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    Apeejay Surrend.

    PARKHOTELS
    Consumer Services·11 Feb 2026
    Management Summary

    Apeejay Surrendra Park Hotels reported a strong Q3 FY26, achieving a record INR 200 crore in consolidated revenue and a 35.3% EBITDA margin, driven by high occupancy and improved ARR/RevPAR. The company is actively expanding its hotel portfolio through strategic acquisitions and new developments, alongside robust growth in its Flurys F&B segment. While some expansion timelines have shifted, management remains confident in its growth trajectory and strong financial position, with plans for significant cash flow generation from asset monetization.

    Highlights

    5

    • Consolidated revenue for Q3 FY26 was INR 200 crore, marking the first time this milestone was achieved.

    • EBITDA for Q3 FY26 was INR 71 crore, translating to a strong EBITDA margin of 35.3%.

    • The company achieved industry-leading occupancy levels of 90%, with an 11% YoY improvement in ARR and 9% in RevPAR.

    • Flurys business demonstrated robust growth, with 19% growth in Q3 FY26 and 33% for the nine months ended December 30, 2025.

    • Strategic acquisitions of Juhu (Mumbai), Malabar House, and Purity (Kerala) are progressing, adding high-quality, experience-led properties to the portfolio.

    Concerns

    2

    • Flurys expansion was slightly subdued in Q3 FY26 due to capital allocation towards hotel acquisitions, though management expects acceleration.

    • Delays in the expansion pipeline for EM Bypass (from Jan 2029 to Jan 2030), Pune (6 months), Juhu (3 months), and Navi Mumbai (from 2029 to 2030) were noted by analysts.

    Key financials

    Metrics

    11

    Periods

    3

    Headline

    2
    • Net Worth
      ₹1,329 Cr
    • Mutual Fund Investments
      ₹58 Cr

    Q3 FY26

    6
    • Consolidated Revenue
      ₹200 Cr
    • EBITDA
      ₹71 Cr
    • EBITDA Margin
      35.3%
    • Occupancy
      90%
    • ARR Improvement
      11%

    9M FY26

    3
    • Consolidated Net Revenue
      ₹524 Cr
      YoY+15.3%
    • EBITDA
      ₹165 Cr
      YoY+12.8%
    • PAT
      ₹54 Cr

    Capital allocation

    5
    high confidence
    CategoryHeadline
    Capex

    ₹1,570 crores

    Debt

    Gross ₹236 crores · Net ₹154 crores

    M&A

    Juhu, Mumbai property

    acquisition · signed

    M&A

    Malabar House at Fort Kochi and Purity at Vembanad Lake

    acquisition · closed · Consideration ₹NaN (undisclosed)

    Liquidity

    Undrawn ₹250 crores

    Healthy cash flows and mutual fund investments support financial flexibility. Undrawn credit lines of INR 250-300 crore are available.

    Guidance & targets

    17
    CategoryTargetPriority
    Room Additions
    New keys in Q4 FY26
    234 keys
    		High
    Room Additions
    New keys in FY27
    438 keys
    		High
    Room Count
    Total keys by '26-'27
    3,219 keys
    		High
    Flurys Store Additions
    New stores in Q4 FY26
    14 new stores
    		High
    Flurys Store Count
    Total stores by Q4 FY26
    120 stores
    		High
    Flurys Store Count
    Total stores by '27-'28
    150-160 stores
    		Medium
    Flurys Store Count
    Total stores by 2028
    200 stores
    		High
    Flurys Store Count
    Total stores by '29-'30
    450-500 stores
    		Medium
    Flurys Revenue
    Revenue target
    INR 500 crore
    		High
    EM Bypass Project
    Cash flow from serviced residences sales
    INR 300-350 crore
    		High
    EM Bypass Project
    Cash flow distribution (Year 1)
    30%
    		High
    EM Bypass Project
    Cash flow distribution (Year 2)
    20%
    		High
    EM Bypass Project
    Cash flow distribution (Year 3)
    30%
    		High
    EM Bypass Project
    Cash flow distribution (Year 4)
    10%
    		High
    Delhi Hotel F&B Revenue
    Improvement in F&B revenue
    at least 10%
    		Medium
    Net Debt to Equity
    Net Debt to Equity Ratio
    0.1 to 0.2
    		High
    Debt to EBITDA
    Debt to EBITDA Ratio
    below two
    		High

    Flurys store additions

    Q4 FY26
    Current104 operational outlets
    Target120 stores

    Why it matters

    Tracking the pace of Flurys' expansion is key to its growth strategy and market penetration.

