Juniper Hotels

Juniper Hotels reported a record Q3 FY26 with its highest-ever quarterly revenue of ₹300 crores, marking a 15% year-on-year growth. This strong performance was driven by healthy demand and rising Average Room Rates (ARRs), with portfolio ARR growing 9% year-on-year to ₹12,818. The company achieved a significant 500 basis point expansion in EBITDA margin, reaching 44%, and reported a 31% year-on-year growth in EBITDA to ₹132 crores. Profit After Tax surged by 101% year-on-year to ₹65 crores, contributing to a 9-month PAT of ₹91.2 crores, a 459% growth.

Juniper's strategy focuses on building a portfolio of high-quality luxury hospitality assets in key gateway cities and emerging destinations, with a strong bias towards luxury and upper upscale positioning. India's economy is growing at 8.2% (July-September), fueling premium experience-led travel. Domestic air traffic is projected to grow 7-10% in FY26, reaching 175-180 million passengers. The Indian hospitality market is expected to grow at a CAGR of 9.4% by 2030, with demand outpacing supply, particularly in the luxury segment where supply growth is anticipated to be less than 5% CAGR until 2030.

The company's expansion pipeline includes Bengaluru Phase 1 (235 keys) commencing operations in Q1 FY27, with Phase 2 (270 keys) construction targeted for H1 FY27. The Bengaluru property, with a total of 508 keys, is being developed at ₹1.75 crores per key and is expected to generate ₹25+ crores EBITDA in FY27 and ₹50-55 crores in FY28. In Kaziranga, 111 keys are on track, and Guwahati (340 keys) construction is targeted for Q2 FY27. These projects align with the strategy to capitalize on high-growth markets and improved connectivity.

Juniper Hotels maintains a strong balance sheet with a net bank debt of ₹569 crores and a net debt-to-EBITDA ratio of 1.3. The average cost of borrowing is 8.3%. Over the past nine months, the company repaid ₹30 crores of term loans and ₹88 crores of high-cost ECBs. Future capex for FY27 (₹274 crores) and FY28 (₹525 crores) for projects like Bengaluru Phase 2, Kaziranga, and Guwahati will be funded through robust cash flows (generating ₹300 crores gross cash annually) and available debt headroom. The company aims to maintain a prudent debt-to-EBITDA ratio below 2.5x.

Food and Beverage (F&B) revenues grew significantly by 25% year-on-year to ₹94 crores in Q3 FY26, contributing 32% to total revenue. This growth was primarily driven by a 39% rise in events, with Grand Hyatt and Ahmedabad being key contributors. Management noted that F&B, a traditional strength for Hyatt, is a focus area and expects its contribution to revenue to normally trend to 33-34% from the current 31%. Operational efficiencies, including cluster-led cost reductions and increased use of renewable energy, contributed to the 500 basis point EBITDA margin improvement.

Juniper is actively evaluating additional value-accretive opportunities, including adding 314 keys to its flagship Grand Hyatt Mumbai property. Hyderabad and Navi Mumbai are high-priority markets for future expansion, with the company actively seeking ready-build, greenfield, or brownfield opportunities. Juniper is also a resolution applicant for Gstaad Hotels (JW Marriott Bangalore), an asset with an estimated ₹100+ crores EBITDA, and is keenly pursuing this acquisition. The company's focus remains on acquiring 'big box' assets that are value-accretive and align with its disciplined capital allocation strategy.