Brigade Hotel Ventures Limited — Q3 FY26

Brigade Hotel Ventures Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=OLi8pTidVUs Published: 3 months ago

0:01 1 second Ladies and gentlemen, good afternoon and welcome to Brigade Hotel Ventures Limited's Q3 FY26 earnings conference 0:08 8 seconds call. Before we begin, I would like to remind the participants that this conference call may contain forward-looking statements which are 0:16 16 seconds based on beliefs, opinions, and expectation of the company as of today. 0:21 21 seconds These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to 0:28 28 seconds predict. As a reminder, all participants line will be in listenonly mode and there will be an opportunity for you to 0:35 35 seconds ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing star and zero on 0:44 44 seconds your touchstone phone. Please note that this conference is being recorded. With this, I now hand the call over to Miss 0:52 52 seconds Nirup Shanka, managing director of Brigade Hotel Ventures Limited. Thank you and over to you. 1:02 1 minute, 2 seconds Good afternoon everyone and a very warm welcome to the Brigade Hotel Ventures Limited Q3 FY26 earnings conference 1:09 1 minute, 9 seconds call. I'm joined today by member of our senior leadership team Mr. Vinitma executive director Amar Mso executive 1:17 1 minute, 17 seconds director Arinda Mukharji President Projects um our CFO Ana Natrajan Mr. 1:23 1 minute, 23 seconds Manoj Aaral COO and Mr. to Ryan Arhana, VP of operations along with our investor relations advisers from SGA. Brigade 1:32 1 minute, 32 seconds Hotel Ventures delivered a solid performance in Q3 FY26, supported by strong operating fundamentals and disciplined execution across the 1:41 1 minute, 41 seconds portfolio. Our total income grew by 14% year-on-year for the quarter, driven by a 17% year-on-year increase in both ARR 1:49 1 minute, 49 seconds and REFA, while the occupancy for the portfolio remained at a healthy 76%. 1:55 1 minute, 55 seconds EIA increased by 17% to 51 crores for the quarter translating to an EIA margin of 35.9%. 2:03 2 minutes, 3 seconds This performance was driven by a continued focus on cost efficiency and productivity initiatives across the portfolio. From a market perspective, 2:12 2 minutes, 12 seconds Bangalore delivered a very strong performance with both ARR and Repar growing by 19% and an average occupancy of 76%. 2:21 2 minutes, 21 seconds limited near-term new supply which has helped occupancy stay high. 2:26 2 minutes, 26 seconds We have been able to command higher pricing in Grand Mccure Gift City. AR and REPA grew by 21% and 24% yearonear 2:35 2 minutes, 35 seconds respectively. We remain positive on gift city's growth potential and are already seeing strong traction. Our MSO hotels 2:43 2 minutes, 43 seconds maintain strong occupancy levels with the newly launched IB style MSO ramping up well and achieving 71.7% occupancy 2:51 2 minutes, 51 seconds within its first year of operation. We remain committed to elevating guest experiences and driving FNB revenue across our hotels. We plan to launch two new outlets in our hotels this quarter. 3:02 3 minutes, 2 seconds One at Sheran Grand and the other at Grand Mccure Gift City. Our consistent efforts to improve cost control and 3:09 3 minutes, 9 seconds productivity continue to yield positive results. Utilities as a percentage of operating revenue stood at 5% for the quarter 3 and 5.5% for 9 months FY26. 3:22 3 minutes, 22 seconds Interest costs have reduced due to loan payments positively impacting the net profitability. We are actively advancing 3:30 3 minutes, 30 seconds the adoption of renewable energy which currently stands at 66% with some hotels exceeding 90% usage of renewable energy. 3:38 3 minutes, 38 seconds Our existing portfolio is well positioned to sustain long to sustain the strong performance over the medium and long term. In parallel, we are 3:48 3 minutes, 48 seconds gearing up for the next phase of growth with the development pipeline of nine new hotels. Over the next 5 years, we plan to nearly double our portfolio by 3:56 3 minutes, 56 seconds adding 1,700 keys, taking the total inventory to 3,300 keys by FY130, backed by investment of close to 3600 crores. 4:06 4 minutes, 6 seconds This pipeline is well diversified with a balanced mix of luxury, upper upscale and upscale properties across business 4:13 4 minutes, 13 seconds and leisure destinations. The courtyard by Marriott at Chennai World Trade Center with 45 keys is expected to become operational in FY27. 4:23 4 minutes, 23 seconds Looking ahead, our outlook for FY26 remains strong. The demand visibility continues to be healthy, supported by strong corporate activity and sustain momentum. 4:34 4 minutes, 34 seconds This will improve traction from our we are also expecting improved traction from our FnB offerings. We expect this momentum to continue into the coming 4:42 4 minutes, 42 seconds quarters. With that I would now like to hand over the call to our CFO Mitana Natrajan to take you through the financial highlights in detail. 4:52 4 minutes, 52 seconds Thank you Nirba and good afternoon everyone. On behalf of the company I would like to welcome you all the Brigade Hotel Ventures 5:01 5 minutes, 1 second Limited Q3 FI26 earnings call. I will take you through the key financial highlights for the quarter. 