Brigade Hotel Ventures Ltd — Q4 FY26

Brigade Hotel Ventures Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=xUppJGy3eXg Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to Brigade Hot Ventures Limited Q4 FI26 earnings conference call. Before 0:10 10 seconds we begin, I would like to remind participants that this conference call may contain forward-looking statements about the company which are based on the 0:17 17 seconds beliefs, opinions, and expectations of the company as on date of this call. 0:22 22 seconds These statements are not the guarantees of future performance and involve risks and uncertaintities that are difficult to predict. As a reminder, all 0:30 30 seconds participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the 0:38 38 seconds conference call, please signal an operator by pressing star and zero on your stone phone. Please note that this conference is being recorded. I now hand 0:46 46 seconds the conference over to Miss Nup Shankar, managing director of Brigade Hotly Ventures Limited. Thank you and over to you Miss Shanka. 0:58 58 seconds Thank you for that one and a very warm welcome to the Brigade Hotel Ventures Limited Q426 FY26 earnings conference 1:06 1 minute, 6 seconds call. I'm joined today by members of our senior leadership team, Amar Mso, our director, Anatan, our CFO, Manoj 1:15 1 minute, 15 seconds Agarwal, our our chief operating officer, Ryan Arhana, our vice president and along with our investor relations adviser from SGA. FY26 has been a steady 1:24 1 minute, 24 seconds and encouraging year for India's hospitality sector supported by strong domestic demand across leisure, travel, weddings and corporate activity. 1:33 1 minute, 33 seconds Structural rising disposable incomes, improved connectivity and evolving travel preferences continue to support the 1:40 1 minute, 40 seconds industry momentum. While global uncertainties and geopolitical developments have led to some volatility, particularly impacting 1:47 1 minute, 47 seconds international travel, the domestic segment has remained resilient and continues to anchor growth. Against this backdrop, Brigade Hotel Ventures 1:56 1 minute, 56 seconds delivered a very stable performance in Q4 FI26 with continued focus on disciplined execution and margin 2:03 2 minutes, 3 seconds expansion. Our strategy rema remains centered on driving ARR growth through calibrated pricing supported by healthy 2:10 2 minutes, 10 seconds demand conditions. Some of the highlights are we grew by 15% in EITA 2:17 2 minutes, 17 seconds for the for FY26 over FY25. We also saw 174% increase in our PAT from 24 crores 2:26 2 minutes, 26 seconds to 65 crores for the whole year of FY26 over 25. For the quarter, total income grew by 8% year-onear led by 7% increase 2:35 2 minutes, 35 seconds in ERR and occupancy remained relatively stable resulting in a 6% growth in Revar. EIA increased by 13% year-onear 2:46 2 minutes, 46 seconds to 58 crores translating into uh an EITA sorry yeah translating into an EITA margin of 39.7%. 2:55 2 minutes, 55 seconds This performance was driven by a continued focus on cost efficiency and productivity initiatives across the portfolio. Profit after tax for the 3:03 3 minutes, 3 seconds quarters stood at 25 crores compared to 13 crores in the same period last year. 3:08 3 minutes, 8 seconds This growth was supported by improved operating performance as well as lower finance costs due to the debt reduction. 3:14 3 minutes, 14 seconds Our consistent efforts to improve cost control and productivity continued to yield positive results. Utilities as a percentage of operating revenue stood at 3:22 3 minutes, 22 seconds 5% for the quarter and 5.4% for the whole year of FI26. Interest costs have reduced due to loan payments positively 3:31 3 minutes, 31 seconds impacting the net profitability. We are actively advancing adoption of renewable energy which is currently at 61% with 3:38 3 minutes, 38 seconds some hotels exceeding 90% usage. In the coming quarter we plan to upgrade our hotel at Coochie from a 4.5 Sheran to a 3:47 3 minutes, 47 seconds courtyard by Marriott brand. This should help us in improving the ADRs and the profitability further. In FY27, we will 3:54 3 minutes, 54 seconds further strengthen the base with the launch of the courtyard by Marriott uh in Chennai World Trade Center, a 45 key 4:02 4 minutes, 2 seconds hotel that complements our existing presence in high demand business district of OMR in Chennai. From a capital allocation perspective, we 4:10 4 minutes, 10 seconds remain disciplined in how we fund this growth. Our plan capex of approximately 3600 crores of which 400 crores has 4:18 4 minutes, 18 seconds already been invested in by FY26 will be funded through a balanced mix of debt and internal acrals. Around 60% will be 4:28 4 minutes, 28 seconds financed through borrowings with the remainder supported by internal cash generation. We expect internal acruals to contribute over,000 crores in the 4:37 4 minutes, 37 seconds coming years driven by steady AR growth and operating leverage as new assets ramp up. Our oper 4:45 4 minutes, 45 seconds stands at 7,500 ADR and as we commission more luxury properties through FY29 and beyond. We 4:52 4 minutes, 52 seconds project this to exceed Rs 10,000 as for an average ADR by FYI 29 and surpass Rs 5:00 5 minutes 14,000 by FY31 nearly double of what it is today. Looking ahead, demand visibility remains robust and we are positive about the year ahead. With 5:09 5 minutes, 9 seconds that, I would now like to hand over the call to our CFO Mr. Naran Natrajan to take you through the financial highlights in detail. 