Viceroy Hotels Limited — Q3 FY26 earnings call

So, we are currently in a phased-wise manner, where we are finished phase one, we are in phase two. In that, we will be spending about Rs. 20 to 30 crores on the convention centre this year from April 1st till December, we expect to complete it and bring it back to guest experience. Along with this, we will be doing a couple of rooms so that the total inventory is not affected. We see renovating the total 295 rooms would cost around Rs. 40 crores. And the balance, which is about Rs. 10 to 15 crores will be used to upgrade the lobby and the rooftop restaurant on Marriott, which will be the Phase 3 part of it. So, it is going to be timed through phases, and we are not going to take out too much inventory to protect our revenues.

Provides a detailed breakdown and timeline for the remaining ₹70 crores of the ₹120 crore CAPEX program, crucial for understanding future operational impacts and revenue protection strategies.

Asked by Vivek Gupta

The first point is that it's an already operating hotel, newly commissioned by Marriott about in 2017. So, it's a very newly operating property. And the one reason, main reason we really went after it and acquired it is because of the long stay option. It's not available much in the segment and in the area, we are looking at. And if you see in Hyderabad, there is a lot of inflow of GCCS coming in here and a lot of corporate travel that is coming in, which requires longer stay. And these Marriott Executive Apartments are more apartment style, where there is a kitchen, there is more area for a person to stay when they are on a longer front, rather than staying in a hotel room. This provides more flexibility. And that's why our occupancies are so high and we still see them going much higher at the ADR front, because there is very less supply of such inventory and there is no such supply in the next 4 to 5 years, which we have come across.

Clarifies the strategic fit of the acquisition, highlighting the focus on the underserved long-stay segment for corporate travelers and the expected high occupancy and ADRs due to limited competition.

Asked by Vivek Gupta

So, to further improve our F&B contribution, one thing is, of course, the expansion of the banqueting facility. So, once we expand our banqueting facility, we expect to do more events. Typically, what happens is, in a year, 80 to 120 days are what the expected days where most of the banqueting facility is sold out. So, on these good dates, we then can start doing instead of 80-100 events, we can start doing 200 events because of the additional facilities. So that is one of the big largest contributors to our F&B revenue. Along with that, like I said, the new rooftop bar that we are launching in Courtyard, that in itself is going to contribute another Rs. 50 lakhs every month in revenue. That's the minimum expectation that we have. So, these are some of the factors. The other thing that we have also started doing a lot is ODCs. Essentially, this is catering to some of these corporate companies for their events that they have in their offices. So, across our three hotels, this is something that we are consistently pushing and started to do more of. So, we only see growth in that as well because a lot of corporate companies have started having budgets for this sort of catering. So that's why we are confident of the increase in contribution from F&B.

Details the multi-pronged strategy to increase F&B revenue contribution, including banqueting expansion, new rooftop bar, and outdoor catering, providing confidence in achieving the 48% target.

Asked by Esha Modi

This news has come out pretty recently and we expect the train also to come in a destination which is pretty close to the airport. And the airport now is connected pretty well to our hotel, which takes about 35 minutes to 40 minutes, which is also a new part in the same time. And we see that the station for this high-speed bullet train also will come there. Hence, our hotel is very well positioned to capture that crowd. And also, because Hyderabad is becoming the leading destination for a lot of GCCs and a lot of corporate players coming into Hyderabad because of the infrastructure and the cosmopolitan nature of the population here. Seeing that, there's going to be a lot of travel from Bangalore and Chennai into Hyderabad as it has been for the last 10 years. And these trains are going to increase that transport by a huge margin and this will really help us capture that travel.

Highlights how upcoming infrastructure projects like the high-speed rail will enhance connectivity and drive demand for Hyderabad, benefiting Viceroy Hotels due to its strategic location and ability to capture increased corporate and leisure travel.

Asked by Jay

So, in terms of contribution, typically, our hotel works at about 20% to 25% contribution from the banqueting facilities. This is something that we expect to reach 30% or more because what is happening is, like I said, there are 80 to 100 constrained days where all your banqueting facilities are usually booked out. And on these days, we will have two other additional options to sell, which can take events to the size of 300 to 400 in each room. So, that way, we potentially can make 2x to 3x revenue from the facility that we have. Also, additionally, what is going to happen, adding to what Anirudh just said in terms of more demand coming in in the future, with all the connectivity that Hyderabad has, Hyderabad is going to become the epicentre for MICE activity. It's already one of the main centres of MICE activity. Additionally, now, because of the connectivity, we will become a preferred choice. And if you see the city of Hyderabad, a combination almost close to 500 rooms with 20,000 square feet of convention space is something that no other facility in our city currently has, which is why we are very bullish on this upgradation giving us very, very good fruits.

Explains the significant revenue potential from expanded banqueting facilities, projecting a rise in contribution from 20-25% to 30%+ and leveraging Hyderabad's growing MICE hub status.

Asked by Prateek Shah