5:09 5 minutes, 9 seconds Starting with the consolidated performance for Q3 Q3 sorry Q3 FY26. 5:16 5 minutes, 16 seconds Consolidated total income for the quarter stood at INR 143 crores as 5:21 5 minutes, 21 seconds compared to INR 125 crores in Q3 FY25 uh yearon-year growth of 14%. 5:29 5 minutes, 29 seconds Consolidated EITA for the quarter was INR 51 cr compared to INR 44 cr in the 5:37 5 minutes, 37 seconds same period last year reflecting a growth of 17%. 5:41 5 minutes, 41 seconds EITA margin for the quarter stood at 35.9%. 5:46 5 minutes, 46 seconds GST 2.4 has resulted in a 1.6% impact on EITA margin for Q3 FY26. 5:55 5 minutes, 55 seconds Profit after tax for the quarter stood at INR 22 crores compared to INR 10 6:01 6 minutes, 1 second crores in Q3 FI25 a growth of 126% Y 6:09 6 minutes, 9 seconds for the 9 months ended FI26 consolidated income stood at INR 398 crores compared 6:17 6 minutes, 17 seconds to INR 336 cr in 9 month FY25 an increase of 19%. 6:25 6 minutes, 25 seconds EITA for the period was INR 135 cr up by 17% yearonear from INR 115 cr in the 6:35 6 minutes, 35 seconds corresponding period last year was impacted by an additional property tax expenses of 6 crores excluding this 6:44 6 minutes, 44 seconds operational EITA would have grown 22% ya margin was additionally impacted by 0.6% 6:53 6 minutes, 53 seconds 6% due to GST 2.0 O PAT for 9 months FYI26 stood at INR40 cr compared to INR 11 cr in 9 months FY25. 7:08 7 minutes, 8 seconds for the for an operational standpoint during Q3 FY26 AR stood at INR 7,852 7:17 7 minutes, 17 seconds compared to INR 6708 in Q3 FI25 with occupancy at 76.1%. 7:27 7 minutes, 27 seconds This translated into a repar of INR 5,973 reflecting a yearon-year growth of 17%. 7:36 7 minutes, 36 seconds For the 9-month period, AR was INR 7,246 versus INR 6396 7:44 7 minutes, 44 seconds in 9 month FY25 with occupancy at 75.4%. 7:50 7 minutes, 50 seconds Resulting in a ra of INR5465 5,465 a growth of 12% year on year. 8:06 8 minutes, 6 seconds As on 31st December 2025, our net cash position stood at INR 132 cr. Our 8:14 8 minutes, 14 seconds adjusted ROC for 9 months FY26 is 13.1%. 8:20 8 minutes, 20 seconds And return on operating capital employed for 9 months FY26 stands at 18.8%. 8:27 8 minutes, 27 seconds With that we conclude the financial highlights for the quarter. We would now happy to take your questions. 8:36 8 minutes, 36 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 8:45 8 minutes, 45 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 8:52 8 minutes, 52 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question cue assembles. 9:06 9 minutes, 6 seconds The first question is from the line of Adid Chatai from ICICI securities. Please go ahead. 9:14 9 minutes, 14 seconds Yeah, good afternoon everyone. Thank you for the opportunity. I have got three questions. Uh the first question is on the could you help us understand is this 9:22 9 minutes, 22 seconds GST how it is impacting us in terms of the pricing and what costs we are able to pass on or not being able to pass on 9:31 9 minutes, 31 seconds and how will this impact in the future that is the first question. 9:37 9 minutes, 37 seconds Yeah thank you thank you for your question. This is Anandia. See the GST as per the new GST law if our ADR that 9:47 9 minutes, 47 seconds is room rent if we are charging anything 7,500 and below the GST rate is 5%. They 9:56 9 minutes, 56 seconds have reduced it from 12% to 5%. So but what they have done is on the input tax 10:04 10 minutes, 4 seconds credit eligibility that whichever we are charging on the proa basis we have to reverse it we 10:11 10 minutes, 11 seconds can't take as an input so that is hitting our expenses which is hitting for the quarter around 1.6%. 10:22 10 minutes, 22 seconds Okay. Uh so so is this uh should this ease off in the coming quarters or is this is will uh be around for for some time now? 10:33 10 minutes, 33 seconds It it will it will continue in the same 1.6% uh will continue till the rate uh cross that 7,500 mark. 10:44 10 minutes, 44 seconds Okay. as a at a overall level, right? 10:46 10 minutes, 46 seconds Means broadly as we head towards that uh thing as a company, right? Overall the era, right? 10:52 10 minutes, 52 seconds Not overall any individual any individual bill for any hotel if they charge 7,5001 11:02 11 minutes, 2 seconds then this impact will be zero. If it is 7,500 and below then we have consider this impact. 11:10 11 minutes, 10 seconds Okay. Okay. Got that. Got that. Okay. 11:12 11 minutes, 12 seconds Okay. Yeah. So the second question now is on our capex plan right we had a capex plan of 34 3500 crores right for 11:20 11 minutes, 20 seconds the next four five years. So could you just give us the yt capex number and going ahead for the rest of this year 11:27 11 minutes, 27 seconds and next year any number on the budgeted capex we can model in yeah so I can just take that. So as we 11:35 11 minutes, 35 seconds mentioned we for the next set of nine hotels we're expecting a capex of 3600 crores. We've already deployed about 158 11:43 11 minutes, 43 seconds odd crows in FY24 and FY25 smaller you know to do the preparatory works in FY26 11:51 11 minutes, 51 seconds uh we have or in the last 9 months we've already um invested about 230 odd crores 11:57 11 minutes, 57 seconds and uh possibly maybe in the next quarter or so it could be about 25 to 30 crores um so so that's how it looks the 12:05 12 minutes, 5 seconds balance 3200 crores would come in over the next uh four years or Okay. So the next four years from let's 12:14 12 minutes, 14 seconds say 27 this uh so how will this uh 30 will be split 800 crores evenly or next year it is more 500 600 croresish this number? 12:24 12 minutes, 24 seconds No it's going to be backended uh backended in FY29 and FY30. 12:30 12 minutes, 30 seconds So the exact amount really depends on the pace of construction. So can't really split it up at this point in time, but I would say they're going to be uh backended in 29 and 30. 12:40 12 minutes, 40 seconds Okay. Okay. Got that. Yeah. And final question, obviously FNB, right, was a strong uh suit for us, right, in the first half, right? The growth are pretty 12:49 12 minutes, 49 seconds strong, but it seems to have tapered off in this quarter. So any one-offs because of that. And for the current quarter, how are you seeing the demand trends? 12:57 12 minutes, 57 seconds Yeah. Overall, yeah. So overall I would say yes the FNB trend was uh the increase was only 4% if we compare the 13:05 13 minutes, 5 seconds quarteronquarter growth. However it was a one-off with one particular hotel uh because maybe last year they had maybe they did an excellent job with their 13:13 13 minutes, 13 seconds OTCs. This year some of those were not repeated. So if I remove the one hotel the portfolio actually grew by 20%. Uh 13:21 13 minutes, 21 seconds and if I look at the last 9 months FNB has grown at 16% which is pretty healthy. and uh going forward I expect the growth to be in the similar high teens uh number for FNB. 13:33 13 minutes, 33 seconds Okay. So to understand correctly the room revenue and the FNB should again start tracking right the similar growth levels right from it could have stabilized from this quarter. 13:42 13 minutes, 42 seconds Yeah I I have been saying mid mid- teens to high teens is the growth rate that we are projecting for the portfolio in terms of B rooms or uh FNB. 13:52 13 minutes, 52 seconds Okay. Okay. Fine fine sure. Okay. Thank you. I'll come back in the for more questions. Thank you. 13:58 13 minutes, 58 seconds Thank you. Participants who wish to ask question, you may press star and one. 14:03 14 minutes, 3 seconds The next question is from the line of Sorb Gilda from JM Financial. Please go ahead. 14:11 14 minutes, 11 seconds Yep. Hi, I'm audible. Yes. Yep. Uh thank you for the opportunity. 14:17 14 minutes, 17 seconds Uh I just have one question on the Bangalore portfolio. We have been performing well on the rate front and the occupancy has been consistent and 76 14:24 14 minutes, 24 seconds 78% over the last couple of quarters. Uh do you see uh still further room to improve it further and if yes like what could be the drivers? Thanks. 14:37 14 minutes, 37 seconds See Bangor has been uh performing well mainly because it's a business market and the overall business segment has been doing well. Um while our portfolio 14:46 14 minutes, 46 seconds is at uh mid70s I do believe that um at an optimum level it should be in the it should touch about 80 or low 80s. That's 14:55 14 minutes, 55 seconds how we would like to see the portfolio trend. Um obviously during the weekdays Monday to Thursday the hotels are doing extremely well and extremely high 15:03 15 minutes, 3 seconds occupancies but it tapers off as a natural course of business on Friday, Saturday, Sunday. So um we do have to 15:10 15 minutes, 10 seconds market it a little more for vacations but that said two of our Bangalore hotels like the holiday in Chennai the holiday in Bangalore and the holiday in 15:18 15 minutes, 18 seconds express on OMR um have been trending at 80% plus so we do expect that the other uh hotels as well in Bangalore will be 15:26 15 minutes, 26 seconds able to touch 80% plus um ADR growth will definitely be there because there's still limited supply coming into the 15:33 15 minutes, 33 seconds market um the demand and supply dynamics for the next 5 years are very healthy D in all the markets we're operating be it 15:40 15 minutes, 40 seconds Bangalore, Chennai, Hyderabad. So for Bangalore as well uh the supply is growing only at 7.3% for the next 5 years whereas demand is growing at 15:48 15 minutes, 48 seconds 10.1%. So we still think that there is room to grow. 15:53 15 minutes, 53 seconds Sure. Thanks. And just to follow up on the GST front, can you please highlight what percentage of our inventory is uh below the 7,500 per bucket? 16:04 16 minutes, 4 seconds Out of the nine Yeah. Out of the nine hotels, seven have a ADR below 7 a half thousand. I think our objective now and 16:12 16 minutes, 12 seconds what we need to work on is to see how we can take this ADR above 7 and a half thousand. So we are obviously it's not a 16:20 16 minutes, 20 seconds decision we can make in isolation. The it's very much dependent on the market dynamics but we we do have to see how we 16:27 16 minutes, 27 seconds can take our ADR above. But yeah, currently two hotels are uh above the 7 and a half thousand rate. Just to add 16:34 16 minutes, 34 seconds here uh hi this is Manoj uh Manojah so if you see our portfolio ADR is already 16:41 16 minutes, 41 seconds now reaching 7,300 levels so we are now you know getting up to a level where most of our hotels will start hitting 16:49 16 minutes, 49 seconds more than 7,500 right now clearly two are above 7,500 and another three four are you know kind of right there so uh 16:58 16 minutes, 58 seconds hopefully now with these hotels also crossing that 7,500 Mark uh that impact will be getting minimal you know over the course of new next few hours. 