5:18 5 minutes, 18 seconds Thank you and good afternoon everyone. I will take you through the key financial highlights for the quarter. 5:26 5 minutes, 26 seconds Starting with the consolidated performance for Q4 FI26. 5:31 5 minutes, 31 seconds Consolidated total income for the quarter stood at INR 146 crores as 5:37 5 minutes, 37 seconds compared to INR 135 crores in Q4 of 525 5:43 5 minutes, 43 seconds a yearon-year growth of 8%. Consolidated EITA for the quarter was INR 58 cr 5:52 5 minutes, 52 seconds compared to INR 51 cr in the same period last year reflecting a growth of 13%. 6:01 6 minutes, 1 second AIDA margin for the quarter stood at 39.7%. 6:07 6 minutes, 7 seconds EST 2.2 has resulted in a 1.4% 4% impact on IITA margin for Q4 FYI26. 6:16 6 minutes, 16 seconds Profit after tax for the quarter stood at INR 25 cr compared to INR3 cr in Q4 FY25. 6:27 6 minutes, 27 seconds For the year ended FI26, consolidated income stood at INR 543 cr compared to INR 471 cr in FI25. 6:40 6 minutes, 40 seconds an increase of 15%. 6:42 6 minutes, 42 seconds EITA for the period was INR 192 crores up 15% yearon year from INR 167 cr in the corresponding period last year. 6:56 6 minutes, 56 seconds ITA was impacted by an additional property tax expenses of around 6 cr of 7:03 7 minutes, 3 seconds additional property tax. Excluding this operational EITA would have grown 19% year on year for FI26 7:12 7 minutes, 12 seconds EITA margin was additionally impacted by 0.8% due to GST 2.2 2 impact 7:21 7 minutes, 21 seconds pack for FI26 stood at INR65 cr compared to INR 24 cr in FI25. 7:30 7 minutes, 30 seconds From an operational standpoint during Q4 FYI26, AR stood at INR 8,66 7:38 7 minutes, 38 seconds compared to INR 7,548 in Q4 FYI25 with occupancy at 78%. 7:48 7 minutes, 48 seconds This translated into a repar of INR 6295 reflecting a year-on-year growth of 6%. 7:56 7 minutes, 56 seconds For the year ended March 2026, AR was INR 7,453 versus INR 6,696 8:06 8 minutes, 6 seconds in FY2 with occupancy at 76.1%. 8:11 8 minutes, 11 seconds resulting in a repar of INR 5,670 a growth of 10% yearonear 8:20 8 minutes, 20 seconds as 31st March 2026 our net cash position stood at 110 cr 8:28 8 minutes, 28 seconds with that we conclude the financial highlights for the year and we would now be happy to take your questions thank you 8:36 8 minutes, 36 seconds thank you we will now begin the question and answer session anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to 8:45 8 minutes, 45 seconds remove yourself from the question queue may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll 8:53 8 minutes, 53 seconds wait for a moment while the question queue assembles. 8:59 8 minutes, 59 seconds The first question comes from the line of Sor Kilda with GM Financial. Please go ahead. 9:06 9 minutes, 6 seconds Yeah. Hi. Yes, please go ahead. 9:11 9 minutes, 11 seconds Yeah. So firstly on the other income bit for the quarters it looks relatively high. Uh uh what exchange that? 9:24 9 minutes, 24 seconds Yeah thank you. The other income has increased due to interest from the fixed deposit what we have kept mainly that is 9:33 9 minutes, 33 seconds the major in increase in other income and there is a.7 9:39 9 minutes, 39 seconds crores uh for the credit tax reversal which no longer payable. 9:46 9 minutes, 46 seconds Okay. Uh thank thank you. And secondly uh can you quantify the impact of war 9:54 9 minutes, 54 seconds during the quarter especially on the FNB which came in at uh uh relatively relatively softer compared to our previous quarters uh uh especially the impact on FND. 10:06 10 minutes, 6 seconds Yes. Um so for SND we yeah we saw a slight uh decline on the quarteron quarter for the SND revenue just about 10:14 10 minutes, 14 seconds 3% or so. Uh so basically we saw cancellations worth of about 8 to 7 to eight growth for the quarter which was 10:24 10 minutes, 24 seconds about 5% of the business for the quarter. We are also apart from that we we were able to make it up with some 10:30 10 minutes, 30 seconds domestic business but not to the extent uh you know that would see an increase in the FNB revenue but the good part is 10:38 10 minutes, 38 seconds that we were at least able to increase our ADR uh by 7%. we were able to increase uh our occupancy and keep it at 10:45 10 minutes, 45 seconds around 78%. And overall REPA also we were able to increase by about 6%. So our ADR if you look at it for the 10:53 10 minutes, 53 seconds portfolio which is the highest ADR on average that we've received. 