Industry Context and Outlook

  • The Indian hospitality industry is projected to grow at a 10.5% CAGR, crossing INR 1 trillion by FY2026 and reaching INR 1.1 trillion in FY2027.
  • Key drivers include a projected 500 bps rise in occupancy, 7-8% CAGR growth in Average Room Rate (ARR), and a 7% annual forecast for Revenue Per Available Room (RevPAR) during 2025-2027.
  • The World Travel & Tourism Council projects India's Travel & Tourism GDP to grow at 7.1% annually over the next decade.
  • The MICE (Meetings, Incentives, Conferences, and Exhibitions) segment is expanding at 8% annually and is expected to grow at a 13% CAGR.

Hyderabad Market Overview

  • Hyderabad has 7,600 branded keys across 48 hotels.
  • Premium hotels account for 66% of supply, while Upper Midscale to Economy makes up 34%.
  • The city has seen occupancy rise 15 percentage points between FY14 and FY25.
  • Room Rates grew at a 5.4% CAGR over FY14-FY25.
  • RevPAR rose at a 7.9% CAGR during FY14–FY25.
  • Key corporate hubs include HITEC City (62% of existing office supply), Gachibowli, and the Financial District.
  • Upcoming infrastructure developments like the NH-65 Double-Decker Corridor (2026), Metro Rail Phase II including Airport Express (by 2030), Pharma City in Mucherla (by 2030), and a proposed new airport in Kothagudem are expected to accelerate growth.

Company Profile and Strategy

Viceroy Hotels Limited operates in the hospitality sector with strategic locations in Hyderabad. The company's vision is to impact Asia's hospitality landscape.

Growth & Expansion Plans:

Management has outlined a plan to invest ₹100+ Crore to renovate and upgrade existing properties in three phases.

  • Courtyard by Marriott - Phase I (Expected completion FY27):
  • Renovation of 6th and 7th Floor — 56 Guest Rooms.
  • 8th Floor — Construction of a Spa (7 Rooms) and a full-fledged gym.
  • 9th Floor — Construction of a Rooftop Bar with 70 covers overlooking a Swimming Pool.
  • Reorganization of the Back of the House for operational efficiency.
  • Marriott Hyderabad - Phase II (Work started first week of April 2026; Expected completion FY27):
  • Upgrade of 168 Guest Rooms to a contemporary design.
  • Upgrade of the Convention Centre to a total space of 20,000 sq. ft., divisible into 3 separate banquet halls.
  • Marriott Hyderabad - Phase III (Expected completion FY28):
  • Upgrade of 4 F&B outlets and the Executive Lounge with added capacity.
  • Conversion of 'Altitude' to a high-end Pan Asian Restobar.
  • Lobby upgrade with a massive entrance through the elephant garden.
  • Upgrade of 127 Guest Rooms of Marriott to a contemporary design.

Acquisition - Marriott Executive Apartments:

The company has acquired Marriott Executive Apartments in Hyderabad. Key details include:

  • Location: Hyderabad
  • Keys: 75 Executive Rooms (1,65,000 sq. ft.)
  • Land Share: 2,400 sq. Yds (approx.)
  • Projected CY25 Turnover: Provided but value redacted in source.
  • Projected CY25 EBITDA: Provided but value redacted in source.

Investment Strategy:

The company's strategy is based on three core criteria: Financial Viability, Location Feasibility, and Unique Value Propositions. It focuses on three types of projects:

