Q1 2027 EIH Ltd Earnings Call

August 12, 2026

[Company Representative] (Motilal Oswal Asset Management Company): Escaping security to EIH Limited's Q1 FY27 earnings webinar. We have with us Mr. Vikram Oberoi, Managing Director and the Chief Executive Officer, and Mr. Vineet Kapur, Chief Financial Officer. Friends, this virtual meeting is being recorded for compliance reasons. During the discussion, there may be certain forward-looking statements that must be reviewed in conjunction with the rest of the company faces. We will have the opening remarks from Mr. Oberoi, followed by a Q&A session. Thank you, and over to you, Vikram.

[Company Representative] (Motilal Oswal Asset Management Company): Escaping security to EIH Limited's Q1 FY 2027 earnings webinar. We have with us Mr. Vikram Oberoi, Managing Director and the Chief Executive Officer, and Mr. Vineet Kapur, Chief Financial Officer. Friends, this virtual meeting is being recorded for compliance reasons. During the discussion, there may be certain forward-looking statements that must be reviewed in conjunction with the rest of the company faces. We will have the opening remarks from Mr. Oberoi, followed by a Q&A session. Thank you, and over to you, Vikram.

Speaker #1: VP Security, to EIH Limited's Q1 FY27 earnings webinar. We have with us Mr. Vikram Oberoi, Managing Director and Chief Executive Officer, and Mr. Vaneet Kapoor, Chief Financial Officer.

Speaker #1: Friends, this virtual meeting is being recorded for compliance reasons, and during the discussion there may be certain forward-looking statements that must be reviewed in conjunction with the risks the company faces.

Speaker #1: We'll have the opening remarks from Mr. Oborai, followed by a Q&A session. Thank you, and over to you, Vikram.

Speaker #2: Good morning, ladies and gentlemen, and a warm welcome. You would have seen our Q1 results, and there are just a couple of points I'd like to highlight.

Vikram Oberoi: Good morning, ladies and gentlemen, and a warm welcome. You would have seen our Q1 results, and there are just a couple of points I would like to highlight. One is that we had both on standalone and consolidated strong revenue growth. EBITDA margin was impacted for several reasons, which Vineet and I will cover during the presentation. The other point I wanted to highlight was that really what has stood out for us is strong domestic demand. Sorry, there is a slight echo. Strong domestic demand. Despite the West Asia crisis that impacted foreign arrivals at our hotels, we were still able to do well and drive revenue growth, largely driven by the domestic market. With that, I will hand over to Vineet to make the presentation, and then we will be able to answer any questions that you have. Thank you very much.

Speaker #2: One is that we had strong revenue growth, both on a standalone and consolidated basis. EBITDA margin was impacted for several reasons, which Vaneet and I will cover during the presentation.

Speaker #2: And the other point I wanted to highlight was that what has really stood out for us is strong domestic demand—sorry, there's a slight echo—strong domestic demand, despite the West Asia crisis that impacted foreign arrivals at our hotels.

Speaker #2: We were still able to do well and drive revenue growth, largely driven by the domestic market. With that, I will hand over to Vaneet to make the presentation, and then we'll be able to answer any questions that you have.

Speaker #2: Thank you very much.

Speaker #1: Thank you, Vikram. Good morning, everyone, and thank you for joining us. We'll begin with a brief overview of our performance for the quarter, followed by key business updates. Then we'll open the floor for questions.

Vineet Kapur: Thank you, Vikram. Good morning, everyone, and thank you for joining us. We will begin with a brief overview of our performance for the quarter, followed by key business updates, and then we will open the floor for questions. The industry performance for Q1 was positive, both for occupancy and ARR. Occupancy was higher by 2% to 4%, and ARR by 6% to 8%. The domestic demand was point, which offset the impact of lower foreign bookings on account of geopolitical situation. For the current year, we continue to see increase in ARR due to limited supply and MICE events like BRICS as well as Aero India show, which will happen in the later part of the year. We hope and expect the foreign tourist arrivals coming back to normalcy in Q3 and Q4.

Speaker #1: The industry performance for Q1 was positive, both for occupancy and ARR. Occupancy was higher by 2% to 4%, and ARR grew by 6% to 8%.

Speaker #1: The domestic demand was strong, which offset the impact of lower foreign bookings on account of the geopolitical situation. For the current year, we continue to see an increase in ARR due to limited supply.

Speaker #1: And MICE events like BRICS, as well as the Air India show, which will happen in the later part of the year, and we hope and expect the foreign tourist arrivals to come back to normalcy in Q3 and Q4.

Speaker #1: Considering our management perspective, we are working on a robust expansion plan of almost 30 new properties, which will be in operation by 2031. These will be managed both by us as well as through our own portals.

Vineet Kapur: Concerning our management perspective, we are working on a robust expansion plan of almost 30 new properties, which will be in operation by 2031, which will be both managed as well as our owned hotels. Looking at the red bar and the leadership over the comp set. EIH continues to maintain leadership over the competition set. In Q1, EIH hotels occupancy improved versus competition. MPI was. Sorry. So the MPI was 108 as compared to 106, while the RGI was flat to last year, which resulted in an RGI increase of 4% from 121, we ended the quarter at 125. 14 out of 15 hotels ranked first and second.

Speaker #1: Looking at the red bar, and the leadership over the comp set, EIH continues to maintain leadership over the competition set. In Q1, EIH Hotels' occupancy improved versus competition.

Speaker #1: We were—MPI was 108, sorry—the MPI was 108 as compared to 106, while the RGI was flat to last year, which resulted in an RGI increase of 4% from 121.

Speaker #1: We ended the quarter at 125. Fourteen out of fifteen hotels ranked first and second. Our eight hotels—some of you have probably unmuted yourselves, and that's causing a disturbance.

[Company Representative] (Motilal Oswal Asset Management Company): Atil

Vineet Kapur: Wherein STR provides benchmarking. Our eighth hotel-

Vineet Kapur: Wherein STR provides benchmarking. Our eighth hotel—

[Company Representative] (Motilal Oswal Asset Management Company): Vineet, just one sec. Friends, some of you have probably unmuted yourself and that's causing a disturbance. Request you to kindly mute yourselves. Thank you. Apologies for that.

Speaker #1: Request you to kindly mute yourselves. Thank you. Apologies for that.

Speaker #2: Yeah, no problem. Vaneet, do you just want to run through the slide again? It's an important slide, and there were people talking in the background, so if you could just run through that again.

Vikram Oberoi: Yeah, no problem. Vineet, do you just want to run through this slide again because it's an important slide and there were people talking in the background. If you could just run through that again. Thank you.

Speaker #2: Thank you.

Speaker #1: So EIH continues to maintain leadership over the competition set. In Q1, EIH Hotels' occupancy improved—so MPI was at 108, as compared to 106 last year.

Vineet Kapur: EIH continues to maintain leadership over the competition set. In Q1, EIH hotels occupancy improved. MPI was at 108 as compared to 106 last year. Though the ARI was almost flat, both 115 and 115. But the increase in occupancy helped us grow the RGI, where we went from 121% to 125% over our comp set. 14 out of 15 hotels are ranked first and second, wherein STR provides benchmarking. Out of that, eight hotels are ranked first and six hotels are ranked second in the comp set.

Speaker #1: Though the ARI was almost flat, at both 115 and 115, the increase in occupancy helped us grow the RGI, where we went from 121% to 125% over our comp set.

Speaker #1: So, 14 out of 15 hotels are ranked first and second, wherein STR provides benchmarking. Out of that, 8 hotels are ranked first, and 6 hotels are ranked second.

Speaker #1: In the comp set.

Speaker #2: Vaneet, may I just add a couple of things that may be relevant? And I'm sure people on the call will be aware of this, so sorry if you're already aware of what I'm saying. Please forgive me.

Vikram Oberoi: Vineet, may I just add a couple of things that may be relevant, and I am sure people on the call will be aware of this. Sorry if you are aware of what I am saying, please forgive me. People give data on comp set information, and really, depending on who you select as your comp set, you can get varying numbers. I think it is important for one to understand which hotel is on the comp set. Because if you really were to do it, establish your comp set with doing it as fairly as possible to truly reflect who your competitors are, then your RGI numbers are really of value. If you select competitors to show good numbers, then obviously relatively to the competition you have selected, you will do better.

Speaker #2: But, you know, people give data on comp set information, and really you can—depending on who you select as your comp set—you can get varying numbers.

Speaker #2: And I think it's important to for one to understand which hotels are in the comp set, because if you really were to do it establish your comp set with doing it as fairly as possible, to truly reflect who your competitors are, then your RGI numbers are really of value.

Speaker #2: If you select competitors to show good numbers, then obviously, relative to the competition you've selected, you will do better. So I think it's very important at EIH—we, I can say with absolute assurance that we select our comp set based on what we believe are our true competitors.

Vikram Oberoi: I think it is very important that at EIH, I can say with absolute assurance, that we select our comp set based on what we believe are our true competitors. We do not do it with the objective of showing good numbers. We do it with the objective of really measuring ourselves against our competitors. That is why just a deeper understanding of who the comp set is always useful. Then you can really see, are these really your true competitors or not? I just wanted to add that to what Vineet was saying.

Speaker #2: We do not do it with the objective of showing good numbers; we do it with the objective of really measuring ourselves against our competitors.

Speaker #2: And that's why just a deeper understanding of who the comp set is is always useful. Then you can really see, are these really your true competitors or not?

Speaker #2: I just wanted to add that to what Vaneet was saying.

Speaker #1: Thank you, Vikram. Coming to the next slide, which talks about the red bar growth for overall brand. So, overall brand falls in the luxury segment, and the luxury segment saw a growth of 13.2% on the red bar.

Vineet Kapur: Thank you, Ritu. Coming on the next slide, which talks about the RevPAR growth of Oberoi brand. The Oberoi brand falls in the luxury segment, and luxury segment saw a growth of 13.2% on RevPAR, while Oberoi Hotels saw a growth of 8.2% in Q1. Our Oberoi brand growth was lower than the industry, mainly because of The Oberoi Rajgarh Palace, which got added last year, and that is still in the ramp-up and the stabilization stage. If we exclude Rajgarh, our RevPAR growth was 11.4%, and considering that we are already working on a very higher base, the growth of 11.4% was still substantial versus last year. RGI-

Vineet Kapur: Thank you. Coming on the next slide, which talks about the RevPAR growth of Oberoi brand. The Oberoi brand falls in the luxury segment, and luxury segment saw a growth of 13.2% on RevPAR, while Oberoi Hotels saw a growth of 8.2% in Q1. Our Oberoi brand growth was lower than the industry, mainly because of The Oberoi Rajgarh Palace, which got added last year, and that is still in the ramp-up and the stabilization stage. If we exclude Rajgarh, our RevPAR growth was 11.4%, and considering that we are already working on a very higher base, the growth of 11.4% was still substantial versus last year. RGI-

Speaker #1: While overall hotels saw a growth of 8.2% in Q1. This was our overall brand growth was lower than the industry, mainly because of overall Rajgird, which got added last year, and that is still in the ramp-up and the stabilization stage.

Speaker #1: If we exclude Rajgird, our red bar growth was 11.4%, and considering that we are already working on a very high base, the growth of 11.4% was still substantial, though worse than last year.

Speaker #1: So RGI—

Speaker #2: Sorry, please—please, Vaneet, go ahead.

Vikram Oberoi: Sorry. Please, Vineet, go ahead.

Speaker #1: So coming on the next—

Vineet Kapur: Coming on the next.

Speaker #2: Yeah, Vaneet, can I just add one thing for Oberoi then? Also, and it applies to a lesser extent at Trident, but Oberoi Hotels also attract a higher percentage of foreign business, and that was impacted because of the West Asia crisis.

Vikram Oberoi: Yeah. Vineet, can I just add one thing for Oberoi then also?

Vineet Kapur: Yeah.

Vikram Oberoi: It applies to a lesser extent at Trident. But Oberoi Hotels also attract a higher percentage of foreign business, and that was impacted because of the West Asia crisis. So it is Rajgarh, of course, but it is also the West Asia crisis and the decline we saw in people coming in from overseas markets. Of course, we saw buoyant domestic demand, but international rates typically, or international guest propensity to pay is higher than it is domestically.

Speaker #2: So, it's Rajgird, of course, but it's also the West Asia crisis and the decline we saw in people coming in from overseas markets. Of course, we saw buoyant domestic demand, but international rates—typically, international guest propensity to pay is higher than it is domestically.

Speaker #1: Yeah. So, the next slide covers the Trident. The Trident brand falls in the upper upscale segment. For Q1, this segment saw a growth of 9.2% for the industry, while Trident Hotels had a growth of 13.8%.

Vineet Kapur: Yeah. So the next slide reflects about the Trident. So Trident brand, which falls in upper upscale segment. For Q1, this segment saw a growth of 9.2% for the industry, while Trident Hotels had a growth of 13.8%, both on account of occupancy and ARR. Our hotels in Mumbai, both Trident, Nariman Point and Trident, Bandra Kurla, did well in terms of both occupancy and ARR, which reflected a good growth versus the industry for our brand. If you look at RGI, we were at 162 versus 155 last year. Looking at the Q1 occupancy trends for the month. Occupancy was higher than last year. Last year got impacted, especially May, got impacted by Operation Samudra Setu, where that resulted in an occupancy degrowth or almost going down to 62%.

Speaker #1: Both on account of occupancy and ARI, our hotels in Mumbai—both TNP and BKC—did well in terms of both occupancy and ARI, which reflected a good growth versus the industry for our brand.

Speaker #1: And if you look at RGI, we were at 162 versus 155 last year. So, looking at the Q1 occupancy trends for the month, occupancy was higher than last year.

Speaker #1: Last year got impacted, especially May—got impacted by Operation Sindoor, which resulted in an occupancy de-growth, almost weighing down to 62%. So, we saw good occupancy as well as ARR growth in Q1, and that was in spite of the fact that we got impacted by the Iran-US war, mainly because of foreign tourists.

Vineet Kapur: We saw a good occupancy as well as ARR growth in Q1, and that was in spite of the fact that we got impacted by the Iran-US war, mainly because of foreign tourists. But because of good buoyant domestic demand and good trends, we were able to offset that. In overall, in net, our RevPAR grew from INR 11,352 to INR 12,801. This is for all hotels, including managed. When we look at only the owned hotels, same trend. We were able to see a good occupancy growth both for May and June. Also, the ARR increase in all the months, which helped us increasing our RevPAR from INR 13,000 to almost INR 15,000 at the end of the quarter one. Looking at the RevPAR growth by city, all cities showed a healthy trend of growth. We saw the biggest increase happening in Shimla and Chandigarh.

Speaker #1: But because of good, buoyant domestic demand and good trends, we were able to offset that. And overall, in net, our red bar grew from 11,352 to 12,801, and this is for all hotels, including managed.

Speaker #1: When we look at only the owned hotels, same trend. We were able to see good occupancy growth, both for May and June, and also an ARI increase in all the months, which helped us increase our RevPAR from 13,000 to almost 15,000 at the end of quarter one.

Speaker #1: So, looking at the red bar growth by city, all cities showed a healthy trend of growth. We saw the biggest increase happening in Shimla and Chandigarh, mainly again because last year they had been badly impacted by Operation Sindoor.

Vineet Kapur: Mainly, again, because of last year, they had got badly impacted by Operation Samudra Setu. Mumbai had a good domestic demand on account of MICE activities, which resulted in a good RevPAR growth for the city. Jaipur got impacted because of lower foreign tourists and foreign bookings. While Hyderabad, we had hosted the Miss World event last year, which had resulted in a good occupancy as well as RevPAR for us last year. So the current year, that was lower in comparison to the last year in Hyderabad. Looking at the room revenue trends, we are almost seeing similar trends to last year. No fundamental change, same percentage, same trends, nothing to comment further. We move to the financials for the quarter. We continue to grow our revenue as well as our EBITDA and PAT.

Speaker #1: Mumbai had a good domestic demand on account of MICE activities, which resulted in a good red bar growth for the city. Jaipur, Jaipur got impacted because of lower foreign tourists and foreign bookings, while Hyderabad we had hosted the Miss World event last year, which had resulted in a good occupancy as well as red bar for us last year.

Speaker #1: So, the current year was lower in comparison to last year in Hyderabad. Looking at the room revenue trends, we are almost seeing similar trends to last year—no fundamental change.

Speaker #1: Same percentage, same trends, nothing to comment further. We'll move to the financials for the quarter. We continue to grow—we continue to grow our revenue, as well as our EBITDA and PAT.

Speaker #1: For the first quarter of FY27, our sales revenue was at ₹698 crores, as compared to ₹609 crores last year, which was a healthy 15% growth in revenue.

Vineet Kapur: For the Q1 FY27, our sales revenue was at INR 698 crores as compared to INR 609 crores of last year, which was a healthy 15% growth in the revenue. We also grew on EBITDA from INR 195 crores to INR 207 crores. On PAT, the growth was much more higher, but maybe last year was not comparable because we had a one-time impact of Mashobra, which came in last year, June. If you don't consider that on a year-over-year trend, our PAT continues to grow year over year. We ended up the quarter at INR 120 crores of net PAT. Same trends for standalone performance, same numbers in terms of growth, revenues as well as EBITDA and the PAT, mainly in line with our consolidated numbers. If you look at our cash flow funds position, we continue to have healthy cash balance and funds at the end of the quarter.

Vineet Kapur: For the Q1 FY 2027, our sales revenue was at INR 698 crores as compared to INR 609 crores of last year, which was a healthy 15% growth in the revenue. We also grew on EBITDA from INR 195 crores to INR 207 crores. On PAT, the growth was much more higher, but maybe last year was not comparable because we had a one-time impact of Mashobra, which came in last year, June. If you don't consider that on a year-over-year trend, our PAT continues to grow year over year. We ended up the quarter at INR 120 crores of net PAT. Same trends for standalone performance, same numbers in terms of growth, revenues as well as EBITDA and the PAT, mainly in line with our consolidated numbers. If you look at our cash flow funds position, we continue to have healthy cash balance and funds at the end of the quarter.

Speaker #1: We also grew on EBITDA from 197,195 to 207. On PAT, the growth was much higher, but maybe last year was not comparable because we had a one-time impact of Mashobra, which came in last year June.

Speaker #1: If you don't consider that, on a year-over-year trend, our PAT continues to grow year over year. And we ended up the year we ended up the quarter at 120 crores of net PAT.

Speaker #1: Same trends for standalone performance, same numbers in terms of growth, revenues as well as EBITDA. And the PAT is mainly in line with our consolidated numbers.

Speaker #1: If you look at our cash flow and funds position, we continue to have a healthy cash balance and strong funds at the end of the quarter.

Speaker #1: And it gives us good—you know, the good cash position will enable us to support our long-term growth plans in the coming next three to four years.

Vineet Kapur: It gives us good cash position will enable us to support our long-term growth plans in the coming next 3 to 4 years. Looking at the consolidated funds movement for the quarter, the cash flow from operations was INR 183 crores. Out of that, INR 148 crores got spent on CapEx and the projects which is already in line. In net, we increased our cash flow, our funds by almost INR 23 crores for the quarter. Looking at the financial statements, as I mentioned before, we ended up the quarter at INR 698 crores as compared to INR 609 crores of last year, which was a healthy growth of 15%. EBITDA grew from INR 195 crores to INR 207 crores. It was not in the same line as revenue growth because of couple of impacts we had.

Vineet Kapur: It gives us good cash position will enable us to support our long-term growth plans in the coming next three to four years. Looking at the consolidated funds movement for the quarter, the cash flow from operations was INR 183 crores. Out of that, INR 148 crores got spent on CapEx and the projects which is already in line. In net, we increased our cash flow, our funds by almost INR 23 crores for the quarter. Looking at the financial statements, as I mentioned before, we ended up the quarter at INR 698 crores as compared to INR 609 crores of last year, which was a healthy growth of 15%. EBITDA grew from INR 195 crores to INR 207 crores. It was not in the same line as revenue growth because of couple of impacts we had.

Speaker #1: Looking at the consolidated funds movement for the quarter, the cash flow from operations was 183 crores. We spent one out of that 148 crores got spent on CapEx and the projects which we already which already in line.

Speaker #1: Net in net, we increased our cash flow. Our funds by almost 23 crores for the quarter. So looking at the financial statements and as I mentioned before, we ended up the quarter at 698 crores as compared to 609 of last year.