10:58 10 minutes, 58 seconds Okay. Sure. So lastly, how do you see the situation maybe like uh since most of our business our hotels are you know 11:05 11 minutes, 5 seconds businesscentric and uh that's where the travel is largely uh restricted. uh so at least in terms how do you see the 11:13 11 minutes, 13 seconds impact uh on both so so while the most uh the greatest impact was seen in March what we seeing 11:21 11 minutes, 21 seconds in April May and June is also a we also got some cancellations worth about 7 to 8 crores but we are trying to make that 11:29 11 minutes, 29 seconds up with more domestic business if you look at our uh mix now I would say domestic business contributes about 73% 11:36 11 minutes, 36 seconds of our overall business um and international only the balance uh 37% or so which was not the case before the war 11:44 11 minutes, 44 seconds started. So the good thing is at least the domestic demand is remaining robust. 11:48 11 minutes, 48 seconds So we are doing our best to make up for the loss in revenue through more domestic business. 11:54 11 minutes, 54 seconds Good. Thank you. 11:59 11 minutes, 59 seconds Thank you. A reminder to all the participants and one to ask a question. 12:06 12 minutes, 6 seconds Next question comes from the line of Nitin Shaka with Green Capital Single Family Office. Please go ahead. 12:14 12 minutes, 14 seconds Uh good afternoon uh to Nupa and the management. This is Nan Shakar from the Green Capital Single Family Office. My question is more strategic as an 12:22 12 minutes, 22 seconds investor rather than analyst is in a long-term situation uh for the company. 12:28 12 minutes, 28 seconds I do understand that the hotel uh brand is building and constructing and then taking on uh brands and management 12:36 12 minutes, 36 seconds contracts from brands. But is there a sense from the management that what is more recruitive in terms of asset uh 12:43 12 minutes, 43 seconds buying the asset or constructing the hotel asset and what is more beneficial in terms of revenue uh exercise in the 12:51 12 minutes, 51 seconds long run? So would you look at acquisition opportunities or would you look at only constructing and then looking at time? Thank you. 13:01 13 minutes, 1 second Hi Nathan, hope you're well. Um, we our strategy has always been to uh acquire the land whether we buy it outright or 13:10 13 minutes, 10 seconds we lease it uh and then develop because there are very few people in the construction space of hotels. I would 13:18 13 minutes, 18 seconds say it's a very u niche segment and while it is much easier to buy an asset uh it is much harder to build it up from 13:26 13 minutes, 26 seconds scratch and get everything right. So in the country I would say there are hardly half a dozen to a dozen players that can build a large scale and we're one of 13:35 13 minutes, 35 seconds them. uh we've been able to do this very effectively over the last few years and we believe that this is our USB the ability to build very efficient hotels 13:43 13 minutes, 43 seconds build it uh on time and build it well uh within cost and actually uh with a cost 13:50 13 minutes, 50 seconds uh I would say with a cost positive cost impact compared to what the rest of the market can build. So this will continue to be our main strategy. But that said, 14:00 14 minutes uh considering now we um are a listed entity, we understand that there will be a lot of lots more opportunities that are coming our way as we have seen. So 14:09 14 minutes, 9 seconds at this point in time, we're definitely open to acquiring uh assets. But when you're a builder, acquiring comes at a much more expensive uh cost per key. 14:18 14 minutes, 18 seconds It's not it's some sometimes it's hard for us to digest but then we have to weigh the pros and cons of um getting the hotel to market and uh if the pros 14:27 14 minutes, 27 seconds outweigh the cons and if we're able to get value for money product and if we're able to find that you know if we buy an 14:35 14 minutes, 35 seconds asset potentially refurbish it rebrand it and bring it to market much quicker than building it from scratch and if that makes sense and a viable business 14:42 14 minutes, 42 seconds proposition then we go ahead and acquire that said we've been in the market we are looking at various options but uh yet to 14:52 14 minutes, 52 seconds that's it but that's one of our key focuses for this year. 14:56 14 minutes, 56 seconds Oh okay great. So I'll I'll touch base with the offline and then we'll discuss it further but thanks a lot for that priority and all the best and I 15:04 15 minutes, 4 seconds obviously look at hotel companies as more long-term annual results. I don't think quarters does justification for all that but great set of consistent numbers. Thank you for the time. 15:15 15 minutes, 15 seconds Okay, thank you. 15:17 15 minutes, 17 seconds Thank you. Next question comes from the line of Archin with IDBI Capital. Please share. 15:24 15 minutes, 24 seconds Uh hi team, good afternoon and uh thank you for the opportunity. Uh I have a couple of questions. Firstly, uh you 15:31 15 minutes, 31 seconds mentioned that we upgraded the four point to Port Mar. So what kind of area in should we expect there and uh 15:39 15 minutes, 39 seconds how much should we invested for upgradation of the property? 15:46 15 minutes, 46 seconds Yes. So we we are uh under way to change the uh uh branding. It should happen in this in this quarter. Uh we definitely 15:55 15 minutes, 55 seconds expect an ADR increase because you're upgrading the brand from a four points to a courtyard. So that is a normal expectation that ADR would definitely 16:03 16 minutes, 3 seconds increase. Uh we believe that you should be able to get something in the mid- teens a double digit uh growth. And uh 16:10 16 minutes, 10 seconds yeah what was the second part of your question? 16:13 16 minutes, 13 seconds So uh like have we already invested for upgradation of the property or uh it is yet to be done. 16:22 16 minutes, 22 seconds Yeah it's it's in process. It should happen very soon. 16:27 16 minutes, 27 seconds Sure. And if I if I exclude other income while calculating the operating margins you know uh it is still lower compared 16:35 16 minutes, 35 seconds to the uh previous uh quarters. Uh now uh I do understand because of cancellation and everything the margins 16:43 16 minutes, 43 seconds could have been impacted. Uh but if you can guide us some sustainable kind of a range of operating margin for us uh would be helpful. 16:56 16 minutes, 56 seconds Yeah. So definitely the thing is uh with our operating margins if you look at all our operating metrics be it the employee 17:04 17 minutes, 4 seconds cost which is one of the highest uh uh co you know uh expenses in the P&L if you look at our utilities cost if if you 17:11 17 minutes, 11 seconds look at every on every aspect we we we have very healthy figures even our payroll costs like I said which is one 17:18 17 minutes, 18 seconds of the highest it's up 20% it's at 19% uh utilities is only 5 a.5% for the year um admin and general everything is under 17:26 17 minutes, 26 seconds control As I mentioned, as Anand also mentioned earlier, yes, we got hit with a few uh with a GST 17:34 17 minutes, 34 seconds because of tax uh credit that we were not able to utilize. We had some additional onetime property tax hit. But apart from that, if that was not there, 17:42 17 minutes, 42 seconds we would have probably hit about 37 and a half uh percentage for the EITA, which was very much in line with what we had 17:50 17 minutes, 50 seconds planned. So of course because of these other interest income and other things we were able to get a much higher ebitita this time but uh that's also 17:58 17 minutes, 58 seconds part of the business right repaying your debt and getting that interest income is very much part of uh running the business smoothly and effectively so as 18:07 18 minutes, 7 seconds I would say that if we weren't hit by these oneoff uh cases and then we would have also hit about 37 and a half to 3% 18:15 18 minutes, 15 seconds and we will see this uh increase in epida once the um arras pieces because currently our arr while the Bangalore 18:23 18 minutes, 23 seconds hotels I would say are averaging around 9,000 to 9 a half th000 rupees per room the rest of the portfolio a lot of our 18:31 18 minutes, 31 seconds other hotels are in tier 2 markets like mys kochi gifsi and these bring the overall ADR down to about 7 a half 18:39 18 minutes, 39 seconds thousand but the goal for us to is to bring all these thousand so that this GST uh hit is not there in the coming 18:47 18 minutes, 47 seconds years that's that's what we are focusing on And uh once our AR rs uh increase which we are again like if you look at 18:55 18 minutes, 55 seconds our current P&L as well our occupancy stayed the same but most of the growth came from ADR um we should get some higher EITA margins as well. 19:06 19 minutes, 6 seconds Sure that was helpful. Maybe lastly uh what is the timeline for this courtyard by Marat in Chennai to be open? 19:17 19 minutes, 17 seconds This is the courtyard by uh in Chennai. 19:20 19 minutes, 20 seconds Okay. So that we're looking in the second half of the year. We are targeting Q3. 19:27 19 minutes, 27 seconds Sure. So Q3 uh like uh the opening so it probably it will take couple of quarters to stabilize. Sure that was helpful. 19:34 19 minutes, 34 seconds Thank you so much Nupra and all the best. Thank you. 19:41 19 minutes, 41 seconds Thank you. Next question comes from the line of Madav Agarwan with SKP securities. Please. 19:47 19 minutes, 47 seconds Yeah. Hi, thanks for the opportunity. I wanted to know as you mentioned in the presentation there was an impact of gas supply issues 19:56 19 minutes, 56 seconds also right. So now in the ongoing quarter how the situation is resolved or what is the situation that is one 20:03 20 minutes, 3 seconds question and the second question is out of as you mentioned that you saw calculations were 7 to 8 right. Uh so 20:11 20 minutes, 11 seconds out of that do you expect any business to like uh is it like gone forever or you expect some business uh to come back in the coming quarties? 20:25 20 minutes, 25 seconds Yes. 20:25 20 minutes, 25 seconds Yeah. Hi. So see uh because of this dis uh these dis disruptions during the last month uh of March and some bit of it 20:34 20 minutes, 34 seconds still continuing we faced a few cancellations on account of you know larger events which uh which are dependent on the foreign uh travelers 20:42 20 minutes, 42 seconds coming in and international travel but apart from that on a regular basis these gas supply uh 20:51 20 minutes, 51 seconds you know they didn't cause too much of disruption because we managed with alternative fuel sources we managed to 20:57 20 minutes, 57 seconds restructure or or re you know redefine our menus and taken you know alternative 21:04 21 minutes, 4 seconds items in the menu. So that's how we never close any of our restaurant all our restaurants have been performing uh 21:11 21 minutes, 11 seconds as per the as per the normal schedule uh and we don't see because of this dis and that has also been restored now. So with 21:18 21 minutes, 18 seconds alternative fuels and alternative arrangements in place we switch to inductions now in many of our hotels. So with all that in place there's on a 21:27 21 minutes, 27 seconds regular FNB service uh serving we servicing we don't have any issue while the larger events and conferences we are 21:34 21 minutes, 34 seconds hopeful that will start coming and we are already seeing the bookings and uh queries and uh you know those queries 21:41 21 minutes, 41 seconds coming in now okay okay no uh that is helpful but what I was trying to understand is uh that 21:50 21 minutes, 50 seconds gas uh issue I understood but uh what I was trying to understand uh another thing was that out of the total 21:57 21 minutes, 57 seconds cancellations of any you know mice event. So how how should we look at it? 22:02 22 minutes, 2 seconds Can we expect like in further quarters for the industry to see you know uh the some of the events getting just postponed and in further quarters kind 22:12 22 minutes, 12 seconds of bump up due to that or like these events are kind of uh they are gone forever and no bumpups uh we should expect. So how should we look at it? 22:22 22 minutes, 22 seconds Yeah. Um hopefully it should come back at a later part in the year. Um that yeah that once things stabilize hopefully it should come back but 22:30 22 minutes, 30 seconds honestly very hard to uh predict what will come back and what will get cancelled. 22:34 22 minutes, 34 seconds Uh but we hope we will definitely try to make sure that these come back to us. Okay. 22:44 22 minutes, 44 seconds Thank you. Next question comes from the line of Rad Malik with Jeff. Please go ahead. 22:50 22 minutes, 50 seconds Yeah. Hi. Uh am I able? Yes. Yeah, please go back. Okay. Uh thank you for the opportunity. 22:58 22 minutes, 58 seconds Uh so first question just on uh revenue growth and ref growth. So uh ref growth seems to be about 6% blended and revenue 23:06 23 minutes, 6 seconds growth is about 2%. So how did we uh bridge this gap? 23:17 23 minutes, 17 seconds Yes. What is the uh what is the question on that? 23:21 23 minutes, 21 seconds Yeah. So I just want to understand how we should you know bridge that gap. Why is revenue growth slower than repar growth for this quarter? 23:29 23 minutes, 29 seconds Yeah. So uh that's primarily see our repar growth uh is driven by ADR growth which is 7% and we maintained our 23:36 23 minutes, 36 seconds occupancy. Uh the overall revenue growth is a little lesser than that because of the main FNB impact. So if you see our 23:43 23 minutes, 43 seconds FNB revenues uh quarteron quarter uh I mean the yearon-year quarter has shown a little bit of uh downside 23:52 23 minutes, 52 seconds you know around 3%. Because of these uh large cancellations but overall uh room 23:59 23 minutes, 59 seconds revenue has increased 7%. So that's why we have achieved this uh 2% operational growth in the revenues for the quarter but for the full year this growth has been 12%. 24:11 24 minutes, 11 seconds Sure. So understood for a second. Yeah, sorry. Please go. 24:20 24 minutes, 20 seconds Yeah, please. Yeah, go ahead. 24:24 24 minutes, 24 seconds Yeah. So, uh, sorry. So, I had another question on just the reps. Uh, essentially Bangalore seems to have like 24:31 24 minutes, 31 seconds underperformed. Is there a similar case for maybe Chennai as well? So is it something to do with better domestic mix for maybe a msore and kochi you know 24:40 24 minutes, 40 seconds non-metro hotels is that why there is this divergence in performance on their part 24:49 24 minutes, 49 seconds uh our Bangalore hotels did pretty well actually if you look at it our uh ADR grew uh pretty significantly for the 24:56 24 minutes, 56 seconds Bangalore hotels as well it grew by 13% and uh in terms of the occupancy it stayed kind of flat but Refar also grew by 10%. 25:08 25 minutes, 8 seconds Yeah, I know. I mean specifically for the fourth quarter. 25:12 25 minutes, 12 seconds Yeah, in the fourth quarter we still saw an Yeah, we saw an increase of around 4% for the quarter and we saw an increase 25:20 25 minutes, 20 seconds of 6% in the repa are uh yeah no so what happens uh you know in Bangalore for especially for the Bangalore market uh like last year was 25:29 25 minutes, 29 seconds the root show year uh the aeros show year so that creates very high demand days and compressed market this year 25:36 25 minutes, 36 seconds that big event was not there but there were other events and we were doing fairly well within January and February. 