EIH

EIH's core strength remains its premium positioning, with the Oberoi brand delivering a 22% RevPAR growth in Q3 FY25. This significantly outpaced the broader industry growth of 14-16%. Management emphasized that this growth was primarily driven by Average Room Rate (ARR) improvements rather than occupancy gains, as the group already operates at high occupancy levels of 79-80%.

The company has a robust pipeline of 19 properties, including 13 hotels and 3 luxury boats. Of these, 11 will be managed properties, signaling a strategic shift towards a more asset-light management contract model to complement their owned portfolio. Key upcoming milestones include the opening of Oberoi Rajgarh around August and the reopening of the renovated Oberoi Grand Calcutta in approximately 18 months.

Q3 results were tempered by the temporary closure of the Oberoi Grand in Calcutta for renovation, which reduced standalone revenue growth from a potential 11% to 6%. Additionally, the renovation of five floors at Trident Nariman Point led to asset discards and temporary capacity reduction. Management noted that excluding these impacts, the underlying operational performance remains very strong.

International operations saw a 20% RevPAR growth, benefiting from the stabilization of travel following the previous year's impact from the Israel conflict. The flight services segment also performed 'incredibly well' with significant margin improvements, driven by increased domestic and international flight frequencies in India, although specific revenue numbers for this segment are not currently disclosed.

EIH maintains a strong cash position, which is being deployed into high-priority projects. During the nine-month period, the company invested ₹241 crores in its London asset and approximately ₹200 crores in domestic pipeline projects like Tirupati, Rajgarh, and Gandikota. Management remains focused on driving high Return on Capital Employed (ROCE) through mixed-use developments in city locations like Hebbal.