17:11 17 minutes, 11 seconds Got got it. Thank you very much. 17:15 17 minutes, 15 seconds Thank you. The next question is from the line of vehicities. 17:22 17 minutes, 22 seconds Please go ahead. Hello. Yes, we can hear you. Yeah. 17:30 17 minutes, 30 seconds Yeah. Uh hi. Congratulations on the book set of numbers. I had a question regarding our expansion pipeline. So uh for the properties which are coming 17:37 17 minutes, 37 seconds online in uh 28 and 29, would you be able to uh give the status of current development and uh when during the year 17:45 17 minutes, 45 seconds do you expect these properties to become operational? 17:50 17 minutes, 50 seconds See currently we have um three hotels that are slated to come up in FY28. The two Fairfields and one Grand High 17:58 17 minutes, 58 seconds Chennai. We've already started our construction on the two fair fields. Uh for the Grand High Chennai, we are uh 18:05 18 minutes, 5 seconds it's it will be a low-rise beachfront property, but we're waiting on one approval in order for us to start our construction. Basically, it's the CRZ 18:13 18 minutes, 13 seconds approval that we're waiting on. But apart from that, um you know, the both the Fairfields, we've already started the construction. Um in fact, the 18:21 18 minutes, 21 seconds Fairfield in Bile already the footings are in progress and even Brigade Valencia, we've already started. 18:28 18 minutes, 28 seconds Understood. So you're confident uh about the timeline uh for operationalization of these properties? 18:34 18 minutes, 34 seconds As of now, we we believe that there's nothing uh to worry about and we believe that business is on track. 18:41 18 minutes, 41 seconds All right. And secondly, uh related to capex, uh we have overall 3600 of 3600 crores of capex planned. Uh do you 18:50 18 minutes, 50 seconds expect any incremental uh debt uh raise uh regarding the future capex? 18:58 18 minutes, 58 seconds Yes, we definitely uh expect to raise debt in order to fund our construction. 19:02 19 minutes, 2 seconds So we we are expecting about we we haven't yet raised that debt because we don't require it immediately but maybe in the coming fiscal year we will start 19:11 19 minutes, 11 seconds to take some debt. uh but we've already uh you know have the banks everything 19:17 19 minutes, 17 seconds sorted out for our uh uh debt line. So right now we're not taking anything in the next couple of quarters but as and when we start to take we'll keep you 19:25 19 minutes, 25 seconds posted but yes we definitely expect uh a good chunk of the construction cost to be financed by debt. 19:33 19 minutes, 33 seconds And what would be the threshold net debt to be done? 19:37 19 minutes, 37 seconds See basically if we look at it um the peak that we can look at like I said 19:44 19 minutes, 44 seconds the uh the construction cost and the capex invested would be backended in FY29 and FY30. So there it would be debt to 19:53 19 minutes, 53 seconds EIA would be about 4 and a half to four times. However, if you look at the DSCR 20:00 20 minutes it's actually 4 uh it's actually four times covered till FY29. So we have a very healthy BSTR. So we're not uh 20:08 20 minutes, 8 seconds worried about um enhancing our debt levels because it is required with the kind of growth that we have outlined. So 20:16 20 minutes, 16 seconds while debt to EITA is one angle to look at if we look at the DSCR our EIA covers our debt levels by four times till FY29 20:26 20 minutes, 26 seconds four. Yeah. So I understood. So yes yeah yeah and once this is hotels start you know 20:33 20 minutes, 33 seconds once these hotels start operation then suddenly we'll see a drop in this uh debt to EITA ratio. 20:41 20 minutes, 41 seconds Understood sir. Perfect. Thank you so much and all the best. 20:45 20 minutes, 45 seconds Thank you ladies and gentlemen. If you wish to ask a question you may press star and one now. The next question is 20:54 20 minutes, 54 seconds from the line of Arun Agraal from Kotic Securities. Please go ahead. Yeah. Hi uh thanks for the opportunity. 21:01 21 minutes, 1 second Couple of questions. One is uh that you talk about uh midpin growth uh for the company. So I presume that would be for uh by 27 as well, right? 21:12 21 minutes, 12 seconds That's right. That's right. 