Royal Orchid Hotels Limited has informed the Exchange about Investor Presentation
Date: February 12, 2022
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
Dear Sir/Madam,
Sub: Investors Presentation
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
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in continuation to the unaudited financial results of the Company for the third quarter & nine months ended December 31, 2021 uploaded on the website of the Company and Stock Exchanges on February 11, 2022, 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
Ranabir Sanyal Company Secretary & Compliance Officer
Encl: As above
Royal Orchid Hotels Ltd. Q3 FY 2021
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
PROPOSED BRANDED HOTEL ROOMS ACROSS MAJOR CITIES
20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
17931
13901
15892
15181
ROHL has properties in Ahmedabad, Bengaluru, Chennai, Gurugram, Goa, and Jaipur
17435
14330
3878
3878
4817
2045
9969
9655
9061
7626
7039
7827
7420
7299
5643
5714
5442
4933
7718
6915
2562
1423
Agra
Ahmedabad
Bengaluru
Chennai
New Delhi
Gurugam
NOIDA
Goa
Hyderabad
Jaipur
Kolkata
Mumbai
Pune
Source: India Hospitality Trends & Opportunity report by Hotelivate
2020/21
2025 / 26
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
• International
tourist expected to reach 30.5 million by 2028.
arrivals
in India
•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
Boosting Hospitality
Policy Support
• Under the Budget 2021-22, the
government has allotted Rs. 1088.03 crore (US$ 148.2 million) for development of tourism infrastructure under Swadesh Darshan for the entire Northeast region.
• Government has allocated 100% FDI in Tourism & Hospitality sector under automated route. • Swadesh Darshan
13 thematic circuits across the country tourism selected for development of infrastructure
scheme
has
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 under Royal Orchid & Regenta Brand as of
December, 2021 is 70.
Present in 45 locations 11 states with 4,441 no of keys and 2.6+ 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 Regenta 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, Regenta Resort-Belgaum, Regenta Inn Ranip – Ahmedabad, Regenta Resort Pench Regenta Inn – Indirangar
2020 Regenta Place Mandrem, Goa Regenta Place, Mahabaleshwar Regenta Inn, Rishikesh Regenta Central, Vapi Regenta Inn, Morbi Regenta SG, Lonavala Regenta Resort, Mashobra Regenta Inn, Goa
2021 Regenta Central, Noida Regenta Central, Somnath Regenta Inn, Amritsar Regenta Central, Udaipur Regenta Inn, Sheshadripuram Regenta Koramangala Regenta Inn, Jaipur Regenta Inn, Ajmer, Regenta Resort, Kabini, Regenta Inn Sambalpur
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 has over 30+ years of experience in Finance with Manufacturing & Hotel Industry. B.Com, MBA in Finance & BA - LLB
Mr. Prashant Mehrotra, Chief Operating Officer Mr. Prashant Over 20+ years of experience with OYO, Lemontree Hotels & The Oberoi, BA, Hotel Management & Catering Technology from IHM, Gwalior
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
Mr. Shiwam Verma – Vice President Operations (Goa) Mr Shiwam has over 25 years of experience with Pride Hotels & Sarovar Hotels Graduate from Magadh University, Bihar
Our Presence
70+
Hotels & Resorts
4441+
Luxury Rooms
45
Locations 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 - Minimal
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 Owned Leased JV Managed / Franchise Total Keys
Category
5 Star
4 Star
t e s s A
o i l o f t r o P
Service Apartment
Resort/Heritage/MICE
3 Star / Budget
Total Keys
FY 2019 195 433 396 2,361 3,385
Owned
Leased
195
-
-
-
_
195
-
249
-
101
83
433
JV
212
130
-
54
-
396
FY2020 195 433 396 2758 3783
FY2021 195 433 396 3349 4,441
Managed / Franchise
-
1802
159
618
838
3417
(%) 0% 0% 0% 21% 21%
Total
407
2181
159
773
921
4,441
Growth in rooms
6000
5000
4000
3000
2000
1000
0
5,259
4,763
3,917
3,980
3,349
2,882
2,988
2,758
591
591
591
591
Owned
0%
387
439
433
433
0%
21%
10%
Leased
2017-18
2018-19
Managed % Growth
2019-20 + Signed Hotels
2020-21 + Signed Hotels
TOTAL
Property breakup with rooms
No of Keys
FY20 Q3
Management / Franchisee Contracts
98
JV
Owned (Domestic)
Owned (Overseas)
Leased
Total KEYS
Average Occupancy (JLO)
Average Room Rate (JLO) (Rs)
Average Occupancy rate (Managed)
Average Room Rate (Managed) (Rs)
