Royal Orchid Hotels Limited has informed the Exchange regarding Investor Presentation-Revised
Date: February 13, 2020
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
To, The Manager, Listing Compliance, 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,
Subject: Investors Presentation - Revised
Please find enclosed herewith the revised presentation for conference call to be held on Thursday, February 13, 2020 at 02:30PM to discuss Q3 & 9M FY 20 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 Q3 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)
94731
86647 6.90% 9.60%
103870
8.60%
126406
114958
9.00% 10%
79118
6.20%
70983
4.60%
160000
140000
120000
100000
80000
60000
40000
20000
0
135050
7%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
250000
200000
150000
100000
50000
0
PRIVATE CONSUMPTION ON RESTAURANT & HOTELS (at Current Price)
116491
129318
138559
149064
163937
201499
180220
Per Capita NNI (Rs crore)
Growth (Y-on-Y)
2011-12 2012-13 2013-14 2014-15
2015-16 (3rd RE)
2016-17 (2nd RE)
2017-18 (1st RE)
Expenditure on Restuartants & Hotels (Rs core)
Source: First Advance Estimates of National Income, 2019-20
Source: Central Statistics Office
* Estimated per capita national income for 2019-20
Press Release dated as on 31st May, 2019 ( FY17, FY18 and FY 19)
India’s Per Capita National Income grew at 6.8% to Rs. 1,35,050 during 2019-20
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
17093
ROHL has properties in Ahmedabad, Bengaluru, Chennai, Gurugram, Goa, and Jaipur
16025
14724
15922
13726
12659
10086
9211
4346
3393
2568
2260
7373
5920
8471
7651
6741
6772
6314
5426
5229
3860
7124
6330
2002
1515
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Agra
Ahmedabad
Bengaluru
Chennai
New Delhi
Gurugam
NOIDA
Goa
Hyderabad
Jaipur
Kolkata
Mumbai
Pune
Source: 2018 India Hospitality Trends & Opportunity report by Hotelivate
2017/18
2022 / 23 (P)
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 Drivers
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
thematic circuits across selected for development of infrastructure
13 has the country tourism
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 37 locations 11 states with 3,906 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, Regenta Inn Bangalore, Regenta Resort Pench, Regenta Resort, Mahabaleshwar
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. Chetan Tiwari, Vice President Operations (South) Over 23 years experience with Taj Group of Hotels, ITC Fortune & Hilton Graduate from IHM Bhubaneswar & IGNOU
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
3920
Luxury Rooms
37
Locations 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
Growth in rooms and loyalty members
No of Properties
20
23
26
34
42
47
49
58
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
430
3,159
3,294
360
3906
F Y1 3
F Y1 4
F Y1 5
F Y1 6
F Y1 7
F Y1 8
F Y1 9
Q 3 F Y2 0
Loyalty members
2,534
FY13
51,704
FY14
1,74,086
1,33,055
66,881
98,874
FY15
FY16
FY17
FY18
FY19
Q3FY20
2,23,694
2,46,002
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
Competitive Advantage
Balanced portfolio having presence in over 37 locations and 11 states
Strong sales presence across major source markets in India
Affordable luxury having plethora of options for modern travellers
Sustainable Growth – Yearly Consolidated numbers
Rs. In crore
Revenue Model
Category
5 Star
4 Star Service Apartment
Resort / Heritage / MICE
Budget Hotels
Total Keys
FY2019
9MFY20
(%)
334
1,861 159
935
389
3,714
334
1,927 159
1017
469
3906
Category Owned
Leased
JV
Managed Franchised Total Keys
FY 2019 195
9MFY20 195
(%)
517
313
1928 761 3714
517
313
2084
801 3906
t e s s A
o i l o f t r o P
Category
Owned
Leased
195
5 Star
4 Star
Service Apartment
Resort/Heritage/MICE
Budget Hotels
380
54
83
JV
139
174
Managed
Franchised
906
159
789
301
641
85
Total Keys
195
517 313
2,155
726
Total
334
1927
159
1017
469
3906
Property breakup with rooms
No of Keys
Management / Franchise
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)
*Expected
FY19
2689
313
195
-
517
3,714
77%
4,513
68%
3,154
