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    EIH

    EIHOTEL
    Consumer Services·29 May 2026
    Management Summary

    EIH Limited navigated a challenging Q4 and FY26, marked by geopolitical tensions and other disruptions, yet achieved its highest-ever EBITDA. While Q4 saw modest consolidated EBITDA growth of 1% and a PAT decline due to one-time factors, the full year demonstrated robust ARR and RevPAR growth. Domestic demand proved a strong buffer against international headwinds. The company is actively renovating properties and expanding its owned and managed portfolios, though some project delays were noted.

    Highlights

    7

    • FY26 EBITDA performance was the highest in company history, despite a challenging year.

    • FY26 ARR grew 9-10% and RevPAR grew 10-12%, indicating strong pricing power.

    • Q4 International hotels (Mauritius, Oberoi Zahra, Sahl Hasheesh) saw RevPAR growth of 13%.

    • Oberoi Rajgarh property performed better than budgeted, with strong rates from the beginning.

    • Strong domestic demand compensated for the impact of geopolitical issues on foreign business.

    • Management anticipates a positive outlook for FY27, with normalized base and levers for margin and growth improvement.

    • Foresees benefits from a big summit happening in Q2 and Q3 FY27.

    Concerns

    5

    • Q4 industry occupancy was 67-69%, below last year, mainly due to the West Asia War impact.

    • Q4 consolidated EBITDA grew only 1% and PAT was down due to business mix changes, higher expenses, wage code impact, and tax impact.

    • FY26 occupancy was almost flat to last year, despite strong ARR growth.

    • Slippage in timelines for managed hotel projects was acknowledged due to owner-related delays, which are beyond EIH's direct control.

    • Oberoi Gandikota property timeline delayed by 2 years to 2030 due to a site change for better views and subsequent redesign.

    Key financials

    Metrics

    7

    Periods

    2

    Q4

    2
    • Consolidated Revenue Growth
      10%
      YoY+10%
    • Consolidated EBITDA Growth
      1%
      YoY+1%

    FY26

    5
    • Consolidated Revenue Growth
      8%
      YoY+8%
    • Consolidated EBITDA Growth
      3%
      YoY+3%
    • Owned Hotels RevPAR
      ₹17,400
    • Owned Hotels RevPAR Growth
      8.5%
      YoY+8.5%
    • Owned Hotels Occupancy
      76.8%

    Segment breakdown

    OFS Segment
    ₹145 Cr Q4 Revenue
    Owned Hotels
    ₹1,216 Cr FY26 Room Revenue₹670 Cr FY26 F&B Revenue
    List

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹600 crores

    Returns FYTD

    ₹97 crores

    Liquidity

    Cash ₹1,335 crores

    Guidance & targets

    8
    CategoryTargetPriority
    Capex
    Capex spending range
    ₹600-700 crores
    		Medium
    Profitability & Growth
    FY27 margin and growth improvement
    much more better
    		Medium
    Hotel Performance
    Kolkata Grand ramp-up
    quick ramp-up
    		Low
    Hotel Performance
    Oberoi Rajgarh rate and occupancy
    strong rate and a strong occupancy
    		Medium
    Renovation Impact
    Operational impact of renovations
    minimal
    		High
    Renovation Duration
    Trident Nariman Point renovation duration
    six months
    		High
    Project Timeline
    Oberoi Grand partial opening
    September
    		High
    Business Outlook
    Benefit from big summit
    some benefit
    		Medium

    Oberoi Grand Kolkata renovation and partial opening

    Q2 FY27
    CurrentRenovation well underway, structural issues addressed.
    TargetPartial opening in September 2026.

    Why it matters

    The timely partial opening of the renovated Oberoi Grand Kolkata is crucial for revenue generation and demonstrating execution capabilities after a significant renovation period.

    The Oberoi Grand renovation is well underway and pressing on at full speed... Currently, we're sticking to that [September].

