Chalet Hotels Limited — Q2 FY26

Chalet Hotels Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=B97rcQIQ49w Published: 6 months ago

0:00 Ladies and gentlemen, good day and welcome to Q2 and FY26 earning conference call hosted by Shalet Hotels 0:07 7 seconds Limited. This conference call may contain forward-looking statements about the company which are based on beliefs, 0:14 14 seconds opinions and expectation of the company as on date of this call. These statements are not guarantee of future performance and involve risk and 0:23 23 seconds uncertainties that are difficult to predict. As a reminder, all participant line will be the listen only mode and there will be an opportunity for you to 0:32 32 seconds ask questions after the presentation concludes. Should you need assistant during the conference call, please signal an operator by pressing star then 0:40 40 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over 0:47 47 seconds to Dr. Sanji Si, MD and CEO of Shal Hotels Limited. Thank you and over to you Dr. Si. 0:55 55 seconds Thank you, Janesh. Uh, good morning, ladies and gentlemen, and thank you for joining us for the Q2 FY28 call. 1:03 1 minute, 3 seconds As many of you know, I'll be stepping down as the managing director and CEO of Shalotes Limited on 31st of January 2026. 1:12 1 minute, 12 seconds After 26 consecutive quarters of leading these calls, today marks my final one in this role. 1:18 1 minute, 18 seconds It's a deeply personal and reflective moment, not just uh the tools of a chapter, but a celebration of a journey 1:25 1 minute, 25 seconds we've shared since listening. Every quarter has been more than a set of numbers. It's been a story of resilience, growth, and purposeful evolution. 1:36 1 minute, 36 seconds This quarter very exciting we also mark the launch of a new brand AIA hotels and resorts a premium lifestyle brand for the affluent. 1:47 1 minute, 47 seconds AIA is built on three diff uh deeply thought of pillars of joy, wellness and sustainability 1:54 1 minute, 54 seconds for the for me this represents a crowning milestone in a collective journey taking sh from a successful portfolio of assets to a fully 2:03 2 minutes, 3 seconds integrated brandled hospitality platform. 2:08 2 minutes, 8 seconds We have also announced our N million interim dividend this quarter. Another proud moment that reflects the company's 2:15 2 minutes, 15 seconds strong fundamentals and commitment to shareholder value. None of this would have been possible without the exceptional team that powers Shalet's success. 2:26 2 minutes, 26 seconds I'm joined today by Shank Net and Gorov leaders who exemplify our values and will now steer Shal into its next phase of growth. 2:36 2 minutes, 36 seconds Before I hand over the shrank and net to take you through the results, please accept my heartfelt gratitude for your support for the questions that pushed us 2:45 2 minutes, 45 seconds to King Shappa and for the confidence that inspired us to strive higher. As I move into a non-executive role, I do so 2:54 2 minutes, 54 seconds with immense pride and complete faith in this team and the path ahead. I remain as always a deeply committed stakeholder 3:03 3 minutes, 3 seconds confident that Shia's next chap next chapter will be even more inspiring and valued. 3:10 3 minutes, 10 seconds Chad, the floor is yours. Thank you Sanjay for the vote of confidence in this amazing team which is poised to 3:18 3 minutes, 18 seconds take this company forward. Good morning everyone. I'm thrilled to thrilled to be addressing you today. These are indeed 3:25 3 minutes, 25 seconds exciting times for all of us at Shalet and for the Indian hospitality ecosystem at large. I step into this role with 3:32 3 minutes, 32 seconds immense enthusiasm and humility. I'm deeply aware and energized by the legacy of chalet that has been built over the years. 3:41 3 minutes, 41 seconds We have consistently set benchmarks in hospitality ownership and asset management in this country. In the last 3:48 3 minutes, 48 seconds few weeks, we mark a new chapter in our journey in the continuum of developing, owning, asset managing and operating 3:56 3 minutes, 56 seconds some of India's finest hotels. We are now brand owners for some of our own hotels as well. As many of you are aware 4:03 4 minutes, 3 seconds and as Sanjay said earlier in his piece, the evolution has a name, Aiva Hotels and Resorts, where joy is on the house. 4:12 4 minutes, 12 seconds A premium lifestyle hospitality brand, Aiva finds its roots in a Sanskrit word that means abundance. 4:19 4 minutes, 19 seconds It is built on the pillars of joy, wellness and sustainability. 4:24 4 minutes, 24 seconds This brand represents more than an expansion of our portfolio. It signifies a strategic advancement for the company. 4:31 4 minutes, 31 seconds Although at present it is intended solely as a unifying name for our select properties. Aiva made its debut with the 4:40 4 minutes, 40 seconds transformation of the iconic Duke the Duke's retreat in Kandala now relaunched as Aiva Resorts in Spa Kandala featuring 4:48 4 minutes, 48 seconds featuring 147 rooms and all modern urban resort facilities. 4:54 4 minutes, 54 seconds This is just the beginning. We have identified five additional properties with 900 keys that will transition into AIA over the next few years. 5:05 5 minutes, 5 seconds With that, let me now turn to our quarter 2 FY26 performance. It's been another solid quarter of growth and 5:13 5 minutes, 13 seconds momentum despite the uncertainty being presented by tariff wars and geopolitical tensions especially in the 5:20 5 minutes, 20 seconds Middle East. Hospitality revenue stood at 3 rupees 3.8 billion up 13% yearon 5:28 5 minutes, 28 seconds year driven by a 16% growth in average room rates. EITA for the hospitality segment grew 10% to rupees 1.5 billion. 5:39 5 minutes, 39 seconds Unfortunately during the quarter we faced some headwinds in the form of several rain related disruptions especially in our resorts in the north 5:48 5 minutes, 48 seconds and uncertainty surrounding the tra impact of tariffs which affected the travel sentiment and occupancy in some of our business hotels. 5:59 5 minutes, 59 seconds For the commercial real estate business, revenue grew 76% yearonear and stood at 6:05 6 minutes, 5 seconds 738 million rupees. AITA growing by 88% yearonear to rupees 607 million. During 6:14 6 minutes, 14 seconds the quarter we recognized revenue of rupees 2.8 billion for 55 apartments at the varia Bangalore. 6:23 6 minutes, 23 seconds Therefore on a consolidated basis which includes the residential project total revenue rose 94% to rupees 7.4 billion 6:33 6 minutes, 33 seconds and consolidated grew 98% to rupees 3.1 billion. Excluding our residential uh 6:41 6 minutes, 41 seconds business, our core hospitality and commercial business delivered strong doubledigit growth. Revenues were up 20% 6:48 6 minutes, 48 seconds yearonear while Abitas were up 25% yearonear. 6:53 6 minutes, 53 seconds On the development front, construction at our upcoming Delhi airport hotel is progressing on schedule with the opening 7:00 7 minutes expected in the first half of next financial year. Our second commercial tower signis 2 at Western Pay Lake is 7:08 7 minutes, 8 seconds also on track for completion in quarter 4 FY27. 7:12 7 minutes, 12 seconds for our property in Vara Goa. We we still await the final approvals and aim to commence construction in quarter 4 of 7:20 7 minutes, 20 seconds the current financial year. During the quarter gone by, we have given our ESG initiative a brand name Pari, which as 7:29 7 minutes, 29 seconds the name suggests is our mission to make a change. You can you may recall that we 7:36 7 minutes, 36 seconds had signed the three climate group commitments in 2021 and I'm happy to share that we have achieved 100% 7:44 7 minutes, 44 seconds electric vehicle and electric vehicle charging stations in all our operating assets as of September 2025 ahead of the target date. 7:54 7 minutes, 54 seconds Business on books for the second half of the financial year remains strong supported by a healthy demand by healthy demand trends across key markets. We 8:02 8 minutes, 2 seconds expect a robust performance particularly from our leisure portfolio driven by festive and holiday season increased 8:09 8 minutes, 9 seconds domestic travel and commencement of the mice season. Additionally, continued traction in weddings, socials and international 8:18 8 minutes, 18 seconds inbound travel is expected to further support growth. Business from the corporate segment is also witnessing improved booking momentum. Overall, we 8:27 8 minutes, 27 seconds remain very optimistic of a strong operating performance in the second half of the year for our business locations 8:33 8 minutes, 33 seconds as well. To summarize, our double engine strategy of owning highquality hospitality assets complemented by 8:42 8 minutes, 42 seconds annuity yielding commercial real estate continues to serve us well. It gives us a solid foundation to pursue organic 8:50 8 minutes, 50 seconds growth, brand expansion, and selective acquisitions. All while maintaining disciplined capital allocation and a 8:57 8 minutes, 57 seconds strong balance sheet. As we step into the next phase, I want to emphasize that AIA is not a pivot. It's an evolution in 9:05 9 minutes, 5 seconds our journey. It strengthens our developer and owner DNA while positioning us for the future. one 9:12 9 minutes, 12 seconds defined by experienceless traled travel, conscious luxury and warm Indian hospitality. The path ahead is full of excitement, learning and opportunity. 