Good morning, ladies and gentlemen, and thank you for attending this virtual meeting. I'm pleased to welcome you on behalf of EIH Limited and SKP Securities to EIH Limited's FY 2026 Earnings Webinar. We have with us Mr. Vikram Oberoi, Managing Director and CEO, and Mr. Vineet Kapur, Chief Financial Officer. Friends, this virtual meeting is being recorded for compliance reasons. During the discussion, there will be certain forward-looking statements. These must be viewed in conjunction with the risks that the company faces. We'll have the opening remarks from our Mr. Oberoi followed by our presentation and then a Q&A session. Thank you, and over to you, Vikram.
Thank you so much. Good morning, ladies and gentlemen, and a warm welcome. You know, we just had our Q1 results, and unfortunately, the hospitality industry, and we're no exception to that, were impacted by operations in lieu of the tension between India and Pakistan, and also the geopolitical developments, in particular between the U.S., Iran, and Israel. Despite those ruffles, we had a strong EBITDA performance for Q1. It would have been better had it not been for that. What we see overall in Q1 is still strong demand over the previous quarter of last year, and we again remain optimistic. One of the things that I've been mentioning for some time is our endeavor to drive ARR, and that obviously is easier when you have strong demand.
Typically, in the summer months, our industry does face a softening in demand, but despite that, you'll see from the investor presentation that has been loaded for you to review, we've been able to take average room rates up, and as a result, we have powered up as well. A strong increase in average room rates, and our endeavor would be to continue to drive rates. One of the key advantages of driving ARR is that the flow-through to EBITDA is much stronger than if it was just an increase in occupancy. That is our endeavor. We have world-class hotels in our country, us and our competitors, they are the finest hotels probably in the world, and certainly, our approach is to drive ARR to reflect the quality of the hotels and the quality of service we offer.
With that, I'll pass it over to Vineet for a quick run-through of our presentation, and then we can open it up to questions and answers. Thank you very much.
Thank you, Vikram, and good morning, everybody. We'll start with the Indian hotel sector first. From the outlook perspective, we see a pretty good, strong hotel demand coming through for the current year, 2025. The factors already mentioned there on the growth drivers. A lot of factors driving the growth, but majorly coming from a good increase coming from a demographic shift of the Indian population and a good increase in the Asian-based, as well as a good forecast for inbound tourism to grow by 15% in the current year. If you look at the Indian hotel market, especially for Q1- 2026, we got impacted, as mentioned by Vikram, in the first quarter because of operations in lieu of the geopolitical situations in the Middle East.
In spite of that, we saw an increase happening in passenger traffic by 4.4% on a year-over-year basis, and that reflected also with a good buoyancy in the ARR. We almost saw an increase of 9%- 11%. Though on the occupancy, we were more or less flat. Overall, with a good ARR increase, we saw an increase of 11%- 13% on RevPAR vs last year. We expect the, you know, from a manual perspective, we expect the demand for high-end luxury to grow and become more prominent on the luxury side. With our portfolio of luxury hotels, we feel ourselves we are in a good position to get the most benefit of India's evolving option base. Considering that, we're already working, we are very focused on our local domestic market as well as in the international destinations.
We have a strong expansion strategy with almost 25 new properties, mainly focused in India, but also in some global markets. It will be operation by 2030. Coming to operational performance, you know, EIH consistently has maintained leadership vs the competition. We continue to lead in most of the areas, including occupancy. We have maintained an overall 20% lead over the competition efficiency over the years. Of course, that has been cyclical based on the market demands and the cycles. More or less, on average, we have maintained a 20% leadership over the competition. On the RGI front, looking at MPI, we are now up to six. If I compare that three years back in June 2022, increase on the occupancy side. On the ARR, there has been some drop, but overall, a very strong leadership on the RevPAR side.
Continuing on the RevPAR movement, it's the same cyclical phrase what we see every year, and the same cycle goes. I think important to note would be the base. If you look at, we're from 9,811, we ended up at 11,350, which is a growth of 16% year-over-year on average vs last year on RevPAR. We continue to see this base increasing year-over-year, and we also foresee a good strong base going for the next years.
If I just add one thing, this RevPAR growth in Q1 of this year vs Q1 of last year, we see, as you know, foreign travel to India declines come April or middle of April onwards. Despite that, we have been able to take up our rates, and our endeavor will be during the winter months to drive that even further, supported by foreign travel into India.
