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    EIH

    EIHOTEL
    Consumer Services·12 Feb 2026
    Management Summary

    EIH Limited reported a mixed Q3 FY26, with consolidated revenue growing 9% to ₹910 crores, but PAT was impacted by a one-time wage code cost of ₹30 crores. Operational performance saw healthy RevPAR growth for Trident (12.5%) and international hotels (11%), though Oberoi brand growth was slower due to new properties in ramp-up. The company continues to expand its pipeline with 30 hotels and 2450 keys planned, and signed 4 new management contracts this quarter.

    Highlights

    5

    • Consolidated Revenue grew 9% YoY to ₹910 crores.

    • Trident Hotels RevPAR grew 12.5% in Q3, outperforming the upper upscale segment's 8.6% growth.

    • International hotels saw a good RevPAR growth of 11% driven by both occupancy and ARR increases.

    • Healthy pipeline of 30 hotels with approximately 2450 keys to be added in the next three to four years.

    • Signed new management contracts for 4 hotels (Oberoi Kabini, Oberoi Hampi, Oberoi Coorg, and 1 hotel in Cairo) in Q3.

    Concerns

    5

    • Consolidated PAT was lower YoY due to a one-time impact of ₹30 crores from wage code.

    • Q3 consolidated EBITDA growth of 6% was lower than revenue growth (9%) due to a change in business mix (faster OFS growth).

    • Oberoi Hotels RevPAR growth (5.4%) was lower than the luxury segment's 9.1% due to new hotels being in ramp-up stage.

    • Flight disruptions in December led to 26% higher cancellations, impacting occupancy and RGI.

    • YTD PAT is down 20% due to two exceptional items: ₹109 crores loss from Mashobra case in Q1 and ₹30 crores wage code impact in Q3.

    Key financials

    Metrics

    6

    Periods

    2

    Headline

    5
    • Revenue (Consolidated)
      ₹910 Cr
      YoY+9%
    • EBITDA Growth (Consolidated)
      —
      YoY+6%
    • PAT (Consolidated)
      —
      YoY-9%
    • Revenue Growth (Standalone)
      —
      YoY+12%
    • EBITDA Growth (Standalone)
      —
      YoY+8%

    EIH Q3

    1
    • RevPAR Growth
      —
      YoY+11%

    Segment breakdown

    RevPAR Growth (Q3)RGI (YTD)
    Oberoi Brand (Luxury Segment)5.4%183 index
    Trident Brand (Upper Upscale Segment)12.5%173 index
    International Hotels11%—
    Heatmap· 2 shared metrics

    Capital allocation

    7
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    internal accruals to support future expansions, both organic as well as inorganic

    Debt

    Debt disclosed

    M&A

    Oberoi Kabini

    acquisition · signed

    M&A

    Oberoi Hampi

    acquisition · signed

    M&A

    Oberoi Coorg

    acquisition · signed

    Guidance & targets

    5
    CategoryTargetPriority
    Capacity
    New Hotels Pipeline
    30 hotels, 2450 keys
    		High
    Capacity
    Oberoi Grand Kolkata Reopening (keys)
    50 keys
    		High
    Capacity
    Trident Hebbal Keys
    300 keys
    		High
    Renovation
    Oberoi Mumbai Renovation (floors)
    4 floors
    		High
    Market Outlook
    February Performance
    Very strong month
    		Medium

    EIH-owned hotels ARR and Occupancy data

    Next quarter
    CurrentNot disclosed in Q3 FY26 call
    TargetDisclosure of specific ARR and occupancy for EIH-owned hotels

    Why it matters

    Provides clearer insight into the performance of the company's core owned assets, distinct from managed properties.

    I do not have the data currently, but I can. ... We can share it with you, Abhishek, no problem whatsoever. And I apologize, we haven't given that information, but we're happy to share it with you.

