Apeejay Surrendra Park Hotels Limited — Q4 FY26

Apeejay Surrendra Park Hotels Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=cjMB15vT0cI Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the PJ Surendra Park Hotel Limited Q4 FI26 earnings conference call hosted by PL Capital. 0:12 12 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds Should you need assistance during this conference call, please signal an operator by pressing start 10 on a 0:29 29 seconds touchstone phone. Please note that this conference is from college. I now hand the conference over to Mr. 0:37 37 seconds Janesh Jooshi from PL Capital. Thank you and over to you sir. 0:42 42 seconds Uh hi uh on behalf of uh PL Capital I welcome you all to the uh 4Q FI26 uh 0:49 49 seconds earnings call of APJ Surendra Park Hotels Limited. Uh we have with us the management uh represented by Priya 0:57 57 seconds Paulal chairperson and executive director Mr. Vijay Dwan MD and Mr. Atul 1:04 1 minute, 4 seconds Kosla uh senior vice president finance and CFO. I would now like to hand over the management uh uh for opening remarks. Uh over to you ma'am. 1:15 1 minute, 15 seconds Thank you. Thank you Mr. Jooshi. Uh good afternoon everyone. Thank you for joining us today to discuss our fourth quarter and financial year 2026 1:24 1 minute, 24 seconds earnings. On behalf of the board and the management team of APJ Sundra Park Hotels Limited, I would like to extend a very warm welcome to each and every one of you. 1:34 1 minute, 34 seconds FY26 and particularly the final quarter of this year was marked by a dynamic operating environment for the hospitality industry. The sector 1:43 1 minute, 43 seconds witnessed periods of volatility driven by geopolitical developments, disruptions in international travel flows, intermittent supply side 1:52 1 minute, 52 seconds constraints including LPG shortages in select markets, inflationary pressures across operating costs and fluctuations 1:59 1 minute, 59 seconds in travel sentiment across certain regions. 2:03 2 minutes, 3 seconds Despite these challenge challenges, the Indian hospitality industry continued to demonstrate strong resilience supported 2:10 2 minutes, 10 seconds by robust domestic demand, sustained momentum in weddings and mice activity and increasing customer preh consumer 2:18 2 minutes, 18 seconds preference towards premium differentiated and experience-led travel. 2:23 2 minutes, 23 seconds Importantly, supply growth within the premium hospitality segment continues to be measured relative to the demand 2:30 2 minutes, 30 seconds growth across most key markets. This continues to support healthy occupancies, pricing strength and long-term confidence across the sector. 2:39 2 minutes, 39 seconds The industry is also benefiting from broader structural tailwinds, including res rising uh disposable incomes, 2:47 2 minutes, 47 seconds improving travel infrastructure, growth in organized travel, increasing corporate mobility and strong domestic tourism trends. 2:57 2 minutes, 57 seconds Against this backdrop, FY26 was another year of steady operational performance and strategic progress for the company. 3:04 3 minutes, 4 seconds We continued to strengthen our position across hospitality, food and beverage, and experiential lifestyle segments with 3:12 3 minutes, 12 seconds a healthy momentum across our core hotel portfolio. Our brands can continue to demonstrate strong market positioning 3:20 3 minutes, 20 seconds across several key studies with year-round occupancy at 91% and Rev One Revpar leadership across the upper 3:29 3 minutes, 29 seconds upscale segment reflecting the differentiated nature of our hospitality offerings and the strength of our customer engagement and loyalty. 3:38 3 minutes, 38 seconds During the year, we also continued to expand and diversify our hospitality platform through a balanced mix of 3:46 3 minutes, 46 seconds owned, managed, and leased assets while maintaining focused on a disciplined and capital efficient growth. At the same 3:54 3 minutes, 54 seconds time, we continue to make progress across our long-term development pipeline spanning hospitalityled 4:02 4 minutes, 2 seconds mixeduse developments, urban destinations, and leisure markets. Our residential and hotel project in Kolkata 4:10 4 minutes, 10 seconds has had a successful start with 29 apartments sold at market leading rates. 4:16 4 minutes, 16 seconds Vishaka Patnham will commence construction very shortly and our boutique property in Juu will be ready 4:23 4 minutes, 23 seconds within a year. Our lifestyle eled le ecosystem across restaurants, nightlife and experiential food and beverage 4:31 4 minutes, 31 seconds formats also continued to see encouraging traction during the year supported by strong consumer engagement 4:39 4 minutes, 39 seconds and increasing preference for differentiated social experiences. 4:43 4 minutes, 43 seconds Several of our hospitality and FNB formats also received important industry recognitions and accolades during the year reinforcing the strength of our brands and design-led philosophy. 4:56 4 minutes, 56 seconds Flurries our pastry confectionary brand with over 110 stores continued its growth momentum and further 5:04 5 minutes, 4 seconds strengthening its presence across a few geographies. The business has continued to scale in a disciplined manner across 5:12 5 minutes, 12 seconds multiple formats and cities and over the next year or two the ramp up uh will be 5:19 5 minutes, 19 seconds a significant across the rest of the India. 5:23 5 minutes, 23 seconds Operationally, the year also marked important progress in strengthening our internal cap capabilities and long-term operating 5:33 5 minutes, 33 seconds platform initiatives around technology integration, process improvement, and sustainability. 5:41 5 minutes, 41 seconds These continue to remain key focus areas as we build a stronger and more future ready organization. 5:48 5 minutes, 48 seconds As we look ahead to FY30, our vision is centered on building a stronger, more scalable and future ready 5:57 5 minutes, 57 seconds hospitality platform, we are strategically expanding our presence in the fast growing mid-market segment while accelerating our asset light road 6:06 6 minutes, 6 seconds strategy to drive efficient and sustainable expansion with a clear target of surpassing 6,000 keys by FY30. 6:15 6 minutes, 15 seconds We remain focused on maintaining industry-leading occupancy levels and enhancing profitability across our 6:23 6 minutes, 23 seconds portfolio. At the same time, we continue to unlock embedded real estate value while leveraging technology-led 6:31 6 minutes, 31 seconds initiatives such as no one, our AIdriven upselling pro platform to further 6:39 6 minutes, 39 seconds elevate guest experiences and revenue optimization. 6:43 6 minutes, 43 seconds With a portfolio of differentiated brands, strong positioning across hospitality and lifestyle segments, and a growing development pipeline across 6:51 6 minutes, 51 seconds both owned and managed assets, we remain confident about our long-term growth prospects. 6:58 6 minutes, 58 seconds With this, I would now like to hand over to Mr. Vijay Devan, managing director of our company, who will take you through the detailed operational and financial 7:06 7 minutes, 6 seconds highlights for the quarter and for the year. Thank you very much, Mr. Dan. Mr. 7:13 7 minutes, 13 seconds Thank you. Thank you, Miss Paul. 7:16 7 minutes, 16 seconds Uh, good afternoon everyone and a very warm welcome to each one of you. 7:23 7 minutes, 23 seconds It is always a pleasure to have you with us and today especially so. 7:30 7 minutes, 30 seconds On behalf of my colleagues across the organization, I thank you for your trust, your patience, and your belief in 7:38 7 minutes, 38 seconds what we are building at JSA Park Hotels Limited. 7:45 7 minutes, 45 seconds FY16 has been a significant year with revenue crossing the 700 cr milestone for the first time. 7:56 7 minutes, 56 seconds Q4 continued to reflect resilient operating performance across the portfolio with company maintaining its 8:04 8 minutes, 4 seconds leadership position in occupancy and repar. 8:08 8 minutes, 8 seconds The sale of service apartments at EM bypass Kolkata has exceeded expectations 8:15 8 minutes, 15 seconds resulting in substantial improvement in this year's cash flow. 8:22 8 minutes, 22 seconds The 75% dividend payout approved by the board reflects the strength of our balance sheet and growth momentum. 8:30 8 minutes, 30 seconds The outlook remains positive and we continue to focus on creating long-term value for our shareholders through 8:39 8 minutes, 39 seconds strategic portfolio expansion, enhanced guest centric experiences, operational excellence and sustained management margin improvement. 8:51 8 minutes, 51 seconds In Q4 FY26, consolidated operating revenue stood at 8:58 8 minutes, 58 seconds 184 crores, up 4% yearonear, while IBIDA stood at INR 53 crores with an IBIDA margin of 28.85%. 9:11 9 minutes, 11 seconds Profit after tax stood at 12 crores with a PAT margin of 6.44%. 9:21 9 minutes, 21 seconds The company maintains its leadership in occupancy and repaired. The ARR increased 3% 9:29 9 minutes, 29 seconds on a year-to-year basis at INR 9165 9:35 9 minutes, 35 seconds and REPAR remained resilient at 8149 despite a very high pace. The park 9:45 9 minutes, 45 seconds Kolkata achieved occupancy of 100% for the quarter and for the year maintaining its record of worldleading occupancy. 9:55 9 minutes, 55 seconds The park Chennai at 95% and the Park Navi Mumbai at 93% were among the top three in occupancy. 10:05 10 minutes, 5 seconds For the full financial year, consolidated operating revenue stood at 77 cr registering a growth of 12% 10:15 10 minutes, 15 seconds yearonear while Ibida stood at a 218 cr with an eida margin of 30.82%. 10:25 10 minutes, 25 seconds Profit after tax stood at 66 cr with a pad margin of 9.21%. 10:32 10 minutes, 32 seconds Occupancy for the year remained strong at 91% while ARR increased 9% yearonear to 8304. 10:44 10 minutes, 44 seconds Repar also grew 7% year on year to 7584 reflecting continued pricing strength 10:52 10 minutes, 52 seconds and healthy operating momentum across the portfolio. 10:58 10 minutes, 58 seconds Although profitability during the year was impacted by war and tension in the Middle East, higher depreciation and 11:06 11 minutes, 6 seconds finance cost linked to ongoing expansion initiatives. The overall operating environment remained healthy and demand 11:14 11 minutes, 14 seconds trends across most of our key markets continued to be encouraging. 11:20 11 minutes, 20 seconds Our performance continued to outperform the indust industry across several major markets including Kolkata, New Delhi, 11:28 11 minutes, 28 seconds Bangalore, Goa, Na'vi, Mumbai and Weis reinforcing the strength of our differentiated design-led hospitality 11:38 11 minutes, 38 seconds model and lifestyle guest engagement strategy. 11:43 11 minutes, 43 seconds Food and beverage continues to remain a significant contributor to our overall hospitality ecosystem and a key 11:51 11 minutes, 51 seconds differentiator for our brands. During FI26, FNB revenues crossed INR 300 crores and 12:00 12 minutes contributed approximately 43% of total revenues supported by healthy traction 12:07 12 minutes, 7 seconds across restaurants, nightife and exper experiential dining formats. 12:14 12 minutes, 14 seconds During the year, we won several awards. 12:17 12 minutes, 17 seconds Ranbas the palace patala featured in the preside global list of architecture and design awards. Ranbas the palace was 12:26 12 minutes, 26 seconds also awarded with one Michelin key demonstrating high quality of our product and differentiated service 12:33 12 minutes, 33 seconds experiences. The Lotus Palace Chattinard featured in the travel and leisure list of 100 best new hotels in the world. 12:43 12 minutes, 43 seconds During the quarter several several of our signature outlets including Dusk at the park Na'vi Mumbai acquired the park 12:50 12 minutes, 50 seconds Bangalore acquired the park Na'vi Mumbai and someplace else received important industry recognitions and awards further 12:59 12 minutes, 59 seconds reinforcing the strength of our experiential FnB positioning and lifestyle brand ecosystem 13:08 13 minutes, 8 seconds also maintained strong momentum during the quarter with continu continued expansion across formats and cities, further strengthening its presence 13:17 13 minutes, 17 seconds within the retail FNB segment. The brand has now grown to 110 outlets, reflecting steady and disciplined scale up 13:26 13 minutes, 26 seconds supported by improving consumer traction and strong brand affinity. 13:32 13 minutes, 32 seconds Rur plans to add more than 30 outlets over the next 10 months. It plans to enter the new markets of NCR with eight 13:41 13 minutes, 41 seconds outlets, Puna five outlets and Bangalore four outlets. In preparation for its centin centenary year in 2027, it plans 13:51 13 minutes, 51 seconds to reach 100 outlets in West Bengal alone. 13:56 13 minutes, 56 seconds Flurries delivered robust revenue growth of 29% yearonear during FI26 while 14:04 14 minutes, 4 seconds continuing to deepen customer engagement across markets. We are pleased to welcome Mr. Rohit Kakra as the new chief 14:12 14 minutes, 12 seconds operating officer of Flur effective April 2026 and we continue to strengthen leadership capabilities to support the next phase of growth for the brand. Mr. 14:24 14 minutes, 24 seconds Rohit Kakra brings in 23 years of experience and was previously the chief operating officer at Costa Coffee and 14:32 14 minutes, 32 seconds Pizza Hut. On the development front, we have made substantial progress across our growth pipeline. 14:41 14 minutes, 41 seconds At EM bypass, we launched our integrated hospitality-led mixeduse development 14:47 14 minutes, 47 seconds comprising of 218 hotel rooms and 69 service apartments. Out of the two blocks in this project, one block has 14:56 14 minutes, 56 seconds been launched. Out of the 34 apartments in the block, 29 have been sold at an average realization price of rupees 15:05 15 minutes, 5 seconds 20,857 per square foot. The sale has exceeded our expectations and have contributed 15:14 15 minutes, 14 seconds positively to cash flows during the year. 15:18 15 minutes, 18 seconds cash flows have improved by over 11 crores up to April 26 on account of EM bypass apartment sales. The second block 15:26 15 minutes, 26 seconds of apartments is expected to be launched in September October this year. From EM bypass sale, we expect additional cash 15:35 15 minutes, 35 seconds flow improvement of close to 70 crores during the course of this year. 15:42 15 minutes, 42 seconds We have also finalized the design for the park Mumbai at JU comprising now 78 rooms with project commencement planned 15:50 15 minutes, 50 seconds in June 26 and completion targeted in about a by about March 27 15:59 15 minutes, 59 seconds in weak with environment clearances now in place for the upcoming 100 room development project launch is expected 16:07 16 minutes, 7 seconds to be on ground in August of 202 to six project teams are already at site and site preparation has started. 16:18 16 minutes, 18 seconds Expansion remained a key focus area during the year as we continue to strengthen our presence across leisure, 16:25 16 minutes, 25 seconds pilgrimage and urban destinations through a disciplined asset light strategy. During FY26, we launched seven 16:33 16 minutes, 33 seconds hospitality properties, adding 283 keys to our network, including three hotel 16:40 16 minutes, 40 seconds launches during the quarter itself. Zone by the park Dali, zone connect by the 16:46 16 minutes, 46 seconds park Ganto and zone connect by the park Katra. During FI27, 16:53 16 minutes, 53 seconds we plan to add 12 hotels totaling to 7 400 sorry 472 keys out of it out of 17:02 17 minutes, 2 seconds which eight would be at satellite site of the model taking the total key count past the 3,000 keys by FI27. 