1. Green Field Projects: Investing in innovative developments.

2. Brown Field Projects: Identifying strategic assets for enhancement.

3. NCLT - Distressed Assets: Transforming underperforming assets.

Management Personnel

  • Mr. Ravinder Reddy Kondareddy: Managing Director & CEO. A BE (Electronics) graduate and entrepreneur in real estate across Andhra Pradesh, Telangana, and Karnataka. Leads the Anirudh Group of Companies, which has established over 500 acres of real estate assets.
  • Mr. S.P. Reddy (Solipuram Prabhakar Reddy): Non-Executive & Non-Independent Director. An entrepreneur and investor with interests in IT, Life Sciences, Hospitality, Education, and Real Estate. Founder of Terminus Group. Has over 25 years of experience in North America and owned franchises for major international hotel brands including Marriott, Hilton, and InterContinental.
  • Mr. Anirudh Reddy Konda Reddy: Non-Executive & Non-Independent Director. A legal professional qualified in New York and the UK, and a Partner at Bright AD Legal LLP, with a background in real estate.
  • Mr. Venkata Krishna Reddy Puli: Chief Financial Officer. A Chartered Accountant with over 15 years of experience in audit and financial strategy.
  • Mr. Pradyumna Kodali: Chief Operating Officer. A finance and hospitality professional with an Engineering degree from BITS Pilani and experience at OYO and Credit Suisse.
  • Mr. Amarender Reddy Bandaru: Addl. CEO and Director of Procurement & Human Resources. Holds a B.Com degree and is Managing Director of BBR Infra with over 20 years of experience in infrastructure projects.
  • Mr. Arvind Reddy Bandaru: Addl. CEO & Director of Engineering. Holds a Mechanical Engineering degree and is Managing Director of BBR Infra with over 20 years of experience in civil and mechanical contracting.

The management team boasts 50+ years of cumulative experience in real estate development and hospitality operations.

Financial Performance (Consolidated)

Profit and Loss Statement (₹ in Lakhs):

| Particulars | Q4 FY26 | Q4 FY25 | Change | FY26 | FY25 | Change |

| Total Revenue | 4,953.4 | 3,660.6 | 35.3% | 14,972.6 | 14,082.6 | 6.3% |

| Total Expenditure | 3,398.0 | 2,578.0 | - | 10,515.7 | 10,387.3 | - |

| EBITDA | 1,555.4 | 1,082.6 | - | 4,456.9 | 3,695.3 | - |

| EBITDA Margin | 31.4% | 29.6% | - | 29.8% | 26.2% | - |

| Depreciation & amortisation | 474.8 | 311.3 | - | 1,509.7 | 1,213.1 | - |

| Finance Costs | 530.4 | - | - | 855.5 | 495.5 | - |

| Exceptional Items | - | -66.0 | - | - | -5,746.6 | - |

| Less: Tax Expense | 260.0 | -49.7 | - | -289.1 | - | - |

Balance Sheet (₹ in Lakhs):

| Particulars | As of Mar 31, 2026 | As of Mar 31, 2025 |

| Non Current Assets | | |

| Fixed Assets | 34,617.4 | 17,837.2 |

| Capital work in progress | 5,703.0 | 1,532.0 |

| Goodwill | 5,856.8 | 0.0 |

| Other Non Current Assets | 4,011.0 | 6,033.9 |

| Current Assets | 5,483.5 | 5,753.5 |

| Total Assets | 55,671.6 | 31,156.5 |

| Equity | | |

| Equity Share Capital | 6,757.9 | 6,757.9 |

| Other Equity | 19,921.7 | 17,675.1 |

| Long Term Liabilities | | |

| Borrowings | 24,539.5 | 4,662.8 |

| Other Long Term Liabilities | 158.2 | 92.6 |

| Current Liabilities | 4,294.4 | 1,968.1 |

| Total Equity & Liabilities | 55,671.6 | 31,156.5 |

Financial Performance (Standalone)