Coming on the next slide, which is the RevPAR growth by industry and by the hotels. Industry growth was up to 12% in Q1. Our owned and managed hotels grew a little higher than the industry growth at 16%. Oberoi Hotels continues to lead the pack with a growth of 21% on a RevPAR basis over last year. If you look at the same on the occupancy and the ARR trends, we started the year pretty strong in April at 77%, but we saw it happening in May, especially impacted by operations in lieu as well as the geopolitical situation in the Middle East. That has picked up a little in June, and we hope to see that trend changing in the current quarter. Overall, in spite of changes in the occupancy, we saw a pretty healthy growth on the ARR side in every month.
On a net basis, if I look at the overall quarter, we were almost flat at 70%, but a good increase, almost 18% growth in ARR vs last year. If I look at the same thing for EIH owned hotels, actually, we saw a dip in occupancy, and the dip was more prominent in the month of May, especially impacting our hotels in the northern region of India. Overall, the occupancy dipped from 77% to 73%. We got an impact even in our city hotels during the month of May. Overall, in spite of the occupancy drop, we were able to maintain the ARR and able to grow that vs last year.
If you look at growth by city in our hotels, including managed hotels, we saw a pretty good healthy trend, except what you see in Shimla and Chandigarh, which were basically impacted by the Operations Sindoor , where the travel to the northern part of India was definitely restricted. At the same time, we saw a good increase in RevPAR in Jaipur and Ranthambore areas. Hyderabad in particular, we saw a very high increase, but that was because of a one-time event. We had the Miss World event, which took place in Trident, Hyderabad, and the hotel was occupied quite a number of days, which drove the ARR for us in Hyderabad. On the international front, also, we saw a good healthy increase, and this was due to good performance by our hotels in Mauritius, Egypt, as well as in Marrakesh.
Egypt and Marrakesh basically coming back vs last year due to the impact of the Israel and Palestine conflict, which had impacted the room rates for those hotels last year. That is coming back in the current year. On the room revenue tailwinds, I would say more or less in the same lines, nothing dramatic from any particular segment perspective. We saw an impact on the corporate segment where we are seeing a little drop in base in Q1 vs over the last 2-3 years' average. Otherwise, most of the other ones are in the same trend as last year. Coming to the quarter one financials, I'll start with the standalone performance.
Looking at the Q1 at 2026, if you see over the last six or seven years, leaving aside the COVID period, even the last four years, we had the highest revenue in Q1, the highest ever revenue in Q1, as well as the same thing on EBITDA. PAT was not in the same line, and that was because of the one-time impact. We had taken INR 110 crore impact in our financials on Kondok Mashobra, which came in Q1. Due to that, the PAT was on the lower side at INR 36 crores for the quarter. Looking into the same, if you look at the consolidated performance, again, on the revenue and EBITDA side, we had the highest ever revenue and EBITDA for the quarter. PAT was lower again because of the Mashobra impact of INR 110 crores, which lowered our PAT for the quarter.
On the funds provision, the funds continue to keep on adding our forced cash flows and keep adding to the funds, which basically gives us a good situation to be in with a very healthy liquidity at this moment to push our growth plans, our long-term growth plans to support in the coming years. Coming on the financials in detail, if you look at on the consolidated level, our overall revenue went up by 9%. Expenditure was actually in good control. We only had a growth of 6% on the expenditure side, which resulted in a higher drop through of almost 16% on EBITDA. Looking at the percentage on the EBITDA, we ended up the end of the quarter with 32% on EBITDA percentage vs 30%. Good improvement in EBITDA percentage overall.
On the operational side, good performance, but at the same time, we got impacted by Mashobra due to the court judgment which came in the month of June. That resulted in an impact on our PAT. We were down 62% because of the INR 110 crores impact on Kondok Mashobra. If I look at the standalone performance, again, a good growth of 15% over a year, and this is in spite of the fact that we didn't have Oberoi Grand and Oberoi Airport Services in the last quarter vs last year. We had both the things in the numbers. On the expenditure side, the same trend has grown a little lower than the growth we've seen in terms of revenue, which has helped us to increase the EBITDA drop through and a good growth of 28% vs last year.
On the EBITDA percentage, we have gone from 30%- 34% as of Q1 FY 2026. On that, we were down vs last year due to, again, the exceptional item of Mashobra of INR 110 crore. On the awards and affiliates, Oberoi is the list of awards which Oberoi Hotels have won. We continue to lead in the luxury segment and also getting good rewards across different from different authorities. If you look at Telegraph Travel Awards, we got the Best Hotel Group Award from Telegraph Travel Awards. We were ranked number two among the best hotel brands in the world by Travel in Asia and USA. The list goes on, and if I look at the next sheet, we also, our restaurants also were awarded as to be the best in terms of their own categories.