17:11 17 minutes, 11 seconds Over the next four years, we plan to double the number of hotels from 42 hotels presently to 85 hotels and take 17:19 17 minutes, 19 seconds the key count from 2,677 to 6,635. 17:26 17 minutes, 26 seconds A 2x growth will happen in our owned hotels and a 3x growth in the asset light model under zone by the park and zone connect by the park. 17:39 17 minutes, 39 seconds In other areas, we also completed the successful implementation of SAP S4 HANA during the year, which will strengthen 17:48 17 minutes, 48 seconds financial controls, improve reporting quality, enhance overall operational efficiency across the organization. 17:57 17 minutes, 57 seconds Sustainability also remained an important focus area for us and under the PLA park planet plus program we have 18:05 18 minutes, 5 seconds reached 100% or near 100% uh green mobility and guest services in our own hotels 18:14 18 minutes, 14 seconds looking ahead the demand environment for the Indian hospitality sector remains favorable structural growth drivers including 18:23 18 minutes, 23 seconds domestic travel weddings and mice These businesses experiential consumption and limited supply growth across several 18:31 18 minutes, 31 seconds markets continue to support strong medium to long-term industry fundamentals. We remain well position to 18:39 18 minutes, 39 seconds capture this growth. At APJ Sindra Park Hotels, our journey continues to be guided by the principles of growth, 18:47 18 minutes, 47 seconds governance, and green. We remain committed to building an organization that combines innovation with responsibility while creating meaningful 18:56 18 minutes, 56 seconds experiences for our guests and long-term opportunities for our people. 19:03 19 minutes, 3 seconds Equally important, we continue to strengthen our culture as a people first and AI first organization. We believe 19:10 19 minutes, 10 seconds technology and artificial intelligence are powerful enablers of growth, efficiency, and gift satisfaction. But 19:18 19 minutes, 18 seconds our success will always be driven by our people, their c creativity, commitment and passion for hospitality. 19:27 19 minutes, 27 seconds With a strong balance sheet, a robust development pipeline, growing brand equity and committed leadership team, we 19:34 19 minutes, 34 seconds remain well positioned to capture the opportunities emerging across the Indian hospitality sector and to deliver sustained long-term growth. 19:45 19 minutes, 45 seconds I would like to extend at this stage my heartfelt gratitude to our shareholders, 19:52 19 minutes, 52 seconds customers, team members and business partners for their continued trust and support. Their confidence inspires us to 20:00 20 minutes keep innovating, growing and creating endure enduring value for all our stakeholders. 20:08 20 minutes, 8 seconds Thank you. 20:11 20 minutes, 11 seconds With this, I would like to hand over to the moderator once again to open the floor for question and answer session. 20:23 20 minutes, 23 seconds Thank you very much. We will now begin with the question and answer. 20:28 20 minutes, 28 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove 20:36 20 minutes, 36 seconds yourself from the question queue, you may press star and two. Participants, you are requested to use handsets while asking a question. 20:45 20 minutes, 45 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 20:56 20 minutes, 56 seconds We have the first question from the line of Arjuna Guri from IDBI Capital. Please go ahead. 21:03 21 minutes, 3 seconds Hi, thank you for the opportunity. So, I have got three questions. Firstly on the hotel side uh so this ADR has been uh 21:10 21 minutes, 10 seconds you know uh has shown some decline over sequential quarter as well as on y there was just 3% growth so how we should read 21:19 21 minutes, 19 seconds these numbers where there's some cancellation during Q4 which led to this degrowth 21:26 21 minutes, 26 seconds so yes you are right uh there have been uh cancellations because of the uh geopolitical situation 21:36 21 minutes, 36 seconds and uh the war in the Middle East. Large significant cancellations did take place 21:43 21 minutes, 43 seconds in Delhi as well as in Hyderabad. But uh things have uh stabilized now and we expect 21:51 21 minutes, 51 seconds uh the the conditions to further improve starting now and uh we expect that the 21:58 21 minutes, 58 seconds growth will continue to be strong for us uh as we move forward. 22:05 22 minutes, 5 seconds Okay. So even on full year earlier you know you had guided mid- teens kind of growth uh on top line uh but somewhere 22:14 22 minutes, 14 seconds we're at 12%. So is that um is that you know we need to really work on uh some 22:21 22 minutes, 21 seconds uh red part part or what is really missing that we missed out on that 15% mark sir. 22:29 22 minutes, 29 seconds So 12% considering there were two uh two disruptions one would say two disruptions have taken place 22:38 22 minutes, 38 seconds uh during the course of the year one is the disruption which took place because of operation Sindur which happened in 22:46 22 minutes, 46 seconds quarter one and the second disruption has taken place because of the war in the Middle East which started towards 22:54 22 minutes, 54 seconds the end of February and continued uh right into April and still uh still 23:02 23 minutes, 2 seconds the settlement has not yet happened but the signs are looking very positive and we hope that over the next week or so 23:11 23 minutes, 11 seconds that the situation comes back to normal uh through the extension of this uh 60-day ceasefire 23:19 23 minutes, 19 seconds and uh then that should lead to definitely uh an improvement in performance. Already we are seeing that 23:27 23 minutes, 27 seconds uh domestic uh uh dome India's uh domestic travel was strong and it 23:34 23 minutes, 34 seconds continues to be strong and uh we are a strong domestic player and uh we should 23:41 23 minutes, 41 seconds be able to take advantage of that. So the the 12% growth if you are saying I I would say that the 12% growth 23:49 23 minutes, 49 seconds considering the fact that there were two dis disruptions has been very good. 23:55 23 minutes, 55 seconds Okay. Okay. All right. And the second question is on furries. Uh so the total number at the end of FI26 obviously lower compared to what we guided before. 24:05 24 minutes, 5 seconds So uh is that are there any uh you know challenges on the expansion uh what we didn't en uh earlier or what are the 24:13 24 minutes, 13 seconds achievable expansion plans for next two years? 24:18 24 minutes, 18 seconds So right now the the way the expansion is being planned we plan to add we are at 110 outlets 24:26 24 minutes, 26 seconds right we are definitely uh going to add 30 more outlets during the course of the 24:33 24 minutes, 33 seconds next 10 months and this expansion is going to happen largely in Delhi where 24:41 24 minutes, 41 seconds we plan to add eight loud lists and then in Punea we plan to add uh five outlets 24:50 24 minutes, 50 seconds and with this and then of course we have plans for West Bengal, Hyderabad and 24:56 24 minutes, 56 seconds Bangalore also. So adding 30 outlets is is definitely going to happen. We plan 25:03 25 minutes, 3 seconds to take it from current level of 110 to 140 outlets or maybe a little bit more 25:10 25 minutes, 10 seconds and then the plan remains to add 40 to 50 outlets of fluise uh over the next uh four years to 2030. 