Chalet Hotels Limited — Q3 FY26

Chalet Hotels Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Nt32Aez67K4 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Charlay Hotel Limited Q3 FI26 earnings conference call. As a 0:10 10 seconds reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:18 18 seconds Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchstone telephone. Please note that this conference is being recorded. 0:31 31 seconds We have with us today Mr. Shwatan Singh, managing director and CEO and Mr. Nitan Kana, chief financial officer. 0:39 39 seconds I will now hand the conference over to Mr. Nitan Kana for opening remarks. Thank you and over to you sir. 0:47 47 seconds Thank you Ran. Good morning ladies and gentlemen. Thank you for joining us for our earnings call for quarter 3 FI26. 0:56 56 seconds Hope you have been able to go through our quarter 3 results along with earnings presentation and press release 1:03 1 minute, 3 seconds which are already uploaded on our website and exchanges. 1:08 1 minute, 8 seconds Please note the safe harbor disclaimer published with our earnings presentation is applicable to today's call as well. 1:16 1 minute, 16 seconds Before I hand over the call to Shuang for his opening remarks, on behalf of the entire Shalet family, I congratulate 1:24 1 minute, 24 seconds him for his elevated role and wish him the best as he leads Shalet in the exciting times ahead. Over to you Shwank. 1:35 1 minute, 35 seconds Thank you Nathan and Ryan and good morning to all. I'm excited to address you all and bring to you another fantastic set of numbers and more 1:43 1 minute, 43 seconds importantly a sneak peek into what the future holds for us on this journey where we work tirelessly to shape the future of the organization while 1:52 1 minute, 52 seconds building on the legacy. We welcome your suggestions and queries as they help us to stay focused. 1:59 1 minute, 59 seconds Before taking you through Shalet's performance in quarter three, let me talk about the industry macros that drives our excitement as we look ahead. 2:08 2 minutes, 8 seconds The industry continues to continues its strong growth momentum with healthy double-digit ADR and ref growth. This is 2:16 2 minutes, 16 seconds not at all surprising as the key tailwinds propelling us forward remain robust and are not showing any signs of abating. 2:24 2 minutes, 24 seconds Travel and tourism is rapidly moving from being a discretionary spend to a way of life. Rising income levels, 2:32 2 minutes, 32 seconds largest working population in the world with a young median age, valuing experiences over material goods are all 2:39 2 minutes, 39 seconds leading to short breaks, road trips, weekend getaways, etc., thereby boosting occupancy and 2:47 2 minutes, 47 seconds rates across the hotels nationwide. The recently concluded long weekend around the 26th of January is a great example 2:54 2 minutes, 54 seconds of this mindset where almost all leisure destinations were sold out with the now info in infamous long cues in the Himalayas back in the news. 3:07 3 minutes, 7 seconds Weddings a constant in the Indian industry keeps growing and so does mice with the current quarter being annual highs for both these segments. 3:16 3 minutes, 16 seconds Equally helpful has been the rise and the rise of infrastructure and connectivity as investments in airports, 3:24 3 minutes, 24 seconds highways and regional travel links have opened up new destinations and made travel easier beyond major metros 3:32 3 minutes, 32 seconds encouraging regional tourism. A rupees 12 lakh cr planned spent by the union government in the recently announced 3:40 3 minutes, 40 seconds budget towards infra push will further give this a philillip. 3:45 3 minutes, 45 seconds An increasing trend of concerts, festivals, sports events, spiritual gatherings and cultural tourism are 3:54 3 minutes, 54 seconds further creating new travel occasions beyond traditional leisure driving incremental demand spikes. With India 4:02 4 minutes, 2 seconds and Indian markets being discussed in the boardrooms of most multinational companies of repute, international travel is recovering and is only showing 4:11 4 minutes, 11 seconds an upward trend and the clearing up of the business environment with the recent trade deals 4:18 4 minutes, 18 seconds with the European Union and the US which should also encourage foreign travelers. 