21:13 21 minutes, 13 seconds Yeah. So this just wanted to understand you know how big a role your uh uh the occupancy and the AR will play because 21:20 21 minutes, 20 seconds the occupancy what we have seen has been around that you know uh 70 uh 77 21:28 21 minutes, 28 seconds uh so very strong growth so how going to next how do you see the moving from there on now and if you just highlight 21:36 21 minutes, 36 seconds what would drive the growth see basically I don't think we should um you know basically we have to look at 21:43 21 minutes, 43 seconds the ref bar our ref bar grew by about 17% for the quarter and we should basically we need to give the operating 21:52 21 minutes, 52 seconds hotels the uh flexibility to work within occupancy and ADR. So for instance if the during the weekday when occupancies 22:00 22 minutes are very high um you know they can have the ability to also increase the ADR but obviously during um low demand period 22:07 22 minutes, 7 seconds then they may decide to decrease the ADR but overall as a portfolio what we need to see and as a overall hotel performance we have to look at the rev 22:15 22 minutes, 15 seconds part and those dynamics in some cases u if we want to play on the occupancy then it does impact ADR to some extent if 22:24 22 minutes, 24 seconds you're just driving volumes to the sell versus rate business. So I think this is just something that's very dynamic. We 22:31 22 minutes, 31 seconds have revenue managers across each of the properties and you know their job is to figure out how to play within these two levers. But as long as we see bar 22:40 22 minutes, 40 seconds increasing I think um that should be the biggest sign of growth. 22:45 22 minutes, 45 seconds All right. Uh my second question is basically with respect to your capex. 22:48 22 minutes, 48 seconds Now we have got one property coming up in FI27. We got three properties coming in FI 28. So I think there would be a 22:56 22 minutes, 56 seconds good amount of JPEX uh that would entail in FI27 as well. If you could just help us with the amount because you told that a lot of JPEX will backhanded. So just 23:04 23 minutes, 4 seconds wanted to understand how much it would be uh in FI 2720 processing because four of the properties are coming in the next. 23:17 23 minutes, 17 seconds So um you know for the 45 room key we we've had to put in about 50 odd crores. 23:23 23 minutes, 23 seconds But uh in terms of the larger amount sorry 23:31 23 minutes, 31 seconds but but in terms of the coming year we you know the capix that we need to put in could range between 400 to 500 crores for the additional nine hotels 23:40 23 minutes, 40 seconds and uh apart from these also sort of includes your uh maintenance any upgradation cases for the existing 23:48 23 minutes, 48 seconds property we put in about um uh 10 crores thus far in the last 9 months. We we are looking 23:56 23 minutes, 56 seconds to put in another uh possibly 10 crores in the coming quarter and uh maybe in the coming fiscal year another 20 odd crores. 24:06 24 minutes, 6 seconds All right. Thank you. That's from Thank you. The next question is from the line of Adi Dave Chhatadhay from ICICI Securities. Please go ahead. 24:18 24 minutes, 18 seconds Yeah, thank you for the followup. Uh my specific question is around the two uh the Chennai five-star right and the 24:25 24 minutes, 25 seconds Hyderabad right the intercontinental help what is the status of the construction progress in there when do 24:33 24 minutes, 33 seconds we start or what is happening over there yeah so um does it you asked about the 24:42 24 minutes, 42 seconds uh which the the for the Hyderabad intercontinental we've already started the construction but of course the hotel comes only after the uh 32nd floor. So 24:51 24 minutes, 51 seconds it will be a while before we can start the construction for the hotel. But because it sits on top of the mall and the World Trade Center, Hyderabad in 24:59 24 minutes, 59 seconds terms of um the Did you ask about the JW? 25:02 25 minutes, 2 seconds Grand Hyatt like I already mentioned um we are awaiting we all our preparatory works 25:10 25 minutes, 10 seconds are done for the property. We're ready to start construction. We're waiting on one approval uh environmental clearance and then we're good to start the construction. 25:18 25 minutes, 18 seconds Okay. Okay. So is that expected in this year means uh what is the movement any depth? 25:26 25 minutes, 26 seconds Sorry could you please repeat the question? 25:28 25 minutes, 28 seconds I think that's environmental are we expecting to receive it shortly within this year in next couple of months or is it uh still some time away? 25:38 25 minutes, 38 seconds Okay hopefully this financial year we're working on it hopefully this financial year. 25:42 25 minutes, 42 seconds Okay okay okay fine fine. Yeah that's it from my side. Yeah thank you all the best. Thanks. 25:48 25 minutes, 48 seconds Thank you. To ask a question participants, you may press star and one. Now the next question is from the line of 25:56 25 minutes, 56 seconds Prashant, an individual investor. Please go ahead. Hello. Am I audible? 26:04 26 minutes, 4 seconds Yes, please. 26:06 26 minutes, 6 seconds Yeah. Uh thanks for the opportunity. A couple of question. One was uh in the last last quarter was there any impact 26:14 26 minutes, 14 seconds of the uh airline uh disruption a major Indian airline disruption. 26:25 26 minutes, 25 seconds No. So that was Sorry to interrupt but uh we can't hear you. 26:36 26 minutes, 36 seconds Yeah. Can you hear me now? Yes sir. 26:40 26 minutes, 40 seconds So thankfully uh you know what I was saying that thankfully we uh did not see much impact of the airline disruptions 26:46 26 minutes, 46 seconds because were shortlived uh 3 4 days and you know all the all the business occupancies were kind of continued 26:56 26 minutes, 56 seconds steadily on account of the groups and other conference based businesses. So we did not see much impact due to airline disruptions. 