    In Q4 FY '26 we plan to add 14 new stores while 27 is expected to mark a phase of accelerated store additions as the brand continues to expand its national footprint.

    How to verify

    guidance_and_targets[metric='New stores in Q4 FY26']

    Risks & concerns

    2
    RiskSeverity

    Slowing F&B retail market

    The F&B retail space is experiencing a slight slowdown, with competitors shutting down stores, impacting Flurys' expansion pace. — Management acknowledged

    medium

    Delays in expansion pipeline projects

    EM Bypass, Pune, Juhu, and Navi Mumbai projects have experienced delays, pushing back operationalization timelines. — Analyst acknowledged

    medium

    Q&A highlights

    7

    “Our FSI today has increased from 2.5 lakhs to 6 lakh 72 thousand square feet. Currently, at the moment, we are going ahead with the project of 250 rooms. And at the same time, we are reassessing in terms of how we would we like to monetize this asset and bring in additional value to our shareholders. It could happen that it could become a residential cum hotel, it could also happen that it could become a commercial or an IT park cum hotel.”

    Management explained the significant increase in FSI for the Pune project and outlined various monetization options, indicating potential for substantial shareholder value creation beyond just a hotel.

    asked by Archana Gude

    2 min read5 chapters

    Detailed Narrative

    01

    Q3 FY26 Performance Highlights

    Apeejay Surrendra Park Hotels delivered its best-ever Q3 FY26 performance, with consolidated revenues reaching INR 200 crore for the first time. The company reported an EBITDA of INR 71 crore, translating to a robust EBITDA margin of 35.3%. This strong performance was underpinned by industry-leading occupancy levels of 90% and year-on-year improvements of 11% in ARR and 9% in RevPAR, reflecting disciplined execution and resilient demand across core markets.

    02

    Strategic Expansion and Pipeline Updates

    The company is actively pursuing both organic and inorganic growth. Key acquisitions include a 76% stake in a Juhu, Mumbai property (to increase to 90% by FY27, opening March 2027) and the Malabar House and Purity properties in Kerala for INR 64 crore in Q3 FY25. The expansion pipeline includes 234 new keys in Q4 FY26 across 6 hotels and an additional 438 keys in FY27, bringing the total room count to 3,219 keys across 56 hotels by FY27. Projects like Park Pune and Navi Mumbai are seeing increased FSI, leading to higher room counts (Pune 250 rooms, Navi Mumbai 300+ rooms) and enhanced monetization potential.

    03

    Flurys Business Growth and Outlook

    The iconic Flurys brand continues its growth trajectory, recording a 19% top-line growth in Q3 FY26 and 33% for the nine months. Despite a slight slowdown in Q3 store additions due to capital allocation towards hotel projects and a general F&B market slowdown🌐, the company plans to add 14 new stores in Q4 FY26, reaching 120 stores. The long-term target is to expand to 200 stores by 2028 and 450-500 stores by FY30, with a revenue target of INR 500 crore in 3-4 years, focusing on high profitability and same-store growth of 9%.

    04

    Asset Monetization and Capital Allocation

    The company maintains a strong financial position with a net worth of INR 1,329 crore and mutual fund investments of INR 58 crore. The Park Unizen project (EM Bypass Kolkata) is expected to generate INR 300-350 crore in cash flow over the next three years from serviced residence sales, with 30% expected in the current calendar year. This cash flow, along with potential monetization of the increased FSI at Park Pune, will support the total capex plan of INR 1,570 crore and help maintain a net debt to equity ratio between 0.1 and 0.2, and debt to EBITDA below two.

    05

    Renovation and Asset Enhancement

    Apeejay Surrendra Park Hotels is committed to continuous asset enhancement through renovations. The company typically renovates about 10% of its inventory annually, with a cost of approximately INR 25 lakhs per room. In the current year, renovations include 28 rooms in Delhi, 30 keys in Chennai, 20 keys in Bangalore, and 60 rooms in Kolkata. These upgrades, particularly F&B enhancements in Delhi, are expected to drive at least a 10% improvement in F&B revenues for the Delhi hotel.

    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.