25:43 25 minutes, 43 seconds Although March faced some occupancy pressure because of these cancellations, we had to get some uh some you know 25:50 25 minutes, 50 seconds lower paying groups to fill up the uh fill up the demand and we maintained our occupancy and that's why the Bangalore particularly saw a little bit for the 25:58 25 minutes, 58 seconds quarter a lesser ADR increase compared to other markets. Okay, understood. So that's more oneoff. 26:08 26 minutes, 8 seconds Yeah, it's not it's a one-off case. Uh because now we are again seeing you know April onwards we are seeing uh good kind of increase in the Bangalore market. 26:20 26 minutes, 20 seconds Okay. Thank you. Understood. That's okay. 26:25 26 minutes, 25 seconds Thank you. A reminder to all the participants that you may press star and one to ask question. 26:32 26 minutes, 32 seconds Next question comes from the line of part and khan with ITPI capital. Please go ahead. 26:39 26 minutes, 39 seconds Hi. Uh so my question was uh on the GST 2.0 pass through crew. Uh I think last time around you mentioned uh that seven 26:48 26 minutes, 48 seconds out of your nine hotels were under 7,500 AR. So any progress on that? How many 26:55 26 minutes, 55 seconds keys do we have as a percentage of our total keys which are above that 7,500 threshold now? 27:06 27 minutes, 6 seconds Yeah. So, uh you know two of our hotels are clearly uh on an annual basis 27:12 27 minutes, 12 seconds averaging above 7,500 and the third hotel is just you know on the verge of crossing the 7,500 mark. So three hotels will clearly cross the 7,500 mark. 27:23 27 minutes, 23 seconds Having said that you know the GST impact comes not on the basis of the average annual ADR it comes on the basis of 27:31 27 minutes, 31 seconds daily room nights. So whatever room nights you sell below 7,500 uh you have to reverse your GST input 27:39 27 minutes, 39 seconds credit on account of that and that can happen in a hotel averaging above 7,500 also some of some of the room nights maybe they are below 7,500 and in the 27:48 27 minutes, 48 seconds hotels which are less than 7,500 but they can they might they might be selling you know some room nights above 7,500. So what is more important to see 27:56 27 minutes, 56 seconds here is that currently our out of our total revenue only 30% is coming from the room night selling less than 7,500. 28:05 28 minutes, 5 seconds So that 30% number is now slowly getting more and more reduced as we are increasing ADR in all our all our hotels. 28:15 28 minutes, 15 seconds Okay. Okay. Understood. Uh also uh one question on gift city. Um so I think uh we are the uh one of the only three hotels in the city. 28:27 28 minutes, 27 seconds Is there any progress on uh other players that have come in recently? 28:33 28 minutes, 33 seconds There is uh one announcement that is there and uh you know we are seeing movement on the ground that there's one hotel coming up uh but it just starting 28:41 28 minutes, 41 seconds so uh at least for the next three to four years we don't see any other supply coming in in this city. 28:48 28 minutes, 48 seconds Yeah. So, we plan to capitalize on the fact that we're one of the few hotels there. So, we are um investing um a lot more into the FND options there. 28:58 28 minutes, 58 seconds Currently, there's only one option, but now we're looking at adding two two or three more since we're also one of the few hotels uh with a liquor license. So, 29:06 29 minutes, 6 seconds I think there's only two of us or three of us at the moment. So we are going to invest a little bit of uh uh cap capex 29:15 29 minutes, 15 seconds to add two more restaurants into this venue. Understood. Thank you. 29:23 29 minutes, 23 seconds Thank you. 29:26 29 minutes, 26 seconds Thank you. Next question comes from the line of web of with headong India securities. Please go ahead. 29:33 29 minutes, 33 seconds Hi thanks for the opportunity and uh congratulations on decent set of members. My first question was on our overall PDR growth and occupancy 29:42 29 minutes, 42 seconds expansion. Uh in the quarter we have seen bit of a divergent trend compared to rest of the peers uh where our 29:49 29 minutes, 49 seconds occupancy has actually held up at decent healthy levels of 78% but ADR growth has been relatively muted at 67%. 29:58 29 minutes, 58 seconds Uh any particular reason for this where uh we have seen better occupancies despite our majority of presence into 30:05 30 minutes, 5 seconds business markets and is it is this a uh targeted revenue management strategy where we are focused on higher occupancy 30:13 30 minutes, 13 seconds uh uh rather than focusing on more areas and uh related to this uh regarding the 30:20 30 minutes, 20 seconds GST impact what is the practical scope do you see to increase the areas above 7 and a half thousand into your midscale 30:28 30 minutes, 28 seconds portfolio spec specifically the key the 30% part which you mentioned which operates currently below 7 and a half thousand what kind of scope do you see 30:36 30 minutes, 36 seconds to increase the ADR above uh 7 and a half thousand in this portfolio and if that happens what could be the potential 30:43 30 minutes, 43 seconds impact on occupancy that's my first question yes so um as we mentioned earlier I 30:53 30 minutes, 53 seconds think it's it's always a balance uh between the occupancy and the ADR um sometimes like and that's why of course 31:00 31 minutes we have to look at the ref bit. Yes, we did. I'm I'm quite happy with the ADR that we managed to get of around 8,000. 