Detailed Narrative
Strong Q2 FY26 Financial Performance
Brigade Hotel Ventures Limited delivered a robust Q2 FY26, with total income growing 20% year-on-year to INR 130 crores. Profit after tax saw a significant increase of 58% year-on-year, reaching INR 11 crores. EBITDA rose 9% to INR 41 crores, though this was impacted by a one-time📎 property tax expense of INR 6 crores. Excluding this, operational EBITDA growth would have been 25% year-on-year.
Robust Operational Metrics and Market Performance
The company reported strong operational metrics, with Average Room Rate (ARR) at INR 7,106 and occupancy at 75.6% for Q2 FY26, leading to a RevPAR of INR 5,374, a 13% year-on-year growth. Bangalore hotels demonstrated particularly strong performance, with ARR growing 19% and RevPAR growing 14%. Gift City also showed traction, with ARR and RevPAR growths of 23% and 16% respectively.
Strategic Expansion and Capex Plans
Brigade Hotel Ventures is embarking on a strategic expansion phase, aiming to double its hotel portfolio by adding approximately 1,700 keys over the next five years. This expansion involves a total capex investment of INR 3,600 crores. Key upcoming projects include Marriott properties in Chennai, Bangalore, and Thiruvananthapuram, Grand Hyatt Chennai, Intercontinental Hotel in Hyderabad, and Ritz-Carlton Wellness Resort in Kerala. The capex is expected to be back-ended, with 60% coming in the third and fourth years.
Capital Allocation and Debt Management
From its IPO proceeds of INR 886 crores, the company utilized INR 468 crores in Q2 FY26 for debt repayment, resulting in significant interest savings. An additional INR 107 crores was deployed for the acquisition of a prime land parcel for an upscale hotel near Tumkur Road. As of September 30, 2025, the company's net cash stood at INR 111 crores, with a total of INR 592 crores deployed from IPO proceeds.
Focus on Cost Control and Sustainability
Management highlighted successful efforts in cost control and productivity, with utilities as a percentage of operating revenues reducing to 5.6% for Q2 FY26, down from 7% in previous quarters. The company is also actively advancing renewable energy adoption, which currently stands at close to 60% across its portfolio, with some hotels exceeding 90% renewable energy use.
Market Outlook and Future Strategy
The company anticipates sustained growth momentum in H2 FY26, driven by robust corporate demand, festival travel, longer leisure stays, and the wedding season. While October was slower due to Diwali, November and December are expected to be strong. Management aims to maintain ARR growth in the mid-teens to high-teens for the next two quarters and RevPAR in the mid-teens. The portfolio will see a significant increase in 5-star luxury deluxe properties by FY28-29.
Guest Experience and F&B Initiatives
Brigade Hotel Ventures remains committed to elevating guest experiences and driving F&B revenue. Renovations are underway at Grand Mercure Bangalore (restaurant relaunched) and Grand Mercure Gift City (bar renovation, new Pan-Asian restaurants planned). The F&B business registered 14% year-on-year growth, driven by strong MICE, weddings, and social events. The Sheraton Grand, a 5-star deluxe property, is particularly contributing to healthy MICE-driven F&B trends.