27:04 27 minutes, 4 seconds Okay. Uh uh another thing what I mean how much of your inventory is covered by corporate contracts. 27:13 27 minutes, 13 seconds Yeah. So uh this has been uh quite dynamic I would say. Currently if I look at it from a portfolio level um about 27:22 27 minutes, 22 seconds 30% comes from corporate business. Uh 20% comes from groups and the retail business has moved quite significantly 27:29 27 minutes, 29 seconds to 50%. Um now not to say that within the retail business you don't have corporates but it's just hard to uh 27:36 27 minutes, 36 seconds clearly define how much of the retail business is actually from corporates and how much are free independent travelers. 27:43 27 minutes, 43 seconds So the uh in terms of uh I mean know dynamic pricing the 50% is where I mean 27:50 27 minutes, 50 seconds uh uh you could play I mean you have the levers to increase the cryopar would 27:58 27 minutes, 58 seconds yes and that's one of the the reasons why we've also um maybe kept more more of the inventory towards retail because 28:07 28 minutes, 7 seconds this helps us be a lot more flexible with the the the high demand days on the rates and also So to add to that now the 28:14 28 minutes, 14 seconds contracted business also is gradually shifting towards dynamics. So it's no more that contracted business we are doing at static rates. Most of the 28:23 28 minutes, 23 seconds operators now are slowly shifting their corporate business to link to uh you know the dynamic rate and not the static rate for the full year. 28:33 28 minutes, 33 seconds So I mean that means the rate I mean the uh rate gets priced every uh more frequently uh or how does it if you can 28:43 28 minutes, 43 seconds so linked to linked to the going rate uh corporates now the contract happens at a percentage discount to the going rate of that day. 28:52 28 minutes, 52 seconds Okay. Okay. Okay. 28:54 28 minutes, 54 seconds Yeah uh changes on a daily basis. I mean for the retail it would be a daily rate change. 29:01 29 minutes, 1 second Okay. Uh since you are a predominantly southbased uh I mean operations uh could 29:09 29 minutes, 9 seconds you help us I mean uh in terms of what was the uh mice and uh wedding business 29:16 29 minutes, 16 seconds uh for the first last 9 months and uh uh going forward how do you see that 29:23 29 minutes, 23 seconds general uh industry trend plus your observation that would be helpful. 29:29 29 minutes, 29 seconds So uh see that that depends on hotel to hotel and what category of the hotel and the market in some of our hotels like 29:38 29 minutes, 38 seconds Sheraton which is a banquet heavy and which has large conference and banking spaces we we are seeing you know up to 29:46 29 minutes, 46 seconds 25 30% of the business coming from the uh from the uh conferences and social functions in some of the business hotels 29:54 29 minutes, 54 seconds where there is you know lesser amount of conferencing space there we see 10 to 15% business coming from uh from the 30:02 30 minutes, 2 seconds conferences and events. So it's a mixed bag depending on the hotel and the category but overall on a portfolio 30:09 30 minutes, 9 seconds basis uh we see our almost out of 30% of the FnB that we do onethird of that FNB 30:18 30 minutes, 18 seconds business uh comes from the mice and conferences and events. 30:24 30 minutes, 24 seconds Okay. And going forward you feel that will continue or there is a possibility of increasing that. 30:32 30 minutes, 32 seconds Yes. So right even uh now the the occupancy of our of our conference spaces and banquet spaces is still not 30:41 30 minutes, 41 seconds reached the full potential. I mean they are still operating at around 40 40 50% occupancy. So there's a clear uh room to 30:48 30 minutes, 48 seconds grow the uh conferencing and uh this social event businesses. 30:54 30 minutes, 54 seconds Okay. Uh and uh uh this last one I mean you 31:28 31 minutes, 28 seconds Yeah. So in fact our T80 has even increased by 126% for the last 3 months 31:35 31 minutes, 35 seconds and almost by 273% for the last 9 months. So we've definitely seen improvement in profitability. In terms 31:42 31 minutes, 42 seconds of debt there's not much there's not hardly any debt on the books right now because of we just raised the IPO proceeds and repaid all our debt. The 31:51 31 minutes, 51 seconds only amount we have is about 140 odd crores uh which is uh a loan from the parent company which we plan to repay as 31:59 31 minutes, 59 seconds well and our net debt is in fact uh negative because we have a cash surplus at the moment about 132 crores of uh net 32:07 32 minutes, 7 seconds debt I in the negative surplus. So for the uh upcoming expansion I mean can we 32:15 32 minutes, 15 seconds see any asset recycling from the existing portfolio or you would still prefer to go for a fresh debt? 32:24 32 minutes, 24 seconds No, we plan to go for fresh debt because we've repaid all the debt through the IP IPO proceeds. So it'll all be fresh. 