Speaker #1: Which was a healthy growth of 15%. EBITDA grew from 195 to 207. It was not in line with revenue growth because of a couple of impacts we had.

Speaker #1: One is, we had Oberoi Large Curve got operational in Q3 of last year, which is still in the ramp-up stage and stabilization phase.

Vineet Kapur: One is we had, The Oberoi Rajgarh Palace got operational in Q3 of last year, which is still in the ramp-up stage and stabilization phase. That is impacting our EBITDA percentage for the quarter. On top of that, we also had a few expenditure which we had done. We had done a higher marketing expenditure to make sure that we have our domestic bookings take care of the occupancy in Q1. At the same time, we spent a little more on IT in Q1 to support our automation and AI drive. Also at the same time, we had some write-off because of renovations which we have taken in our Mumbai hotels. Due to those reasons, our EBITDA was not in line with the revenue. If you look at the PAT, not comparable to last year. We ended up our PAT at INR 120 crores.

Speaker #1: So that is impacting our EBITDA percentage for the quarter. On top of that, we also had a few expenditures which we had done. We had done a higher marketing expenditure to make sure that we have our domestic bookings take care of the occupancy in Q1.

Speaker #1: At the same time, we spent a little more on IT in Q1 to support our automation and AI drive. And also at the same time, we had some write-off because of renovations which we had taken in our Mumbai hotels.

Speaker #1: So, due to those reasons, our EBITDA was not in line with the revenue. And if you look at the PAT, it's not comparable to last year.

Speaker #1: We ended up our PAT at ₹120 crore. Not comparable to last year because last year we had an impact of ₹110 crore on account of Mashobra.

Vineet Kapur: Not comparable to last year because we had last year impact of INR 110 crores on account of Mashobra. Same for standalone is exactly the same, nothing different. The same impacts in terms of numbers. It is in the same line as our consolidated numbers. Looking at awards and accolades, we continue to get awards for our hotels all across India. In particular, the highlight this quarter is the number of awards which we have got for our Rajgarh Palace. Almost five awards we have received on account of new Rajgarh Palace in this quarter. Vikram, you want to mention?

Speaker #1: The same for standalone—it is exactly the same. Nothing different. The same impacts in terms of numbers. So I will not talk—I will not—it's in the same line as our consolidated numbers.

Speaker #1: Looking at what's in equilibrium, we continue to get awards for our hotels all across India. In particular, the highlight this quarter is the number of awards which we have received for our Rajgad Palace.

Speaker #1: So, we have received almost five awards on account of the new Rajgad Palace in this quarter. Vikram, do you want to mention?

Speaker #2: Yeah, I'll just add to that. I mean, Rajgad opened in November, and it has already received considerable recognition. These awards and accolades are important not only to promote the hotel in the domestic market, but equally in the international market.

Vikram Oberoi: Yeah. I will just add to that. Rajgarh opened in November and it already has received considerable recognition and these awards and accolades are important not only to promote the hotel in the domestic market, but equally in the international market. So we continue to receive very positive feedback on Rajgarh Palace.

Speaker #2: So, we continue to receive very, very positive feedback on Rajgad Palace.

Speaker #1: Okay, so can we go on to expansion plans? These are our seven properties, owned as well as through associates. There are seven hotels which are in the pipeline.

Vineet Kapur: Okay. Coming our expansion plans, these are our seven properties owned as well as through associates. The seven hotels which are in the pipeline with the expected year of opening. Most of them domestic except for one international, The Oberoi, London, the expected year of opening is 2028 for that. For Hebbal, just to highlight on top of the two hotels which we are going to have in Hebbal, both Oberoi and Trident. We also have a retail and F&B space of almost 7.63 lakhs, which will come along with our hotels in Bangalore.

Speaker #1: Expected to open within the expected year of opening. Most of them are domestic, except for one international—the Royal London—which has an expected year of opening in 2028.

Speaker #1: For Hebal, just to highlight, on top of the two hotels which you're going to have in Hebal, both Oberoi and Trident, we also have a retail and a family space of almost 7.63 lakh square feet, which will come along with our hotels in Bangalore.

Speaker #2: And the total developable area for Bangalore is over 1.3 million square feet.

Vikram Oberoi: The total developable area for Bengaluru is over 1.3 million square feet.

Speaker #1: So, looking at the pipeline summary for managed hotels, the total number of hotels which are in the pipeline for both Oberoi and Trident is 23, with a total number of keys of 1,833.

Vineet Kapur: Looking at the pipeline summary for managed hotels, total number of hotels which are in the pipeline, both Oberoi and Trident, is 23, with number of keys of 1,833. There was a reduction of one property in this pipeline, which has gone beyond 2032, has got delayed, and because of that, there is the impact of one hotel as well as 60 number of keys, which has been postponed beyond 2032. We have not covered that in this list. We were only covering the hotels which would be in operation in next five years. So these are our footprint of total 3,801 keys in India and 408 keys international. Except for last year, which we added The Oberoi Rajgarh Palace and Bandhavgarh, most of the additions will be coming in next two to three years' time. That is it. I am through with the presentation.

Speaker #1: There was a reduction of one property in this pipeline which has gone beyond 2032. Has got delayed which was and because of that, the impact of there's an impact of one hotel as well as 60 number of keys which has been postponed beyond 2032.

Speaker #1: So we are not covering that in this list because we were only covering the hotels which will be in operation in the next five years.

Speaker #1: So these are the footprints. A total of 3,801 keys in India and 408 keys internationally. Except for last year, when we added over Rajgad and Pandavgad, most of the additions will be coming in the next two to three years.

Speaker #1: And that's it. I'm through with the presentation. I'll leave the time for any questions.

Vineet Kapur: Now I leave the time for any questions.

Speaker #2: Thank you, Vikram. Thank you, Vineet. Friends, we now open the floor for the Q&A session. Anyone wishing to ask a question, please raise your hand and we'll take it up.

[Company Representative] (Motilal Oswal Asset Management Company): Thank you, Vikram. Thank you, Vineet Kapur. Friends, we now open the floor for the Q&A session. Anyone wishing to ask a question, please raise your hand and we will take it up. We will take the first question from Deepak Saha. Deepak, please unmute yourself and go ahead.

Speaker #2: We'll take the first question from Deepak Saha. Deepak, please unmute yourself and go ahead.

Speaker #3: Yeah, thanks, Naveen. Thanks for the opportunity. And thanks, Vikram and Vineet. So just a couple of questions on the existing quarter. So if I look at the Q1 numbers—14% REPA growth—but EBITDA growth, obviously, you highlighted. I'm just trying to understand, did we have a higher share of flight services business which also impacted the margin?

Deepak Saha: Yeah, thanks, Navin. Thanks for the opportunity and thanks, Vikram sir and Vineet sir. So just a couple of questions on the existing quarter. If I see Q1 numbers, 14% RevPAR growth. EBITDA growth, obviously you highlighted, but just trying to understand, did we have higher share of flight services business which also impacted the margin? A follow-up on that, how should we look that revenue and EBITDA gap from a full year point of view? You mentioned renovation expenses, then ramp-up of Rajgarh, right? Should we model out these things to persist in the upcoming quarters or the expenses are more likely to moderate in the coming quarters from a full year point of view? These are the first two questions. Thank you.

Dipak Saha: Yeah, thanks. Thanks for the opportunity and thanks, Vikram sir and Vineet sir. So just a couple of questions on the existing quarter. If I see Q1 numbers, 14% RevPAR growth. EBITDA growth, obviously you highlighted, but just trying to understand, did we have higher share of flight services business which also impacted the margin? A follow-up on that, how should we look that revenue and EBITDA gap from a full year point of view? You mentioned renovation expenses, then ramp-up of Rajgarh, right? Should we model out these things to persist in the upcoming quarters or the expenses are more likely to moderate in the coming quarters from a full year point of view? These are the first two questions. Thank you.

Speaker #3: And a follow-up on that, how should we look at that revenue and EBITDA gap from a full-year point of view? Because you mentioned renovation expenses, and then the ramp-up of Rajgad, right?

Speaker #3: Should we kind of model out these things to persist in the upcoming quarters or the expenses are more likely to moderate in the upcoming quarters from a full year point of view?

Speaker #3: These are the first two questions. Thank you.

Speaker #1: Good afternoon, Deepak, or good morning, Deepak. I don't know if it's morning or afternoon. But on renovations, I'll first address your point on renovations. The India business has seasonal occupancies for between April and October.

Vikram Oberoi: Good afternoon, Deepak, or good morning, Deepak. I do not know if it is morning or afternoon. On renovations, I will first address your point on renovations. India business is seasonal. Occupancies fall between April and October and then rise in the winter months. That is more prevalent in leisure locations, less prevalent in city locations. Our endeavor always is to minimize any revenue loss, and therefore renovations are done during these months. In Mumbai, both at The Oberoi, Mumbai and Trident, Nariman Point in Q1, the renovations of rooms has taken place, and that will be complete for the month starting October. So come winter, there will be no impact. You also saw strong growth in Mumbai. The Trident, Nariman Point is a large hotel of 585 keys. So really the revenue loss at that hotel is negligible, if at all.

Speaker #1: And then rise in the winter months. That's more prevalent in leisure locations, less prevalent in city locations. But our endeavor always is to minimize any revenue loss, and therefore renovations are done during these months.

Speaker #1: In Bombay, both at the overall Mumbai and Nariman Point properties in Q1, the renovations of rooms have taken place. That will be complete for the months starting October.

Speaker #1: So, come winter there will be no impact. You also saw strong growth in Bombay. The Trident Nariman Point is a large hotel of 585 keys.

Speaker #1: So really, the revenue loss at that hotel is negligible, if at all. And similarly at the overall Mumbai, and similarly with other renovations that we do. The objective is always to ensure that there's really no revenue loss.

Vikram Oberoi: Similarly at The Oberoi, Mumbai and similarly with other renovations that we do, the objective is always to ensure that there is no revenue loss, and we block out and take out areas accordingly. On Rajgarh, again, Rajgarh is an Oberoi leisure hotel in Khajuraho and the summer months are very slow months for two reasons. One is generally the hot climate in Madhya Pradesh, which attracts less guests, both domestic and international, and also the fact that it is a new hotel. We expect the winter months starting October to do considerably better. I think those were the two things you had asked. You also asked about the flight kitchen business. The flight kitchen business absolutely has shown strong growth over last year as well.