9:24 9 minutes, 24 seconds I'm deeply thankful for our board, our teams, our partners and of course to you, our investors, for your continued 9:31 9 minutes, 31 seconds trust and support. Together, we will continue to build on the legacy of strong foundations to create enduring 9:38 9 minutes, 38 seconds value for all our stakeholders. With that, I'll now hand over to you Nathan and you can take everyone through the financial details of the port. 9:53 9 minutes, 53 seconds Thank you. 9:55 9 minutes, 55 seconds Good morning, ladies and gentlemen. It is my pleasure to welcome you once again to the earnings call. 10:02 10 minutes, 2 seconds On a consolidated basis, our total revenue surged 94% yearonear to rupees 10:09 10 minutes, 9 seconds 7.4 4 billion while AITA rose 98% with margins expanding by 75 basis points to 41.4%. 10:21 10 minutes, 21 seconds This includes revenue recognition from sale of residential apartments at the Varia Kora Mangla Bangaluru where we 10:29 10 minutes, 29 seconds handed over position of another 55 apartments during the quarter. 10:34 10 minutes, 34 seconds Revenue recognized from residential project during the quarter amounted to rupees 2.8 billion. 10:42 10 minutes, 42 seconds Excluding the residential project yearon year, revenues grew 20% to rupees 4.6 10:48 10 minutes, 48 seconds billion. A bit increased 25% to rupees 2 billion with a robust margin expansion of 144 basis points to 43.4%. 11:02 11 minutes, 2 seconds Revenue from our hospitality business rose 13% yearonear to rupees 3.8 billion. Ref were increased by 5% to rupees 8115. 11:13 11 minutes, 13 seconds areas jumped 16% yearonear to 12170 supported by a strong rate performance 11:19 11 minutes, 19 seconds in both Bangalore and Hyderabad markets on a life forlike basis uh which is 11:26 11 minutes, 26 seconds excluding the western resort and spa Himalaya revenue grew 10% areas grew 14% 11:34 11 minutes, 34 seconds occupancies dropped 4 percentage points resulting in an overall reper growth of 7%. 11:42 11 minutes, 42 seconds Overall occupancy stood at 67% lower by 7 percentage points year on year. 11:49 11 minutes, 49 seconds Disruptive weather conditions with long spells of heavy rain rainfall across the country impacted travel patterns during 11:56 11 minutes, 56 seconds the quarter. Occupancy was also impacted by the gradual ramp up of newly added inventory at the Bangalore Marriott 12:04 12 minutes, 4 seconds Hotel and the seasonal softness at the Western Resort and Spa Himalayas. 12:10 12 minutes, 10 seconds Both assets are expected to contribute meaningfully in the second half of the year as highlighted by Shuang. 12:18 12 minutes, 18 seconds We continue to remain committed to maintain efficient cost structures with focus on enhancing operational efficiencies. 12:27 12 minutes, 27 seconds AITA margins moderated to 40% from 41.4% last year. However, on a like forlike basis, AITA margins were stable at 41%. 12:39 12 minutes, 39 seconds The margin contraction in quarter 2 was due to transitory impact on account of newly added assets including resorts in 12:48 12 minutes, 48 seconds the ramp up phase. With strong execution and disciplined asset management, margins shall improve as these assets 12:56 12 minutes, 56 seconds stabilize and operating leverage kicks in. 13:02 13 minutes, 2 seconds Revenue from our commercial real estate business rose 76% yearon year to rupees 738 million. with a September exit run 13:10 13 minutes, 10 seconds rate of rupees 245 million revenue per month. AITA increase 88% to rupees 607 13:18 13 minutes, 18 seconds million yielding an AITA margin of 82.3% in our commercial real estate business. 13:25 13 minutes, 25 seconds Currently, occupancy across our commercial real estate portfolio stands at 77%. 13:31 13 minutes, 31 seconds including a recently signed letter of intent during the quarter, the committed occupancy stands at 79%. 13:40 13 minutes, 40 seconds For the residential project during quarter 2, we sold seven units at an average rate of rupees 21,300 per square 13:47 13 minutes, 47 seconds ft². A total of 1.3 billion of cash flows were generated by collections during this quarter. As of September 25, 13:56 13 minutes, 56 seconds cumulatively 314 units have been sold from a total inventory of 321 units of the entire residential project. 14:05 14 minutes, 5 seconds Additionally, we have repaid an amount of rupees 2 billion towards preferential capital from promoters. 14:13 14 minutes, 13 seconds On net debt, our net debt stood at rupees 20.9 billion with average cost of finance contracting by 38 bits quarter on quarter to 7.62%. 14:26 14 minutes, 26 seconds We maintained a healthy liquidity position of rupees 2.9 billion at the end of the quarter. 14:32 14 minutes, 32 seconds I'm also glad to convey that we were able to raise rupees 1 billion through our maiden issuance of commercial paper at a fixed coupon of 6.1% 14:42 14 minutes, 42 seconds which was rated A1 plus by crystal ratings. 14:46 14 minutes, 46 seconds Additionally, Ikra upgraded the credit credit ratings for shalters from A+ to A minus table for long-term credit. 14:57 14 minutes, 57 seconds Today the gap between our blended finance cost and the RBI's reporate stands at 212 basis points which is a 15:05 15 minutes, 5 seconds clear reflection of the strength of our balance sheet. The credibility which we have built with our lenders and our 15:12 15 minutes, 12 seconds continued ability to access capital at increasingly competitive rates. 15:18 15 minutes, 18 seconds To add to that, it is also interesting to note that our total debt servicing is now covered by our cash flows from the commercial real estate segment which 15:26 15 minutes, 26 seconds enables the hospitality business to pursue further growth accretive activities. 15:34 15 minutes, 34 seconds On the capital allocation front, the capital work in progress and the assets pending operationalization 15:41 15 minutes, 41 seconds amounted to rupees 6.6 billion at the close of the quarter. With a disciplined capital allocation framework, we are 15:48 15 minutes, 48 seconds strategically investing to drive long-term sustainable growth. 15:53 15 minutes, 53 seconds Under our current strategy, we have planned capex of rupees 25 billion over next three years, primarily funded through our internal echoes. The 16:02 16 minutes, 2 seconds company's balance sheet continues to provide the financial muscle necessary to pursue potential strategic opportunities in the future. 16:11 16 minutes, 11 seconds Marking another key milestone in our growth journey. I'm pleased to share that the board has declared an interim dividend of rupees one per share. 16:20 16 minutes, 20 seconds This represents the company's maiden dividend declaration reflecting our commitment to reward the shareholders while maintaining a disciplined capital allocation framework. 16:29 16 minutes, 29 seconds It also reflects the strength of our balance sheet and the confidence we have in our performance going forward. 16:36 16 minutes, 36 seconds With that, I would like to open the floor for questions. 16:41 16 minutes, 41 seconds Thank you very much sir. We'll now begin with the question and answer session. 16:45 16 minutes, 45 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 16:53 16 minutes, 53 seconds may press star and two. Participants are request to use headset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 17:04 17 minutes, 4 seconds Our first question come from the line of Vikas Auda from Antics Stock Broking. Please go ahead, sir. 17:12 17 minutes, 12 seconds Yeah. Hi uh good morning all and congrats on a good quarter. Uh my first question is um you know regarding the 17:19 17 minutes, 19 seconds rebranding of Dukes to Aiva although it has been only few weeks could you share any early trends in occupancy or following the brand transition. 