Date: 03rd August 2026

Financial Results (Consolidated)

Q1 FY27 Performance:

  • Total Income: ₹3,083mn (+7.3% YoY reported, +10.8% YoY comparable)
  • Consolidated EBITDA: ₹1,013mn (-4.1% YoY reported, +12.1% YoY comparable)
  • EBITDA Margin: 32.9% (36.8% in Q1 FY26)
  • PBT (before exceptional items): ₹327mn (+26.4% YoY)
  • PAT: ₹249mn (+29.7% YoY)
  • Free Cash Flow: ~₹619mn
  • Effective Interest Rate: 7.8% (~300bps lower since IPO)
  • Net Debt: EBITDA: ~3.2x (~2.4x on Operating Assets)

Operational Metrics:

  • Same-store RevPAR: ₹5,219 (+9.6% YoY)
  • Portfolio Occupancy: 79.3% (up from 74.2% in Q1 FY26)
  • 36% of days in Q1 FY27 were above 90% occupancy (sold out)
  • Domestic travelers constituted 81% of total room nights (up from 78% same period last year)

Reconciliation of Reported vs Comparable Numbers:

  • Q1 FY26 included ~₹91mn one-time other income from subsidiary capital restructuring related to GIC transaction
  • Q1 FY26 included ~₹21mn one-time GIC transaction expenses
  • Q1 FY27 included ~₹92mn GST input tax credit (ITC) impact on operating expenses

Growth Projects & Pipeline

Current Portfolio:

  • 31 business hotels with 4,899 operational rooms
  • 7 big-box hotels in pipeline with 1,669 rooms
  • Leisure platform: 75 hotels with 1,046 rooms through RARE India

Key Development Projects:

1. W, HITEC City, Hyderabad - 170 rooms (Opening Q4 FY27)

2. Westin, Whitefield, Bangalore - 220 rooms (Opening FY30)

3. Mid-scale Hotel, Financial District, Hyderabad - 260 rooms (Opening FY30)

4. Upper Upscale Hotel, Sec-51, Noida - 162 rooms (Opening FY30)

5. Westin & Fairfield, Navi Mumbai - 700 rooms (Opening FY31)

6. Marriott, Sriperumbudur, Chennai - 135 rooms (Opening FY30)

Rebranding Initiatives:

  • 473 rooms conversion from Upper Mid-scale to Upscale segment
  • Courtyard by Marriott, Pune (rebranding from Four Points by Sheraton) - 217 rooms
  • Tribute Portfolio by Marriott, Whitefield, Bangalore (rebranding from Trinity) - 142 rooms
  • Tribute Portfolio by Marriott, Jaipur (rebranding from Four Points by Sheraton) - 114 rooms

RARE India Leisure Platform

Current Status:

  • Portfolio of 75 boutique hotels across India, Nepal and Bhutan
  • 1,046 total rooms under management
  • 40+ hotels have agreed to be on Marriott Outdoor Collection
  • 15 pilot properties shortlisted for integration with Marriott in H2 FY27

Business Model:

  • Asset-light, highly scalable platform
  • Revenue from: a) Fee income from business generated for hotel partners; b) Additional incentive fee in select hotels; c) Selective opportunistic investments

First Acquisition:

  • Itmenaan Estate, Uttarakhand - ~8 acres, 8 rooms (potential to expand to 15-20 rooms)
  • Purchase price: ~₹120mn

Segment Performance

Revenue Contribution by Segment (Q1 FY27):

  • Upper Upscale & Upscale: 5 hotels, 1,123 rooms, ₹1,239mn revenue
  • Upper Mid-scale: 14 hotels, 2,047 rooms, ₹1,298mn revenue
  • Mid-scale: 12 hotels, 1,729 rooms, ₹517mn revenue

Segment RevPAR Performance:

  • Upper Upscale & Upscale: ₹8,229 (78% occupancy, ₹10,494 ARR)
  • Upper Mid-scale: ₹5,131 (78% occupancy, ₹6,552 ARR)
  • Mid-scale: ₹3,052 (81% occupancy, ₹3,755 ARR)

Balance Sheet & Capital Structure

Strengthening Balance Sheet:

  • Net Debt: EBITDA reduced to ~3.2x (~2.4x on Operating Assets)
  • Effective interest rate at 7.8%, ~300bps lower since IPO
  • ~₹340mn cash interest outflow in Q1 FY27

Capital Allocation:

  • Capital allocated towards W Hyderabad, Westin Bangalore, HRP Apartments, Sheraton Rooms & Apartments, HIEX Whitefield Bangalore, Westin Navi Mumbai, and other capex

Challenges & Headwinds

GST Impact:

  • Shift from 12% with ITC to 5% without input credit compressed reported EBITDA by ~₹92mn for the quarter
  • Expected margin improvement as new openings are in upscale segment (not impacted by GST changes)

Approval Delays:

  • Hyatt Regency Pune: 22 apartments fully completed but delay in approvals causing revenue loss

Geopolitical Impact:

  • Middle-east conflict affected international business, particularly in markets with dependence on gulf carriers
  • Pune, Bangalore, Kolkata, Goa, Chennai, Hyderabad showed negative passenger growth YoY

Market Context

Office Market Dynamics:

  • Strong office leasing momentum, especially in GCCs led by Bangalore, Hyderabad and Pune (65%+ of leasing activity)
  • Bangalore: 238mn sq ft current, 15.3mn sq ft net absorption in FY26
  • Hyderabad: 143mn sq ft current, 50mn sq ft upcoming, 9.5mn sq ft net absorption in FY26

Air Passenger Trends:

  • Q1 FY27 showed mixed passenger growth across key airports
  • Ahmedabad: +6.9%, Delhi: +6.2%, Mumbai: +1.6%
  • Negative growth in Pune, Bangalore, Kolkata, Goa, Chennai, Hyderabad due to Middle-east impact