*Expected
-
-
-
-
98
61%
2921
48%
3280
FY20
2,759
396
195
-
433
3,783
69%
3,945
58%
2,811
FY21 Q3
157
-
-
-
-
157
75%
4337
63%
3340
FY21
3417
396
195
-
433
4,441
56%
3,353
48%
2,883
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
Regenta Central Antrim, Ahmedabad
Manali
Regenta Inn, Manali
Competitive Advantage
Balanced portfolio having presence in over 45 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
9 Months
60
50
40
30
20
10
0
-10
120
100
80
60
40
20
0
-20
-40
55.2
Total revenues
EBITDA
PAT
19.08
Q3 FY22
5.74
36.09
31.39
8.75
Q2 FY22
0.55
3.97
Q3 FY21
-4.5
108.98
Revenue from operations
EBITDA
PAT
26.12
9M FY22
-4.88
53.43
9M FY21
-8.41
-29.95
Rs. In crore
Margins
Quarterly Margins
EBITDA
PBT
PAT
25.00
20.00
19.08
15.00
10.00
5.00
-
(5.00)
(10.00)
10.44
5.74
8.75
Q3 FY22
0.55
Q2 FY22
(0.39)
3.97
Q3 FY21
(4.50)
(5.13)
9 Months Margins
EBITDA
PBT
PAT
26.12
9M FY22 (0.96)
(4.88)
9M FY21
(8.41)
(29.95)
(35.34)
30.00
20.00
10.00
-
(10.00)
(20.00)
(30.00)
(40.00)
Standalone Q3 FY21 Financial results
Q3FY21-22
Particulars (Rs in Crs) 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)
28.57 0.72 29.29 3.35 4.82 2.68 2.49 6.97 20.31 8.98 31% 2.10 6.88 2.08 4.80 1.30 -1.70 1.80 - 1.80 6% 0.66
Q2FY21-22
Q3FY20-21
Q-o-Q
Y-o-Y
18.64 2.67 21.31 2.42 3.88 2.40 1.52 5.23 15.45 5.86 27% 2.12 3.74 1.88 1.86 -0.81 - 2.67 - 2.67 13% 0.97
18.00 1.01 19.01 2.13 3.25 2.02 1.90 6.02 15.32 3.69 19% 2.16 1.53 2.23 -0.70 -0.44 - -0.26 - -0.26 -1% -0.10
53% -73% 37% 38% 24% 12% 64% 33% 31% 53% 11% -1% 84% 11% 158% -260% 0% -33% 0% -33% -51% -32%
59% -29% 54% 57% 48% 33% 31% 16% 33% 143% 58% -3% 350% -7% -786% -395% 0% -792% 0% -792% -549% -791%
Sustainable Growth – Yearly Consolidated numbers
TO TAL R E V E N U E S
219.04
219.74
199.83
88.84
108.98
FY18
FY19
FY20
FY21
FY22
60.00
50.00
40.00
30.00
20.00
10.00
-
(10.00)
EBITDA and EBITDA Margins
22% 48.81
21% 45.32
20%
39.73
24%
26.12
FY18
FY19
FY20
-4% (3.11) FY21
FY22
EBITDA
EBITDA margins
30%
25%
20%
15%
10%
5%
0%
-5%
C AS H P R O F I T 27.43
24.06
18.23
R AT I O S
Net debt to equity
Interest coverage
11.68
3.00
2.00
2.61
1.63
1.68
FY18
FY19
FY20
FY21
FY22
(13.44)
1.00
0.63
0.57
0.56
0.78
0.83
0.92
-
(1.00)
(2.00)
FY18
FY19
FY20
FY21
FY22
(1.37)
250.00
200.00
150.00
100.00
50.00
-
30.00 25.00 20.00 15.00 10.00 5.00 - (5.00) (10.00) (15.00) (20.00)
Rs. In crore
Consolidated FY21 Q3 Statement - Snapshot
Q2FY21-22
Q3FY21-22
Q3FY20-21
Particulars (Rs in Crs) 29.92 Income from Operations 1.47 Other Income 31.39 Total Income 3.37 Cost of Material Consumed 7.00 Employee Benefits Expense 3.11 Power and fuel Expense 2.09 Rent Expense 11.85 Other Expenses 27.42 Total Expense 3.97 EBITDA 13% EBITDA Margin (%) 4.82 Depreciation -0.85 EBIT 4.28 Finance Cost -5.13 PBT -0.63 Tax expense - Exceptional Items -4.50 PAT 0.01 Other Comprehensive Income/(Loss) -4.49 Total Comprehensive Income -14% Net Profit Margin (%) -1.03 EPS (In Rs)
52.78 2.42 55.20 5.79 10.42 4.14 2.64 13.13 36.12 19.08 35% 4.80 14.28 3.84 10.44 3.00 -1.70 5.74 - 5.74 10% 1.61
31.85 4.24 36.09 3.93 8.35 3.73 1.75 9.58 27.34 8.75 24% 5.30 3.45 3.84 -0.39 -0.94 - 0.55 - 0.55 2% 0.61
9M FY21-22 9M FY20-21
Q-o-Q
Y-o-Y
98.99 9.99 108.98 12.69 24.51 10.17 4.95 30.54 82.86 26.12 24% 14.87 11.25 12.21 -0.96 2.22 -1.70 -4.88 - -4.88 -4% -0.89
47.84 5.59 53.43 5.02 16.86 6.75 4.67 28.54 61.84 -8.41 -16% 14.57 -22.98 12.36 -35.34 -5.39 - -29.95 0.02 -29.93 -56% -8.42
66% -43% 53%
47% 25% 11% 51% 37% 32% 118% 43%
76% 65% 76%
72% 49% 33% 26% 11% 32% 381% 173%
-9%
0% 314% -1780%
0% -2777%
-419% 0% 944%
0% 944% 582%
161%
-10% -304%
-576% 0% -228%
0% -228% -173%
-256%
Consolidated FY21 Q3 Assets & Liabilities - Snapshot
Particulars (Rs in Crs) 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
As dec 2021
FY 2021
FY 2020
170.80 1.00 17.75 42.78 0.13 42.21 274.67 111.39 64.35 450.40
27.43 110.61 138.04 30.22 144.25 144.25 137.90 450.40
177.47 0.94 17.75 47.13 0.17 45.87 289.32 65.48 64.12 418.93
27.43 112.97 140.40 32.61 145.24 145.24 100.68 418.93
236.17 21.47 17.75 52.92 0.25 44.88 373.43 75.40 - 448.84
27.43 145.89 173.31 42.14 138.87 138.87 94.51 448.84
Shareholding
Ratios
0% 5%
27%
68%
Mutual Funds
Foreign Portfolio Investors
Others
Promoters
Mutual Funds Foreign Portfolio Investors Others Promoters
0% 5% 27% 68%
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.”
Thank You