25:20 25 minutes, 20 seconds Uh and we as I mentioned we have uh strengthened our leadership team with the appointment of Mr. Rohit Kakra who 25:29 25 minutes, 29 seconds has joined in as the chief operating officer. Firstly, we welcome him and then he has a lot of experience in this 25:37 25 minutes, 37 seconds retail FNB format. uh 23 years of experience and a good experience in 25:44 25 minutes, 44 seconds being the chief operating officer at uh at uh Costa Coffee and Pizza Hut and we 25:51 25 minutes, 51 seconds believe now under his leadership and a strong leadership team which already exists that we would be able to achieve the numbers we are committing to. 26:04 26 minutes, 4 seconds Right sir is any uh bifurcation you would like to give of this 30 numbers of flurries will it be more scooted towards 26:11 26 minutes, 11 seconds uh cur or more the tea c this um tea rooms and cafes 26:19 26 minutes, 19 seconds largely it is going to be on cafes but yes there will be one or two flagship stores in each of the markets we enter 26:28 26 minutes, 28 seconds like in Delhi we expect at least two flagship stores Delhi when I'm saying It is Delhi NCR 26:35 26 minutes, 35 seconds but large amount of this expansion is largely going to be in the cafe format and we feel that the cafe format is the most promising as we move forward. 26:47 26 minutes, 47 seconds Right sir. So thank you so much and all the best sir. Thank you. 26:52 26 minutes, 52 seconds Thank you Archa. Thank you for being with us. 26:57 26 minutes, 57 seconds Thank you. Before we take the next question, a reminder to all the participants. You may press star and one to ask question. 27:06 27 minutes, 6 seconds We have the next question from the line of Malak. Please go ahead. Hello. 27:14 27 minutes, 14 seconds Yeah, I have a couple of questions. What are the key growth drivers going forward given our high occupancy levels and the 27:23 27 minutes, 23 seconds meaning and calculation of 100% occupancy for Kolkata hotel? 27:32 27 minutes, 32 seconds uh the focus is going to be uh on ARR. 27:38 27 minutes, 38 seconds We we we are during the course of the year uh going to be carrying out uh room renovations uh across our properties. 27:49 27 minutes, 49 seconds We are going to be renovating at Chennai, Bangalore, Kolkata, Vishaka Patnham. 27:56 27 minutes, 56 seconds So this improvement in the product is going to definitely help us in improving 28:03 28 minutes, 3 seconds our ARR as we go forward. Also there is there is no doubt that there is 28:10 28 minutes, 10 seconds a significant demand supply gap and it continues to be there. As you all know, India has only two lakh 16,000 rooms in 28:19 28 minutes, 19 seconds the branded category and not much of supply is coming in as we are moving forward. So demand side is continues to 28:28 28 minutes, 28 seconds be strong and the supply is lower by at least 200 to 300 basis points. So that 28:36 28 minutes, 36 seconds should help us in improving ARRS and that should drive our growth going forward in the existing properties. 28:45 28 minutes, 45 seconds We do as you know that during the course of last year we had opened the park Ranbas the palace at Patiala. We also 28:54 28 minutes, 54 seconds opened the Lotus Palace, the Lotus Palace at Chetinard. And we have completed the acquisition of Purity at 29:04 29 minutes, 4 seconds the the 17 room property at Purity in Cochen on the Wemanard Lake. 29:13 29 minutes, 13 seconds These properties firstly, Purity was only operating for for 3 months in the last financial year. So that property is 29:21 29 minutes, 21 seconds going to add our growth into our growth story and also along with this the two properties the two palace hotels are 29:30 29 minutes, 30 seconds going to further stabilize and drive our growth strategy going forward. 29:36 29 minutes, 36 seconds Additional of course growth will happen because of the expansion on the asset light side of the model and also the 29:43 29 minutes, 43 seconds addition of three lease properties which we plan to acquire during the course of the year. 29:50 29 minutes, 50 seconds And of course along with that we are to complete the uh acquisition of the Malavar house at coaching which should 30:00 30 minutes happen over the next month or so and with that also there would be increase in our in our in our performance and in 30:08 30 minutes, 8 seconds our revenue model. Alongside this there is going to be of course rapid growth in our flurries model which should take our 30:17 30 minutes, 17 seconds revenues to a much much stronger position and with that uh we should be able to deliver uh a significantly strong performance. 30:29 30 minutes, 29 seconds Okay. And meaning and calculation of 100% occupancy for Kolkata hotel because anytime Kolkata of course 30:37 30 minutes, 37 seconds I am able to book the rooms. So I'm not understanding that my understanding is correct or you are saying that 100% 30:46 30 minutes, 46 seconds occupancy but your website says rooms are available for Kolkata hotel rooms will always be available on the 30:54 30 minutes, 54 seconds website the or the will be available or may not be available. The most important thing is that uh rooms are open on the 31:03 31 minutes, 3 seconds website right up to midnight and uh uh so some days you will see that the uh 31:11 31 minutes, 11 seconds rooms are available up to late in the evening but the hotel has always 31:17 31 minutes, 17 seconds delivered 100% occupancy and it's not only or near 100% occupancy over the 31:24 31 minutes, 24 seconds last 10 years except the two COVID years and in those two COVID years this hotel and in fact our group uh demonstrated very high occupancies. 31:36 31 minutes, 36 seconds The reason why occupancy is high not firstly at park alcata and also at uh 31:42 31 minutes, 42 seconds park at the park hotels because uh we have a very effective revenue management 31:49 31 minutes, 49 seconds system. uh we have u uh a team which is highly dedicated and highly passionate 31:57 31 minutes, 57 seconds about achieving 100% occupancy and then our hotel uh is is an entertainment 32:05 32 minutes, 5 seconds destination. So people uh prefer this hotel uh over other hotels. And lastly 32:13 32 minutes, 13 seconds uh all our hotels have great entertainment and are exceptionally well located. So location of the hotel makes 32:22 32 minutes, 22 seconds a significant contribution for or uh for selecting the hotel and giving us that 32:30 32 minutes, 30 seconds 100% occupancy. Very important thing to note is that the park alkata because of 32:37 32 minutes, 37 seconds its services, because of its location and because of its entertainment, 32:45 32 minutes, 45 seconds uh it has a very high percentage of repeat customers. The repeat customer 32:52 32 minutes, 52 seconds base of this hotel is also at 30% which is among the highest in the country and possibly in the world. So repeat 33:01 33 minutes, 1 second percentage of customers is very very high in this hotel and uh or it could it is because as I said because of its 33:10 33 minutes, 10 seconds location, because of the entertainment offerings and because of its services. 33:18 33 minutes, 18 seconds Okay. But I want the calculation. What do you mean by calculation of 100% occupancy in Kolkata hotel? I'm not able 33:26 33 minutes, 26 seconds to. means that all the rooms are occupied on all days. 33:31 33 minutes, 31 seconds All days 100% occupancy means all days and the hotel is full all the time. 33:38 33 minutes, 38 seconds But if I'm going to your website, sorry to interrupt in between my love, I will request you to please rejoin the queue again for more questions. 33:47 33 minutes, 47 seconds Hello. 33:51 33 minutes, 51 seconds Thank you. A reminder to all the participants, you may press star and one to ask a question. We have the next 33:59 33 minutes, 59 seconds question from the line of Suman Kumar from Motila Luswal Financial Services. Please go ahead. 34:04 34 minutes, 4 seconds Yeah. Hi. uh can you talk on uh the Kolkata market outlook uh when we when we when we have seen uh change in uh the 34:13 34 minutes, 13 seconds the government and the the government this government is aggressive for the economic development and uh we have a good presence in Kolkata market and also 34:22 34 minutes, 22 seconds in the vicinity so what's your view on that and our outlook for Kolkata market so firstly subant uh thank you for 34:32 34 minutes, 32 seconds joining the call uh Kolkata has at the moment a very limited supply. 34:40 34 minutes, 40 seconds At the moment it only has 5,000 101 keys 34:46 34 minutes, 46 seconds and uh roughly about uh over the next 5 years uh very limited supplies coming in 34:54 34 minutes, 54 seconds about 172 keys are expected in Kolkata over the next five years. 35:02 35 minutes, 2 seconds So the outlook for for this market and for us because of this limited supply uh remains very very positive. 35:12 35 minutes, 12 seconds The government change which has happened is also very very positive. It should definitely drive in uh firstly 35:21 35 minutes, 21 seconds stability. It should drive in uh definitely more investment into into the state should drive in more projects 35:30 35 minutes, 30 seconds uh across West Bengal both in uh in in Kolkata and the uh surrounding areas as 35:37 35 minutes, 37 seconds well as in North Bengal. So the outlook uh as a result of this is is definitely 35:44 35 minutes, 44 seconds posit positive. It brings the center and the state uh sort of together and that 35:52 35 minutes, 52 seconds should definitely help in propelling investments into West Bengal and alongside that obviously propelling 36:00 36 minutes growth in West Bengal on the whole as we have launched our project on EM bypass 218 rooms. We've launched the 36:10 36 minutes, 10 seconds project along with 69 service apartments and actually the uh the one of the we 36:17 36 minutes, 17 seconds launched two we we have launched one of the two blocks and the sales have been very very encouraging. We launched at 36:26 36 minutes, 26 seconds 18, uh 2225 rupees to begin with and currently we are selling the apartments close to 21,000. 36:36 36 minutes, 36 seconds The second block uh we plan to launch in uh closer to the 36:43 36 minutes, 43 seconds festive season and we expect that uh the the rates are going to further go up and 36:50 36 minutes, 50 seconds they may actually uh virtually surprise everyone because of of this change. So through this sale of service apartments 36:59 36 minutes, 59 seconds this year alone we we have already have improvement in our cash flow by 11 crores up to April and as I mentioned 37:09 37 minutes, 9 seconds earlier uh we definitely expect on a minimum a 70 cr improvement in our cash 37:16 37 minutes, 16 seconds flow. The market is uh is is going to definitely improve as the government stabilizes 37:25 37 minutes, 25 seconds and all the vacancies in the government of all the ministries are are full and a proper change in the administration is 37:34 37 minutes, 34 seconds carried out. It looks very very positive uh as far as Bengal is concerned in the 37:40 37 minutes, 40 seconds real estate sector as well as in the hospitality sector is is very very 37:46 37 minutes, 46 seconds strong and uh it's the time to to invest in Kolkata. It's the time to buy Kolkata. 37:56 37 minutes, 56 seconds Thank you so much. Thanks. 38:03 38 minutes, 3 seconds Thank you. We will take the next question from the line of Anime Jen from Dalang Rocha. Please go ahead. 38:12 38 minutes, 12 seconds Hello. Thank you for the opportunity. So I want to ask about what our uh retention policy because we have seen 38:20 38 minutes, 20 seconds cancellation in the March. So what about our retention policy? How did we retain? 38:30 38 minutes, 30 seconds So we have uh further you know strengthened our uh sales and marketing. 38:36 38 minutes, 36 seconds We are pushing revenues through our uh through uh our constant communication 38:43 38 minutes, 43 seconds uh with our uh 2 lak 50,000 uh loyalty members and we are of course 38:50 38 minutes, 50 seconds aggressively there in the market to capture every part of the business which is available. Uh there have been uh a a 39:00 39 minutes little bit of pressure uh uh because of the war in uh in Delhi as well as in Hyderabad but we have fully overcome 39:08 39 minutes, 8 seconds that and the occupancy level at at the moment in both these hotels has once 39:15 39 minutes, 15 seconds again recovered to be over 90% and we expect uh that this trend will continue. 39:23 39 minutes, 23 seconds We have consolidated our position. We have reestablished uh contacts uh with the with the ministries. We have reestablished 39:32 39 minutes, 32 seconds contracts with the corporates. We are aggressively following more uh RFPs for 39:38 39 minutes, 38 seconds both Delhi and Hyderabad where uh a little bit of uh impact was felt because 39:45 39 minutes, 45 seconds of of war in the Middle East. But this situation has fully stabilized and uh uh 39:52 39 minutes, 52 seconds the good news is that last year because of operations you know the quarter was not very strong 40:01 40 minutes, 1 second but now with uh things stabilizing we expect this quarter to be a a a good quarter and a stable quarter. 40:12 40 minutes, 12 seconds Okay. And my second question is uh can you provide Yes, please proceed with the question. 40:28 40 minutes, 28 seconds Hello. Yes. 40:29 40 minutes, 29 seconds So my question is uh can you provide the uh performance in the rand palace and the lotus palace 40:37 40 minutes, 37 seconds about their ARR and their occupancy rate currently? 40:43 40 minutes, 43 seconds So this is uh firstly at the current level the the ARR I can give you for last year 40:51 40 minutes, 51 seconds uh the runbasa palace completed uh last year uh with an occupancy ARR of 30 thou 40:59 40 minutes, 59 seconds 31,000 plus and an arr of approximately 20% and uh at the chattinard hotel the Lotus 41:08 41 minutes, 8 seconds Palace Chattinard we had ARR of about 12,000 and an occupancy rate of about 41:15 41 minutes, 15 seconds 30%. Now during the course of this year we we have of course uh we are going to 41:22 41 minutes, 22 seconds push this out even more. The firstly the the both the hotels are stabilizing even more. We have spent uh a considerable 41:31 41 minutes, 31 seconds amount of uh money in uh PR and communication and in advertising these hotels and getting the positioning 41:40 41 minutes, 40 seconds right. uh in this uh in these two hotels we expect at Patiala uh revenues to to the occupancy to go close to about 50%. 41:53 41 minutes, 53 seconds Which is uh which is going to be significant because that's that's the kind of occupancy at IR the leisure 42:00 42 minutes properties attain and that is considered to be very successful. So we are going to we are expecting that to be reached 42:09 42 minutes, 9 seconds during the particularly during the season of October to December. This of course is um is an off season but even 42:19 42 minutes, 19 seconds compared to last year both the hotels are performing well and we expect good growth to come out of these two hotels. 42:29 42 minutes, 29 seconds Okay. And one last question is can you provide the uh flurry uh a in quarter 4 42:37 42 minutes, 37 seconds and by 26 both uh we do not uh share uh the segment uh 42:46 42 minutes, 46 seconds analysis but uh fluies is a profitable business it has grown by 29% on the top 42:53 42 minutes, 53 seconds line and uh we expect the the flu business to further further expand and m 43:01 43 minutes, 1 second maintain its uh uh growth momentum going forward. 43:09 43 minutes, 9 seconds Okay, thank you. 43:14 43 minutes, 14 seconds Thank you. We will take the next question from the line of Ano Kasha from A3 Capital. Please go ahead. 43:21 43 minutes, 21 seconds Hello. Uh I am audible. Yes, you're audible. Good afternoon Mr. 43:28 43 minutes, 28 seconds sir at uh last time I uh I think in last call or last last we mentioned that you 43:36 43 minutes, 36 seconds are setting up a central kitchen ready for the operations of flurry. So right now sir do don't you think we are like 43:44 43 minutes, 44 seconds uh lacking in the execution part when it comes to flurry? 