Brigade Hotel Ventures FY26 Annual Earnings Summary
3 quarters covered · ₹409 Cr revenue · ₹58 Cr PAT · 24.0% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Promise tracking available after 2+ quarters of coverage.
Risks flagged during the year
The INR 3,600 crores capex plan is back-ended, with potential delays in construction and cost overruns.
Q3 FY26 · highLarge capex of INR 3,600cr is back-ended, with peak debt-to-EBITDA expected at 4.5-5x in FY29-30. Execution delays or cost overruns could strain balance sheet.
Q4 FY26 · highWar-related cancellations of ~INR 7-8 Cr in Q4 and ongoing in Q1 FY27 could persist, pressuring F&B revenue and ADR growth.
Q2 FY26 · mediumA one-off property tax expense of INR 6 crores hit EBITDA; similar reassessments could occur at other properties.
Q2 FY26 · mediumBangalore occupancy declined from 81% to 78% YoY, indicating potential market saturation or competitive pressure.
Q3 FY26 · mediumGST 2.0 reduced EBITDA margin by 1.6% due to input tax credit reversal on rooms below INR 7,500 ARR. Seven of nine hotels are below this threshold, though portfolio ARR is approaching INR 7,300.
Q3 FY26 · mediumOne hotel's contract with Marriott ends December 2026. Management is negotiating renewal or potential upbranding, creating uncertainty.
Q3 FY26 · mediumConstruction of Grand Hyatt Chennai is pending CRZ approval, which management expects by end of FY26. Any delay could push back the FY28 opening.
Q4 FY26 · mediumGST input credit reversal on rooms below INR 7,500 ADR caused 1.4% margin impact in Q4; 30% of room nights still below threshold.
Q4 FY26 · mediumChennai Courtyard by Marriott opening in Q3 FY27 may face delays or stabilization challenges, impacting revenue ramp-up.
Q4 FY26 · lowReduced PNG supply due to geopolitical issues required shift to alternative fuels; potential operational disruption if supply issues worsen.
What changed through the year
Q2 FY26 · Capex of INR 3,600 crores over 5 years
Total capital expenditure of INR 3,600 crores planned to add ~1,700 keys, with phasing back-ended: ~60% in years 3-4.
Q2 FY26 · Mid-teens to high-teens ARR growth for next two quarters
Management expects to maintain ARR growth in mid-teens to high-teens for Q3 and Q4 FY26.
Q2 FY26 · RevPAR to remain in mid-teens in October
Despite a slower October due to festivals, RevPAR is expected to stay in mid-teens growth.
Q3 FY26 · Mid-to-high teens RevPAR growth expected
Management expects RevPAR growth in mid-to-high teens, driven by strong demand and limited supply in key micro markets.
Q3 FY26 · Capex of INR 500cr in FY27
For FY27, capex is expected to be approximately INR 500cr for the nine-hotel pipeline, with total capex of INR 3,600cr over 5 years.
Q3 FY26 · Courtyard by Marriott Chennai operational in FY27
The 45-key Courtyard by Marriott at Chennai World Trade Center is expected to become operational in FY27.
Q3 FY26 · Three hotels to open in FY28
Two Fairfields and one Grand Hyatt Chennai are slated to become operational in FY28, with construction already started.
Q4 FY26 · Portfolio ADR to exceed INR 10,000 by FY29 and INR 14,000 by FY31
Management projects average ADR to nearly double from current INR 7,500 as luxury properties ramp up.
Q4 FY26 · Chennai Courtyard by Marriott opening in Q3 FY27
A 45-key hotel in Chennai World Trade Center, targeting second half of FY27.
Q4 FY26 · Capex of INR 3,600 Cr with 60% debt funding
Planned capital expenditure funded through borrowings (60%) and internal accruals (40%), with internal accruals expected to exceed INR 1,000 Cr over coming years.
Q4 FY26 · Kochi hotel upgrade to Courtyard by Marriott in Q1 FY27
Upgrading from Four Points to Courtyard brand, expected to drive double-digit ADR growth.