Key Financial Figures

Consolidated Performance (FY26):

  • Revenue: Grew 8% year-over-year (YoY)
  • EBITDA: Grew 3% YoY
  • Profit: Impacted by one-time items including a ₹30 crore wage code impact and Mashobra fair valuation exception
  • Cash & Funds: Position grew to ₹1,335 crore (from ₹1,051 crore in March 2025)
  • Cash Flow from Operations: ₹993 crore
  • Income from Investments: ₹113 crore
  • Capital Expenditure: ₹680 crore
  • Dividend Paid: ₹97 crore

Quarterly Performance (Q4 FY26):

  • Revenue: Grew 10% YoY
  • EBITDA: Grew 1% YoY
  • Profit: Declined due to tax impact and business mix changes
  • Oberoi Flight Services (OFS) Segment Revenue: Approximately ₹145 crore

Standalone Performance (FY26):

  • Revenue: Growth maintained
  • EBITDA: Low single-digit growth
  • PAT: Impacted by one-time items (Mashobra fair valuation and wage code)

Operational Highlights

Industry Context:

FY26 was a volatile year marked by:

  • Operation Sindoor (India-Pakistan tensions) in May
  • West Asia conflict starting end-February
  • Extended monsoon and heavy rains in Q2
  • Flight disruptions in December affecting December and January

Market Performance:

  • Q4 Industry Occupancy: 67-69% (below previous year)
  • Q4 Industry ARR Growth: 6-8%
  • Q4 Industry RevPAR Growth: 5-7%
  • Full Year Industry Occupancy: Flat YoY
  • Full Year Industry ARR Growth: 9-10%
  • Full Year Industry RevPAR Growth: 10-12%

EIH Performance Metrics:

  • Oberoi Brand (Luxury Segment): Q4 RevPAR growth of 4.2% (full year 10.4% vs industry luxury growth of 6.4%)
  • Trident Brand (Upper Upscale): Full year RevPAR growth of 10.2% (vs segment growth of 5%)
  • Revenue Generation Index (RGI): Q4 at 204, FY26 at 191 (both better than previous year)
  • Domestic Owned Hotels ARR: Increased from ₹24,548 to ₹28,198 in Q4
  • International Hotels: Q4 RevPAR growth of 13% (strong performance in Mauritius, Oberoi Zahra, Sahl Hasheesh)

Monthly Trends (Domestic Hotels including Managed):

  • March: Occupancy strained due to West Asia war impact, but ARR continued healthy growth
  • ARR: Grew from ₹23,648 to ₹26,536 for the quarter
  • February: Particularly strong ARR growth (~25%) driven by AI Summit in Delhi/NCR and strong demand across geographies
  • January: RevPAR declined 6% potentially due to negative international publicity about North India air quality

City-wise RevPAR Growth (Q4):

  • Delhi/NCR: High growth due to AI Summit
  • Bhubaneswar: Good increase from business and government activity
  • Mumbai: High occupancy and ARR boosted by T20 World Cup
  • Bangalore: Impacted by lower foreign bookings due to West Asia war
  • Udaipur: Down due to fewer weddings

Business Mix and Segment Analysis

  • Room Revenue (Owned Hotels, FY26): ₹1,216 crore
  • F&B Revenue (Owned Hotels, FY26): ₹670 crore
  • MICE and Direct segments witnessed growth
  • Corporate and Leisure segments were flat
  • Domestic share increased substantially compensating for foreign tourist shortfalls
  • Foreign tourist mix approximately 50% in Q4 (historically)

Expansion Plans and Capital Allocation

Owned Hotels Pipeline (by 2030):

  • Total New Keys: 825
  • Projects:
  • Trident Vizag (through EIH Associated Hotels): 2027 opening
  • Mixed-use development in Hebbal, Bangalore: 7.63 lakh square feet commercial space
  • Other properties including Oberoi Grand Kolkata renovation (50 keys partial opening targeted for September 2026)

Managed Hotels Pipeline:

  • Total New Hotels: 24
  • Total New Keys: 1,893 (mostly domestic, some international)
  • New Signings: Trident Amritsar (150 keys) and Trident Pawna (150 keys) signed between Q3-Q4

Current Footprint:

  • Domestic: 3,800 keys (including Oberoi Rajgarh added in Q3)
  • International: 400 keys across various countries

Renovation and Maintenance Updates

FY27 Renovation Plans:

  • Oberoi Bangalore: ~90 rooms in blocks of 18 rooms each during summer months
  • Trident Bandra Kurla: Complete F&B outlet upgrades later in the year
  • Trident Nariman Point: 4 floors renovation (6-month duration, already underway)
  • Oberoi Bombay: 4 floors renovation (staggered, one floor at a time)
  • Impact: Minimal due to scheduling during lean months

Project Updates:

  • Oberoi Grand Kolkata: Renovation underway with structural interventions discovered; September 2026 partial opening target maintained
  • Oberoi Gandikota: Timeline shifted from 2028 to 2030 due to site location change and redesign
  • Tirupati: Land allotted, redesign underway due to different site characteristics

Challenges and Risk Factors

  • Geopolitical tensions affecting foreign tourist arrivals
  • Air connectivity issues (e.g., Khajuraho only has seasonal flights)
  • Foreign tourist bookings impacted by West Asia conflict, higher airfares, and route reductions
  • Indian rupee devaluation making foreign vacations 15-20% more expensive
  • Project execution delays in managed hotels (beyond company's control)

Management Commentary and Outlook

  • Strong domestic demand compensating for foreign tourist shortfalls
  • Expect continued benefit from diplomatic events (BRICS presidency, upcoming summits in Q2-Q3)
  • Focus on maintaining rate premium positioning rather than discounting for occupancy
  • Confidence in achieving projected performance for new hotels despite supply additions in 2028-2030
  • Belief that India remains significantly underpriced compared to international luxury markets

Awards and Recognition

  • Hotels rated by Michelin Key Hotels Guide (two keys and one key)
  • Numerous awards from Travel + Leisure and Condé Nast