32:31 32 minutes, 31 seconds No, we're and we're not planning to sell any of our existing uh portfolio assets. 32:37 32 minutes, 37 seconds Okay. Wish you all the best. Thank Thank you so much. 32:41 32 minutes, 41 seconds Thank you. Uh reminder to participants to who wish to ask a question, you may press star and one at this time. 32:50 32 minutes, 50 seconds The next question is from the line of Pulkit Chavela from BNK Securities. Please go ahead. 32:57 32 minutes, 57 seconds Yeah. Hi, thanks for taking my question. 32:59 32 minutes, 59 seconds Uh so my first question is you know a lot of your peers have been highlighting that the rev park growths their expectations are typically high single digit to low double digit while you sort of been confident of mid to high teams. 33:11 33 minutes, 11 seconds Uh what's sort of giving you this confidence that you can probably do much better than market. Uh so that's one. Uh and second uh specifically on Q3 33:20 33 minutes, 20 seconds performance if you could just spell out how the individual months have performed and also how has January been uh has there been soft some softness and how 33:28 33 minutes, 28 seconds are you looking at Feb and March as well? Thank you. 33:37 33 minutes, 37 seconds Yeah. Hi. So see uh uh uh what market is saying is high singledigit or low double 33:45 33 minutes, 45 seconds digit ADR growth. What we are experiencing in our portfolio is that as Nura also mentioned in the beginning 33:52 33 minutes, 52 seconds that in our particular micro markets we are not seeing overall there is a demand and supply arbitrage in any case in our cities wherever we are operating like 34:00 34 minutes Chennai and uh Bangalore uh over and above that in in our particular micro markets we don't see any major uh supply 34:09 34 minutes, 9 seconds coming in or disrupting you know the kind of the dynamics in the market and these uh primary contributors currently 34:16 34 minutes, 16 seconds in our portfolio which is the Chennai hotel and the three Bangalore hotels. Uh there we are already you know kind of 34:23 34 minutes, 23 seconds maintaining a very healthy occupancy occupancy levels. So no supply uh steady occupancy levels and now we 34:32 34 minutes, 32 seconds are targeting uh better yield on the ADR which we are doing continuously for the last uh several quarters. So this trend 34:40 34 minutes, 40 seconds we are seeing to continue if the market is increasing let's say 10 12% in these micro markets we have the ability to 34:48 34 minutes, 48 seconds exploit further because of our uh strategic positioning and the healthy occupancy level uh to uh yield better on 34:55 34 minutes, 55 seconds the EDR so that's how we are saying that we will be able to maintain our uh mid- teens kind of repar growth. 35:05 35 minutes, 5 seconds Uh thanks and the second question on how the months have behaved and how how it in January. 35:11 35 minutes, 11 seconds Correct. So uh overall this quarter has shown a very very fantastic 19% uh kind of uh uh growth on the same store basis. 35:22 35 minutes, 22 seconds But overall October started a little slow because there were two uh you know two period of holidays within the 35:29 35 minutes, 29 seconds October month. But November came back very strongly uh and uh November you know kind of overcompensated for 35:36 35 minutes, 36 seconds whatever lesser growth was there in October. Then similarly December uh in spite of the flight disruptions in the 35:43 35 minutes, 43 seconds first week we continued our repar growth and it got a little slow towards the end of the month but overall uh it remained 35:51 35 minutes, 51 seconds you know in line. So November was the best month and October and December I would say was performed on a expected level. 36:02 36 minutes, 2 seconds And January has been has been a good month. We like I said we expect a good quarter because uh Q4 in every fiscal year is generally a very strong quarter. 36:14 36 minutes, 14 seconds Perfect. Thank you so much. 36:18 36 minutes, 18 seconds Thank you. The next question is from the line of Kartik Goyel from Lapis India Capital. Please go ahead. 36:27 36 minutes, 27 seconds Hi. Uh so if I look at your Q2 investor presentation, it mentions the capeex for 36:33 36 minutes, 33 seconds FY 26 and 27 at around 1,500 crores. Now in the like somebody asked a question 36:40 36 minutes, 40 seconds and you said you expect FY27 capeex to be around 500 K. So uh have we spent 1,000 crores in FY26 or some portion of 36:49 36 minutes, 49 seconds this capex is being pushed out? Uh I have a second question but once you answer it I'll ask that. 36:57 36 minutes, 57 seconds Yeah, thanks for that. So, as I mentioned, uh in FY26, we plan to spend about 265 crores and we've already spent 37:05 37 minutes, 5 seconds about uh 230 odd crores in the first 9 months. Uh for FY27, we are expecting it 37:12 37 minutes, 12 seconds to be approximately 500 odd uh crores and like I said, a lot of this will be 37:19 37 minutes, 19 seconds backended to FYI 29 and 30. I mean we didn't give year- wise breakup uh because it's very difficult to say based 37:26 37 minutes, 26 seconds on u uh the pace of construction as well. So these are approximate numbers and uh can be subject to change. 