17:29 17 minutes, 29 seconds Additionally uh with the repositioning of the property under the new brand should we should we build in any impact 17:36 17 minutes, 36 seconds on margins in coming years due to increase in sales and marketing investments because uh as you rightly said very 17:45 17 minutes, 45 seconds early days as far as Duke's trends are concerned uh I can tell you it's been very positively received the guest feedback's been astounding uh 17:54 17 minutes, 54 seconds experiences are true to the brand that we've launched and we believe with those uh with this foundation being strong the 18:02 18 minutes, 2 seconds as the result will do extremely well uh we do expect that in about 3/4 time 3 to four quarters time it will have reached 18:10 18 minutes, 10 seconds stable occupancies of the mid60s uh and the margins should be high on the sales and marketing front uh we don't 18:18 18 minutes, 18 seconds expect any material change in okay okay sure thank you uh uh the 18:26 18 minutes, 26 seconds second question is uh you know with the addition of uh new properties and we saw that in the dip and reoccupancy the 18:33 18 minutes, 33 seconds Bangalore and Akiva formerly Dukes uh do we expect occupancy to come back above 70% in second half uh because we did 18:42 18 minutes, 42 seconds talk about the B you know occupancy moving up in second half in the presentation also for the medium-term what should we consider as a steady 18:49 18 minutes, 49 seconds state occupancy levels across portfolios particularly for business hotels versus resorts uh you know properties like uh 18:58 18 minutes, 58 seconds Harabi or Himalayas maybe you have started reporting a consolidated numbers around that any any indications 19:06 19 minutes, 6 seconds without to continue with the answer on your question uh we do not expect any uh impact on on margins because of sales 19:14 19 minutes, 14 seconds and marketing costs these hotels were anyway run on an individual basis uh whilst we've had a one-time uh cost 19:21 19 minutes, 21 seconds which is which is absorbed in this coming quarter on the sales on the launch of the brand there's no major ongoing cost to to worry about the margins will come to us from Thank you. 19:33 19 minutes, 33 seconds Sure. I I'll just repeat my second question and thanks for the answer. Uh second one was uh with the addition of 19:40 19 minutes, 40 seconds new properties you know the Bangalore Marriotta formerly loops uh so we saw a dip in occupancy uh we reported around 19:48 19 minutes, 48 seconds 66 something. So do we expect occupancy to move back to about 70% in second half because in the presentation we did 19:55 19 minutes, 55 seconds mention that occupancy levels should stabilize in the second half and for a medium-term what should we consider as a steady state occupancy level across 20:04 20 minutes, 4 seconds portfolios particularly for business hotels versus uh the resorts because we don't give forwardlooking 20:11 20 minutes, 11 seconds numbers but I can assure you that the second half is going to be robust and strong and we should be back to the occupies that we've been delivering in 20:18 20 minutes, 18 seconds the past. This is a one quarter uh one or two quarter blip on account of new inventory inventory addition. We added 20:25 20 minutes, 25 seconds 166 new rooms. It takes time to stabilize those rooms. Uh and we expect this to fall back into normal space very quickly. 20:36 20 minutes, 36 seconds Sure. Thank you. Uh my u final question is uh you know the lease space revenues increased only marginally this quarter 20:45 20 minutes, 45 seconds around 60 lakhs during the quarter. uh should we interpret this as a minimal change in occupancy levels at uh Pawway 20:53 20 minutes, 53 seconds and Bangalore also by when do we expect full.9 million square ft at signness one to be fully leased and what will be the 21:03 21 minutes, 3 seconds monthly run rate for rentals expected once it's you know uh we have full occupancy before your signis 2 starts 21:10 21 minutes, 10 seconds flowing in hi Vikas Smith here so easing activity was uh muted this quarter primary as 21:17 21 minutes, 17 seconds discuss on few key accounts. Uh they are still underway. 21:22 21 minutes, 22 seconds You know uh in in the next quarter probably you might see some good news coming in. Uh we continue to prioritize quality over pace in terms of tenant 21:31 21 minutes, 31 seconds selection. So that's the reason it's is the you know it's little slow. Uh from my earlier statement exit of March we 21:38 21 minutes, 38 seconds are still expected to uh exit at rupees 30 crores per month rental. Currently it is at 24.5 cr per month. 21:54 21 minutes, 54 seconds Okay. Okay. Sure. So uh thanks a lot. 21:57 21 minutes, 57 seconds Thanks for the answers and I'll fall back in the queue. I have one more question. I'll come back. Thank you. 22:06 22 minutes, 6 seconds Thank you sir. Our next question comes from the line of Deepak Saha from Rainwell Bank Institution Equities. Please go ahead. 22:14 22 minutes, 14 seconds Hi. Uh just uh one question on a fever side. So u he can share a broad thought 22:21 22 minutes, 21 seconds process on ultimately when say I mean I know these are early days but once it matures do we have plans to finally 22:28 22 minutes, 28 seconds enter into management contracts and uh those sort of portfolios with 22:34 22 minutes, 34 seconds uh so deep question. Um look uh what we've done to today is strung together the individually named properties that 22:42 22 minutes, 42 seconds we are operating. That's what we're going to do over the next 6 months or so. There'll be three hotels under this. 22:48 22 minutes, 48 seconds We've got another three hotels which will be developed under this brand. Two in one in Tandum that'll take us to six. 22:55 22 minutes, 55 seconds But as we continue to develop and look at new assets owned by us, we will continue to evaluate them for TIA 23:01 23 minutes, 1 second separately. And if uh do they uh do justice to a tha or a tha can do justice to them they will be a tha but that 23:10 23 minutes, 10 seconds doesn't stop us from working with other brands some of the bigger hotels in big cities with international demand we'll continue to be partnered with 23:18 23 minutes, 18 seconds international and Indian brands which are large in nature and distribution capabilities to answer your final part of the question in terms of an asset 23:26 23 minutes, 26 seconds like managing hotels for others look at the moment we don't have any timeline in mind. I don't think it's imminent. Uh 23:36 23 minutes, 36 seconds but what we've done is we've created a springboard for an asset like business business at some point of time sometime in future. 23:46 23 minutes, 46 seconds Fine. That's helpful sir. So secondly uh on the resort portfolio I mean the blit that we had for two quarters right and 23:54 23 minutes, 54 seconds you alluded to the fact that in coming quarters are looking very strong. So uh just trying to understand that if you can share some color from occupancy and 24:01 24 minutes, 1 second point of view is it that occupancies will revert back to the normal levels or you are seeing occupancies higher than last year and how the ARS are shaping up 24:09 24 minutes, 9 seconds from your booking point of view for uh how how is the trend on that front 24:17 24 minutes, 17 seconds um so basically you know the the issue that we have had with resort is only temporary. It was driven by, as Nathan 24:25 24 minutes, 25 seconds also pointed out and I said in my speech earlier, it was driven by you know very adverse weather conditions particularly 24:32 24 minutes, 32 seconds in the Himalayas we were you know 57% higher rainfall than long-term average for example. Uh the auspicious dates 24:39 24 minutes, 39 seconds also tend to move year to year and uh unfortunately in this period we didn't have those dates like we had last year. 24:47 24 minutes, 47 seconds Further what exas what made make made the situation slightly more difficult for us is the fact that we had lesser long weekends this year as compared to 24:56 24 minutes, 56 seconds last year. So when all this were put together we we experienced uh lower than expected occupancy for this quarter. 25:04 25 minutes, 4 seconds Second half of the of the year is very strong. Uh the uh the social dates are coming back and that that that that should also make us uh get better at it. 25:15 25 minutes, 15 seconds uh it will be difficult to predict an exact occupancy level uh but we do expect it to be really strong both on 25:22 25 minutes, 22 seconds occupancy and ADR and uh and and therefore the business should come rolling back the impact that uh this kind of a performance has on margins 25:31 25 minutes, 31 seconds will also get corrected in the second half so we remain very bullish and uh on the kandala portfolio sir I 25:38 25 minutes, 38 seconds think about the additional keys that 40 that we're talking about the phase two was expected I think for Q2 FI23. Any 25:46 25 minutes, 46 seconds update on that part and will we have full impact on Q3 and Q4? 25:51 25 minutes, 51 seconds Yes. So actually uh the 147 rooms in Kandala we were only short by about 25 keys and that's ready. Uh in fact we 26:00 26 minutes have our first sold out date coming on 14th of November. So when we are sold out for all 147 rooms so that that's 26:07 26 minutes, 7 seconds done. So we will get about half of this quarter getting the entire uh key count at Kandala and Q4 will have the full impact. 