Going to our next expansion plans, we continue to drive a very healthy pipeline on the hotels. We just recently signed four hotels which are going to be managed. With this overall, our list is roughly 25 properties with 2,033 keys spread out across domestic and international, but mainly in domestic. If I look at the number of keys in domestic fund, out of the 2,033, we are coming with some 1,750 keys in domestic and the remaining keys in international. Out of the 25 properties, we'll be owning eight and managing seven. Overall, a good growth pipeline coming in at this moment till 2030. This is a business through footprint across national and international, allowing for Oberoi as well as Trident. Total number of keys in India is roughly 3,700, at the same time, 408 keys for Oberoi national and international locations. I'm through with my set of slides.
Over to you, back to Navin.
Thanks, Vineet. Thanks, Vikram.
Thanks, Naveen.
Thank you. Open the floor for the Q&A session now. Anyone wishing to ask a question, I request you to please raise your hand. We'll take the first question from Abhishek. Abhishek, please unmute yourself and go ahead.
Yeah. Hi. Good morning. I have two sets of questions. One is regarding the RevPAR. What I've observed is that the average RevPAR, which is given across the industry and for EIH, should be including the F&B revenue as well, right? Otherwise, the math doesn't add up.
First of all, good morning, Abhishek. The RevPAR is revenue per available room. It does not include F&B and other income.
Okay. If we have to just, you know, do a math on the revenue for Q1 FY 2026, and we try to take the RevPAR and multiply it with the number of available rooms into the occupancy ratio, say maybe an average of 70% or 75%, should add up to, it adds up to the entire revenue. That's my question. It shouldn't add up to the entire revenue, right?
I'm not sure what data you've seen for others, but hospitality RevPAR very specifically across our industry refers to revenue per available room based on room revenue. It does not include food and beverage revenue, and it doesn't include revenue from non-operating departments. That's an industry-wide practice. I'm not sure what data you're referring to for others. If you want, we can certainly take this offline and better understand what data you're looking at to answer any further questions you have, if that's okay. Ours very clearly is revenue per available room for room revenue only. That I can assure you.
Okay. Another question is on the case for which we have taken an exceptional hit of INR 110 crores. What I understood earlier is that we were to receive a substantial sum because we are surrendering the property back to them. Now, in this particular quarter, we have taken a hit of INR 110 crores. How do you see this going forward?
I don't want to make any statements on how I see this going forward. The INR 110 crores is based on the judgment of the court and us accounting for that based on that. If there may be questions, Vineet, can I just maybe hand it over to you to just give a summary of that INR 110 crores exceptional item from Mashobra?
The INR 110 crores actually constitutes various items, and ultimately, we have passed the accounting based on the court judgment. The INR 110 crores is a part of the impact of the equity value which we are not receiving based on the court's judgment, and also the impact of 50% of advance against equity, which we have given to Mashobra, which has not been considered by the court. That constitutes the INR 110 crores.
I've also seen that we have written back the used fee that amounts to INR 86 crores. We expect that we are not going to pay, and we are not going to receive any sum beyond this, right? That's the thing too.
That's right.
The court admitted.
INR 86 crores was the user fee, what you have mentioned to me. That was the amount we were carrying in our provision in the books. Considering that, and that was in lieu of having the property, considering that that stand was not taken by the court, we have reversed that user fee, which was sort of the lease rental, which was paid to the stakeholder. Net of all those three impacts is INR 110 crores.
Okay. Just another thing. Now that the property is given back to the government, I mean, it's very evident that there is going to be a hotel resort there, which is going to be managed by the hospitality players in India. Do you expect that going to our competitors, or do you expect that there's a chance of us getting it back?
We are managing the hotel currently, as you know, on behalf of the state government. We will endeavor to, once the bidding process is announced and the criteria for bidders is disclosed, our endeavor will be to continue to operate the hotel on terms that are favorable and are a win-win for both the Himachal government and us. That is our hope and our endeavor.
Okay. Thanks.
Thank you, Abhishek.
Thanks, Abhishek.
We'll take the next question from Amit Agarwal. Amit, please go ahead. No, there's a disturbance in your line, Amit.
Yeah. Amit, your voice is coming out muffled. We can't, unfortunately, hear you clearly.
Amit, may I request you to disconnect and join again and we take your question? Thank you. In the meanwhile, we'll take the next question from Raghav Malik. Raghav, please unmute yourself and go ahead. Raghav, you're on.
Hi. Am I?
Please go ahead.
Yeah. Hi. Good morning. Thanks for the opportunity. Congrats on a good set of numbers. The first question was just a follow-up on the RevPAR question. In your PPT, you've detailed that Domestic RevPAR is higher, about 16%, and International is 22% higher, but Consolidated revenue is about 9% higher. What is the gap between this RevPAR and revenue growth number, essentially?
