Viceroy Hotels

Viceroy Hotels reported a robust Q3 FY26, with revenue from operations growing 1.5% YoY and 24.5% QoQ to ₹38.33 crores. EBITDA for the quarter increased 6.5% YoY and 55.9% QoQ, reaching ₹12.09 crores, with margins expanding to 31.5%. Profit after tax (PAT) saw a significant 50% YoY increase to ₹10.9 crores, resulting in PAT margins of 28.5%. Finance costs also declined to ₹1.15 crores from ₹1.61 crores in the prior year, reflecting improved debt management.

The company announced the acquisition of the Marriott Executive Apartments in Gachibowli, Hyderabad, for a consideration of ₹215 crores. This landmark property adds 75 executive rooms to Viceroy's portfolio and is expected to generate ₹48 crores in turnover and ₹21 crores in EBITDA for calendar year 2025. This acquisition aligns with Viceroy's long-term strategy to expand to 1,000 keys by 2030 and strengthens its presence in the premium extended-stay segment, catering to the growing demand for longer corporate stays in Hyderabad.

Viceroy Hotels is executing a ₹120 crores phase investment program. The Courtyard property's renovation is complete with a ₹50 crores investment, adding 56 new rooms and increasing ADRs from ₹6,000 to ₹6,800. Phase 2 focuses on Marriott, with ₹20-30 crores allocated this year to double convention capacity to 20,000 square feet by December 2026 and refurbish 295 rooms. Phase 3 will upgrade the lobby and rooftop restaurant with an additional ₹10-15 crores, enhancing guest experience and F&B offerings.

Hyderabad is identified as a high-conviction market, benefiting from a diversified demand mix, strong IT/pharma corporate presence, and active MICE calendar. The city's infrastructure, including the Rajiv Gandhi International Airport expansion and upcoming Southern high-speed rail corridor, is expected to significantly boost connectivity and travel. Management is bullish on Hyderabad becoming a MICE epicentre, with the company's combined 500 rooms and 20,000 sq ft convention space being a unique offering in the city.

F&B currently contributes 45% of revenues and is expected to rise to 48% post-renovation. The expansion of banqueting facilities is projected to increase its revenue contribution from 20-25% to 30% or more, by allowing for more events on currently constrained days. A new rooftop bar at Courtyard is expected to generate at least ₹50 lakhs per month in revenue. The company is also focusing on Outdoor Catering (ODCs) for corporate clients, further driving F&B growth.

Viceroy Hotels aims to expand its total key count to 1,000 by 2030, leveraging the projected 15-17% compounded annual growth of the Indian hospitality sector. The Greenfield project on Madhapur is progressing through land conversion and design stages, indicating future organic growth. The company is confident in sustaining EBITDA margins above 30% in the near term and achieving 40% in the long term, driven by operating leverage, cost discipline, and efficiency improvements.