43:50 43 minutes, 50 seconds So uh this we definitely said but uh uh we have re-imagined uh uh the business in totality. 44:01 44 minutes, 1 second We have dropped the idea of making uh central kitchen at New Delhi. 44:08 44 minutes, 8 seconds We are going to be outsourcing uh uh the manufacturing of the products to to a 44:18 44 minutes, 18 seconds vendor and though that agreement has been signed and we have uh put the 44:25 44 minutes, 25 seconds processes into place for standardization of our recipes and for quality control. 44:32 44 minutes, 32 seconds And we feel that the the new model which which we have now put into place is 44:38 44 minutes, 38 seconds definitely going to be helping in flur's faster expansion. 44:44 44 minutes, 44 seconds The factory itself uh takes a long time in terms of uh development 44:51 44 minutes, 51 seconds and that development period uh we will have the advantage of not having that development period. uh so as 45:01 45 minutes, 1 second a result of that we should be able to grow faster reach the markets faster it's going to help us not only in Delhi 45:09 45 minutes, 9 seconds it's going to help us in all markets all metro markets so that is why this year it's not only Delhi focus it's also 45:18 45 minutes, 18 seconds going to be a focus uh in in Bangalore we we are going to also have a focus on Punea and as a 45:27 45 minutes, 27 seconds result of this we feel we will be able to grow at a much faster pace. 45:34 45 minutes, 34 seconds Yeah. Much appreciated. So sir, what is the rational behind this? Whether it is asset like model assets or whether it is margin creative thing. 45:44 45 minutes, 44 seconds It is the this is the model which is get getting followed at the moment. It is uh 45:51 45 minutes, 51 seconds more cost effective and more than being cost effective you are able to rapidly 45:58 45 minutes, 58 seconds roll out. You don't have to spend about 20 to 30 crores and then wait for a 46:04 46 minutes, 4 seconds return on that investment. So this is asset light. It's asset light on the store level. It is going to be asset 46:12 46 minutes, 12 seconds light on the production level. So as a result of this, this is a better model and we feel that the returns are going 46:21 46 minutes, 21 seconds to be definitely better as a result of this and obviously as I mentioned faster growth. 46:28 46 minutes, 28 seconds Yes. answer this said like uh I have a apprehension that s whether we'll be able to uh like this series is known for 46:36 46 minutes, 36 seconds its and I don't want to state we know to state that for what food is known so do you think we'll be able to maintain 46:45 46 minutes, 45 seconds maintain that differential from the market firstly the recipes and the 46:54 46 minutes, 54 seconds craftsmanship at furies is fully preserved And uh we are going to be using those 47:03 47 minutes, 3 seconds preserved uh and unique recipes which flu stands for uh to maintain the 47:09 47 minutes, 9 seconds quality of our product. We have put in uh in each of the unit in each of the stations where we are going to follow 47:17 47 minutes, 17 seconds this model there are going to be uh checks and balances in regard to quality 47:24 47 minutes, 24 seconds and in in terms of the product in terms of the standardization of the recipe. So the quality inspectors or the quality 47:32 47 minutes, 32 seconds chefs are going to be in position at uh at this production facility and they 47:40 47 minutes, 40 seconds will ensure that the quality which comes out is as per the flurries uh standard and it meets or exceeds actually customer expectation. 47:53 47 minutes, 53 seconds Thank you sir. That's that's also best of luck for the future future ends. Thank you sir. Thank you. Thank you Anoj. 48:03 48 minutes, 3 seconds Thank you. We will take the next question from the line of Jedi Tapara from High Securities. Please go ahead. 48:12 48 minutes, 12 seconds Hello. Am I audible? Yes, you're audible. 48:16 48 minutes, 16 seconds Uh yeah, thank you for the opportunity to sir. My question is regarding the AR which you mentioned that which will be your prime focus and specifically for the Kolata market. So the occupancy 48:25 48 minutes, 25 seconds currently is almost 100%. So how much uh uh like headroom do you see in like uh increase in AR which we can expect in 48:34 48 minutes, 34 seconds coming few years because the occupancy is almost 100% and calcas the market has uh it's very difficult to command the 48:42 48 minutes, 42 seconds premium uh which you can in New Delhi or Hyderabad market 48:49 48 minutes, 49 seconds firstly things are changing in Kolkata with the change in government and then 48:56 48 minutes, 56 seconds This hotel is very unique. It is um considering that it has 49:04 49 minutes, 4 seconds u only 149 rooms. It has in the central business district the T repar which is 49:14 49 minutes, 14 seconds the total repar per available room which is close to 24,000 rupees which is the 49:21 49 minutes, 21 seconds highest in the business district. It exceeds all the major luxury brands in the 49:28 49 minutes, 28 seconds central business district. uh and it is way ahead of some of the top brands which are currently in the central 49:37 49 minutes, 37 seconds business district because it does 100% occupancy and because it also has it's not only 49:46 49 minutes, 46 seconds that it has uh the highest occupancy in the central business district irrespective of the fact that it operates in the upper upskill segment. 49:58 49 minutes, 58 seconds It is the market leader in RPAR and it is very close to other top hotels, luxury hotels uh in in in this uh in 50:08 50 minutes, 8 seconds this business district. The gain in this hotel as the demand supply 50:15 50 minutes, 15 seconds u mismatch further continues this hotel is automatically going to gain in terms 50:22 50 minutes, 22 seconds of the AR. It is also going to gain in terms of the banqueting business. It is 50:28 50 minutes, 28 seconds very very strong in in its food and beverage business and particularly in the nightlife and entertainment business 50:36 50 minutes, 36 seconds where uh its beverage revenue is actually higher than its room revenue in 50:43 50 minutes, 43 seconds in most of the months. So as a result of this we expect that uh you know through a much stronger banquet performance and 50:52 50 minutes, 52 seconds a much stronger uh uh restaurant and the bar performance it'll continue to outperform the market 51:01 51 minutes, 1 second and uh there is no there has there has been no letup in this over the last 10 years and there is no reason that this 51:08 51 minutes, 8 seconds hotel will uh will not grow as as it moves forward. A lot of changes are also 51:16 51 minutes, 16 seconds happening at this hotel. Uh the plan is to refurbish and redo uh 20 rooms and raise the level of the 51:25 51 minutes, 25 seconds product quality and again through the improvement in the product quality uh you know take the RS up. We have over 51:34 51 minutes, 34 seconds the over the last year um refurbished uh uh one of our bar and we 51:43 51 minutes, 43 seconds are also engaging with specialist uh uh companies you know to improve our our 51:50 51 minutes, 50 seconds our offerings at the bar. We offer of course the best entertainment in the 51:56 51 minutes, 56 seconds city but we also now are looking at uh you know improving the product offering 52:04 52 minutes, 4 seconds in terms of cocktails and in terms of food offering at these bars and with this plan and obviously more control 52:13 52 minutes, 13 seconds over the social media. In fact, the hotel has the best control over the social media whether through Facebook or 52:21 52 minutes, 21 seconds Instagram or uh YouTube channels. It has the best control over the over the social media 52:28 52 minutes, 28 seconds channels and uh with further push in those channels and with further uh push on entertainment, we we expect to retain our leadership in the market. 