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GST 2.0 margin impact persists
View Risks →Brigade Hotel Ventures Limited — Q3 FY26
Brigade Hotel Ventures delivered a solid Q3 FY26 with total income of INR 143cr (+14% YoY) and EBITDA of INR 51cr (+17% YoY), driven by strong operating metrics: ARR of INR 7,852 (+17% YoY) and occupancy of 76.1%.
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high
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Brigade Hotel Ventures delivered a solid Q3 FY26 with total income of INR 143cr (+14% YoY) and EBITDA of INR 51cr (+17% YoY), driven by strong operating metrics: ARR of INR 7,852 (+17% YoY) and occupancy of 76.1%. PAT surged 126% YoY to INR 22cr, aided by lower interest costs. The Bangalore and Gift City markets outperformed, with RevPAR growth of 19% and 24% respectively. Management guided for mid-to-high teens RevPAR growth, supported by favorable demand-supply dynamics and limited new supply. The development pipeline of nine hotels (1,700 keys) with a capex of INR 3,600cr is progressing, though back-ended to FY29-30. A key risk is the GST 2.0 impact, which reduced EBITDA margin by 1.6% due to input tax credit reversals on rooms below INR 7,500 ARR. Management expects this to diminish as ARR crosses the threshold.
ब्रिगेड होटल वेंचर्स ने तीसरी तिमाही में अच्छा प्रदर्शन किया। कुल आय 143 करोड़ रुपये रही, जो पिछले साल से 14% ज्यादा है। कमाई (EBITDA) 51 करोड़ रुपये (+17%) हुई। कमरे की औसत कीमत (ARR) 7,852 रुपये (+17%) और भराव दर (occupancy) 76.1% रही। मुनाफा (PAT) 126% बढ़कर 22 करोड़ रुपये हो गया, क्योंकि ब्याज खर्च कम हुआ। बेंगलुरु और गिफ्ट सिटी में कमरे की कमाई (RevPAR) 19% और 24% बढ़ी। कंपनी को आगे भी 15-19% की बढ़त की उम्मीद है। नौ नए होटल बन रहे हैं, जिन पर 3,600 करोड़ रुपये खर्च होंगे, लेकिन ये 2029-30 तक तैयार होंगे। GST 2.0 के कारण मुनाफे पर 1.6% का असर पड़ा, लेकिन कीमतें बढ़ने पर यह कम हो जाएगा।
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Read Transcript →Quarter Snapshot
ARR
INR 7,852
+17% YoY
Average room rate grew 17% YoY, driven by strong pricing in Bangalore and Gift City.
Occupancy
76.1%
flat YoY
Occupancy remained healthy at 76.1%, with Bangalore hotels trending higher.
RevPAR
INR 5,973
+17% YoY
Revenue per available room grew 17% YoY, reflecting strong demand and pricing power.
Renewable Energy Usage
66%
N/A
66% of energy consumption from renewables, with some hotels exceeding 90%.
What Changed vs Last Quarter
NEW
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.
NEW
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.
NEW
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.
NEW
Three hotels to open in FY28
Two Fairfields and one Grand Hyatt Chennai are slated to become operational in FY28, with construction already started.
DROPPED
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.
DROPPED
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.
DROPPED
RevPAR to remain in mid-teens in October
Despite a slower October due to festivals, RevPAR is expected to stay in mid-teens growth.
NEW RISK
GST 2.0 margin impact persists
GST 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.
NEW RISK
Marriott contract renewal uncertainty
One hotel's contract with Marriott ends December 2026. Management is negotiating renewal or potential upbranding, creating uncertainty.
NEW RISK
CRZ approval delay for Grand Hyatt Chennai
Construction of Grand Hyatt Chennai is pending CRZ approval, which management expects by end of FY26. Any delay could push back the FY28 opening.
RISK GONE
One-off property tax impact may recur
A one-off property tax expense of INR 6 crores hit EBITDA; similar reassessments could occur at other properties.
RISK GONE
Occupancy stagnation in Bangalore
Bangalore occupancy declined from 81% to 78% YoY, indicating potential market saturation or competitive pressure.
Fast read
Guidance and risk preview
Management expects RevPAR growth in mid-to-high teens, driven by strong demand and limited supply in key micro markets.
GST 2.0 reduced EBITDA margin by 1.6% due to input tax credit reversal on rooms below INR 7,500 ARR.
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