Raghav, the numbers you're seeing, that's mainly on hotel. The three things which impacted us on a consolidated basis were, one was Mashobra vs last year. Considering that we already handled all the property on the 31st March, we are no longer consolidating Mashobra in our numbers. That is not there in our revenue year- over- year. At the same time, we also had an impact due to that Oberai Grand, which is actually close to renovation. We had full Oberai Grand operations last year, which we don't have now.
On top of that, we also had our Oberoi Airport Services in Mumbai, which was there last year, but not in the current year. Due to that, a one-to-one tie-up with RevPAR will not be possible with the revenue.
Okay. Understood. For international hotels, specifically the RevPAR , I mean, the slight detail that it is including the hotels that were impacted by the recent Middle East conflict. What is the like-for-like number? 22% on a non-like-for-like basis is 22%. What is the number that would be excluding the hotels that might have been impacted because of the conflict?
Raghav, actually, it's the other way around. What had happened last year was Marrakesh and Egypt, and to an extent, Mauritius. These three entities were impacted by the Israel-Palestine conflict, which was pretty much more, you know, impactful for these countries. Considering that that has evened down and the impact was more for Iran, we are not seeing the impact of what we had last year. That has actually improved.
If I could just add to that, Raghav, in Egypt, we've also made some changes in how we are operating, which has resulted in a sharp growth in Egypt. One is external factors, but I think due to internal changes that we've made in positioning the hotel, that has also helped see a strong growth in revenue and therefore RevPAR as well, both in occupancy and, not in rates so much, but in occupancy. We've seen a sharp increase in occupancy as a result of that. In Mauritius also, we've seen an increase as in Marrakesh. I think all of that has contributed to the increase you see in RevPAR for international.
Okay. Understood. Thank you. If I may just squeeze one last follow-up. You don't, I know you don't give guidance on the existing months, probably or the existing new quarter, 2Q, but in terms of just the trend, like occupancy is halfway sort of caught up, I think, in June after the dip it's seen in May. Is there like an upward traction that we're seeing again in July and even August maybe, or is it like somewhat sustaining now at June levels, just occupancy for the portfolio?
In Q3 and Q4 in particular, we see the whole industry move up. I don't want to make any forward statements, but the only thing that I'd like to highlight is some facts. First of all, Q1, despite all the issues that we've faced as an industry in India, we were able to drive a RevPAR. Our endeavor will be to do that in Q2, Q3, and Q4. I think in Q3 and Q4, our endeavor will be to really maximize opportunity, given we anticipate strong increases in demand, which are customary every year.
Okay. Understood. Thank you. I'll come back.
Thank you. Great, Raghav.
Thank you.
Thank you. Please call me Vikram, Raghav . I'd feel much more comfortable.
Sure. Thank you. Thank you, Vikram. Thank you.
Okay, thanks so much. Thank you.
Here's the question from Amit Agarwal. Hopefully, his line is going on. Amit, please unmute yourself and go ahead. Amit? Yeah. You need to unmute yourself and ask your question. Please go ahead. Yes. He's still facing some issues. We'll take the question from Vaibhav Dinesh. Vaibhav, please go ahead. Please unmute yourself and go ahead.
Am I audible now?
Yes, Vaibhav. Please go ahead.
Okay. Perfect. Hi, Vikram. Hi, Vineet. First of all, congratulations on a strong set of numbers despite all these challenges. Firstly, on your performance in owned hotels vs your own domestic owned and managed hotels. Occupancy impact in owned hotels seems higher, while ARR growth is much better in the owned hotels compared to domestic, including managed hotels. Is there a strategic shift that we are targeting in our owned hotels where the focus is on, you know, commanding higher ARRs even at the expense of occupancy going forward? Is it a strategic shift?
Good afternoon, Vaibhav. No. Actually, our endeavor is to maximize rates across our hotels. That, of course, is subject to demand, just applying the simple principles of supply and demand. A lot of our city hotels are EIH-owned hotels. Although, for example, Delhi had a significant impact, Bangalore had a significant impact because of the political tensions, we were still running strong occupancies in the month of April. By reducing rates, we didn't feel we would stimulate additional demand because I think it was a crisis beyond our control, and people will choose to travel and not travel to safety, and concerns would come first. We saw a decline in demand, and also really a pace of reservations and cancellations, particularly as a result of Sindoor. Our city hotels have run high occupancies both in summer and in winter. The differential isn't that much because business travel still happens.
Whereas our leisure hotels, we really see sharp declines in foreign travel to our leisure hotels in the summer months. Therefore, your ability to drive rate in leisure hotels when demand tapers off is lower. That's really it. Our endeavor is to drive rate when demand is strong across every single hotel. In fact, our leisure hotels offer a level of product and service which is unmatched at global standards, and therefore operate at much higher rates. Our leisure hotels operate well over 50% ARRs. In fact, 60 and touching 60 and beyond in the winter months, averaging in the 50s if you look at year-round. They command much higher rates than our city hotels, particularly in the winter months.
Got it, sir. My second question was on your pipeline. I can see there are some delays that have happened quarter on quarter. Mainly, I can see the Oberoi Dahabeya 1 and 2, which was supposed to be operational in 2025, are now postponed to 2026. Similar is the case for Nepal property and a few others. What was the reason behind this?
These hotels are all managed hotels. Although we have, you know, we work very closely with our partners, if there is a delay, our influence over those on the timelines because these are managed hotels is not as much as hotels that we own or have a significant equity interest in. It's nothing more than that. Our endeavor is to work with our partners, be sensitive to their needs, support them the best we can, and open the hotel as soon as possible.
I can presume that there is no impact on our own properties expansion plans.
No, that is correct.
Perfect. Just if I may ask last one question on the impact of closure of Oberoi Grand and Wildflower Hall. What kind of impact was there because of the closure of these two properties? Along with that, what was the impact of closing the airport lounge business? If you can share the revenue numbers all over this invoice.
I don't know if we share numbers. Vineet, you just want to take that question? I don't think we disclose numbers for OFS and OAS .
Yes. Oberoi, I'm not sure into anything specific on the profitability, but on the revenue side, I can just give you an indication. On the Oberoi Grand, if I look at between Q1 and Q1 of this year and last year, we had roughly an impact of INR 22 crores, which we had on a current Oberoi Grand . On Oberoi Airport Services, the impact was roughly INR 28 crores.
INR 28 crores. Yeah, that was more than offset by.
By OFS.
By OFS subsequently, I can assure you.
All right. About Wildflower Hall?
Yeah, Wildflower Hall would have been approximately the same because last year we were consolidating on revenue fund. There was no impact.
Got it. Perfect, sir. That's it from my side. All the best. Thank you.
Thank you so much.
Thank you, Vaibhav. We'll take the next question from Vaishnavi. Vaishnavi, please unmute yourself and go ahead.
Good morning, sir. Thank you for taking my question. I just have one question from my end. This is regarding the exceptional items. Do we see any other future exceptional items to be recorded from the Himachal property, or the current one is the final one?
I would say the current one is the final one. We should not see any more exceptional items coming from Himachal, from Wildflower Hall.
Thank you, sir.
Thank you, Vaishnavi.
Thank you, Vaishnavi. We'll take the next question from Amit Agarwal. Amit, please go ahead. Please unmute yourself and go ahead. Amit, you need to unmute yourself. Yes, please go ahead, Amit. Still facing problem with his connectivity.
Amit could maybe type his question in here.
Amit, can you please post your question on the Q&A board and I'll read it now? The next question is from Amit Kadam. Amit, please go ahead.
Hi. Hi, Vikram.
Hi, Amit.
Hi, Vikram. My question is, I want to go back to our two years back when we had shared this Vision 2030, where we had shared that we want to double our room counts. We had seen a series of some activities and actions regarding it. If I look at the pipeline, what we have said till almost 2030, it gives me just an indication of 2,000 odd rooms. On this current sitting, there's more than 4,000 odd. How do I see this thing? How do I reconcile our two-year back Vision 2030 and the current pipeline? Do we have to materially scale up our managed rooms efforts so that we at least be closer to that thing? On 4,000, we were assuming 4,000 kind of additional. We are in the range of 2,000. We need to bridge the gap of almost 2,000.
What's the management view on this particular part?
Great, great question, Amit. All I can say is that all of us in the organization are single-mindedly focused on growth, whether that's through management contracts, through partnerships, etc. In just this last quarter, as you know, Vineet ran through the four hotels that we've announced. We continue to focus on this. It has our complete attention. We hope that with that focus and with that attention, we will be able to drive further opportunities for growth for both Oberoi and Trident.
Vikram, we should certainly be optimistic about that particular thing. At least we'll be closer to that particular vision we have mentioned.
Yeah. I mean, what I'm saying to you is that that is our vision. That is what we're going to work towards. You know it's very important for us to drive growth. If you just see the announcements that we've made in the last 12 months, we've still got part of 2026 to go and 2027. There's still opportunity for considerable growth. At least I remain hopeful and optimistic.
Okay. Nice to hear that. Just in the extension of this particular question, as the portfolio and the things we have seen in the last three years, what are the challenges, new challenges which have emerged in the last one or two years, which may not allow or will further deterrence to this particular vision? What I'm trying to indicate from here is that we have seen a couple of hotels saying that some clearances are getting delayed. I mean, one of the recent comments from you, only in today's call, you say that one of the hotels moves from 2025- 2026. What are the challenges, be it regulatory, be it human resource, or be it some new greenfield land level things?