31:07 31 minutes, 7 seconds That's been the highest ADR for the quarter that we've seen in our portfolio. Um also we maintain that 78%. 31:13 31 minutes, 13 seconds So that's good. Uh but yes, could is there room to do better? We believe so. 31:17 31 minutes, 17 seconds In fact, if you look at quarter 4, almost [clears throat] five of our nine hotels had occupancies in the mid80s. So 31:26 31 minutes, 26 seconds we do believe that there is gap to move this uh average portfolio occupancy from 78 to somewhere in the mid to low 80s. 31:34 31 minutes, 34 seconds Um the remaining apart from that three out of the nine hotels are already above 7 and a half thousand. Um there the 31:43 31 minutes, 43 seconds others are sort of borderline I would say they can be and some days they aren't only maybe one or two hotels uh will take time to reach that 7 and a 31:51 31 minutes, 51 seconds half thousand. We working on various revenue management strategies sometimes to see what if we can add more inclusions into the room rate um add 32:00 32 minutes more value ad in terms of I don't know could be laundry could be a complimentary bet could be a complimentary pickup uh uh so just to 32:08 32 minutes, 8 seconds see how we can breach that 7 and a half thousand to negate the impact of the GST without compromising on the occupancy of 32:15 32 minutes, 15 seconds course so we don't see any impact on the occupancy as you have seen you know during March uh month also uh In spite 32:22 32 minutes, 22 seconds of some volatility, we kind of maintain very healthy occupancy. So occupancy we don't want to compromise uh and we uh we 32:31 32 minutes, 31 seconds are working on our revenue strategies by uh coming up with you know more categorizations of rooms and inclusions and other things uh so that we get to 32:40 32 minutes, 40 seconds that uh 7,500 plus marks for these uh uh other hotels as well. 32:47 32 minutes, 47 seconds Understood sir. Uh if I may just drill down a bit more on this. Uh my question was more from a perspective that rest of 32:54 32 minutes, 54 seconds the peers are actually operating at relatively lower occupancy compared to big right. Uh we have been consistently maintaining this high occupancy 33:02 33 minutes, 2 seconds especially in business markets. Uh so what is driving this uh you know slightly higher occupancy uh compared to the rest of the pack? 33:14 33 minutes, 14 seconds So uh see that's that's that's the you know beauty of our portfolio in terms of our locations. We we have such strategic 33:22 33 minutes, 22 seconds locations in the key business districts and key areas and very uh very minimal or you know very low supply or anything 33:30 33 minutes, 30 seconds coming up in these markets in in uh uh in the near future. So uh during the demand compression days during the high 33:38 33 minutes, 38 seconds demand days we have been able to maximize and since we are overall doing a good occupancy on a on an annual basis 33:46 33 minutes, 46 seconds uh we we get more chance than usual to maximize on our ADR lead as well. So we can really then play out on those dates 33:55 33 minutes, 55 seconds where we uh you know uh play on our transient business and OTAA business to increase our overall uh ADR. So 34:03 34 minutes, 3 seconds occupancy wise I don't see any problem in across our portfolio. 34:10 34 minutes, 10 seconds Understood sir. And uh what is the share of uh overall retail versus contracted business for brigade? And if you can also give the uh share of separately. 34:25 34 minutes, 25 seconds Yeah. So uh currently on the segment side we have almost reached we are we have now reached 50% of our business 34:32 34 minutes, 32 seconds coming from transient which is retail business and uh uh negotiated contracted business is only 25%. Uh while this 34:41 34 minutes, 41 seconds differs from hotel to hotel depending on the location but overall portfolio business this is the breakup 50% transient 25% uh negotiated around 15% 34:51 34 minutes, 51 seconds are is our group business and 10% is the balance miscellaneous crew and other businesses out of the retail 50% uh 34:59 34 minutes, 59 seconds almost uh you know uh almost 30% so that is you know 60% of the total 35:06 35 minutes, 6 seconds retail comes from the OTS Understood sir overall 30% is the business. 35:16 35 minutes, 16 seconds Got it. And uh secondly on our FBA mix uh you mentioned that the FDA mix has fallen to 27%. uh in Q4 uh what is the 35:26 35 minutes, 26 seconds normal FTA trend uh for Brigade and uh now in Q1 are you seeing the recovery in the foreign guest mix and related to 35:34 35 minutes, 34 seconds this uh what is the practical scope to replace at least part of this foreign guest demand uh by domestic travelers. 35:48 35 minutes, 48 seconds Hi, this is Ryan here. Um, the domestic the domestic business very quickly replaced international travel even in 35:55 35 minutes, 55 seconds this situation of war conflict. So as you've seen our occupancy has not dropped and our area has you know 36:02 36 minutes, 2 seconds climbed up. So we consistently find that the demand domestically is still high. 36:08 36 minutes, 8 seconds So even if there is a I mean once uh there's this war conflict I mean comes to an end we will see a gradual increase 36:17 36 minutes, 17 seconds in international business but that does not mean that there is insufficient demand domestically. So that travel still remains and we're confident that that will continue. 36:26 36 minutes, 26 seconds So see on on a on an stabilized basis you were asking you know what what will be this ratio like so it used to be 7030 36:34 36 minutes, 34 seconds now it has come down to around 25%. it will again go back to 20 uh to 30% you know for an FBA business even if it does 36:42 36 minutes, 42 seconds not let's say for a shorter period of time we uh that's very uh small number for us to fill up on account of domestic 36:50 36 minutes, 50 seconds demand so that's that's where we are at and uh it'll always be good to have that healthy level of you know that this kind 36:56 36 minutes, 56 seconds of 75 25 mix because this uh FP business kind of helps us in uh maximizing our ADR 37:06 37 minutes, 6 seconds sir And just lastly, if I may squeeze in one more question on our gas supply constraint issue, uh what is the mix of 37:13 37 minutes, 13 seconds CNG versus PNG in our uh hotels and uh how how much of our kitchen operations are now shifted to uh electric methods 37:22 37 minutes, 22 seconds mainly uh using the induction uh cookers etc. 37:28 37 minutes, 28 seconds Yeah. So four of our hotels are u you know they they run on PNG and the rest are LPG dependent. However, considering 37:37 37 minutes, 37 seconds the scope of kitchen operations across the hotel, there is a large amount of electric induction uh also available 37:44 37 minutes, 44 seconds which we moved to very quickly. So, we didn't really see a lapse as such. There was no hotel which ran out of a gas 37:51 37 minutes, 51 seconds supply. Uh while there was reduced supply coming in from the PNG line, we still uh managed to supply the the the food that we had to. 38:02 38 minutes, 2 seconds So, very quick alternatives we were made. We didn't feel any lag in this whatsoever. 38:09 38 minutes, 9 seconds Perfect sir. Thank you so much and all the best. Thank you. 38:18 38 minutes, 18 seconds Thank you. 38:19 38 minutes, 19 seconds A reminder to all the participants that we may press star and one to ask a question. 38:28 38 minutes, 28 seconds Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I now hand the conference over to Mr. 38:35 38 minutes, 35 seconds Manoj Agarwal, COO of Brigade Hotel Ventures Limited for closing comments. 38:46 38 minutes, 46 seconds Thank you. Uh thank you for uh all for your time and continued engagement with Brigade Hotel Ventures. To conclude, this has been a year of steady progress 38:55 38 minutes, 55 seconds and disciplined execution for us. We have strengthened our operating performance, maintained a healthy balance sheet and continue to deliver 39:03 39 minutes, 3 seconds robust returns reflecting the underlying strength of our portfolio. At the same time, we have built a clear runway for our future growth. Our development 39:12 39 minutes, 12 seconds pipeline gives us strong visibility on expansion while the evolving mix of our portfolio towards higher value segments 39:19 39 minutes, 19 seconds positions us to drive better pricing, improved margins and stronger cash flows over the medium term. On that note, we 39:27 39 minutes, 27 seconds remain confident in our direction and committed to creating long-term value for our shareholders. Uh before we conclude, we are also pleased to share a 39:35 39 minutes, 35 seconds few recent recognitions across our portfolio. By the blue at our grand of Bangalore Hotel was awarded best newcomer hotel restaurant at the food 39:43 39 minutes, 43 seconds connoisseurs India award 2025 and in 20 February 2026 as well. Sheritan Grand Bangalore at Brigade Gateway was honored 39:52 39 minutes, 52 seconds with business hotel of the year at the Sate Awards to 2026. Further, the Persian Terrace at Sheran Grand 39:59 39 minutes, 59 seconds Bangalore at Brigade Gateway won restaurants serving the best Middle Eastern cuisine at the food connoisseur India award uh 2025 held in February 40:09 40 minutes, 9 seconds 2026. Our hotels continue to uphold their commitment to community engagement and social responsibility through a 40:16 40 minutes, 16 seconds range of impactful initiatives including our CSR contribution towards skill development from the corporate office. 40:24 40 minutes, 24 seconds With this I would like to thank all of you and for any further queries or clarifications please feel free to reach our uh reach out to SGA our investor 40:33 40 minutes, 33 seconds relation advisors and we wish you all have a great day ahead. Thank you. 40:39 40 minutes, 39 seconds Thank you. On behalf of Brigade Hotel Ventures Limited, that concludes this conference. Thank you for joining us.