52:42 52 minutes, 42 seconds Thank you. Thank you Jadiv. 52:51 52 minutes, 51 seconds Thank you. We will take the next question from the line of Hariki Kumar an individual investor. Please go ahead. 52:58 52 minutes, 58 seconds Thank you for the opportunity sir amble. Yes Mr. Kumar. 53:03 53 minutes, 3 seconds Yeah I have two questions sir. one regarding this uh the capital intensive work we are going for the next two to three year like how do we plan to keep 53:12 53 minutes, 12 seconds the interest cost under control sir Mr. Kosla our CFO will take you through this question. 53:24 53 minutes, 24 seconds Our entrance cost at present is 8 35% which is uh the MCLR of the bank. So 53:33 53 minutes, 33 seconds at restricted to remain under that level only one is that so interest cost remains under control. 53:42 53 minutes, 42 seconds In terms of uh capitalization, we have uh we earlier also guided that we have 53:49 53 minutes, 49 seconds approximately about uh group projects of Pune, Mumbai, YJ, 53:56 53 minutes, 56 seconds Mapas and Japur. These are totaling rooms. So which about 950 gold of investment with the 950 room with 1 and 54:05 54 minutes, 5 seconds a half.2 2 core investment which is about 114 40 1100 C rupees out of which we reduce the EM bypass we expect a 54:14 54 minutes, 14 seconds contribution of uh 350 course out of which 70 is expected this year only and plus addition we put an acquisition of 54:23 54 minutes, 23 seconds Zillian which uh and the Zillian Koji which comes to about 330 crores and 54:30 54 minutes, 30 seconds normal capex is about 40 cr peranom and food is about 30 to 40 cr so which come 54:36 54 minutes, 36 seconds to 1400. So there is a 1500 C demand which is being funded mostly through internal approval. Even if I take 250 54:45 54 minutes, 45 seconds gold as a negative projection for representative for 5 years. So we have not too high demand. So that that's how 54:54 54 minutes, 54 seconds we get service this demand. Second is we also have in addition to a current balance of cash and cash equivalent 55:02 55 minutes, 2 seconds balance of about a 75 code in the books but we do keep line of credits in our books and this year also the interest 55:12 55 minutes, 12 seconds which has been charged about just seven code interest has come mainly bank interest is increase come mainly from 55:19 55 minutes, 19 seconds the acquisition financing of Zillian because because the acquisition balance 55:26 55 minutes, 26 seconds It is charged off the books in P&L but for the project financing it will be capitalized only. So the interest cost under P&L will remain under conclude. 55:37 55 minutes, 37 seconds Okay. Okay. Thank you sir. And sir my second question is regarding uh given the opportunity in Kolkata do we have further land bank more hotels? 55:49 55 minutes, 49 seconds We are currently having uh 400 rooms at the moment in Kolkata which is a very 55:56 55 minutes, 56 seconds high inventory. We plan which is both on the ownership side as well as on the 56:03 56 minutes, 3 seconds assetike side. We plan to add as in the EM bypass Kolkata project we plan to add 56:12 56 minutes, 12 seconds 218 keys on the ownership side of the model. 56:17 56 minutes, 17 seconds Uh alongside this we are looking at we are we have signed an agreement with Lakshmitti 56:25 56 minutes, 25 seconds uh for another asset light model another park brand in uh in Siliguri. This is one in one of their best 56:34 56 minutes, 34 seconds uh one of their best gardens. So within West Bengal, you can expect that the 56:40 56 minutes, 40 seconds present 400 rooms which we have in combination 400 rooms in West Bengal are 56:48 56 minutes, 48 seconds going to be doubled over the next four years. So it is a very strong presence 56:54 56 minutes, 54 seconds in in in bank in Bengal and as we go along over the next four years it'll continue to be strong. 57:04 57 minutes, 4 seconds But lastly sir like our average uh room size like per property is approximately 100 like how do we economics work when 57:13 57 minutes, 13 seconds compared to the bigger pets where we're having 300 rooms per hotel per property sir. 57:20 57 minutes, 20 seconds So u we the new hotels which we are obviously leaving the acquisition aside 57:27 57 minutes, 27 seconds in Mumbai but the new hotels which we are opening in Kolkata we will have 200 57:33 57 minutes, 33 seconds rooms uh 218 rooms to be precise in Punea where the planning is going on we 57:41 57 minutes, 41 seconds will be having 250 plus rooms in uh 57:47 57 minutes, 47 seconds Na'vi Mumbai where the project is is the additional FSI is available of 3 lak 57:54 57 minutes, 54 seconds 80,000 square ft. We now propose to have 250 rooms. So there are the change is 58:01 58 minutes, 1 second there. We are entering into large formats 200 plus room formats as we move 58:09 58 minutes, 9 seconds forward. More than that it is also premiumization of the product of the product itself. So these are going to be 58:19 58 minutes, 19 seconds super luxury hotels whether at Punea, Vishaka Patnam, uh Mumbai, 58:27 58 minutes, 27 seconds uh Na'vi, Mumbai. So all these uh new products, hotels which are going 58:33 58 minutes, 33 seconds to come up or new blocks which may come up uh in these locations they are going to be uh leading to a more luxury 58:43 58 minutes, 43 seconds positioning and with that it'll lead to higher AR and higher performance. The market is strong not only in the upper 58:52 58 minutes, 52 seconds upscale segment, it is also very very strong in the in the luxury segment. So we will be as we are going forward, we 59:01 59 minutes, 1 second will be moving towards premiumization of the of the product and that will drive our revenues uh going forward. So it 59:11 59 minutes, 11 seconds looks uh very very strong in terms of going forward. So uh the other most important thing in you said that our 59:20 59 minutes, 20 seconds average is about 100 rooms but alongside these 100 rooms we have uh very 59:28 59 minutes, 28 seconds successful restaurants and modern restaurants we have very very successful nightclubs and bars. So as a result of 59:36 59 minutes, 36 seconds that you will see that though it's not being tracked at an industry level the Trevar which is the total revenue per 59:44 59 minutes, 44 seconds room for park hotels is higher than that of the competitors. The case in point in Kolkata it is in the central business 59:53 59 minutes, 53 seconds district where some of the very key luxury players are there the T repar of the hotel is much higher than that of 1:00:02 1 hour, 2 seconds the luxury hotels. So it's not only just rooms. Our FNB is very very popular. We drive our revenues through Rome as well 1:00:11 1 hour, 11 seconds as through FNB. We have 43% contribution uh which is also among the highest in in 1:00:18 1 hour, 18 seconds the in the cities in which we operate in the in the industry. 1:00:24 1 hour, 24 seconds Thank you once again for the opportunity. Thank you once again for the opportunity. Thank you Mr. Harik Kumar. 1:00:33 1 hour, 33 seconds Thank you. We will take the next question from the line of Janesh Toshi from PL Capital. Please go ahead. 1:00:42 1 hour, 42 seconds Uh uh sir, I need uh two clarifications. 1:00:45 1 hour, 45 seconds On uh slide 11, we have stated that we plan to come up with a new old hotel in FI27. 1:00:54 1 hour, 54 seconds Uh I believe it is uh Malabar House. But I guess we have also completed the acquisition of uh lake webinar in 1:01:01 1 hour, 1 minute, 1 second December 25. Uh so the question is are we not uh planning to launch uh the same hotel in FI27. So that is one and uh 1:01:11 1 hour, 1 minute, 11 seconds secondly also in terms of uh timelines in the last quarter PPT uh we had stated that Wise Hotel is about to begin 1:01:19 1 hour, 1 minute, 19 seconds operations in early 2029 and now the timeline has been rescheduled uh to early 2030. So any any 1:01:27 1 hour, 1 minute, 27 seconds reason for the delay uh given this is just an extension to the existing hotel. 