I just wanted to hear from you, what are the challenges current hoteliers have started seeing in the last one or two years because of the rapid expansion from all the hotel companies across India?
Yeah. That's it. Thanks. No, thanks, Amit. Amit, I don't know if there's anything that has changed substantially in the last one or two years. I think during COVID, and this is my personal view, is that I think we as hoteliers, as the hotel industry, were not kind to our colleagues. There were large layoffs of people, and this really pains me a lot. You know, as human beings, we should be supporting one another, at least people within our organization and within the companies that we work. That really was something that the industry did not do during COVID. As a result of that, you can look at admissions to hotel schools. There's enough published on this to see that positions weren't vacant or admissions were lower, positions remain vacant.
One area of concern is, of course, people, and that's core to who we are and core to our business. We stand by our colleagues. We support our colleagues, and that is a very, very important value for our organization. That human resource is a challenge for the industry. What hasn't changed is the approvals, the delays as a result of that. Those things haven't changed in the last two years. They existed even before. That can cause delays for hotel openings. Land is also another issue, securing land. Land values are very high in city locations. You have to look at mixed-use developments, and obviously, location is key to a hotel's success. I don't know if I've answered your question. I'm just trying to think if there's anything else. Let me talk about the positives, right? Let's not focus on the negatives. I think our economy is growing strongly.
The ability to spend on high-end experiences and products is strong and growing rapidly. I think there are many, many positive things that are happening in our country driven by strong economic growth, and these will continue into the future. I think there's a lot to also celebrate and just not focus on the negatives. Let's focus on seeing how we can capitalize on the positives and at least not worry about negatives that are beyond our control.
Fair enough. I'll just fall back into a couple of notes. I'll come back.
Okay. Thank you. Thanks, Amit.
Thank you. Fantastic. We're still limited to two questions because there are a lot of participants waiting in queue. We'll take the next question from Abhishek. Abhishek, please go ahead.
Yeah. Hi. I just see there's a rental income from investment property in the annual reports for financial year 2025. What is there, and from what are we getting that money for?
That rental income is mainly coming from Oberoi Center, which is our building in Gurgaon.
Okay. This is just to give you a little bit more detail. We have the Oberoi Center, which is in Cyber City in Gurgaon. It's roughly about 110,000 sq ft. . It's a seven-story building. We occupy one of the floors, which is the top floor, and the others are leased out to various parties. One of our key tenants there is BMW that's taken multiple floors.
Okay. This is a follow-up question on the flight services business. Out of INR 2,000 odd crores, INR 2,700 crores of revenue, which we have booked for financial year 2025, how much of that is from the flight services business?
I'll leave that to you, Vineet.
I'll give you overall, if I look at Q1, I'll give you the Q1 numbers. We had roughly INR 110 crores. That's our revenue. That's the figure I can share, but nothing more than that.
For financial year 2025 on a whole year basis?
2025, I can share the numbers separately. I don't remember the number, and I don't have that handy with me.
Just to understand what is, I mean, why are we not very, you know, transparent about revealing these numbers for this business? Is there a reason for it?
I don't think there's a reason for it. We'll certainly look at it, but at this point, we're not. Vineet and I will have a chat about seeing how we can include that going forward. What I will say is that, you know, the Oberoi Airport Services had very strong revenue and very strong flow-through to EBITDA. What I can also say to you is, despite that business closing with the lounge contract coming to an end, we've been able to offset that at an EBITDA level as well with the flight kitchen business. There's strong demand. Our focus is on international flights where margins are better, and the business is doing very well. What we will look at is seeing whether we can give you or share with the market details on that business.
Yeah. Sure. If we want to connect with you offline, just, or not, it's not a question. Just if we want to connect with you offline, how should we do that? Writing it to the investor department, or how should we do that?
Yeah. I mean, maybe you can, and then we'll be in touch with Navin, and we can look at, with Navin's help, we can do that.
My email ID and number, they are on the invite. Maybe you can just drop me a mail, and I'll take it forward.
Sure, sure. Thanks. Thanks. Thanks, Vineet. Thanks for that, Vikramjit.
Thanks, Abhishek.
Thank you so much.
Before we take the next question from Sandeep, may I just read out a couple of questions on the board?
Sure.
Amit has been trying to come onto the, you know, to ask his question. He says, "Just wanted to tell Mr. Vikram that last week I was in Lombok, and it's an amazing property. My suggestion is that you need helicopter services as it is a remote island.