4:24 4 minutes, 24 seconds To add to this, despite a spa spate of announcements, new hotel openings, supply growth has lagged demand in key segments and markets. 4:35 4 minutes, 35 seconds Closer to home, let me now talk about Shalet's performance. We have rebranded our resort property at NCR from courtyard by Marriott Arali Resort to 4:44 4 minutes, 44 seconds Arawali Marriott Resort and Spa. For this we have made several upgrades through refresh of rooms and public 4:51 4 minutes, 51 seconds areas as well as added a new clubhouse pool bar and some meeting facilities. 4:58 4 minutes, 58 seconds Further, this was the first full quarter of the launch of Aiva Kandala. In the 5:04 5 minutes, 4 seconds 45day run we saw in quarter 3, we have already had five full soldout days which is a great achievement for a new resort. 5:13 5 minutes, 13 seconds We have received very good feedback from the guests and remain confident of making our first Aiva a success story. 5:21 5 minutes, 21 seconds Apart from Kandala, we are expecting our Washi hotel to be rebranded as a thiva in quarter 4 FY26 5:28 5 minutes, 28 seconds uh from four point Sheritan. currently also I am pleased to share that our people first approach has further 5:36 5 minutes, 36 seconds consolidated and we have been certified by great place to work with above industry benchmark scores for seventh 5:43 5 minutes, 43 seconds year in a row. As you are aware our signis whitefield tower 2 received lead platinum certification. This milestone 5:52 5 minutes, 52 seconds reinforces our commitment to sustainability and marks another important step in our journey towards net zero. 6:00 6 minutes With respect to the resort asset at Udaur, the de the due diligence process is still on and we cannot speak about it further until all the steps are closed. 6:11 6 minutes, 11 seconds Now coming to the quarter 3 performance for this quarter, consolidated revenue grew 27% yearonear to 5,892 6:20 6 minutes, 20 seconds million with 29% growth in EITA to 2726 million with 76 basis point increase in EITA margin to 46.3%. 6:32 6 minutes, 32 seconds These numbers include our residential income as well. Our X-Ray revenue grew 23% yearonear to 5,726 6:41 6 minutes, 41 seconds million with a beta growing 24% yearon year to 2,686 million. Diving deeper, our hospitality 6:50 6 minutes, 50 seconds business delivered strong operating performance this quarter with Revpar growth close to 12% driven by 16% growth 6:58 6 minutes, 58 seconds in ADRs overall. Excluding the western resort and spa in the Himalayas, the ref bar was up 10%. 7:07 7 minutes, 7 seconds Occupancy was a bit down by 230 basis points year on year mainly due to four locations. Bangalore where we added 129 7:16 7 minutes, 16 seconds new keys in this fiscal and has not stabilized. 7:20 7 minutes, 20 seconds Aiva Kandala where 100 rooms have been made operational during only during this fiscal year. Hawaii where the crew 7:27 7 minutes, 27 seconds business has had a temporary setback due to constru construction work being carried out at signness 2. We expect 7:34 7 minutes, 34 seconds this impact to neutralize in FY27 as most of the noisy work will be completed and finally Washi where the property has 7:42 7 minutes, 42 seconds undergone a massive renovation to get it ready to become an Athea. 7:48 7 minutes, 48 seconds Other than these locations we have been we have seen strong occupancy across our micro markets. Some of the micro markets 7:55 7 minutes, 55 seconds like Bangalore, Hyderabad and Pune continue to deliver very strong growth. 7:59 7 minutes, 59 seconds MMR also delivered high single digit revar growth driven by 6% ADR growth and 8:06 8 minutes, 6 seconds 2% occupancy increase despite the above challenges at POI and Washi beating the larger market comfortably on Revar 8:15 8 minutes, 15 seconds growth. We have been upgrading our FnB outlets and the outcome is very encouraged. