23.52 26.58 21.25 -12%11%EBITDA 6.07 6.55 5.51 -7%10%EBITDA Margin (%) 21%20%21%4%0%Depreciation 1.78 0.87 1.05 105%70%EBIT 4.29 5.68 4.46 -24%-4%Finance Cost 1.94 1.14 1.13 70%72%PBT 2.35 4.54 3.33 -48%-29%Tax expense0.48 1.49 1.29 -68%-63%Exceptional Items- - - 0%0%PAT1.87 3.05 2.04 -39%-8%Other Comprehensive Income/(Loss)-0.02 -0.04 - 0%0%Total Comprehensive Income1.85 3.01 2.04 -39%-9%Net Profit Margin (%)6%9%8%-31%-18%EPS (In Rs) 0.68 1.10 0.75 -39%-10% Sustainable Growth – Yearly Consolidated numbers
Rs. In crore
Consolidated FY20 Q1 Statement - Snapshot
Particulars (Rs in Crs) Q1FY20Q4FY19 Q1FY19 Q-o-QY-o-YIncome from Operations 48.52 54.02 46.70 -10%4%Other Income4.04 5.39 3.10 -25%30%Total Income52.56 59.41 49.80 -12%6%Cost of Material Consumed 5.56 5.92 4.76 -6%17%Employee Benefits Expense 13.66 13.15 11.97 4%14%Power and fuel Expense 5.74 4.51 4.56 27%26%Rent Expense 2.64 3.91 3.47 -32%-24%Other Expenses14.32 19.89 14.33 -28%0%Total Expense 41.92 47.38 39.09 -12%7%EBITDA 10.64 12.03 10.71 -12%-1%EBITDA Margin (%) 20%20%22%0%-6%Depreciation 4.31 3.09 3.65 39%18%EBIT 6.33 8.94 7.06 -29%-10%Finance Cost 3.98 3.28 3.30 21%21%PBT 2.35 5.66 3.76 -58%-38%Tax expense1.57 2.71 1.87 -42%-16%Exceptional Items- - - 0%0%PAT0.78 2.95 1.89 -73%-59%Other Comprehensive Income/(Loss)0.03 0.10 - 0%0%Total Comprehensive Income0.81 3.05 1.89 -73%-57%Net Profit Margin (%)2%5%4%-70%-59%EPS (In Rs) 0.29 1.12 0.69 -74%-58% IND-AS 116 Impact
• Effective April 01, 2019, the Company adopted Ind-AS116 "Leases” to all lease contracts existing on April 01, 2019 using the modified retrospective initial application. approach with cumulative effect at Accordingly, comparatives for the year ended March 31, 2019 have not been retrospectively adjusted.
the date of
• The adoption of Ind-AS 116 has resulted in a decrease in the profit after tax by Rs. 35 lakhs in the Unaudited Standalone Financial result sand by Rs. 40 lakhs in the Unaudited Consolidated Financial results.
• The adoption of Ind-AS 116 has also impacted the debt equity ratio.
(Rs. Lakhs)ParticularsDepreciation&AmortisationFinance CostImpact onProfit for QE30.06.2019Standalone Results848435Consolidated Results8910340 Shareholding
Key Investors
National Westminster Bank PLC as trustees of the Jupiter India Fund
Holding (%)
4.36%
Jupiter South Asia Investment Company Limited - South Asia Access Fund
1.00%
Vision 2022
Our Vision for 2022 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.”
Thank You