Speaker #1: And we block out and take out areas accordingly. On Rajgad, again, Rajgad is an overall leisure hotel. In Khajuraho, the first or the summer months are very slow months for two reasons.

Speaker #1: One is generally the hot climate in Madhya Pradesh, which attracts fewer guests, both domestic and international. And also the fact that it's a new hotel.

Speaker #1: We expect the winter months, starting October, to be considerably better. I think those were the two things you had asked. Oh, you also asked about the flight kitchen business.

Speaker #1: The flight kitchen business has absolutely shown strong growth over last year as well. Again, this was driven by good performance on the domestic airlines that we cater to.

Vikram Oberoi: Again, driven by good performance on the domestic airlines that we cater to and also to the international airlines that operate directly from Europe and North America into India.

Speaker #1: And also to the international airlines that operate directly from Europe and North America into India.

Speaker #3: Got it, that's helpful. My second question: When I look at the quarterly numbers, 14% RevPAR growth, but May and June together indicate about 22% RevPAR growth, right?

Deepak Saha: Got it. That's helpful. My second question, when I look quarterly numbers, 14% RevPAR growth, but May and June indicates together 22% kind of a RevPAR growth. Just trying to understand, do we see this trend persist both in the month of June and May, the kind of trend on the RevPAR side we have seen? How are we looking for the remainder of the year? Is this trend kind of persisting or is there any one-off on those particular quarters? Because 22% month growth rate that we have seen, very strong.

Dipak Saha: Got it. That's helpful. My second question, when I look quarterly numbers, 14% RevPAR growth, but May and June indicates together 22% kind of a RevPAR growth. Just trying to understand, do we see this trend persist both in the month of June and May, the kind of trend on the RevPAR side we have seen? How are we looking for the remainder of the year? Is this trend kind of persisting or is there any one-off on those particular quarters? Because 22% month growth rate that we have seen, very strong.

Speaker #3: So just trying to understand, do we see this trend persist both in the months of June and May, the kind of trend on the repa site we have seen?

Speaker #3: How are we looking for the remainder of the year? Is this trend persisting, or was there any one-off in those particular quarters?

Speaker #3: Because a 22% month-on-month growth rate that we have seen is very strong.

Speaker #1: Yeah. We typically, Deepak, don't make forward statements. And it's impossible to really give you a fair picture, particularly through Q4, because we really look at business on books today.

Vikram Oberoi: Yeah. We typically, Deepak Saha, don't make forward statements. It's impossible to really give you a fair picture of particularly Q4 because we really look at business on books today vis-à-vis the same time last year. What I can say is for the next quarter, which is Q2, business on books vis-à-vis the same time last year is very positive.

Speaker #1: These are either same time last year. What I can say is, for the next quarter, which is Q2, business on books vis-à-vis the same time last year is very positive.

Speaker #3: Just one follow-up on that, Vikram sir. If we see last year, I mean, we had, say, break summit next quarter, right? And this quarter, we have break summit.

Deepak Saha: Just one follow-up on that, Vikram sir. If we see last year, we have the BRICS Summit next quarter. This quarter we have BRICS Summit. If I see your Q4 number, despite 6% RevPAR growth, February month you delivered almost 22% RevPAR growth and we had AI Summit in the same quarter from Delhi. So can we expect similar kind of advantage or tailwind for this quarter as well? Because I think Delhi is almost 10% of the total owned keys. So I'm not looking for a guidance, but directionally, how should we look into that? Yeah.

Dipak Saha: Just one follow-up on that, Vikram sir. If we see last year, we have the BRICS Summit next quarter. This quarter we have BRICS Summit. If I see your Q4 number, despite 6% RevPAR growth, February month you delivered almost 22% RevPAR growth and we had AI Summit in the same quarter from Delhi. So can we expect similar kind of advantage or tailwind for this quarter as well? Because I think Delhi is almost 10% of the total owned keys. So I'm not looking for a guidance, but directionally, how should we look into that? Yeah.

Speaker #3: And if I see your Q4 number, despite 6% REPA growth, in February you delivered almost 22% REPA growth. And we had the AI summit in the same quarter, right?

Speaker #3: From Delhi. So can we expect a similar kind of advantage or tailwind for this quarter as well? Because I think Delhi is almost 10% of the total owned keys.

Speaker #3: So, just to clarify, I'm not looking for guidance, but directionally, how should we look into that? Yeah.

Speaker #1: I think when there are large events and there are two events—there's also an event in Bangalore, which is the airshow—and that has a ripple effect across other cities as well.

Vikram Oberoi: I think when they're large events, and they're two events. There's also an event in Bengaluru, which is the air show. That has a ripple effect across other cities as well, because people coming in from overseas may not just limit their travel to Bengaluru. They'll travel to Delhi, possibly Mumbai as well, one or both those cities. So there is a ripple effect across. So anytime there's a big event, it has a beneficial impact for the city, as well as for other cities as well.

Speaker #1: Because people coming in from overseas may not just limit their travel to Bangalore. They'll travel to Delhi, possibly Bombay as well—one or both of those cities.

Speaker #1: So there's a ripple effect across. So anytime there's a big event, it has a beneficial impact for the city as well as for other cities as well.

Speaker #3: Got it, got it. One last question before I fall back in the queue. Kolkata overall side, if I...

Deepak Saha: Got it. One last question before I follow up on the queue.

Dipak Saha: Got it. One last question before I follow up on the queue.

Vineet Kapur: Vikas.

Vineet Kapur: Dipak.

Vineet Kapur: On The Oberoi Grand, Kolkata side, if I-

Dipak Saha: On The Oberoi Grand, Kolkata side, if I—

Speaker #1: Okay. Go ahead. Go ahead.

Speaker #3: Yeah. So, on the Kolkata overall side, now the revised timeline, right? If you can just help us understand, what is the nature of this delay and how firm the revised timeline is.

Vineet Kapur: Okay, go ahead.

Deepak Saha: Yeah. On The Oberoi Grand, Kolkata side, now the revised timeline, right? If you can just help us understand what is the nature of this delay and how firm the revised timeline is, because 2029 seems to be a little far and how firm these revised timeline is, and what exactly led to this kind of delay versus our earlier expectation of, say, 2028 when we are expecting all the phases to get complete and open that particular hotel.

Dipak Saha: Yeah. On The Oberoi Grand, Kolkata side, now the revised timeline, right? If you can just help us understand what is the nature of this delay and how firm the revised timeline is, because 2029 seems to be a little far and how firm these revised timeline is, and what exactly led to this kind of delay versus our earlier expectation of, say, 2028 when we are expecting all the phases to get complete and open that particular hotel.

Speaker #3: Because 2029 seems to be a little far. And how firm is this revised timeline, and what exactly led to this kind of delay versus our earlier expectation of, say, 2028, when we were expecting all the phases to be completed and that particular hotel to open?

Speaker #1: Yeah. So Kolkata is an unusual hotel because it's a very old, historic building. And anytime you're doing a restoration of an old building, there are unknown factors.

Vikram Oberoi: Yeah. Calcutta is an unusual hotel because it is a very old historic building. Anytime you are doing a restoration of an old building, there are unknown factors. What we need to ensure is that the building is completely compliant to safety regulations of today. When we opened the building up to really see the state of the building, considerable work was required to ensure that it complies with today's safety regulations. This is not just fire safety, but this is also structural safety. You can appreciate how old the hotel is, and the need to ensure that that is done. That was one factor, and a large contribution to the change in timeline.

Speaker #1: Now, what we need to ensure is that the building is completely compliant with today's safety regulations. And when we opened the building up to really see its condition, considerable work was required to ensure that it complies with current safety regulations.

Speaker #1: This isn't just fire safety, but this is also structural safety. And you can appreciate how old the hotel is, and the need to ensure that that's done.

Speaker #1: So that was one factor, and a large contribution to the change in timeline. Also, I don't know if you're aware, but just over two months ago, there was an incident that took place in Kolkata where 15 people were tragically killed.

Vikram Oberoi: Also, I do not know if you are aware, but there was about two months ago, just over two months ago, an incident that took place in Calcutta where 15 people tragically were killed and all construction in Calcutta was halted. When an event like that happens and construction is halted, it may seem, or you would say it is only two months, but there is demobilization, mobilization again, ramp up again, and that has also caused a delay. This stoppage in Calcutta is still there today. The authorities are assessing individual building by building and then giving approvals to start work if they find that there are no safety-related issues. Obviously, at our site, there are no safety-related issues. We hope to be able to start with the work again. These are the two main factors.

Speaker #1: And all construction in Kolkata was halted. Now, when an event like that happens and construction is halted, it may seem, or you may say, it's only two months, but there is demobilization, mobilization again, and ramp-up again.

Speaker #1: And that's also caused a delay. This stoppage in Kolkata is still there today, and the authorities are assessing individually, building by building, and then giving approvals to start work if they find that there are no safety-related issues.

Speaker #1: Obviously, at our site, there are no safety-related issues. So, we hope to be able to start with the work again. So these are the two main factors.

Speaker #1: The first one is obviously the most significant, but delays caused by factors beyond our control have also contributed to the delay.

Vikram Oberoi: The first one is obviously the most significant one, but delays because of things that are beyond our control also have led to a delay. What I can assure you is that Calcutta is going to be a very special hotel and will set a new benchmark for historic hotels, not only in West Bengal but also in the nation. It is something that we as a country and as an Indian company are very proud of.

Speaker #1: But what I can assure you is that Kolkata is going to be a very special hotel, and we'll set a new benchmark for historic hotels not only in West Bengal, but also in the nation.

Speaker #1: And it's something that we, as a country and as an Indian company, are very proud of.

Speaker #3: Thank you. That's really helpful. Thank you, and all the best.

Deepak Saha: Thank you. That is really helpful. Thank you. All the best.

Dipak Saha: Thank you. That is really helpful. Thank you. All the best.

Speaker #1: Thank you so much. Thanks, Deepak.

Speaker #2: Thank you, Vikram. We'll take the next question from Veba Mule. Veba, please unmute yourself and go ahead.

Vikram Oberoi: Thank you so much. Thanks, Deepak.