26:17 26 minutes, 17 seconds Yes, Q4 will have the full impact. The last question uh from my child if I go I know you don't uh share specific 26:24 26 minutes, 24 seconds guidance but just broadly trying to understand despite all the headwinds uh if I go by your presentation first half we have delivered 312 crit on the 26:33 26 minutes, 33 seconds hospitality side which is a 15% growth and last year if we see Q3 Q4 we had uh 26:39 26 minutes, 39 seconds 407 408 uh H2 kind of an ETA number. So um on those higher basis is it case to assume that given you're seeing strong 26:48 26 minutes, 48 seconds traction on the leisure side and business continues to be strong given less number of holidays and continuous working days kind of a mid teen to early 20s limited growth is still possible. 26:59 26 minutes, 59 seconds You will get me to answer that somehow but broadly I would say that you know absolutely we should hit that and and hopefully better. 27:09 27 minutes, 9 seconds Super thank you and all the best for rest of the year. Thank you. 27:16 27 minutes, 16 seconds Thank you sir. Our next question comes from the line of Aban from Access Capital. Please do it. 27:24 27 minutes, 24 seconds Hi. Uh thank you for the opportunity. Uh so firstly I would like to congratulate Dr. for his great skill at Shal and wish 27:34 27 minutes, 34 seconds him continuous success in his uh in his next endeavors as well. Uh so my first question is on Aiva again. So just 27:41 27 minutes, 41 seconds wanted to understand um the kind of positioning that Shal is thinking for Ativa if there is any uh comparable 27:48 27 minutes, 48 seconds brand that we can think of on you know how is going to be positioned uh going forward and then if you look at uh the 27:56 27 minutes, 56 seconds assets that is there in the pipeline. So the Goa and ones were the the ones we already knew but the Axar beach and the 28:04 28 minutes, 4 seconds Mumbai one uh they are properties of the group. So will they be be part of the share portfolio now or will there be 28:12 28 minutes, 12 seconds something which is outside sh portfolio but still be managed by then thank you for your kind words uh regard 28:20 28 minutes, 20 seconds regards my next endeavor it's next endeavor is to actually retire so uh thank you for that um look coming to 28:28 28 minutes, 28 seconds your questions uh I'll answer the resort in 4.1 first four points is very much a part of shallot terms uh just so that we 28:36 28 minutes, 36 seconds clear on that the uh resort mad island will convert to a tea as a management contract. So in that case we will have 28:44 28 minutes, 44 seconds an asset play but internal to the group we are not going out. So this was the uh second one part of your question. There 28:52 28 minutes, 52 seconds was one more regarding the position positioning a very important question. 28:56 28 minutes, 56 seconds Let me answer that. Um how do I so we are positioned for the affluent young 29:03 29 minutes, 3 seconds travelers with the millennial and the gen mindset. 29:09 29 minutes, 9 seconds Um in terms of brand positioning uh because you find it difficult to otherwise understand uh whilst we 29:16 29 minutes, 16 seconds categorize between upper upscale and upscale as the category that we will play in and there will be a variation for that we do not uh you know sort of 29:26 29 minutes, 26 seconds tie up into these horizontal lines that consultants tend to divide the segmentation into. But if you were to 29:33 29 minutes, 33 seconds look at comparable hotels in a micro market, we would be akin and I'm naming some brands here just for the sake of 29:40 29 minutes, 40 seconds clarity. We'll be akin to the marriage within the marriage portfolio, the stars in the stars portfolio, the highest regency in the high regency portfolio, 29:49 29 minutes, 49 seconds the Hilton in the Hilton portfolio. So that's our positioning which is fivestar and fivestar deluxe. Um Goa, one of the 29:57 29 minutes, 57 seconds resorts is going to be at the higher end to be a luxury resort. the other one will be uh pretty much a fivestar deluxe 30:04 30 minutes, 4 seconds tab. Uh so I hope this answers your question in terms of positioning and you know at the end of the day the positioning is how you position your 30:13 30 minutes, 13 seconds your product offering and your pricing in that specific micro market. So it will be driven by that micro markets 30:21 30 minutes, 21 seconds brand that market. But uh I hope I will able to throw some color on uh where this is positioned. 30:29 30 minutes, 29 seconds Definitely and it is really very useful. 30:32 30 minutes, 32 seconds Uh so my and my second question is on the uh the performance the citywide performance that you have reported for 30:39 30 minutes, 39 seconds the quarters. So while uh Hyderabad Bangalore has seen very strong AR growth we saw Mumbai uh at at low single digits 30:48 30 minutes, 48 seconds in terms of growth and NCR has actually seen a decline. So is there any particular property within Mumbai that is causing this kind of trend or is it 30:56 30 minutes, 56 seconds like a broadbased trend? That's part number one. And number two is that are we seeing some improvement given that October is completed? Are we seeing what 31:05 31 minutes, 5 seconds sort of improvement are we seeing in October so far? 31:10 31 minutes, 10 seconds Thank you. Would it be nice to have your best wishes for the new team as well? But we'll take that as a granted. 31:17 31 minutes, 17 seconds uh to your first part uh you know uh in Mumbai if our two big boxes are in Hawaii and Sahar as you're aware and uh 31:25 31 minutes, 25 seconds Sahar has seen some supply of late of about a thousand rooms and what that has done is that it has created uh on on 31:34 31 minutes, 34 seconds compression days it takes away some of the occupancy that was earlier available to move to the Hawaii area also so that's been one uh impact of the new 31:44 31 minutes, 44 seconds supply then the fact that we have we do have a competition next door is beginning to at least show some effect 31:51 31 minutes, 51 seconds on on the on the banquet business and the and the conferencing business. Um and they have started to make some 31:59 31 minutes, 59 seconds impact. However, during this period, we have still managed to grow our our uh our market share at Sahar by uh 3 32:06 32 minutes, 6 seconds percentage point. So that's the good news story. Um this we don't expect this to be necessarily the case going 32:14 32 minutes, 14 seconds forward. We do expect the second half to be really strong and uh as as mice and corporate business comes back and social 32:23 32 minutes, 23 seconds uh also starts to make an impact. So overall I think uh despite the new supply we have done uh fairly well in 32:30 32 minutes, 30 seconds the in in looking in both the markets overall. 32:37 32 minutes, 37 seconds Okay. Sorry. And any improvement in October? Uh any trend that you can maybe share? uh cop uh October uh wasn't 32:45 32 minutes, 45 seconds necessarily very strong but overall we have done still we have still done well but you know it is always best to see 32:52 32 minutes, 52 seconds October performance typically along with November so you know when you see October and November put together 32:59 32 minutes, 59 seconds because of the movement of Diwali and f and and the sher which happened both in the same month uh that's when it is best 33:06 33 minutes, 6 seconds to comment on the overall performance uh but we continue to maintain that our quarter is very strong and and we will put out very good results at the end of this quarter as well. 33:17 33 minutes, 17 seconds Understood. Thanks a lot and apologies for missing out and I look forward to working with the new team of Thank you. Thanks a lot. 33:28 33 minutes, 28 seconds Thank you sir. Ladies and gentlemen, in order to ensure that the management will be able to address question from all the 33:35 33 minutes, 35 seconds participant in the conference, kindly limit the question to two question per participant. Should you have a follow-up question, please join the queue. 33:45 33 minutes, 45 seconds Our next question comes from the line of Prashant Bani from LR Capital. Please go ahead. 33:51 33 minutes, 51 seconds Yeah, thank you for the opportunity. Uh my questions are on brand. So u when we are seeing regional or small or 34:00 34 minutes unbranded hotel tying up with large branded chains while neither we are a small company nor a regional operator but what made us to take this step to carve out our own brand. 