Yeah. No, you know, it's the hotel is a fantastic hotel. Amit, I'm so glad you stayed with us. I hope we looked after you well, and you were happy with the service and the lovely people we had who work at that hotel. Our guest feedback is very positive. I think with a helicopter service, if you have to underwrite that, it's a substantial commitment and a substantial risk. Therefore, it's something we haven't done. You can't, there are regular flights from Bali and also from Kuala Lumpur, and I believe Singapore pass now as well through Lombok. Access is a little bit easier than it was previously. There's also a very convenient, in fact, what I normally do if I'm in Bali is I take the ferry crossing.
It's a high, it's like a large boat, which is very comfortable and takes you from Bali to Lombok in about 2.5 hours. It's quite a nice experience as well. There are many ways to get to Lombok. We'd be hesitant to look at a helicopter service because I think there's a risk associated with that, and you need to underwrite it, which we wouldn't want to do. The hotel is, I mean, right now, the hotel is doing very strong occupancy. This is peak time for Bali and for Lombok, and Taj, with both hotels, are doing very well.
Thanks, Vikram. Okay. Next question. My two questions are regarding your land and property, and that we are coming up with Boutique Properties. Do we own the land, and are there any restaurants and shops coming there along with the rooms?
Absolutely, with the Mayfair Hotel, it's a 125-year lease from Grosvenor Estate. We don't own it, but it's on a very long-term lease of 125 years. There will be a restaurant, a bar, and nice common spaces for our guests as well at Mayfair, London.
The second question is that we're doing a lot of managed deals. Are they for a particular period, or are the contracts for an infinite period?
Contracts for hotels are never for an infinite period. They are for a specific number of years. These are varied, you know, from 20 years upwards. There's also, typically, in hotel contracts, renewal clauses for another 10 or 20 years. These are very long-term contracts.
Thanks, Vikram.
I'm talking about the industry in general, and we are no exception to that.
Okay. Question from Anshul Chaurasia. As a hotelier, what is the targeted IRR for acquiring a new property? Whether it's a Greenfield or a Brownfield project.
I don't know if we can, do we disclose? I mean, I have no issue looking at internal benchmarks, but I don't know if Vineet might.
Oh, this question is on IRR?
No, no IRR.
Yeah. Of course, you know, I would say we have a benchmark considering that we have taken into consideration the return on equity through the shareholders, as well as look at the debt levels, what the company can afford. Yeah, it's a decent double-digit IRR which we look for. I'll not be able to give you the specifics.
We now just say one thing, which may give you some comfort, is that we have internal benchmarks that we strictly follow on IRR and in terms of enterprise value as well. It's something that we, when we do our projections, whether it's for an owned or managed hotel, even for managed hotels, we always run the numbers of how we feel we can perform. We do that with honesty and integrity with our partners. We really present what we believe is a true and fair picture. We tend to be conservative. I'll give you an example. I won't mention the hotel, but when we did a study and shared the numbers for occupancy, ARR, etc., and P&L, or let me not even because it was really on revenue side. On the cost side, we have been reasonably efficient.
It was substantially lower than what was subsequently shared by a consultant. We are conservative with our projections. We make a commitment to our partners, and we want to not only meet those projections but exceed those. That will hold us in good stead in terms of building a strong foundation of trust and a strong relationship with our partners. We don't want to ever be in a position where we let people down.
Thanks, Vikram. We'll take the next question from Rupam Jaiswal. What's your view on upper luxury segment, and how do they trend in terms of ARR and occupancy? Does international travel lead there? Is the amount to see exceptional growth in the future, and where are we placed?
Yeah. You know, if you look at, let's take a 15-year horizon, we've seen a dramatic change in the contribution of our Indian guests to overall revenue. I'm now specifically talking about leisure since the question was at leisure, but this applies to all our hotels. We remain very optimistic that trend is going to not only continue but increase at an even greater pace, a more rapid pace of growth, just given what's happening in our country. That's the first point. The second point is that international travel and international guests staying at our hotels, our Indian guests are the single largest segment, followed by the U.S. and the U.K. It's a very, very important segment for us. I know you'll be familiar with figures released by the government on growth of international travel to India. I think we all benefit.
The industry will benefit if we achieve those targets. Our country, of course, will benefit if we achieve those targets. I think we should really see how we can work in partnership with the government, both at a central and state level, to drive foreign visitors to our country. It brings in foreign exchange. It also creates ambassadors to our country. I'm sure that translates into business opportunity as well.
Thanks, Vikram. We'll take the last question on the Q&A board before we get back to the question and answer form. What is the occupancy portfolio FY 2025 at consolidated level?
I think it was, I feel like it's 78%, but just give us one moment.
This was from Vineet Bajaj. Vineet, just hang on for a second.
EIH, it'll be easier.
EIH Hotels, you know, this is mainly on overall EIH Hotels, what we have in India. We were running occupancy for the full year at 80.7% last year.