Vikram Oberoi: Thank you so much. Thanks, Dipak.

[Company Representative] (Motilal Oswal Asset Management Company): Thank you, Vikas. We'll take the next question from Vaibhav Mulye. Vaibhav, please unmute yourself and go ahead.

[Company Representative] (Motilal Oswal Asset Management Company): Thank you, Dipak. We'll take the next question from Vaibhav Mulye. Vaibhav, please unmute yourself and go ahead.

Speaker #4: Hi. Thanks for the opportunity. Hi, Vikram. Hi, Vineeth. My first question is on the flight catering business. It is a follow-up to a previous participant's question.

Vaibhav Mulye: Hi. Thanks for the opportunity. Hi, Vikram. Hi, Vineet. My first question was on flight catering business. It was a follow-up to previous participant's question. How much was the impact of the change in revenue mix in favor of flight catering business on our operating margins in this quarter? Will it also generally provide the revenue number for the flight catering business, if you can help with that as well?

[Analyst 1]: Hi. Thanks for the opportunity. Hi, Vikram. Hi, Vineet. My first question was on flight catering business. It was a follow-up to previous participant's question. How much was the impact of the change in revenue mix in favor of flight catering business on our operating margins in this quarter? Will it also generally provide the revenue number for the flight catering business, if you can help with that as well?

Speaker #4: How much was the impact of the change in revenue mix in favor of the flight catering business on our operating margins in this quarter? And we also generally provide the revenue number for the flight catering business, if you can help with that as well.

Speaker #1: Yeah, I don't have that number with me. We're not sitting together.

Vikram Oberoi: Yeah. Vaibhav, I don't have that number with me. We're not sitting together.

Speaker #4: Yes. So, for the OFS business, we had very healthy growth in the quarter. For Q1, the OFS business and OFS segment recorded revenue of ₹154 crore.

Vineet Kapur: Yeah. For OFS business, we had a very healthy growth in the quarter. For Q1, OFS business and OFS segment recorded revenue of INR 154 crores.

Speaker #4: And how was this driven? Was it mainly due to new additions in terms of our clients, or from higher volumes from the existing clients? This is also because of new flights which were added in the operations, and also because of higher business which we got from international airlines who were mainly running direct flights out of India.

Vaibhav Mulye: Great. How was this driven by? Mainly due to new additions in terms of our clients or from higher volumes from the existing clients?

[Analyst 1]: Great. How was this driven by? Mainly due to new additions in terms of our clients or from higher volumes from the existing clients?

Vineet Kapur: This is also because of new flights which were added in the operations and also because of higher business, which we got from international airlines who are mainly running direct flights out of India.

Speaker #4: Okay. And regarding the mix change impact on the margins? So, OFS business was profitable. I would not say it impacted much on the margins.

Vaibhav Mulye: Okay. Regarding the mix change impact on the margins?

[Analyst 1]: Okay. Regarding the mix change impact on the margins?

Vineet Kapur: OFS business was profitable. I would not say it impacted much on the margins.

Speaker #4: All right. Second question on the growth in our brands: Trident has actually seen a very strong growth of 13.8% year-over-year compared to relatively lower growth overall.

Vaibhav Mulye: All right. Second question on the growth in our brands. Trident has actually seen a very strong growth of 13.8% RevPAR compared to relatively lower growth in Oberoi. So what was the driver for higher growth in Trident for this quarter?

[Analyst 1]: All right. Second question on the growth in our brands. Trident has actually seen a very strong growth of 13.8% RevPAR compared to relatively lower growth in Oberoi. So what was the driver for higher growth in Trident for this quarter?

Speaker #4: So, what was the driver for higher growth in travel for this quarter?

Speaker #1: So, first of all, hello, Veba. I think I mentioned that in the beginning, but I'll say it again. One is that overall does receive a larger percentage of foreign travel, and foreign travel was impacted.

Vineet Kapur: First of all, hello, Vaibhav.

Vikram Oberoi: I think I mentioned that in the beginning, but I will say it again. One is that Oberoi does receive a larger percentage of foreign travel, and foreign travel was impacted. That is one reason. We also have seen very strong demand in Mumbai, and this actually even includes The Oberoi, Mumbai, in addition to the two Tridents. I know you are referring to the Trident numbers. The two Trident hotels in Mumbai have a large key count. I mentioned Trident, Nariman Point has 585 keys, and Trident, Bandra Kurla has 430 keys. These are large hotels that have done very well.

Speaker #1: That's one reason. We have also seen very strong demand in Bombay, and this actually even includes the overall Bombay in addition to the two Tridents.

Speaker #1: So I know you're referring to the Trident numbers. And the two Trident hotels in Bombay have a large key count. I mentioned Trident Nariman Point has 585 keys.

Speaker #1: And overall, the Trident Bandra has 430 keys. So these are large, large hotels that have done very well.

Speaker #4: Understood, sir. Just lastly, if I can add on the overall Rajgad piece, we have seen relatively subdued performance in the summer markets. Can you provide some color in terms of how much time it will take for this hotel to stabilize going forward?

Vaibhav Mulye: Understood, sir. Just lastly, if I can add on The Oberoi Rajgarh piece. We have seen relatively subdued performance in the summer market. Can you provide some color in terms of how much time will it take for this hotel to stabilize going forward, and what kind of growth can we expect in the winter season? That's it.

[Analyst 1]: Understood, sir. Just lastly, if I can add on The Oberoi Rajgarh piece. We have seen relatively subdued performance in the summer market. Can you provide some color in terms of how much time will it take for this hotel to stabilize going forward, and what kind of growth can we expect in the winter season? That's it.

Speaker #4: And what kind of growth can we expect in the winter season? That's it.

Speaker #1: It typically takes hotels three years to stabilize, and leisure hotels typically take a longer time. If you're in a city hotel, if the market is very buoyant, it could take well under three years.

Vikram Oberoi: It typically takes hotels 3 years to stabilize. Leisure hotels typically take a longer time. If you are in a city hotel, if the market is very buoyant, it could take well under 3 years. We saw that with The Oberoi, New Delhi, that ramped up very quickly. It was an existing hotel. My guess is The Oberoi Grand, Kolkata will be similar because it is an existing hotel in a prime city location. Leisure hotels depend on our travel partners also promoting the hotel and the destination, and that takes a longer lead time. To answer your question precisely, I would say that it will take 3 years for the hotel to stabilize.

Vikram Oberoi: It typically takes hotels 3 years to stabilize. Leisure hotels typically take a longer time. If you are in a city hotel, if the market is very buoyant, it could take well under three years. We saw that with The Oberoi, New Delhi, that ramped up very quickly. It was an existing hotel. My guess is The Oberoi Grand, Kolkata will be similar because it is an existing hotel in a prime city location. Leisure hotels depend on our travel partners also promoting the hotel and the destination, and that takes a longer lead time. To answer your question precisely, I would say that it will take three years for the hotel to stabilize.

Speaker #1: We saw that with the overall New Delhi—that ramped up very quickly. It was an existing hotel. My guess is the overall Grand will be similar because it's an existing hotel.

Speaker #1: In a prime city location, leisure hotels depend on our travel partners also promoting the hotel and the destination. And that takes a longer lead time.

Speaker #1: So, I would like to answer your question precisely. I would say that it will take three years for the hotel to stabilize.

Speaker #4: Understood. Perfect. Thank you, and all the best.

Speaker #1: Thank you very much.

Vaibhav Mulye: Understood. Perfect. Thank you, and all the best.

[Analyst 1]: Understood. Perfect. Thank you, and all the best.

Vikram Oberoi: Thank you very much.

Speaker #2: Thank you. Veba, we'll take the next question from Amit Agarwal. Amit, please unmute yourself and go ahead.

[Company Representative] (Motilal Oswal Asset Management Company): Thank you, Bhuva. We take the next question from Amit Agarwal. Amit, please unmute yourself and go ahead.

[Company Representative] (Motilal Oswal Asset Management Company): Thank you, Vaibhav. We take the next question from Amit Agarwal. Amit, please unmute yourself and go ahead.

Speaker #5: Good morning, everyone. How are you?

Speaker #1: Hello, Amit. Very well. How are you, Amit?

Amit Agarwal: Good morning, everyone. How are you?

Amit Agrawal: Good morning, everyone. How are you?

Speaker #5: Good, thank you. My question is:

Vikram Oberoi: Hello, Amit. Very well. How are you, Amit?

Speaker #1: Amit, you need to speak louder.

Amit Agarwal: Good, thank you. My question was.

Amit Agrawal: Good, thank you. My question was.

Speaker #5: My question was regarding white flour. Have we bid for that? And can you share the number? What was our bid?

[Company Representative] (Motilal Oswal Asset Management Company): Amit, you need to speak louder.

Amit Agarwal: My question was regarding Wildflower. Have we bid for that? Can you throw the number, what was our bid?

Amit Agrawal: My question was regarding Wildflower. Have we bid for that? Can you throw the number, what was our bid?

Speaker #4: Amit, I'll try and answer that question.

Vikram Oberoi: Amit, I will try and answer that question. The date for the qualifying bid has been changed from 26 August to 10 September. That is really all I can tell you at this point.

Speaker #1: The date for the qualifying bid has been changed from the 26th of August to the 10th of September. And that's really all I can tell you at this point.

Speaker #5: So, that day the bid was—the winner will be announced, or that's the date?

Amit Agarwal: So that day, the winner will be announced, or that is the date?

Amit Agrawal: So that day, the winner will be announced, or that is the date?

Speaker #1: No, this is... No, there are two parts to it. One is a qualifying bid, and then there's a second part, which is a live auction as well.

Vikram Oberoi: No. There are two parts to it. One is a qualifying bid, then there is a second part, which is a live auction as well. Those are the two parts.

Speaker #1: So, those are the two parts.

Speaker #5: Okay. And my second question is regarding the Grand Hotel. How much of the work is complete there? Because it's been under construction for almost two years now.

Amit Agarwal: Okay. My second question is regarding The Oberoi Grand, Kolkata.

Amit Agrawal: Okay. My second question is regarding The Oberoi Grand, Kolkata.

Vikram Oberoi: Yes.

Amit Agarwal: How much of the work is complete there? Because it has been under construction for two years now, almost.

Amit Agrawal: How much of the work is complete there? Because it has been under construction for two years now, almost.