34:12 34 minutes, 12 seconds Good question and thank you for all the updates that you keep sending us from the industry. Very interesting data 34:18 34 minutes, 18 seconds points. Um look um yeah Pashan was like this we were anyway running three hotels individually 34:26 34 minutes, 26 seconds named uh and we want to build more we should again have individual names it didn't make sense to do that I thought there was value to be created by 34:35 34 minutes, 35 seconds stringing them together with a common name so in a sense what we've done is we've strung the individual named hotel which we running ourselves anyway with a 34:44 34 minutes, 44 seconds common name and thereby creating some value through synergies through scale, size and at some point of time through 34:52 34 minutes, 52 seconds the brand itself. So this is what we've done. Um you're right it's a crowded brand market. You're right that 35:00 35 minutes regionals says I think what we've uh come here and done is we've come put in a lot of effort and thought behind this 35:07 35 minutes, 7 seconds over the last few years. We've built capabilities on the operating and sales and marketing and distribution side uh 35:14 35 minutes, 14 seconds and talent side and now we putting them to play uh because these the these abilities, capabilities and resources 35:21 35 minutes, 21 seconds were already available, we put them all together to create a brand which is for internal use at the moment. uh we think 35:28 35 minutes, 28 seconds it's it's a positive move which is uh going to both be value creative on the P&L as well as going forward it can 35:36 35 minutes, 36 seconds potentially open up a new business vertical for us uh sometime down the line as an asset wise business vertical. 35:44 35 minutes, 44 seconds So can you give a detailed elaboration of your marketing strategy for Akiva as uh you know without the support of distribution network of international 35:53 35 minutes, 53 seconds hotel chains getting optimum occupancy at high AR could be a herculan task. 36:00 36 minutes So u just that let me begin with the first receiver when we bought over Duke's retreat uh when it was the Duke's 36:08 36 minutes, 8 seconds retreat uh it was operating at roughly around 70% occupancy with an average room rate of 8,000 with 80 rooms. Today 36:18 36 minutes, 18 seconds we have close to 14 almost 147 rooms ready. We are operating at 14,000. our occupancies will build up to similar 36:25 36 minutes, 25 seconds occupancies despite 80% expansion in capacity at some point of time. So number one 36:34 36 minutes, 34 seconds would be all the hotels that we are looking at are largely being addressed by domestic markets and to address 36:41 36 minutes, 41 seconds domestic markets and do well with them will not be a problem at all. Uh it will largely be done through our sales team 36:50 36 minutes, 50 seconds which are in Pune and Mumbai. All three hotels that we are speaking in right now 80% of the market maybe even larger lies 36:58 36 minutes, 58 seconds within only Mumbai and Pune and that that market is already covered by a sales team. It's been covered for the last one or two years now. So we have we 37:06 37 minutes, 6 seconds we've got that covered. We are not we may not have global distribution at this point of time but right now the domestic demand is enough to fill up these hotels with with very encouraging rates. 37:18 37 minutes, 18 seconds Just sorry can I just add one more point to it just to say uh you know remind you that we have spent a significant amount 37:26 37 minutes, 26 seconds of capex in both of these properties to reposition them to a much higher level and that is always helpful when you 37:34 37 minutes, 34 seconds start off with the new band. So that should also add to all the stuff that Sanjay just said 37:41 37 minutes, 41 seconds right and sir uh without any forwardlooking numbers once a brand stabilizes 37:48 37 minutes, 48 seconds how much incremental aida can you make with your own brand visav if you would have continued with the current business 37:56 37 minutes, 56 seconds model of a third party brand. I just wanted to get a sense is the incremental financial benefit 38:03 38 minutes, 3 seconds uh will it be such a magnifying number that you resorted to uh uh moving with your own brand rather than continuing with a third party operator? 38:12 38 minutes, 12 seconds Uh no I think that's that's not the way we are looking at it. Uh it's not about incremental or massive expansion or bitter margin. I'm saying today he can 38:21 38 minutes, 21 seconds maintain a bitter margin and absolutely bitter contribution uh and grow the revenue uh at the market pace and stay 38:28 38 minutes, 28 seconds at the uh have a market share solid and in place uh we're good to go it's not a major commitment on the cost side so why 38:36 38 minutes, 36 seconds not why not the question is why not have a brand of our own uh and I think uh more importantly it's today only 5% of 38:44 38 minutes, 44 seconds the play of the total portfolio uh and it's not necessarily the biggest thing that we have going. I think the biggest thing that we have going is the 95% of 38:53 38 minutes, 53 seconds the balance portfolio that continues to rock the market. This brand is ancillary for now. At some point of time, it can 39:00 39 minutes become a major play in our in in in our scheme of things. 39:06 39 minutes, 6 seconds Uh sure, thank you for your time and thanks Sanjay for the feedback. 39:11 39 minutes, 11 seconds Thank you sir. Our next question comes from the line of Adidap from IC securities. Please go ahead. 39:21 39 minutes, 21 seconds Yeah, good morning everyone. Thank you for the opportunity. Uh the first question is on our Delhi airport hotel now that we are close to the opening. 39:29 39 minutes, 29 seconds Could you help us understand how we will scale up this hotel? Will it be a soft opening or a full-fledged opening at one go? And if you just let us understand 39:38 39 minutes, 38 seconds what sort of position will this hotel have. I know it will be branded as a charge but will it be more a mice driven hotel or you have to also bring in 39:45 39 minutes, 45 seconds weddings or how will the overall uh demand mix over there? Yeah, that's the first question. 39:52 39 minutes, 52 seconds Um so you know in this hotel we are uniquely positioned because we are actually uh doing the fit outs bottom 40:00 40 minutes up. So uh the rooms will be fitted out post the fitting out of the public areas. So what that does is that it 40:08 40 minutes, 8 seconds allows us to open with partial inventory as well and we would certainly like to do that so that we are quicker to the market and and start to get revenues in 40:17 40 minutes, 17 seconds into the portfolio. In terms of positioning, yes, it is uh it is branded with it is a franchise with ISCL. was the first franchise that ICL gave to 40:26 40 minutes, 26 seconds anybody showing them showing that how how deep their faith is in the ability of chalet to operate these hotels to the 40:35 40 minutes, 35 seconds right levels uh of uh and standards of operations. Um it will not be a m hotel. 40:42 40 minutes, 42 seconds It will not be a a a shardi hotel at all. It'll be a very transient driven hotel and in fact we expect occupancies 40:50 40 minutes, 50 seconds to be really high and on certain days we even expect it to be more than 100% where we can keep turning over the rooms 40:57 40 minutes, 57 seconds uh through the day. So that's how we are positioning it. Yes, it'll also be a good location for uh you know uh senior 41:04 41 minutes, 4 seconds leaders to meet up or small meetings to be held. we have multiple boardrooms uh where we can accommodate these small 41:11 41 minutes, 11 seconds meetings and smaller uh you know kind of get togethers. May I just add to that uh to complete the answer on some of your 41:19 41 minutes, 19 seconds questions that we will be leveraging the partnership that we have with Tashia uh their distribution their loyalty program 41:27 41 minutes, 27 seconds their sales and marketing will all come into play. Uh so that's something that we will be banking heavily on and we look forward to uh doing extremely well with this attack. 41:39 41 minutes, 39 seconds Okay. Uh so does the continuous the rates which he brought will they be comparable to hotels in aerosity is that 41:46 41 minutes, 46 seconds the sort of thing or you'll be as you said more occupancy focused rather than focused over just to understand definitely the rate will definitely be 41:54 41 minutes, 54 seconds competitive with the similarly positioned hotels in city. 41:59 41 minutes, 59 seconds Okay. Okay fine fine. Uh yeah the second question is on the VA residential project right now that obviously uh we 42:08 42 minutes, 8 seconds have been booking the res could you just help us understand now the promoter loan and how it will be retired or is it already been done what is the plan what 42:16 42 minutes, 16 seconds are the plans over there I think in my opening statement I had already told that the 200 crores of 42:26 42 minutes, 26 seconds promoters pre shares has already been uh that thing has been paid uh the earlier ICD which they had given 42:34 42 minutes, 34 seconds that is also paid off in the uh earlier two quarters. So as of now from a promoter perspective the entire loan and prep shares have been closed. 