Profit and Loss Statement (₹ in Lakhs):

| Particulars | Q4 FY26 | Q4 FY25 | Change | FY26 | FY25 | Change |

| Total Revenue | 3,923.6 | 3,660.6 | 7.2% | 13,909.9 | 13,602.1 | 2.3% |

| Total Expenditure | 2,558.9 | 2,576.9 | - | 9,650.2 | 9,846.6 | - |

| EBITDA | 1,364.7 | 1,083.7 | 25.9% | 4,259.7 | 3,755.5 | 13.4% |

| EBITDA Margin | 34.8% | 29.6% | - | 30.6% | 27.6% | - |

| Depreciation & amortisation | 385.2 | 311.3 | - | 1,417.4 | 1,210.1 | - |

| Finance Costs | 470.7 | - | - | 795.8 | 495.5 | - |

| Exceptional Items | - | - | - | 0 | -66.0 | - |

| Less: Tax Expense | -69.0 | -67.2 | - | 239.7 | -5,524.7 | - |

| Profit after tax | 577.9 | 774.5 | -25.4% | 1,806.8 | - | -76.4% |

| Basic EPS (₹) | 0.9 | 1.3 | - | 2.7 | 12.0 | - |

Operational Metrics - Hotels

Average Daily Rate (ADR) (₹):

| Hotel | FY26 | FY25 | YoY Change | Q4 FY26 | Q4 FY25 | QoQ Change |

| Marriott | 7,328 | 6,864 | 6.8% | 7,423 | 7,690 | -3.5% |

| Courtyard | 7,633 | 6,758 | 13.0% | 8,010 | 7,933 | 1.0% |

| Combined | 7,402 | 6,834 | 8.3% | 7,605 | 7,769 | -2.1% |

Occupancy (%):

| Hotel | FY26 | FY25 | YoY (bps) | Q4 FY26 | Q4 FY25 | QoQ (bps) |

| Marriott | 69.5% | 69.4% | +10 | 70.3% | 72.7% | -240 |

| Courtyard | 52.2% | 72.6% | -2040 | 55.3% | 54.1% | +120 |

| Combined | 64.3% | 70.3% | -600 | 64.8% | 67.6% | -280 |

Revenue Per Available Room (RevPAR) (₹):

| Hotel | FY26 | FY25 | YoY Change | Q4 FY26 | Q4 FY25 | QoQ Change |

| Marriott | 5,092 | 4,765 | 6.9% | 5,217 | 5,603 | -6.9% |

| Courtyard | 3,987 | 4,909 | -18.8% | 4,430 | 4,316 | 2.6% |

| Combined | 4,761 | 4,805 | -0.9% | 4,931 | 5,249 | -6.1% |

Context: The presentation notes that war and geopolitical tensions in March 2026 exerted downward pressure on hospitality demand, leading to softer performance across ADR, occupancy, and RevPAR. The 'Combined' metric includes only Marriott and Courtyard.

Corporate History and Restructuring

  • The company entered the hospitality sector in 1993 with a flagship five-star hotel in Hyderabad, among the earliest luxury hotels in the city.
  • It partnered with Marriott in 2006. This was the first Marriott in Hyderabad and the third in India.
  • Corporate Insolvency Resolution Process (CIRP) was initiated under the Insolvency & Bankruptcy Code, 2016.
  • The NCLT Hyderabad Bench order dated October 6, 2023, was confirmed by the NCLAT Chennai Bench.
  • A resolution plan was submitted by Anirudh Agro Farms Limited (AAFL) via its SPV, Loko Hospitality Pvt. Ltd.
  • The resolution plan was approved, and October 10, 2023, was confirmed as the Trigger Date. The plan became effective from March 12, 2024.
  • As part of the resolution plan, the equity shares held by existing public shareholders (3,67,17,443 shares, constituting 86.59% of the paid-up capital) were extinguished, cancelled, and reduced.
  • The post-CIRP paid-up equity share capital was reorganized to 6,31,579 shares.
  • Fractional shares resulting from the entitlement calculation were transferred to a suspense account. Shareholders are to receive the amount they are entitled to against fractional shareholding when those shares are sold.

Disclaimer

The presentation includes standard forward-looking statements and disclaimers, noting it is for information purposes only and does not constitute an offer for securities. It is based on information considered reliable but makes no representation as to its accuracy or completeness. Forward-looking statements are subject to risks and uncertainties.