Kamat Hotels (India) Limited – Investor Presentation Summary

Key Operational Highlights

  • Occupancy for Q1-FY27 improved to 66% compared to 55% in Q1-FY26 due to strong domestic leisure travel and MICE events.
  • Average Room Rate (ARR) moderated during the quarter primarily due to the addition of newly operational properties in ramp-up phase.
  • Opened IRA by Orchid, Bhavnagar, a 50-key leased property, strengthening presence in Gujarat.
  • Signed an agreement to manage a 63-key Orchid hotel in Dwarka, Gujarat, expected operational by December 2026.

Key drivers of operational performance: Strong domestic leisure travel demand, MICE events, and expansion of property portfolio.

Segment-wise Performance

  • Orchid brand: ARR of INR 6,020 (down 5% YoY), RevPar of INR 4,192 (up 18% YoY), occupancy of 70% (vs 56% YoY)
  • IRA by Orchid brand: ARR of INR 4,058 (down 25% YoY), RevPar of INR 2,528 (down 37% YoY), occupancy of 62% (vs 74% YoY)
  • Lotus brand: ARR of INR 5,816 (up 6% YoY), RevPar of INR 3,806 (up 17% YoY), occupancy of 65% (vs 59% YoY)
  • Fort JadhavGADH brand: ARR of INR 8,560 (up 6% YoY), RevPar of INR 2,280 (down 6% YoY), occupancy of 32% (vs 30% YoY)

Explanation of significant changes in segment performance: IRA by Orchid performance impacted by the closure of IRA Mumbai (effective April 1, 2026). Excluding this property, IRA by Orchid portfolio ARR was flat YoY and RevPar increased by 3%.

Financial Highlights

Revenue: INR 905 Mn

EBITDA: INR 246 Mn

PAT: INR 97 Mn

EPS: INR 3.19

Margins: EBITDA margin 27% (up 530 bps YoY), PAT margin 11% (up 559 bps YoY)

YoY/QoQ comparison: Revenue up 10% YoY, EBITDA up 36% YoY, PAT up 126% YoY

Drivers of financial performance: Stronger margin conversion, cost optimization, operational efficiency

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified

Regional Breakdown: Not specified

Balance Sheet Snapshot

Net Debt/Equity: Net debt of INR 383 Mn after adjusting for cash & cash equivalents and fixed deposits of INR 662 Mn

Reserves: Not specified

Current Assets/Liabilities: Not specified

Working Capital/Leverage Metrics: Not specified

Financial Health Insights: Debt reduced from INR 1,998 Mn in FY24 to INR 1,045 Mn in Q1-FY27

Capex & Cash Flow Health

Capital Expenditure: Not specified

Free Cash Flow: Not specified

Operating Cash Flow: Not specified

Net Debt Movement: Debt reduced from INR 1,998 Mn in FY24 to INR 1,045 Mn in Q1-FY27

Investment Rationale: Focus on capacity expansion through asset-light model

Strategic & R&D Initiatives

Investments in Innovation: Focus on digitization, strengthening digital media sales and online marketing

Expected impact on growth: Targeting 30%+ EBITDA margins through asset-light expansion

Strategic Rationale: Expanding into high-growth cities, pilgrimage & leisure circuits, tier-2/3 cities

Industry Trends & Business Environment

Macro/Industry Trends: Strong domestic leisure travel demand, MICE events growth

Impact on Company: Improved occupancy rates from 55% to 66% YoY

Management Commentary & Growth Outlook

Strategic Outlook: Focus on topline growth through optimal RevPAR and pipeline projects, enhancing unit-level operation efficiency, cost optimization, digitization, brand portfolio strengthening

FY Guidance: Targeting 30%+ EBITDA margins through asset-light expansion

Market Share Targets: Not specified

Risks and Opportunities: Not specified

Upcoming Properties

  • Dehradun: Orchid brand, leased, 96 keys, December 2026
  • Dwarka: Orchid brand, managed, 63 keys, December 2026
  • Nashik: Orchid brand, managed, 57 keys, December 2026
  • Rishikesh: Orchid brand, revenue sharing, 44 keys, March 2027
  • Mandavi Kutch: Orchid brand, managed, 155 keys, December 2027
  • Puri: Orchid brand, leased, 156 keys, December 2029

Brand Portfolio Overview

  • The Orchid: 27+ years, premium segment, 10 properties, 1,309 keys
  • Fort JadhavGADH: 16+ years, premium segment, 2 properties, 91 keys
  • IRA by Orchid: Launched July 2023, mid-premium segment, 9 properties, 464 keys
  • Lotus: 12+ years, mid-premium segment, 2 properties, 73 keys
  • Toyam: Launched July 2024, premium segment, 1 property, 21 keys