Thanks, Vineet. Okay. Friends, we are in the last 10 minutes of the webinar. We request you to limit yourself to just one question and make it short. Thank you. We'll take the question from Sangeeta. Sangeeta, please unmute yourself and go ahead. Sangeeta, you need to unmute yourself. Yes, there's a question over there. We'll take the next question from Rajiv Bharati. Rajiv, please unmute yourself and go ahead.
Hi. Good morning, sir.
Hello.
I have three questions, actually. One thing is I can keep each part of it. Now, when I see the schedule vs, let's say, Q2 FY 2023 of various projects you have given, then out of the, let's say, 2021, and now they're still to 2025, 14 are delayed by close to a year, and 4 are delayed by close to three years. This is in terms of timelines which we are giving. How confident are we that these would be met? In that way, very happy to see that the gear is back in the fold again.
Thanks. Thank you. Like I mentioned, our endeavor with hotels where either it's owned by EIH Limited or has substantial equity, we meet the timelines that we set. That's important for us. Sometimes that's not always the case. I don't know if I can get into specifics to just give examples. Maybe I shouldn't, because I can think of one EIH Limited associated hotel where there's been a delay as a result of some land-related issues. We've now solved those, and we're pressing on with that. With managed hotels, like I mentioned earlier, we have far less control. Diriyah, for example, is one of those where there's been a delay reopening the first hotel in Diriyah next year. There was also a second hotel which has been delayed, and that is really beyond our control.
It's a Diriyah Gate project, and there have been delays or deferments of certain, or certainly of our hotel. That's really what I have to say. In summary, for our own hotels, our endeavor is to meet the timelines we set. Sometimes there are things beyond our control. As an example, one specific land-related issue with our partners, if there are delays, we see how best to work with them to meet the earliest possible timelines for opening the hotel.
Sure, sir. Regarding EIH International, when we are seeing this last four-quarter performance, we are seeing 20% FR growth. When I compare the annual numbers, they moved up, I think, by 3%, 4%. What is the seasonality in H1, H2 in this business?
In fact, in places like Indonesia, the Q2 of our financial year and Q3 are strong because they have their rainy season that starts in November, if I'm not mistaken. It's, in fact, in many ways opposite to ours. Egypt, on the other hand, is, again, occupancies pick up in the winter months, similar to India because it's very hot. Marrakesh is also similar because summers tend to be hot there. Winters are typically in periods of higher occupancy. Mauritius is, its seasons are reversed. Summer months are better in Mauritius. Sorry, their summer months are better, which is our winter because it's in reverse season. It really is a mixed bag, to answer your question.
Last thing is, right, Oberoi Hyderabad, is it a Conversion or is it a Greenfield?
It's a Greenfield.
Great. That's all from my side. Thanks .
Thank you very much. Thank you. Thanks, Rajiv.
Navin, you're on mute.
Vineet, how much time do we have? Because there are some questions on the Q&A board. Some participants lined up.
I have a meeting at 12:00, Navin, but I can, I mean, if I'm five, as long as I'm not too late. Maybe a few more minutes, or we can also ask people to send their questions through. I leave it to you.
We have all follow-up questions from Vaibhav, Raghav, and Amit. Guys, I request you to send me your questions and I'll forward them to the management because Mr. Vikram is already running late for his commitments.
Give me a second. I'm really sorry, Navin. Maybe next time I'll set an hour and a half aside. I'm sorry.
Friends, may I hand over the floor to Vikram and Vineet for their closing remarks before we wind up, please?
I'm sharing my email ID. Any follow-up or unanswered questions, I request you to write them to me and I'll take them up. Yeah, Vikram, please go ahead.
Vineet, I'm sorry. Navin, I don't have much to add to whatever I've already said and with the questions that I've answered. If I were to give an overall perspective, I still am optimistic about being the story. I think EIH will benefit from that. We continue to work in the premium segment, which we believe is a segment that has tremendous opportunity in our country. We continue to drive ARR to the best of our ability. Sorry. You can maybe cover that. Vineet was giving me a note, but I'll ask him to add his comment as well, rather than reading out what he's telling me. We remain optimistic. You know, there are, in any business, you have ups and downs. What happened in the month of May that extended into June had an impact on all of us. Those risks always do exist.
I would like to add that we continue to drive our vision before 2050, and we are working towards that goal. I would say we are pretty much focused to deliver what was committed two years back.
On behalf of ST&P Securities, thank you very much to Mr. Oberoi and Mr. Kapur for taking time out to patiently answer all the queries. We look forward to hosting you again in the next quarter. Thank you very much. Thank you, ladies and gentlemen.
Thanks, Navin. Thank you very much, everyone.
Thank you, Navin.
Bye-bye.
Bye-bye.