37:33 37 minutes, 33 seconds Sure. Uh the second question is that uh you have another nine hotels in the pipeline. The land for these hotels is 37:42 37 minutes, 42 seconds has it been purchased by the company or it still sits elsewhere? because I looked at your current portfolio and I 37:50 37 minutes, 50 seconds found that five of those hotels are on lease from third like the land is leased from either third party or the promoter. 37:57 37 minutes, 57 seconds So can you give some clarity on that? 38:00 38 minutes Yeah, I think that's a conscious uh strategy that we have taken. Currently for the nine hotels that we have upcoming, all the land has been tied up 38:08 38 minutes, 8 seconds in Brigade Hotel Ventures. Either it has been uh acquired or we have taken it on long lease and u yeah because of that I 38:17 38 minutes, 17 seconds would say we've been able to keep our cost of land also very uh cost effective. In fact, out of the total capex only approx approximately 10% of 38:26 38 minutes, 26 seconds it is going towards land. So um acquiring the land at a very cost effective uh price has been one of our key strengths and strategies. 38:36 38 minutes, 36 seconds Okay. But the land does not sit in the company belongs to third parties. So I mean when we're liquidating these assets 38:43 38 minutes, 43 seconds do you see any challenge like if we were cycle like I said these are uh long leases. So 38:51 38 minutes, 51 seconds for instance the new hotels that we have tied up could be 55 year leases 60 year leases. Um so I think it will go on far beyond my time or your time. 39:02 39 minutes, 2 seconds Okay. Thank you. Thank you. 39:09 39 minutes, 9 seconds Uh a reminder to all the participants if you wish to ask a question you may press star and one at this time. 39:25 39 minutes, 25 seconds Participants who wish to ask a question may press star and one. 39:31 39 minutes, 31 seconds The next question is from the line of Nishant Mundra from Vadwan Pande and company. Please go ahead. 39:39 39 minutes, 39 seconds Go ahead. Hello. Hi. 39:45 39 minutes, 45 seconds Uh yeah. So I wanted to ask you about uh one of the one of the hotels has been uh 39:52 39 minutes, 52 seconds the contract with Marriott has uh is going to end by 31st of December 2026. 39:59 39 minutes, 59 seconds So what are the plans? Are we going to renew it or we have some other u other uh partner coming in? 40:08 40 minutes, 8 seconds So um yeah, we we we're discussing with Marriott already and we're just seeing what is the um best outcome for the 40:16 40 minutes, 16 seconds hotel um and just trying to see which is the best outcome for the overall property in the long term. So it's still 40:24 40 minutes, 24 seconds under negotiation um and we're still discussing to see what what to do. 40:28 40 minutes, 28 seconds Either we renew with the current one or we um up upbrand it. We're just trying to see where we will get the best returns. 40:37 40 minutes, 37 seconds All right. Uh, yeah, that's that's it from my side. Okay. Thank you. Thank you. 40:47 40 minutes, 47 seconds Those who wish to ask a question, you may press star and one now. 40:54 40 minutes, 54 seconds A reminder to all the participants, if you wish to ask a question, you may press star and one now. 41:04 41 minutes, 4 seconds Ladies and gentlemen, as there are no further question, I would now like to hand the conference over to Mr. Manoj Agraal, COO of Brigade Hotel Ventures Limited for closing comments. 41:19 41 minutes, 19 seconds Hi, thank you. Thank you uh all for your time and uh continued engagement with Brigade Hotel Ventures. We trust this 41:26 41 minutes, 26 seconds session has provided a comprehensive overview of our business performance and addressed all your queries. We remain confident in the strength of our 41:34 41 minutes, 34 seconds operating portfolio supported by healthy pipeline, disciplined execution, strong demand visibility and our unique 41:41 41 minutes, 41 seconds positioning across our micro markets. As we move forward, our focus will remain on driving operational uh efficiencies, 41:49 41 minutes, 49 seconds enhancing guest experience, and building a more balanced portfolio with newer additions across luxury, upper, upscale, and upscale segments. With a strong 41:58 41 minutes, 58 seconds balance sheet and a well-faced development pipeline, we believe we are well positioned to deliver sustainable growth and long-term value for all our 42:06 42 minutes, 6 seconds stakeholders. Before we conclude uh we are proud to share that our restaurant High Ultra Lounge at Sheraton Grand Bangalore at Brigade Gateway has won the 42:15 42 minutes, 15 seconds nightclub of the year south award at ET restaurants and night life awards in October 2025. Our hotels continue to 42:23 42 minutes, 23 seconds uphold their commitment to community engagement and social responsibility through a range of impactful initiatives. For any further queries or 42:32 42 minutes, 32 seconds uh clarifications, please free feel free to reach out to SGAA, our investor relations advisors. And thank you once 42:39 42 minutes, 39 seconds again for your time and we will and we wish you all a great day ahead. Thank you. 42:45 42 minutes, 45 seconds On behalf of Brigade Hotel Ventures Limited, that concludes this conference. 42:49 42 minutes, 49 seconds Thank you for joining us and you may now disconnect your lines.