    How to verify

    key_financials.segment_breakdown

    Risks & concerns

    5
    RiskSeverity

    Impact of flight disruptions on occupancy and cancellations

    Flight disruptions in December led to 26% higher cancellations, impacting occupancy and RGI for Q3. — Management acknowledged

    medium

    Slower growth for Oberoi brand due to new hotels in ramp-up stage

    New hotels (Oberoi Rajgarh and Oberoi Vindhyavilas) are in ramp-up stage, leading to slower RevPAR growth for the Oberoi brand in Q3. — Management acknowledged

    low

    One-time financial impacts affecting PAT

    PAT was impacted by a one-time ₹30 crores wage code cost in Q3 and a ₹109 crores loss from the Mashobra case in Q1. — Management acknowledged

    medium

    Domestic market sensitivity to price increases

    There has been some decline in the domestic market due to its higher sensitivity to price increases. — Management acknowledged

    low

    Negative publicity from pollution levels impacting travel to North India

    Pollution levels in North India have received negative publicity, potentially impacting travel to the region. — Management acknowledged

    low

    Q&A highlights

    8

    “One is, of course, the impact we got because of the lounge business, which is not there versus last year. Though we have compensated with a good growth in OFS to some extent the loss of the lounge business, but profitability is impacted. From an occupancy perspective, since the bookings are done prior we got impacted by cancellations, we were able to offset some of it with other bookings, but not to the whole extent.”

    Analyst challenged management on why EIH was more impacted by cancellations than peers, leading to a detailed explanation of business mix changes and partial offset.

    asked by Deepak Saha

    2 min read7 chapters

    Detailed Narrative

    01

    Q3 FY26 Operational Performance Overview

    The industry saw Q3 occupancy at 66-68% with ARR growing 9-11%, leading to a healthy RevPAR increase of 9-11%. EIH Limited's overall RevPAR also grew 11% in Q3, despite flight disruptions in December causing 26% higher cancellations. The company maintained its leadership, with 13 out of 15 hotels ranked first or second in STR benchmarking.

    02

    Brand-wise RevPAR Growth and Market Dynamics

    The Oberoi brand (luxury segment) experienced 5.4% RevPAR growth in Q3, lower than the segment's 9.1%, primarily due to new hotels (Oberoi Rajgarh and Oberoi Vindhyavilas) being in a ramp-up phase. In contrast, the Trident brand (upper upscale segment) outperformed, growing 12.5% against the industry's 8.6%. International hotels also showed strong RevPAR growth of 11%, driven by both occupancy and ARR.

    03

    Financial Performance: Consolidated and Standalone

    Consolidated revenue for Q3 FY26 was ₹910 crores, a 9% increase YoY. However, consolidated EBITDA grew at a slower 6% due to a change in business mix, with OFS growth being faster. Consolidated PAT was lower YoY, impacted by a one-time📎 ₹30 crores charge related to wage code. On a standalone basis, revenue grew 12% and EBITDA 8%, also affected by the wage code impact.

    04

    Strategic Expansion and Development Pipeline

    EIH Limited continues to expand its development pipeline, with a healthy plan of 30 hotels and approximately 2450 keys to be added over the next three to four years. In Q3, the company signed new management contracts for four hotels: Oberoi Kabini, Oberoi Hampi, Oberoi Coorg, and one hotel in Cairo, all of which are managed properties. The total key count now stands at 4,209, with 871 managed keys.

    05

    Renovation and Asset Enhancement Initiatives

    The company is actively renovating its properties to maintain competitiveness. At The Oberoi Mumbai, two floors (10th and 11th) were renovated this year, with plans to renovate another four floors in the coming financial year. The Oberoi Grand Kolkata is undergoing significant renovation, reducing room inventory to approximately 200 keys while increasing room sizes, with 50 keys expected to be operational by August/September of the current year.

    06

    Cash Position and One-time Impacts

    EIH maintains a strong cash position, with surplus funds increasing due to operational profits and a one-time📎 cash inflow of ₹115 crores from the Mashobra settlement. Despite this, YTD PAT is down 20% due to two exceptional item📎s: the ₹109 crores loss from the Mashobra case in Q1 and the ₹30 crores wage code impact in Q3.

    07

    New Luxury Residence Offering: Naila Fort

    The company introduced Naila Fort in Jaipur as its first luxury residence offering, distinct from a traditional hotel. This property features four large bedrooms, multiple living and dining rooms, a gym, and a pool, available for ₹12 lakhs. Owned by OHPL (Oberoi Hotels Private Limited), this initiative targets guests seeking a more private, intimate, high-end experience, with plans to explore a second similar opportunity.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.