    How to verify

    guidance_and_targets[metric='Oberoi Grand partial opening']

    Risks & concerns

    4
    RiskSeverity

    Geopolitical tensions and other disruptions impacting business

    FY26 was a 'very challenging year' due to India-Pakistan tensions, Middle East crisis, heavy rains, and airline disruptions, impacting Q4 occupancy and foreign bookings. — Management acknowledged

    high

    Negative international publicity on air quality impacting travel

    Management hypothesized that negative international press regarding poor air quality in North India might have suppressed international travel demand in January. — Management acknowledged

    medium

    Slippage in managed hotel project timelines

    Delays in management contracts are occurring due to owner-related issues, which are beyond EIH's direct control, potentially affecting the pace of managed portfolio expansion. — Management acknowledged

    medium

    Limited flight connectivity for Oberoi Rajgarh (Khajuraho)

    Khajuraho typically has limited flight connectivity, especially in summer, which is a key challenge for the new Oberoi Rajgarh property's ramp-up, though management is confident if connectivity improves. — Management acknowledged

    medium

    Q&A highlights

    6

    “I really will not comment on that. I think the analysts should be able to do that. I'm sure there are quite detailed models on each one of our hotels, so they should be able to predict that. I'm not going to comment on that.”

    Management declined to provide specific long-term revenue growth guidance, deferring to analysts, which could be interpreted as a lack of transparency or unwillingness to commit to future targets.

    asked by Deepak Verma

    2 min read5 chapters

    Detailed Narrative

    01

    Q4 and FY26 Performance Overview

    EIH Limited reported a challenging Q4 and FY26, impacted by geopolitical tensions, extended monsoons, and flight disruptions. Despite these headwinds, the company achieved its highest-ever EBITDA performance. Q4 consolidated revenue grew 10%, but EBITDA growth was limited to 1% and PAT declined due to business mix changes, higher expenses, and one-time📎 impacts. For the full year FY26, revenue grew 8%, EBITDA grew 3%, and RevPAR for owned hotels increased by 8.5% to ₹17,400, with occupancy at 76.8-77%.

    02

    Domestic Demand Resilience and International Headwinds

    Domestic demand proved highly resilient, significantly compensating for the impact of the West Asia War on foreign bookings, particularly in Q4. While foreign tourist mix historically stands at approximately 50%, the decline in international travel was offset by increased domestic spending and travel. Management noted that India remains significantly underpriced in the luxury segment compared to global markets, indicating substantial headroom for future ARR growth, with current rates well below $1,000.

    03

    Strategic Renovations and Project Updates

    EIH is undertaking significant renovations across its owned properties, including approximately 90 rooms at Oberoi Bangalore, F&B upgrades at Trident Bandra Kurla, and 4 floors each at Trident Nariman Point and Oberoi Bombay. These renovations are planned during lean months to minimize operational impact, which is expected to be minimal. The Oberoi Grand Kolkata renovation is 'well underway' and is still targeting a partial opening in September 2026, despite structural discoveries requiring extensive work.

    04

    Expansion Pipeline and Project Delays

    The company plans to add 825 keys to its owned hotels by 2030, including the Trident Vizag (2027) and a mixed-use development in Hebbal with 7.63 lakh sq ft of commercial space. The managed hotel pipeline includes 24 hotels with 1,893 keys, with two new Trident hotels (150-key in Amritsar and 150-key in Pawna) added in Q3-Q4. However, management acknowledged 'some delays' and 'slippage' in managed hotel projects due to owner-related issues, and the Oberoi Gandikota property has been delayed by two years to 2030 due to a site change and redesign for better views.

    05

    Capital Expenditure and Funding

    EIH spent between ₹600-700 crores on Capex in the current year, including approximately ₹330 crores for Mumbai land conversion from leasehold to freehold, ₹125 crores for Oberoi Rajgarh Palace (last year for operation), and around ₹100 crores for continuous renovations. The company expects to maintain this Capex range for the next one to two years, with spending increasing towards FY29-30 as larger projects come into play. The company's cash funds grew to ₹1,335 crores by the end of the year, with ₹993 crores generated from operations.

    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.