Speaker #1: Yeah, I couldn't give you the answer to that question, and I'll tell you why that's a very difficult question to answer. I think the hotel is scheduled to open in September 2028.

Vikram Oberoi: Yeah. I could not give you the answer to that question, and I will tell you why that is a very difficult question to answer. I think the hotel is scheduled to open in September 2028, so that will give you an indication of where we are. But civil work, structural work is much quicker than interior finishes. Interior finishes take considerable time. So it is very hard for me to say x percent is complete and y percent is left. But we are hopeful of the hotel opening in September of 2028.

Speaker #1: So, that will give you an indication of where we are. But civil work and structural work are much quicker than interior finishes. Interior finishes take considerable time.

Speaker #1: So it's very hard for me to say X percent is complete and Y percent is left. But we're hopeful of the hotel opening in September 2028.

Speaker #5: And can you provide the number of rooms we'll be having in that hotel?

Amit Agarwal: Can you throw the number of rooms we will be having in that hotel?

Amit Agrawal: Can you throw the number of rooms we will be having in that hotel?

Speaker #1: Yes, 197 keys.

Speaker #5: Is it a fixed number we had earlier also, or have we increased the number?

Vikram Oberoi: Yes, 197 keys.

Amit Agarwal: Is that a previous number we had earlier also, or have we increased the number?

Amit Agrawal: Is that a previous number we had earlier also, or have we increased the number?

Speaker #1: I think it'll be about the same number. I don't think there's any significant— it’ll be— I think the earlier one may have been, and I don't remember what it was, 200 keys.

Vikram Oberoi: I think it will be about the same number. I think the earlier one may have been, and I do not remember what it was, 200 keys. So it is really a two or three key difference. The number has not changed in any significant way.

Speaker #1: So, it's really two or three key differences. The number has not changed in any significant way.

Speaker #5: Okay, okay. Thank you. That's all from my side. Best of luck for the future. Thank you.

Amit Agarwal: Okay. Thank you. That's from my side. Best of luck for the future. Thank you.

Amit Agrawal: Okay. Thank you. That's from my side. Best of luck for the future. Thank you.

Speaker #1: Thanks, Amit. Thank you so much.

Speaker #2: Thank you. Thank you, Amit. We'll take the next question from Madhav Agarwal. Madhav, please unmute yourself and go ahead.

Vikram Oberoi: Thanks, Amit. Thank you so much.

[Company Representative] (Motilal Oswal Asset Management Company): Thank you, Amit. We'll take the next question from Madhav Agarwal. Madhav, please unmute yourself and go ahead.

Speaker #6: Yes. Hi. Thanks for the watching feed. So I wanted to confirm the opening dates. So for the for your own Goa hotel in the presentation you have mentioned expected year of opening to be 2028, but in the annual report, if I see, you have mentioned the operations will commence in late 2029.

Madhav Agarwal: Yes. Hi. Thanks for the opportunity. I wanted to confirm the opening date. For your own Goa hotel, in the presentation you have mentioned expected year of opening to be 2028. But in the annual report, if I see, you have mentioned the operations will commence in late 2029. Similarly, for Tirupati and Hebbal, if you can confirm the expected year openings.

[Analyst 2]: Yes. Hi. Thanks for the opportunity. I wanted to confirm the opening date. For your own Goa hotel, in the presentation you have mentioned expected year of opening to be 2028. But in the annual report, if I see, you have mentioned the operations will commence in late 2029. Similarly, for Tirupati and Hebbal, if you can confirm the expected year openings.

Speaker #6: Similarly, for Tirupati and Hebbal, if you can confirm the expected year of openings.

Speaker #1: I would say, go by the annual report. That would be a fair report to go by, as far as opening dates are concerned.

Vikram Oberoi: I would say the annual report would be a fair report to go by as far as opening dates are concerned.

Speaker #6: Okay. Okay. And just to like just to confirm, so on the profitability front, so mainly the impact of like on the EBITDA margins what you mentioned.

Madhav Agarwal: Okay. Just to confirm, on the profitability front, mainly the impact on the EBITDA margins what you mentioned. Fundamentally margins for the existing hotels, they should go up, right? Because as you have taken rate hikes, the impact is mainly on account of the mix change and the marketing expenses and IT expenses, right?

[Analyst 2]: Okay. Just to confirm, on the profitability front, mainly the impact on the EBITDA margins what you mentioned. Fundamentally margins for the existing hotels, they should go up, right? Because as you have taken rate hikes, the impact is mainly on account of the mix change and the marketing expenses and IT expenses, right?

Speaker #6: So fundamentally there is like fundamentally margins should for the existing hotels they should go up, right? Because as you as you have taken rate hikes and all, the impact is mainly on account of the mixed change.

Speaker #6: And the marketing expenses and IT expenses as well, right?

Speaker #1: And also renovation as well. Renovations will continue, of course, over in Q1, but renovations are also taking place in Q2. In Q3 and Q4, there will really be no significant renovation.

Vikram Oberoi: Also renovation.

Madhav Agarwal: Right

[Analyst 2]: Right.

Vikram Oberoi: As well. Renovations will continue. Of course, we are over in Q1, but renovation is also taking place in Q2. On Q3 and Q4, there will be really no significant renovation.

Speaker #6: Got it. Thanks.

Speaker #1: Thanks, Madhav.

Speaker #2: Thank you, Madhav. We'll take the next question from Raghav Malik. Raghav, please unmute yourself and go ahead.

Madhav Agarwal: Right. Thanks.

[Analyst 2]: Right. Thanks.

Vikram Oberoi: Thanks.

Vineet Kapur: Thank you, Madhav. We'll take the next question from Raghav Malik. Raghav, please unmute yourself and go ahead.

Speaker #3: Yeah. Hi. Am I audible?

Speaker #2: Yes, absolutely.

Raghav Malik: Yeah. Hi. Am I audible?

Speaker #3: Okay, thank you. Thank you for the opportunity. I just wanted to ask specifically about the Mumbai market—your portfolio has grown pretty phenomenally compared to what the peer set has reported.

Vineet Kapur: Yes. Hello.

Vikram Oberoi: Loud and clear.

Vineet Kapur: Yeah, absolutely.

Raghav Malik: Okay. Thank you. Thank you for the opportunity. Just wanted to ask, specifically on the Mumbai market, your portfolio has grown pretty phenomenally compared to what the peer set has reported. You mentioned Trident had substantial growth. There are also renovations as a result of which you may have got better pricing. Is this something that we can sustainably see? Anything you can comment about the underlying Mumbai market and how that is tracking?

Speaker #3: So, you mentioned Trident had substantial growth. There are also renovations, as a result of which you may have gotten better pricing. But is this something that we can sustainably see, and is there anything you can comment about the underlying Mumbai market and how that's tracking?

Speaker #1: So really, the Bombay market has been strong. And I'm sure that's reflected in—if you have access to STR data for the city, it'll be reflective of that.

Vikram Oberoi: Well, the Bombay market has been strong. I am sure that is reflected in, if you have access to STR data for the city, it will be reflective of that. I think we have done better than market, and our endeavor always is to do better than market.

Speaker #1: I think we've done better than the market, and our endeavor always is to do better than the market.

Speaker #3: Sure. And this number, like this 20% outperformance, could kind of track similarly going ahead, given recent renovations and pricing increases and better occupancy for Trident.

Raghav Malik: Sure. This number, this out-performance could kind of track similarly going ahead, given recent renovations and pricing increase and better occupancy for Trident?

Speaker #1: All I can tell you is that we will do our best to drive RevPAR, which is a function of occupancy and average room rates.

Vikram Oberoi: All I can tell you is that we will do our best to drive RevPAR, which is a function of occupancy and our average room rates. I really don't want to comment on whether it's going to be 20% going forward. Our endeavor is always to do the best we can.

Speaker #1: I really don't want to comment on whether it's going to be 20% going forward, but our endeavor is always to do the best we can.

Speaker #3: Sure, sure, I understand. Thank you. And the next question is on foreign tourists. So, obviously, we've seen some recovery there. Could you just give us the mix, maybe, or some indication of where foreign tourists are now trending, and the recent months post the quarter, or—yeah.

Raghav Malik: Sure. I understand. Thank you. The next question is on foreign tourists. Obviously there'd be some recovery there. Could you just give us the mix maybe, or some indication of where foreign tourists are now trending at in the recent months post the quarter?

Speaker #1: So in Q1, there was a fall in international guests coming to our hotels, and we saw that in any hotel that has dependency on foreign visitors staying at the hotel.

Vikram Oberoi: In Q1, there was a fall in international guests coming to our hotels. We saw that in any hotel that has a dependency on foreign visitors staying at the hotel. In Q2, that will. Again, I'll mention it. Q2, we would expect that trend to continue just given what's happening in West Asia. Let's hope that things stabilize for Q3 and Q4. If that were to happen, which I hope it happens, foreign business should be strong.

Speaker #1: In Q2, that will—and again, I shouldn't be—I'll mention it. In Q2, we would expect that trend to continue, just given what's happening.

Speaker #1: In West Asia, so let's hope that things stabilize for Q3 and Q4. And if that were to happen—which I hope it does—foreign business should be strong.

Speaker #3: Sure. That's very helpful. Those were my questions. Thank you, and good luck.

Speaker #1: Thank you so much. Thanks. Thanks, Raghav.

Raghav Malik: Sure. That is very helpful. Those were my questions. Thank you and good luck.

Speaker #2: Thanks, Raghav. Friends, anyone with a question, request you to please raise your hand and we'll take it up. We'll take the next question from Rajiv Bhati.

Vikram Oberoi: Thank you so much. Thanks, Raghav.

Vineet Kapur: Thanks, Raghav. Friends, anyone with a question, request you to please raise your hand and we will take it up. We take the next question from Rajiv Bhatti. Rajiv, please unmute yourself and go ahead.

[Company Representative] (Motilal Oswal Asset Management Company): Thanks, Raghav. Friends, anyone with a question, request you to please raise your hand and we will take it up. We take the next question from Rajiv Bharati. Rajiv, please unmute yourself and go ahead.

Speaker #2: Rajiv, please unmute yourself and go ahead.

Speaker #4: Hello. Thanks for the opportunity. So, on this renovation bit, what are the policies in terms of capitalizing and passing it through the P&L?