FY20*
2881
313
195
-
517
3906
78%
4,618
71%
3,250
Financial Overview
Quarterly & Nine Month Highlights and Financial results
Consolidated Income Statement & Balance Sheet snapshot
Margins
Shareholding
Consolidated Quarter and Nine Month highlights
Quarterly
Nine Month
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
-10.00
180.00
160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00
0.00
Q3FY20
Q2FY20
Q3FY19
Total Revenue
EBIDTA
PBT
PAT
Total Revenue
EBIDTA
PBT
PAT
Q3FY20
Q3FY19
Rs. In crore
Margins
Quarterly Margins
Nine Month Margins
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Q3FY20
Q2FY20
Q3FY19
EBITDA Margin
PBT Margins
Net Profit Margin
20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
EBITDA Margin
PBT Margins
Net Profit Margin
Q3FY20
Q3FY19
Standalone Q3 &9MFY20 Financial results
Particulars (Rs in Crs) Q3FY20Q2FY20Q3FY19Q-o-Q (%)Y-o-Y (%)9MFY209MFY19% ChangeIncome from Operations 34.1126.3730.5529.37%11.66%87.9183.015.90%Total Income34.1126.3730.5529.37%11.66%87.9183.015.90%Cost of Material Consumed 4.542.953.4053.91%33.56%10.798.5725.83%Employee Benefits Expense 6.456.575.70-1.84%13.21%19.7016.5718.87%Power and fuel Expense 3.312.992.8910.67%14.62%10.158.6018.08%Rent Expense 2.602.203.4718.23%-24.91%7.169.59-25.34%Other Expenses8.447.238.2516.80%2.38%23.0123.69-2.88%Total Expense 25.3521.9523.7115.51%6.95%70.8167.035.65%EBITDA 8.764.426.8498.22%27.99%17.1015.996.96%EBITDA Margin (%) 25.6716.7622.4053.22%14.62%19.4519.261.00%Other Income0.911.941.13-52.84%-19.39%5.004.2218.37%Depreciation 1.861.801.072.92%73.27%5.443.1572.48%EBIT 7.824.556.9171.65%13.19%16.6617.06-2.33%Finance Cost 1.941.731.1112.12%75.55%5.613.3866.06%PBT 5.882.825.80108.13%1.31%11.0513.68-19.22%PBT Margins (%)17.2310.7118.9960.88%-9.27%12.5716.48-23.72%Tax Current Tax2.131.061.23100.94%73.65%4.033.6011.94%Deferred Tax0.58-0.450.09227.98%565.78%-0.230.51-145.28%Total Tax2.710.611.31343.59%106.07%3.804.11-7.50%Exceptional Items0.000.000.000.000.00Net Profit3.172.214.4943.24%-29.35%7.259.57-24.26%Other Comprehensive Income/(Loss)-0.02-0.020.000.00%-0.060.00Total Comprehensive Income3.152.194.4943.62%-29.78%7.199.57-24.87%Net Profit Margin (%)9.298.3914.6910.72%-36.73%8.2511.53-28.48%EPS (In Rs) 1.150.801.6443.75%-29.88%2.623.50-25.14% Consolidated Q3FY20 Statement - Snapshot
Particulars (Rs in Crs) Q3FY20Q2FY20Q3FY19Q-o-Q (%)Y-o-Y (%)9MFY209MFY19% ChangeIncome from Operations 61.3346.9356.4430.68%8.66%156.78150.304.31%Total Income61.3346.9356.4430.68%8.66%156.78150.304.31%Cost of Material Consumed 7.745.576.1938.94%25.19%18.8816.0717.48%Employee Benefits Expense 14.1313.8212.832.23%10.17%41.6136.9312.68%Power and fuel Expense 4.934.794.643.03%6.27%15.4613.9410.86%Rent Expense 2.902.463.9417.75%-26.55%8.0010.98-27.17%Other Expenses16.8515.6716.067.50%4.90%46.2445.142.43%Total Expense 46.5542.3243.6610.01%6.63%130.19123.065.79%EBITDA 14.784.6212.79220.14%15.59%26.5927.24-2.37%EBITDA Margin (%) 24.109.8422.65144.99%6.38%16.9618.12-6.40%Other Income2.763.722.98-25.86%-7.53%9.919.445.06%Depreciation 4.554.473.771.99%20.80%13.3311.2318.76%EBIT 12.983.8712.00235.67%8.21%23.1725.45-8.93%Finance Cost 3.863.803.301.70%17.03%11.649.9117.42%PBT 9.120.078.7013056.42%4.86%11.5315.53-25.75%PBT Margins (%)19.590.1619.9211859.40%-1.66%8.8612.62-29.82%Tax Current Tax2.931.192.05145.74%43.09%5.715.484.32%Deferred Tax0.52 (0.69)-0.20175.83%164.28%-0.190.30-164.72%Total Tax3.450.511.85581.30%86.40%5.525.77-4.42%Exceptional Items0.000.000.000.000.00Net Profit5.67 (0.44)6.84 1396.57%-17.20%6.01 9.76 -38.38%Other Comprehensive Income/(Loss)0.010.020.00-55.43%0.020.00Total Comprehensive Income5.68 (0.42)6.84 1452.50%-17.08%6.04 9.76 -38.14%Net Profit Margin (%)9.24 (0.93)12.13 1092.18%-23.79%3.84 6.49 -40.92%EPS (In Rs) 2.07(0.16)2.501393.75%-17.20%2.193.57-38.66% Shareholding
Promoters Foreign Portfolio Invesors Others
25.12
5.59
69.29
KEY INVESTORSHolding %JUPITER INDIA FUND4.36GEOSPHERE INDIA FUND0.34JUPITER SOUTH ASIA INVESTMENT COMPANY LIMITED - SOUTH ASIA ACCESS FUND0.89Total5.59 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