1:01:35 1 hour, 1 minute, 35 seconds So let me see the page you're referring to. You said phase slide 11. Yeah. Yeah. 1:01:44 1 hour, 1 minute, 44 seconds Slide 11. Okay. Just just you're referring to Malawar house, right? The development update slide. 1:01:58 1 hour, 1 minute, 58 seconds This slide. 1:01:59 1 hour, 1 minute, 59 seconds Yeah. Yeah. This slide. So this slide clearly shows that we will be moving from 2677 uh to 3149. 1:02:08 1 hour, 2 minutes, 8 seconds So Malabar House the process of acquisition is currently uh the agreement has been signed. It got signed 1:02:16 1 hour, 2 minutes, 16 seconds in December, January uh last year uh in December but the 1:02:23 1 hour, 2 minutes, 23 seconds process is uh is still going on because it has uh an external payment for which 1:02:32 1 hour, 2 minutes, 32 seconds bank permission has been sought. It is being bought through from a foreigner. 1:02:38 1 hour, 2 minutes, 38 seconds So that permission is taking a little bit of time but now that permission has been granted. So the final 1:02:48 1 hour, 2 minutes, 48 seconds uh part of the documentation is now going on and we expect this acquisition to be actually uh concluded within the month of June. 1:02:59 1 hour, 2 minutes, 59 seconds But to be on the safe side, I'm giving uh a little bit of room. This has been put into quarter two. But this uh 1:03:08 1 hour, 3 minutes, 8 seconds agreement is and this deal is uh the acquisition should close uh within the month of June itself. Uh work is going 1:03:17 1 hour, 3 minutes, 17 seconds on and this should add and now this hotel also like a hotel in Patiala. 1:03:24 1 hour, 3 minutes, 24 seconds Patiala is a rele and chat hotel which is a mark of quality and more than that 1:03:32 1 hour, 3 minutes, 32 seconds it's also very important for the positioning the Malavar house is a rally and chatau hotel already and uh it 1:03:41 1 hour, 3 minutes, 41 seconds produces a very high arr with the it's actually more popular with 1:03:48 1 hour, 3 minutes, 48 seconds foreign travelers and it should help us in driving our ars as we as we sort of go forward. 1:03:57 1 hour, 3 minutes, 57 seconds Uh could you repeat the second question you had? Why hotel timeline? 1:04:04 1 hour, 4 minutes, 4 seconds Isac timelines. Uh uh we are we are always working closely with the 1:04:10 1 hour, 4 minutes, 10 seconds government uh you know to achieve you know faster permissions. Unfortunately 1:04:18 1 hour, 4 minutes, 18 seconds there has been a slight delay. the permissions are not uh largely in our in our control in our hotel in Kolkata. We 1:04:28 1 hour, 4 minutes, 28 seconds were able to get the permissions very fast from the time we applied to the time of the start of the project. There 1:04:37 1 hour, 4 minutes, 37 seconds has been a little bit of delay in getting the environmental clearance but the environmental clearance which is the 1:04:44 1 hour, 4 minutes, 44 seconds most difficult uh permission in Vishaka partnner it got a little delayed but now it is in 1:04:52 1 hour, 4 minutes, 52 seconds the rest of the permissions are virtually on the way so but still because of the delay in permissions this 1:04:59 1 hour, 4 minutes, 59 seconds project seems to be slightly pushed back but our teams are going to make a full 1:05:06 1 hour, 5 minutes, 6 seconds effort effort to actually get this hotel up and running faster. The the good news 1:05:13 1 hour, 5 minutes, 13 seconds why it can come up faster is because it does not have a basement. It is going to 1:05:20 1 hour, 5 minutes, 20 seconds be starting straight on the ground level itself the construction. So as a result of this there is a good chance that we will be able to do this project faster. 1:05:32 1 hour, 5 minutes, 32 seconds But at the moment considering the time it takes from the time of starting the project to the end of project uh which 1:05:40 1 hour, 5 minutes, 40 seconds is a roughly a 3 and a half to four year timeline for any hotel company. We have 1:05:47 1 hour, 5 minutes, 47 seconds given that timeline to open in 2030 but uh be assured that from our side all efforts will be made to finish all 1:05:56 1 hour, 5 minutes, 56 seconds projects whichever we are undertaking on time or ahead of time. 1:06:02 1 hour, 6 minutes, 2 seconds Sure. Uh one last bookkeeping question from my side. Uh can you share the arr and occupancy of our uh leased hotels uh as of FI26? 1:06:15 1 hour, 6 minutes, 15 seconds Okay. So, as far as the Patiala Hotel is concerned, it is on a 50-year lease. I 1:06:22 1 hour, 6 minutes, 22 seconds did tell uh the other uh person who asked a question, it is in the range of it is on 31,000. 1:06:30 1 hour, 6 minutes, 30 seconds Sorry, sorry, sir. Sorry, sir. I'm s sorry sir, I'm interrupting. For the 336 keys that we have on the least side, can 1:06:38 1 hour, 6 minutes, 38 seconds you just give me a blended ARR and occupancy number for FI26? I mean that will be really helpful. 1:06:48 1 hour, 6 minutes, 48 seconds Okay, I I got it. I I do not have that number calculated. So what I'll do, Mr. 1:06:55 1 hour, 6 minutes, 55 seconds Josie, I I can give you the individual numbers which are at the back of uh my hand. But if you need that, I'll calculate and we will email it to you. 1:07:10 1 hour, 7 minutes, 10 seconds Sure, sir. No problem. No problem. Yeah, but I can still tell you what the uh individual numbers are. 1:07:19 1 hour, 7 minutes, 19 seconds Sure, sir. Please, please, sir, please. 1:07:23 1 hour, 7 minutes, 23 seconds Atul will just uh read out these numbers for you. So, 31,000 as we said uh is in Bashala. 1:07:32 1 hour, 7 minutes, 32 seconds 12,000 is what he said uh it is in uh in the lotus palace uh 1:07:41 1 hour, 7 minutes, 41 seconds chattin and in case of uh connect uh daily sake 1:07:49 1 hour, 7 minutes, 49 seconds it is about uh 6,000 and in case of diga it is uh 3,700 1:07:58 1 hour, 7 minutes, 58 seconds and the giga open So uh we also have uh chattinard we have 1:08:06 1 hour, 8 minutes, 6 seconds chattan is kettard is 40,500 1:08:12 1 hour, 8 minutes, 12 seconds and our purity which is the preed 1:08:35 1 hour, 8 minutes, 35 seconds Mr. Josh, I got that. 1:08:37 1 hour, 8 minutes, 37 seconds Yeah. Yeah. Yeah. Thank you. Thank you so much. Thank you. Thank you. 1:08:41 1 hour, 8 minutes, 41 seconds So, Mr. Jooshi, we will just put these numbers together and we will email it to you. The numbers are not available on a 1:08:49 1 hour, 8 minutes, 49 seconds consolidated basis. The overall consolidated numbers are there but lease is all clubed together in the mis which 1:08:57 1 hour, 8 minutes, 57 seconds we report. So the numbers which we have given to you in the presentation are the combined numbers of all the properties but we will email it to you. 1:09:09 1 hour, 9 minutes, 9 seconds Sure sir. Thank you so much. Thank you so much. 1:09:16 1 hour, 9 minutes, 16 seconds Thank you very much ladies and gentlemen. We will take that as a last question. I now hand the conference back to the management for the closing comments. Thank you and over to you sir. 1:09:32 1 hour, 9 minutes, 32 seconds So thank you everyone. I would like to thank all of you for joining the call today and I hope we are able to address all your queries. 1:09:42 1 hour, 9 minutes, 42 seconds If you have any further questions, you can reach out to our newly appointed IR managers at Valerim Advisor. 1:09:52 1 hour, 9 minutes, 52 seconds Uh thank you once again for participating in this call and let me reassure you that we are on a path of 1:10:01 1 hour, 10 minutes, 1 second growth and success and whatever we have committed we will be working towards it to achieve as we move forward. 1:10:15 1 hour, 10 minutes, 15 seconds Thank you members of the management. On behalf of P capital, we conclude this conference. Thank you all for joining with us today and you may not disconnect your lines. Bye.