42:45 42 minutes, 45 seconds Okay. There is no other pending carry or anything which is there. So then just help us broadly understand what is the 42:51 42 minutes, 51 seconds residual cash flow broadly which share incrementally from here. Yeah. 43:01 43 minutes, 1 second Uh look from an entire project you receive projects normally you know the the cash collection happens in the initial phase while you are launching 43:10 43 minutes, 10 seconds those uh you know projects. So exact cash flow what will come in because there are three projects you know first project we have just handed over the 43:18 43 minutes, 18 seconds second project will be in FI27. The last project which is a commercial project will get handed over in FI28. So we 43:25 43 minutes, 25 seconds still have some time to think over it whether the commercial will be on purely sales basis or we really want to lease that out. So from a pure cash flow 43:34 43 minutes, 34 seconds perspective from a residential I think I have already uh you know earmarked that we will we will be releasing uh this 43:42 43 minutes, 42 seconds project will be releasing around 250 crores uh in uh in shall balance sheet post payment of 200 crores to the promoters. 43:52 43 minutes, 52 seconds Okay. Okay. Yeah. Okay. Yeah. 43:57 43 minutes, 57 seconds Yeah. Yeah. Okay. Yeah. Yeah. That's fine. That's fine. Thank you for the clarification. Yeah. That's that's it for myself. Thank you. 44:06 44 minutes, 6 seconds Thank you, sir. Our next question come from the line of puzzel fund. Please go ahead. 44:13 44 minutes, 13 seconds Hi. Uh uh just two questions. First is on this app new brand. So is will it 44:20 44 minutes, 20 seconds anyway change upcoming renegotiation with our third party license or any commercial arrangement or is there any non-compete clause we have with our 44:28 44 minutes, 28 seconds existing licenses or brands which we have already no such uh non-complete clause in fact 44:36 44 minutes, 36 seconds all our partners whether it's the Mars or the court who already working with us uh they have been briefed well in 44:44 44 minutes, 44 seconds advance about this launch they encouraging in fact they said there's No better time to launch a brand than LA. 44:51 44 minutes, 51 seconds Uh and they've supported us uh on in this journey. They've been partners with us for 25 years. Uh and they're equally 44:59 44 minutes, 59 seconds excited about Shal launching its own brand and they're just supporting this thing right in terms of any new contracts. Uh we don't have any upcoming 45:08 45 minutes, 8 seconds immediate ends of contracts except the one at Washi uh which will convert to AVA and that's that the brand is very 45:15 45 minutes, 15 seconds well aware of. Sorry which will be converted into which okay okay that one okay so the second 45:23 45 minutes, 23 seconds question was related to that only you said the coming soon in the new Mumbai it's that we converted into major 45:31 45 minutes, 31 seconds renovation is going to be position to compete against the uh upscale hotels or 45:38 45 minutes, 38 seconds upper scale hotels in that market now uh it is in fully given it's come out I will be done by December. 45:49 45 minutes, 49 seconds Okay. Thanks. Thanks. Thanks for Thank you. 45:53 45 minutes, 53 seconds Thank you sir. Our next question comes from the line of Jesus from PL Capital. Please go ahead. 46:01 46 minutes, 1 second Uh yeah, thanks for the opportunity. Uh sir if I heard you right in the opening remarks uh you mentioned that uh we have 46:09 46 minutes, 9 seconds sold approximately uh 314 units out of uh 321 at Kora 46:16 46 minutes, 16 seconds Mangala. Uh but if I look at our balance sheet uh the figure of inventory which I presume uh largely 13 to the the real 46:25 46 minutes, 25 seconds estate budget uh is is down from uh 30 odd crores to about uh 309 crores. So there is a 50% reduction in inventory 46:34 46 minutes, 34 seconds but a considerable uh portion of our units have been sold. So if you can just uh help uh reconcile these numbers. 46:44 46 minutes, 44 seconds So uh from a pure pure accounting perspective you know what happens is uh the the entire construction comes and 46:53 46 minutes, 53 seconds sits in your inventory and while we are handing over these units which is handing over the position the revenue 47:01 47 minutes, 1 second gets built and the cost gets uh taken out from CIP and it gets accounted. the collection which uh we get from uh you 47:09 47 minutes, 9 seconds know selling of these units which are still under construction lies as a liability from an accounting perspective. So you know when when for 47:19 47 minutes, 19 seconds these 150 units uh when the accounting happens there is a revenue which gets booked there's a cost aortionment 47:26 47 minutes, 26 seconds happens so results in there is an abittor. The third part is basically the collection goes out and there is a data 47:33 47 minutes, 33 seconds which get recognized in the system. If there is a pending collection uh from a current uh which is probably you know 47:40 47 minutes, 40 seconds the 5% or the 2% which remains you know that is shown as a net data in our balance sheet. So this is how the accounting happens. 47:51 47 minutes, 51 seconds Uh and on your second question on the inventory. So uh the phase two uh which is under construction which probably we 47:59 47 minutes, 59 seconds will be handing over in FI27 plus the commercials uh which is we are we are you know just starting which is to the 48:07 48 minutes, 7 seconds ground that also amount entire amount comes as a part of our inventory. 48:14 48 minutes, 14 seconds Understood. Understood. Uh and uh any uh one clarification required I think u earlier you also mentioned that in Sahar 48:23 48 minutes, 23 seconds uh because of competition that has come uh in its door it has impacted our plan to attend uh conference business. Uh now 48:31 48 minutes, 31 seconds I know that we don't give out any uh specific property wise uh EDR and occupancy numbers. Uh but can you give 48:38 48 minutes, 38 seconds us some color as to how the occupancy and EDR is uh trending at Marat Zahar post uh uh uh uh the new competition coming up. 48:52 48 minutes, 52 seconds Hello ladies and gentlemen, the management line has been reconnected. 48:56 48 minutes, 56 seconds Okay, you want to complete your question? 48:59 48 minutes, 59 seconds Uh yeah. Yeah. Uh sir I just wanted to check I mean uh you you mentioned that because of new competition that has come 49:07 49 minutes, 7 seconds uh next door at Sahar uh our banquet and conference business was impacted uh so just wanted to get some sense as to how 49:14 49 minutes, 14 seconds is the occupancy and EDR training at Marat Zahar we don't give out the property wise number but but any 49:22 49 minutes, 22 seconds indications will be really helpful as I said earlier despite the fact that the market has seen new supply and it's 49:29 49 minutes, 29 seconds nearly nearly a thousand rooms. Uh we still have grown our market share by three percentage points. So we have done 49:36 49 minutes, 36 seconds quite well overall. You know when I mentioned that there were some impact on the banqueting business, it's because the market has become slightly more 49:44 49 minutes, 44 seconds competitive. Uh which means we have to price ourselves accordingly and that's all that's the only adjustment we have 49:51 49 minutes, 51 seconds done overall. So the future the immediate future uh the quarter that that we are going through and the next quarter they all seem strong and will 50:00 50 minutes continue to grow. I just add that I think it's important to understand that with the 400 plus change rooms of the 50:07 50 minutes, 7 seconds fairmont that open next door Sahar JW Mar still continues to grow. Just want to highlight that part. 50:16 50 minutes, 16 seconds Sure. Sure. And uh lastly if you can just uh give out the breakdown of uh uh the figure that you have shared that you 50:24 50 minutes, 24 seconds about 25 million over the next three years if you can give out some breakdown could you repeat that please? 50:31 50 minutes, 31 seconds Uh yeah uh sir the breakdown uh the 2500 cr number that you have given for the next 3 years if you can just 50:40 50 minutes, 40 seconds optimize breakdown. So Jes all the announced projects I can't give you split of each and every asset but 50:49 50 minutes, 49 seconds this is spread through two of the Goa properties the dial pending works which we are doing the dukes which probably will be handing over in in the coming quarter and the hayat you know in ini. 51:02 51 minutes, 2 seconds So this is uh you know these these are basically the capex projects. Along with that uh we will be uh finishing the 51:09 51 minutes, 9 seconds phase 4 commercial uh uh in in pi uh in you know by next uh and there is a 51:15 51 minutes, 15 seconds refurbishment for all the other voters right but I think I think I'm really sorry to interrupt you Mr. 51:25 51 minutes, 25 seconds Jooshi please rejoin the queue for more questions. Sure. Thank you sir. 51:31 51 minutes, 31 seconds Our next question comes from the line of Samit Sana from McCrai. Please go ahead. 