Rajiv Bhatti: Hello. Good morning, sir. Thanks for the opportunity. On this renovation bit, what is the policy in terms of capitalizing and passing it through the P&L?

Rajiv Bharati: Hello. Good morning, sir. Thanks for the opportunity. On this renovation bit, what is the policy in terms of capitalizing and passing it through the P&L?

Speaker #1: So, the entire cost of the renovation is capitalized. Vineet, do you want to answer that? If there are any items that have a book value that are not going to be used, those have to be written off.

Vikram Oberoi: The entire cost of the renovation is capitalized. Vineet, you want to answer that? If there are any items that have a book value that are not going to be used, that has to be written off. But Vineet, over to you if you want to

Speaker #1: But Vineet, over to you if you want to.

Speaker #4: So, we normally follow the rules as per the Companies Act for depreciating all of our assets—the buildings, furniture, fixtures, and all the others—separately.

Vineet Kapur: We normally follow the rules as per the Companies Act for depreciating all our assets, the buildings, furniture, fixtures, and all the others separately. If the renovation happens and there is some life in the asset which has still not been used, that is written off and charged to the P&L.

Speaker #4: If the renovation happens and there is some life in the asset which is still not being used, that is written off and charged to the P&L.

Speaker #1: Sure.

Speaker #4: So in the current quarter's P&L, actually, there's no renovation-related capex—I mean, partly which is running through the opex line item, right? Because if I, let's say, strip out past profitability levels of your OFS business from your given EBITDA number, and also something on the fee business as well—if you can call out what is the fee you generated this time—then the base business EBITDA seems to be down some 400 basis points.

Rajiv Bhatti: Sure. In current this quarter's P&L, actually, there's no renovation-related CapEx. I mean, partly this is running through the OpEx line item, right? Because if I, let's say, strip out the past profitability levels of your OFS business from your given EBITDA number, and also something on the fee business also, if you can call out what is the fee even at this time. In the base business, EBITDA seems to be down some 400 basis points in terms of the, let's say, the standalone EBITDA just for these two line items. Just want to run that. Mm-hmm.

Rajiv Bharati: Sure. In current this quarter's P&L, actually, there's no renovation-related CapEx. I mean, partly this is running through the OpEx line item, right? Because if I, let's say, strip out the past profitability levels of your OFS business from your given EBITDA number, and also something on the fee business also, if you can call out what is the fee even at this time. In the base business, EBITDA seems to be down some 400 basis points in terms of the, let's say, the standalone EBITDA just for these two line items. Just want to run that. Mm-hmm.

Speaker #4: In terms of the, let's say, the standalone EBITDA adjusted for these two line items—so just want to—so if I bifurcate that amount, if I look at what's the last day EBITDA on a like-to-like basis without Raghav itself, if you just compare, as against our 29% EBITDA for the current quarter, if I look at it on a like-to-like basis and take on the Raghav, that brings our EBITDA to almost 30.6%.

Vineet Kapur: If I just bifurcate that amount, if I look at what's the last year EBITDA on a like-to-like basis without Rajgarh itself. If you just compare, as against our 29% EBITDA for the current quarter. If I look at like-to-like basis and take out the Rajgarh, that brings our EBITDA to almost 30.6. If I compare that with what's last year, we have an impact of roughly INR 9 crores for the quarter. We had mentioned, we got impacted by a few other factors in the quarter. One is the power and fuel went up because of the Hormuz crisis, the Iran-US war. That had impact on our costs because of the increase in cost at the hotels.

Vineet Kapur: If I just bifurcate that amount, if I look at what's the last year EBITDA on a like-to-like basis without Rajgarh itself. If you just compare, as against our 29% EBITDA for the current quarter. If I look at like-to-like basis and take out the Rajgarh, that brings our EBITDA to almost 30.6%. If I compare that with what's last year, we have an impact of roughly INR 9 crores for the quarter. We had mentioned, we got impacted by a few other factors in the quarter. One is the power and fuel went up because of the Hormuz crisis, the Iran-US war. That had impact on our costs because of the increase in cost at the hotels.

Speaker #4: And if I compare that with last year, we have a backlog of roughly ₹9 crore for the quarter. And we had mentioned we got impacted by a few other factors in the quarter.

Speaker #4: One is that power and fuel costs went up because of the Hormuz crisis and the Iran-US war. That had an impact on our costs because of the increase in costs at the hotels.

Speaker #4: We had done almost ₹4 crores of extra marketing expenditure to make sure that we get extra domestic bookings to offset the international tourist arrivals, which was actually below by 10% in Q1.

Vineet Kapur: We had done almost INR 4 crores of extra marketing expenditure to make sure that we get extra domestic bookings to offset the international tourist arrivals, which was actually below by 10% in Q1. We had also done some IT-led expenditure for doing on automation, and we had impact because of renovation, which was to the tune of INR 5 to 6 crores.

Speaker #4: We had also incurred some IT-related expenditure for automation. And we had an impact because of renovation, which was to the tune of ₹5 to ₹6 crores.

Speaker #4: Can you call out what fees we have generated this quarter and in the base quarter as well, just to get a sense?

Rajiv Bhatti: Sure. Can you comment what is the fee which we have generated, let's say, this quarter and the base quarter as well? Just to get a sense.

Rajiv Bharati: Sure. Can you comment what is the fee which we have generated, let's say, this quarter and the base quarter as well? Just to get a sense.

Speaker #4: Okay. Is there any leverage there? What's that? Sorry, the management fee. So, that detail we normally don't disclose separately—not at this point.

Vineet Kapur: Okay

Vineet Kapur: Okay.

Rajiv Bhatti: Is there any leverage there?

Rajiv Bharati: Is there any leverage there?

Vineet Kapur: What's that? Sorry.

Rajiv Bhatti: The management fee.

Rajiv Bharati: The management fee.

Vineet Kapur: That details, we normally don't disclose that separately. Not at this point.

Speaker #4: That's all from me. Thanks a lot.

Speaker #1: Thank you, Chairs.

Rajiv Bhatti: Sure. That's all from my side. Thanks a lot.

Rajiv Bharati: Sure. That's all from my side. Thanks a lot.

Speaker #2: Thanks, Ajit. Friends, anyone with a question, please raise your hand. Amit Agarwal, please unmute yourself and go ahead. Amit, do you have a follow-up question?

[Company Representative] (Motilal Oswal Asset Management Company): Thank you. Cheers. Thanks, Ajit. Friends, anyone with a question, please raise your hand. Amit? Amit Agarwal, please unmute yourself and go ahead. Amit, do you have a follow-up question? Friends, anyone with a question, request you please raise your hand. Okay. Vaibhav has a follow-up question. Vaibhav, please unmute yourself.

Speaker #2: Friends, anyone with a question, please raise your hand. Vaibhav has a follow-up question. Vaibhav, please unmute yourself.

Speaker #4: Hi, thanks for the follow-up. I just had a question regarding our F&B revenue for the quarter. If I do a quick math, our room revenue is growing at a healthy pace in the high teens, while our flight catering business has also done very well.

Vaibhav Mulye: Hi. Thanks for the follow-up. I just had a question regarding our F&B revenue for the quarter. If I do a quick math, our room revenue is growing at a healthy pace in the high teens, while our flight catering business has also done very well. But that translates to slightly negative revenue growth or revenue decline for F&B and other income streams. Is that a correct presumption, and what is the outlook for F&B and other income going forward?

[Analyst 1]: Hi. Thanks for the follow-up. I just had a question regarding our F&B revenue for the quarter. If I do a quick math, our room revenue is growing at a healthy pace in the high teens, while our flight catering business has also done very well. But that translates to slightly negative revenue growth or revenue decline for F&B and other income streams. Is that a correct presumption, and what is the outlook for F&B and other income going forward?

Speaker #4: But that translates to slightly negative revenue growth, or revenue decline, for F&B and other income streams. Is that a correct presumption? And what is the outlook for F&B and other income growth going forward?

Speaker #4: So if I look at the quarter, I think our F&B revenue also had increased versus last year, so there's no degrowth. And again, I would say when you dissect, you have to take out the element of the Rajgad, which got impacted in Q1, which was not there last year.

Vineet Kapur: So, if I look at the quarter, Ajit, F&B revenue also had increased versus last year. There is no de-growth. Again, I would say when you dissect, you have to take out the element of The Oberoi Rajgarh Palace which got impacted in Q1, which was not there last year. Otherwise, F&B revenue also had a healthy growth. We almost recorded 6% to 7% growth on F&B.

Speaker #4: Otherwise, F&B revenue also had healthy growth. We almost recorded 6% to 7% growth on F&B.

Speaker #1: And just—sorry, Vineet—just one correction. And again, if I've got this number wrong, please correct me. But the write-off from renovations was, if I remember correctly, ₹7.5 crore.

Vikram Oberoi: And-

Vikram Oberoi: And—

Vaibhav Mulye: Okay

[Analyst 1]: Okay

Vikram Oberoi: Just, sorry, Vineet, just one correction, again, if I have got this number wrong, please correct me. But the write-off from renovations was, if I remember correctly, INR 7.5 crore.

Speaker #4: Yeah. We can take that.

Speaker #1: I think you gave a slightly lower number.

Vineet Kapur: Yeah. You can take that.

Speaker #4: Okay. All right. And just a second question on our operating inventory for Q1, on account of renovation. How much was the impact on the operational inventory?

Vikram Oberoi: Yeah. I think you gave a slightly lower number.

Vineet Kapur: Okay.

Vaibhav Mulye: All right. Second question on our operating inventory for Q1 on account of renovation. How much was the impact on the operational inventory? Going forward, especially in Q2, is there any significant impact on operational inventory due to renovation?

[Analyst 1]: All right. Second question on our operating inventory for Q1 on account of renovation. How much was the impact on the operational inventory? Going forward, especially in Q2, is there any significant impact on operational inventory due to renovation?

Speaker #4: And going forward, especially in Q2, is there any significant impact on operational inventory due to renovation?

Speaker #1: So, in fact, we will be in South Bombay and will finish the four floors—120 keys—one month ahead of schedule. So instead of finishing in October, we'll finish in September.

