EIH Q1FY27 Revenue Up 15% Despite Margin Pressure

Consolidated Performance Q1FY27:

Revenue: ₹698 crores (vs. ₹609 crores in Q1FY26), representing 15% YoY growth
EBITDA: ₹207 crores (vs. ₹195 crores in Q1FY26)
PAT: ₹120 crores (not directly comparable to Q1FY26 due to one-time Mashobra impact of ₹110 crores)
Cash flow from operations: ₹183 crores
CAPEX expenditure: ₹148 crores
Net funds increase: ₹23 crores

Standalone Performance: Performance was in line with consolidated numbers with the same revenue growth, EBITDA, and PAT trends.

Industry Context:

Industry occupancy higher by 2-4%
Industry ARR higher by 6-8%
Domestic demand offset impact of lower foreign bookings due to geopolitical situation

Competitive Positioning:

EIH maintains RevPAR leadership over competition set
MPI at 108 (vs. 106 last year)
ARI flat at 115
RGI improved from 121% to 125% over comp set
14 out of 15 hotels ranked 1st or 2nd in their comp sets (8 ranked 1st, 6 ranked 2nd)

Brand Performance:

Oberoi Brand (Luxury): RevPAR growth of 8.2% vs industry luxury segment growth of 13.2%
Excluding Oberoi Rajgarh (ramp-up phase), RevPAR growth was 11.4%
Impacted by higher foreign guest percentage and West Asia crisis
Trident Brand (Upper Upscale): RevPAR growth of 13.8% vs industry growth of 9.2%
Strong performance in Mumbai properties (TNP and BKC)
RGI at 162 vs 155 last year

RevPAR Trends:

City-wise Performance:

Strongest growth in Shimla and Chandigarh (recovery from Operation Sindoor impact last year)
Mumbai showed good growth due to domestic demand and MICE activities
Jaipur impacted by lower foreign tourists
Hyderabad RevPAR lower due to Miss World event hosted last year

EBITDA margin was not in line with revenue growth due to:

1. Oberoi Rajgarh operational since Q3 last year, still in ramp-up/stabilization phase

2. Higher marketing expenditure to drive domestic bookings

3. Increased IT expenditure to support automation and AI initiatives

4. Write-off of ₹7.5 crores due to renovations at Mumbai hotels

5. Power and fuel costs increased due to Iran-US war (Hormuz crisis impact)

Recorded revenue of ₹154 crores in Q1FY27
Healthy growth driven by new flights and higher business from international airlines
Business was profitable with minimal margin impact

Owned Properties Pipeline (7 hotels):

Expected openings through 2031
Includes The Oberoi London (expected 2028)
Hebbal development: Two hotels (Oberoi and Trident) plus retail/F&B space of 7.63 lakh sq ft
Total development area in Bangalore: Over 1.3 million square feet

Managed Hotels Pipeline:

Specific Project Updates:

Kolkata Oberoi (The Oberoi Grand): Delayed to September 2028 (from earlier 2028 expectation)
Delay due to historic building restoration complexities and safety compliance requirements
Additional 2-month delay from Kolkata construction halt following tragic incident
Will feature 197 keys
Goa Hotel: Expected opening now late 2029 (vs. 2028 in presentation)

Expect foreign tourist arrivals to normalize in Q3 and Q4 FY27
Q2 business on books shows positive trends vs same time last year
Large events (BRICS Summit, Aviation show) expected to have beneficial ripple effects
Typical hotel stabilization period: 3 years for leisure properties
Renovations scheduled for low-occupancy months (April-October) to minimize revenue impact
Commitment to reducing employee working hours to improve retention and service quality

Mr. Vikram Oberoi, MD & CEO, EIH Limited
Mr. Vineet Kapur, CFO, EIH Limited
Mr. Navin Agrawal, Head - Institutional Equities, SKP Securities Ltd (Moderator)