51:38 51 minutes, 38 seconds Yes, thank you. Um, so I apologize in advance if these questions have been asked. I just joined the call. But uh, can you talk about uh the leasing 51:45 51 minutes, 45 seconds business? I mean seems like it you know the incremental activity was not uh was kind of uh what what are the dynamics 51:52 51 minutes, 52 seconds there and definely uh talking about the new brand AA is uh you know wishing you all the success with this and if it 52:00 52 minutes becomes successful do you think there's an opportunity to have a management piece for the strategy I think uh uh I heard the word asset light mentioned is 52:09 52 minutes, 9 seconds that what was being referred to hi Sam this is Sanjay here good to have you on the So um I'll take the Athea 52:17 52 minutes, 17 seconds part first. Um look u um for now aa is intended for internal use. Uh we've got 52:25 52 minutes, 25 seconds six assets identified that which is either have converted or will convert to aa over the next uh few years. uh as we 52:34 52 minutes, 34 seconds keep adding new assets to the uh portfolio of our own assets, we will continue to evaluate whether there'll be 52:41 52 minutes, 41 seconds a SEA or we'll work with other partners uh uh especially if there are global is there a global distribution required for 52:48 52 minutes, 48 seconds those. So everything will be done on individual assets. That's the first part. Second part of the asset like ver uh strategy there's no announced 52:57 52 minutes, 57 seconds strategy as of now but what we will in a sense by launching a created a springboard for some asset light uh 53:05 53 minutes, 5 seconds opportunity at some point of time we don't know when at this point of time it's a it's a silent value creator 53:14 53 minutes, 14 seconds that's lying with our in our homes yeah on the on the commercial real estate uh overview so currently as As 53:23 53 minutes, 23 seconds you know we have around 2.3 million square ft uh the total GLA available out of which we have already leased out 1.8 53:31 53 minutes, 31 seconds million square ft. The total lease percentage is around 77%. 53:36 53 minutes, 36 seconds Uh last two quarters have been a little muted because uh you know primarily the discussions are going on with few key accounts. There is some announcement 53:45 53 minutes, 45 seconds which is there uh due in the next in the coming quarter and we continue to prioritize you know our quality over 53:52 53 minutes, 52 seconds pace uh in terms of tenants uh you know selection I think what we've been able to achieve 53:58 53 minutes, 58 seconds commit with that is the uh lease rentals have gone up with the strategy that we follow because once we establish higher 54:06 54 minutes, 6 seconds lease amounts and they're significantly higher than what we indicated initially um and they continue to climb as we 54:14 54 minutes, 14 seconds speak, we believe that it'll stand very well for for future. 54:20 54 minutes, 20 seconds And finally to add that, you know, if you look at the commercial real estate market overall, uh the absorption has been higher than the supply. So the 54:28 54 minutes, 28 seconds occupancy levels are actually improving throughout and so are the rates. Either they're remaining stable or increasing in most of the markets that we are in. 54:36 54 minutes, 36 seconds So we not necessarily worried. We are actually taking our pick and taking our time to decide who to go with. 54:44 54 minutes, 44 seconds Got it. Thank you very much. Thank you sir. 54:52 54 minutes, 52 seconds Our next question comes from the line of web securities. Please go ahead. 55:00 55 minutes Hi sir. Uh uh thanks for the opportunity. My first question was uh on our uh overall business portfolio. I 55:07 55 minutes, 7 seconds noticed some divergent trends uh into our uh MMR and others market. So our MMR portfolio has actually reported uh 55:16 55 minutes, 16 seconds relatively lower ADR growth while there has been a minor dip into occupancy but our overall business portfolio has 55:22 55 minutes, 22 seconds reported almost 390 uh dip in occupancy but ADR growth has been pretty significant. So uh uh has this been a 55:30 55 minutes, 30 seconds strategic call uh where we have focused u you know more on uh occupancy expansion or maintaining occupancy in 55:38 55 minutes, 38 seconds MMR region while uh uh in other markets like Pune, Bangalore and Hyderabad we are focused on uh ADR growth uh at the 55:45 55 minutes, 45 seconds expense of occupancy and uh just related to this question if you could also share some uh broader demand trends for Pune Bangalore and Hyderabad markets. 55:55 55 minutes, 55 seconds Hi Re this is Gorov uh great question uh for the Emma region I think there's been consistent uh questions that came in the 56:03 56 minutes, 3 seconds past uh uh callers as well which uh we were able to give a sense of uh essentially with the market uh having 56:11 56 minutes, 11 seconds addition of inventory of supply come in over the last year or so uh particularly in the airport belt uh we've had to uh 56:19 56 minutes, 19 seconds strategize accordingly and have shifted our uh strategy towards remaining competitive and ensuring that we still continue to grow our market share which 56:28 56 minutes, 28 seconds is what has taken shape in MMR in the uh in the other markets in Bangalore and Hyderabad as you suggested. It has not 56:36 56 minutes, 36 seconds been a strategy to drive just the rates and and not look at the occupancy. It is actually the addition of additional rooms that has dropped the occupancy 56:44 56 minutes, 44 seconds relative to what it was in the previous quarter. uh as we ramp up those rooms uh we believe that we will be able to uh go 56:51 56 minutes, 51 seconds back to our original occupancy levels and in fact get better than that. Uh and the same story remains with Pune as well. Uh last year we added additional 56:59 56 minutes, 59 seconds rooms in our Pune inventory and and that has also been now absorbed. We are continuing to get uh same store uh in in 57:06 57 minutes, 6 seconds Pune growth numbers on month and quarter on quarter uh showing us uh positive growths in Pune. uh rates have been very 57:15 57 minutes, 15 seconds very strong in Hyderabad, Bangalore and Pune and that has been the case across the markets and we've actually been on the better half of that from the market 57:23 57 minutes, 23 seconds as well. uh when we look at our share we've been gaining market share particularly on the ARI index uh growing 57:30 57 minutes, 30 seconds that by uh large uh you know single digit growths in some markets to almost double digit growths in uh in the 57:37 57 minutes, 37 seconds Bangladesh markets and just to finish all the three markets that you said are have been really 57:45 57 minutes, 45 seconds strong and buoyant overall and we have taken full advantage of that and improved our position you know Hyderabad case in point being we were uh we we've 57:54 57 minutes, 54 seconds now rocketed to number one uh position in our competition set and we and we intend to stay there. So you know we've 58:02 58 minutes, 2 seconds done better in the market in all the three markets. 58:05 58 minutes, 5 seconds Understood sir. Uh my second question was on our uh project and our Kerala project. So uh has there been any 58:13 58 minutes, 13 seconds additional update uh in both of these projects? So we uh did mention uh delay in the uh approval for because of the uh NGT approval being uh moved to central. 58:25 58 minutes, 25 seconds Now uh when do you expect this project to commence and uh any update on the timeline and uh same on Kerala as well? 58:33 58 minutes, 33 seconds Okay. So on there's been definite positive movement. The Supreme Court order has come through and uh uh the 58:39 58 minutes, 39 seconds cases are now being uh signed off on. uh we are in the queue but we expect over the next two to three months uh for ioli 58:48 58 minutes, 48 seconds uh approvals to come through. So we are definitely on a much better footing than where we were last time when we were more or less in a limbo. Uh with respect 58:56 58 minutes, 56 seconds to tvandum uh the file is making its movement through the uh through through the corridors of the government. uh but 59:03 59 minutes, 3 seconds it's the overall sentiment towards the project in the bureaucracy and the government stays very positive and so are we getting more and more positive 59:11 59 minutes, 11 seconds about the trevandum market. So hopefully that will move but it is difficult to give you a timeline on TV in particular. 59:21 59 minutes, 21 seconds Understood sir. Thank you for answering the questions and wish you all the best. Thank you. 59:27 59 minutes, 27 seconds Thank you sir. Ladies and gentlemen, in order to ensure that the management will be able to address question from all the participant in the interest of the time 59:35 59 minutes, 35 seconds the conference, uh please kindly limit the question to one question per participant. Should you have a follow-up question, please rejoin the queue. Our 59:43 59 minutes, 43 seconds next question come from the line of Rajiv Bharati from Noama. Please go ahead. 