Vikram Oberoi: In fact, in South Bombay, we have finished the fourth floor with 120 keys one month ahead of schedule. Instead of finishing in October, we will finish in September. We are ahead of time for that. We are also doing one floor at a time in Bombay at The Oberoi, Mumbai. We now, in Q2, are also doing rooms at The Oberoi, Bengaluru, 18 rooms at a time, and a further 57 rooms at Trident, Bandra Kurla. All of these will be finished before October.

Speaker #1: We're ahead of time for that. We're also doing one floor at a time in Bombay at the Oberoi Bombay. And now, in Q2, we are also doing rooms at the Oberoi Bangalore—18 rooms at a time.

Speaker #1: And a further 57 rooms at Trident Bandra Kurla. All of these will be finished on the 4th of October.

Speaker #4: Perfect. And what about the renovations happening in the summertime, when our occupancy is low, so that there is minimum impact on revenue and profitability?

Vaibhav Mulye: Perfect.

[Analyst 1]: Perfect.

Vineet Kapur: Most of those renovations are happening in the summertime whenever occupancy is low, so that it has a minimum impact on the revenue and the profitability.

Speaker #4: Perfectly understood. Thank you.

Speaker #2: Thank you. Friends, if anyone has a question, please raise your hand. Since there are no further questions—one second, Rajiv has a follow-up question.

Vaibhav Mulye: Perfectly understood. Thank you.

[Analyst 1]: Perfectly understood. Thank you.

Vikram Oberoi: Thank you. Friends, anyone with a question, please raise your hand. Since there are no further questions. One second. Rajiv has a follow-up question. Rajiv, go ahead.

Speaker #2: Rajiv, go ahead.

Speaker #4: Yeah, thanks for the follow-up. Just on the employee cost line item, both in Q4 and Q1, is it safe to assume that this delta which we are seeing sequentially—in, let's say, Q4 from Q3, 50–60 crore—is from Rajgar alone?

Rajiv Bhatti: Yeah. Thanks for the follow-up. Just on an employee cost line item, both in Q4 and Q1, is it safe to assume that this data which we are seeing sequentially, let's say Q4 from Q3, INR 50, 60 crores from Rajgarh alone, is that the employee costs? And that's a separate-

Rajiv Bharati: Yeah. Thanks for the follow-up. Just on an employee cost line item, both in Q4 and Q1, is it safe to assume that this data which we are seeing sequentially, let's say Q4 from Q3, INR 50, 60 crores from Rajgarh alone, is that the employee costs? And that's a separate—

Speaker #4: Is that the employee costs? That's a set.

Speaker #1: So I wouldn't... employee costs at Rajgar are not at that number, Rajiv.

Vineet Kapur: I would

Vineet Kapur: I would.

Vikram Oberoi: Employee costs at Rajgarh are not at that number, Rajiv.

Speaker #4: So Rajiv, the employee costs has impacts of increase in headcount versus last year, including increments, including the wage impact the labor code impact, which we have taken this year.

Vineet Kapur: Rajiv, the employee cost has impacts of increase in headcount versus last year, including increments, including the wage impact, the labor code impact, which we have taken this year. Also there is the impact of The Oberoi Rajgarh Palace coming into place, but not all increase is attributable to The Oberoi Rajgarh Palace.

Speaker #4: The impact and also there is an impact of overall Rajgar coming into place. But not all increases attributable to overall Rajgar.

Speaker #1: And is it possible to quantify?

Speaker #4: What was the revenue contribution from Rajgar this quarter? Did I miss that? Yeah, already called it out. Rajiv, you're dissecting our P&L in detail. We're not able to give you that detail.

Rajiv Bhatti: Is it possible to quantify the revenue contribution from Rajgarh this quarter? Or did I miss that? Or you called it out?

Rajiv Bharati: Is it possible to quantify the revenue contribution from Rajgarh this quarter? Or did I miss that? Or you called it out?

Vineet Kapur: Rajiv, you are dissecting our P&L in detail so I will not be able to give you that split.

Speaker #1: But I like the question, Rajiv. That's a great question. Thank you, thank you. But one thing that I will say about our industry is that people in our industry work very long hours.

Vikram Oberoi: But I like the question, Rajiv. That's a great question. Thank you. But one thing that I will say about our industry is that people in our industry work very long hours and if we want to attract good people to our industry and to retain good people and see them grow within the industry, which is important for the future of our industry, we really need to be more mindful of how many hours people are spending at work. At EIH and at our group companies, we've really made that commitment to reducing the number of hours that people work. It's really including their breaks, et cetera. We really need to conform to the working hours limits, which is not something that if you go and ask people working in our business, frontline staff in hotels, how many hours they work, they work very long hours.

Speaker #1: And if we want to attract good people to our industry and retain good people—and see them grow within the industry, which is important for the future of our industry—we really need to be more mindful of how many hours people are spending at work in it.

Speaker #1: At EIH and at our group companies, we've really made that commitment to reducing the number of hours that people work. It's really including their breaks, etc.

Speaker #1: We really need to conform to the working hours limits, which is not something that—if you go and ask people working in our business, frontline staff in hotels—how many hours they work, they work very, very long hours.

Speaker #1: Attrition, therefore, is high. Recruitment costs are high. Training costs are high. The quality of service, therefore, suffers. And we've taken a conscious decision to really address this for all our colleagues within the company.

Vikram Oberoi: Attrition, therefore, is high. Recruitment costs are high. Training costs are high. The quality of service, therefore, suffers. We've taken a conscious decision to really address this for all our colleagues within the company. That has an impact on higher costs as well.

Speaker #1: And that has an impact on higher costs as well.

Speaker #4: Last question on the delay, which we have seen especially in Grant—does it lead to, let's say, cost overruns also in terms of what we were budgeting earlier?

Rajiv Bhatti: Sure. Last question on the delay, which we have seen, especially in Grand. Does it lead to, let's say, cost overruns also in terms of what you were budgeting earlier? Is there escalation on that numbers?

Rajiv Bharati: Sure. Last question on the delay, which we have seen, especially in Grand. Does it lead to, let's say, cost overruns also in terms of what you were budgeting earlier? Is there escalation on that numbers?

Speaker #4: Is there escalation on that number as well?

Speaker #1: I think delays will have some cost. And I'm not talking about the overall grant, but I'm just saying if you ask the question, do delays have an impact on higher costs?

Vikram Oberoi: I think delays will have some cost. I'm not talking about The Oberoi Grand, but I'm just saying if you ask the question, do delays have an impact on higher costs? Yes. They do have some impact. Depending on what the reasons for the delays are, that may be small, or it could be larger. Delays do have impact. There's a second impact, which is more significant when there are delays, is that your ability to go to market gets delayed, and therefore your ability to earn revenue and drive profitability gets delayed.

Speaker #1: Yes, they do have some impact. Depending on what the reasons for the delays are, that impact may be small or could be larger. But delays do have impact.

Speaker #1: And there's a second impact, which is more significant when there are delays, and that is your ability to go to market gets delayed. Therefore, your ability to earn revenue and drive profitability also gets delayed.

Speaker #4: That also makes sense. Thanks a lot.

Speaker #1: Thank you.

Speaker #2: Thanks, Rajiv. Friends, if anyone has a question, please raise your hand. No one? Okay. I'd like to hand the webinar back to Vikram for his closing remarks.

Rajiv Bhatti: That's all from my side. Thanks a lot.

Rajiv Bharati: That's all from my side. Thanks a lot.

Vikram Oberoi: Thank you.

[Company Representative] (Motilal Oswal Asset Management Company): Thanks, Rajiv. Friends, anyone with a question, please raise your hand. No one? Okay. I'd like to hand over the webinar back to Vikram for his closing remarks. Vikram?

Speaker #2: Vikram?

Speaker #4: Sure. Really, nothing

Speaker #1: Too elaborate, Naveen. I just wanted to thank everybody. We continue to do the very best we can. We're excited about the new openings, in particular, Hebal.

Vikram Oberoi: Sure. Really nothing too elaborate, Naveen. I just wanted to thank everybody. We continue to do the very best we can. We're excited about the new openings, in particular, Hebbal. Hebbal presents a great opportunity just because of the scale of that development and the EBITDA that it'll generate for the company with two hotels and a mixed-use development or commercial development of over 1.3 million square feet. Goa is another location which we should really be in, and also our other hotel developments, both owned and managed. So we're excited about the growth. I'm confident we will have future news to share with you on our future growth with other opportunities coming to fruition in the not-too-distant future. So we remain optimistic about the future.

Speaker #1: Hebal presents a great opportunity just because of the scale of that development, and the EBITDA that it will generate for the company with two hotels and a mixed-use commercial development of over 1.3 million square feet.

Speaker #1: Goa is another location which we should really be in. And also, our other hotel developments, both owned and managed, so we're excited about the growth. I hope, or rather, I'm confident we will have future news to share with you on our future growth, with other opportunities coming to fruition in the not-too-distant future.

Speaker #1: So, we remain optimistic about the future.

Speaker #2: Thanks, Vikram. Vineet, anything from your end?

Speaker #4: No, nothing.

Speaker #2: Thank you very much. On behalf of SQB Securities, thank you very much, Mr. Oberoi and Mr. Kapoor, for taking the time to interact with the investors.

[Company Representative] (Motilal Oswal Asset Management Company): Thanks, Vikram. Vineet, anything from your end?

Vineet Kapur: No, nothing to add.

[Company Representative] (Motilal Oswal Asset Management Company): Thank you very much. On behalf of SKP Securities, thank you very much, Mr. Oberoi and Mr. Kapoor, for taking time out to interact with the investors, and we look forward to hosting you again in the next quarterly webinar. Thank you very much. Thank you, ladies and gentlemen, and have a wonderful day.

Speaker #2: And we look forward to hosting you again in the next quarterly webinar. Thank you very much. Thank you, ladies and gentlemen, and have a wonderful day.

Speaker #1: Thank you. Thank you.

Speaker #4: Thanks a lot. Thank you.

Speaker #1: Thank you. Thanks. Goodbye.

Speaker #4: Bye.

Vikram Oberoi: Thank you.

Vineet Kapur: Thank you, everybody. Thanks a lot. Thank you.

Vikram Oberoi: Thank you. Thanks. Goodbye.

Rajiv Bhatti: Bye.

[Company Representative] (Motilal Oswal Asset Management Company): Bye.

Vineet Kapur: Bye-bye.

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