59:48 59 minutes, 48 seconds Yeah. Uh good afternoon sir. Thanks for the opportunity. My question is on Roi. 59:52 59 minutes, 52 seconds So as in as and when this approval comes in um do we get I mean do we get let's say additional FSI there um is there any 59:59 59 minutes, 59 seconds chance we increase the room count or any other facility uh in the thing and are we still sitting the higher brand and is 1:00:07 1 hour, 7 seconds there a chance that you know we move to some other brand or high uh so let me answer the second part that's an easy easy answer. uh we have 1:00:15 1 hour, 15 seconds already signed the agreement with Hayatt Regency. So we continue to stay it's a franchise uh and that's a space that we like so we will stick to Hayatt Regency. 1:00:25 1 hour, 25 seconds Uh just as a reminder this is actually a building that we are building uh the where the shell is being handed over by 1:00:31 1 hour, 31 seconds our sister company uh mine space uh on a lease model to us. So actually uh it is a mixeduse building with commercial uh 1:00:40 1 hour, 40 seconds and parking in the b in the bottom few floors that the hotel actually starts from 27th floor onwards thereby giving us the best views that are possible in 1:00:48 1 hour, 48 seconds that area. So there's no question of uh FSI change as of now. Um and we have a 1:00:55 1 hour, 55 seconds substantial inventory coming up. I think it's over 270 odd rooms that we are expecting to come in that in that hotel. 1:01:02 1 hour, 1 minute, 2 seconds So it's it's it's a number that we like and with the new airports coming up in Na'vi Mumbai, we expect that market to 1:01:09 1 hour, 1 minute, 9 seconds be uh really favorable in the coming times and I think we are timing this hotel quite well overall. 1:01:16 1 hour, 1 minute, 16 seconds Uh that's uh thanks for having us. 1:01:22 1 hour, 1 minute, 22 seconds Thank you sir. Our next question comes from the line of Nikl from Kizu Kizuna. Please go ahead. 1:01:30 1 hour, 1 minute, 30 seconds So thank you for giving me the opportunity. Am I audible? Yes, you are. Go ahead, Nik. 1:01:36 1 hour, 1 minute, 36 seconds Yes sir. Uh congratulations on the good set of numbers and sir uh I'm sorry if this uh the question is repeated but we 1:01:43 1 hour, 1 minute, 43 seconds saw a occupancy as well as ADR uh dip in the NCR region. So can you explain how 1:01:50 1 hour, 1 minute, 50 seconds what what caused this dip and uh how are we going to traction? 1:01:57 1 hour, 1 minute, 57 seconds Okay, just to clarify and when we say NCR region that's one hotel for us that's the courtyard Marriott uh in 1:02:04 1 hour, 2 minutes, 4 seconds Araali. So the first thing that I would like to remind you is that we are as as we speak undertaking a rebranding 1:02:11 1 hour, 2 minutes, 11 seconds exercise on that and it'll it'll be launched at Marriott uh hotels and resorts uh in the coming quarter. Um so 1:02:19 1 hour, 2 minutes, 19 seconds that should help with the numbers. We have had a we we have had a slightly disappointing performance there. Uh mainly because of the reasons that I had 1:02:27 1 hour, 2 minutes, 27 seconds cited earlier on uh which was a weather related b change in social dates and generally this quarter is a difficult 1:02:36 1 hour, 2 minutes, 36 seconds quarter uh for Delhi because the weather conditions are not exactly favorable. 1:02:40 1 hour, 2 minutes, 40 seconds Second half of the of the year remains very very strong. Uh what's coming through is uh is a very strong October, November, December. So uh we are not 1:02:50 1 hour, 2 minutes, 50 seconds very worried about it and I think we'll continue to grow there. 1:02:55 1 hour, 2 minutes, 55 seconds Thank you. And sir uh would you provide us your outlook on the wedding season that is coming on? How are the bookings and as you said that uh we had a 1:03:03 1 hour, 3 minutes, 3 seconds competition in the Bangut region in SARS. So how is that outlook going to be? 1:03:10 1 hour, 3 minutes, 10 seconds Hi N this is again uh so the wedding season uh you know typically is uh based on auspicious dates in the in the year 1:03:18 1 hour, 3 minutes, 18 seconds and the last quarter that we we are speaking of at the moment did not have had even one auspicious date in the whole 3 months that passed by. Uh what 1:03:27 1 hour, 3 minutes, 27 seconds that has done is that it has obviously moved these dates into other quarters and uh the coming quarter uh which is quarter three is looking extremely voant 1:03:36 1 hour, 3 minutes, 36 seconds with that. uh we see u very good signs uh at the moment with the strong bookings uh in our uh in our books uh 1:03:44 1 hour, 3 minutes, 44 seconds and even Q4 seems to be pacing uh extremely well with that. So the the second half of the year in general is looking positive from a wedding uh business perspective. 1:03:55 1 hour, 3 minutes, 55 seconds Okay sir. Thank you sir. All the very best. 1:04:00 1 hour, 4 minutes Thank you. Our next question comes from the line of Pratika from systematic securityurities. Please go ahead. 1:04:08 1 hour, 4 minutes, 8 seconds Um yeah, thank you for the opportunity 1:04:21 1 hour, 4 minutes, 21 seconds 139. 1:04:27 1 hour, 4 minutes, 27 seconds I'm really sorry to interrupt Mr. I'm really sorry to but your voice is not audible. 1:04:33 1 hour, 4 minutes, 33 seconds Uh is it is it audible now? Yeah, better. 1:04:37 1 hour, 4 minutes, 37 seconds Yeah. So, should I again your voice is breaking. It's not We are not able to hear properly. 1:04:48 1 hour, 4 minutes, 48 seconds Is it audible? No. Better. Slightly better. Hello. 1:04:54 1 hour, 4 minutes, 54 seconds Could you repeat your question slowly please? 1:04:58 1 hour, 4 minutes, 58 seconds Yeah. So my question was um so our core revenue grew by 13 the data has been 1:05:04 1 hour, 5 minutes, 4 seconds perfected. So on slide number nine um it was mentioned that role as a partic utility 1:05:11 1 hour, 5 minutes, 11 seconds increased by 20 bits and 70 bits respectively. So my question is how much of this margin pressure is a temporary 1:05:19 1 hour, 5 minutes, 19 seconds effect from the 166 new rooms which we had added in 1 uh and that are still in the registration period versus a more 1:05:27 1 hour, 5 minutes, 27 seconds structural increase in our underlying cost base for power and uh talent. 1:05:37 1 hour, 5 minutes, 37 seconds Thank you. Uh I got to again here um you know we did speak about the opening of 166 rooms and that's been the real impact on the payroll because while the 1:05:46 1 hour, 5 minutes, 46 seconds uh the teams have been hired and they have been trained and and then put on the job we've not started to actualize revenues from these rooms uh the way 1:05:53 1 hour, 5 minutes, 53 seconds that we would in a stable uh environment. Uh as we stabilize our occupancies in the coming few months we see that this payroll margin will will 1:06:01 1 hour, 6 minutes, 1 second fall back in place and so will the margins on the whole. uh we are quite confident in the coming quarter that it should be back uh to where we've seen it in the past and in fact better than that. 1:06:15 1 hour, 6 minutes, 15 seconds So the short answer is that it's not structural at all. It's it's temporary as we stabilize. 1:06:23 1 hour, 6 minutes, 23 seconds Got it sir. Thank you. 1:06:27 1 hour, 6 minutes, 27 seconds Thank you sir. Our next question comes from the line of summit SA from McQuary. Please go ahead. 1:06:34 1 hour, 6 minutes, 34 seconds I'm sorry that was uh the last question was actually my question so I apologize. Oh okay. So are you done from it then? 1:06:43 1 hour, 6 minutes, 43 seconds Yes. Yes. Thank you. I'm done. Thank you. Thank you so much. 1:06:47 1 hour, 6 minutes, 47 seconds Thank you ladies and gentlemen. In the interest of the time that was the last question for today. I now hand the conference over to Dr. Si for the closing comments. 1:06:56 1 hour, 6 minutes, 56 seconds Thank you once again everyone for joining us for the call. Um we we very positive about the way forward both H2 1:07:04 1 hour, 7 minutes, 4 seconds and the coming years look very exciting for Shal Hotel. I think he was clearly something that is very has excited all 1:07:12 1 hour, 7 minutes, 12 seconds of us internally. Um and um we'll always remain available for any queries or questions that you may have. Uh so please do feel free to reach out to us. 1:07:23 1 hour, 7 minutes, 23 seconds I also want to share with you that Deepak has joined us to head investor relations in place of Ruchi who's taken 1:07:32 1 hour, 7 minutes, 32 seconds on a new role um outside. Uh so warm welcome to Deepak and he'll be available for coordinating anything that you may 1:07:40 1 hour, 7 minutes, 40 seconds need coordinated in the future. Thank you so much. 1:07:44 1 hour, 7 minutes, 44 seconds Thank you sir. Ladies and gentlemen, on behalf of Shal Hotels Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lens.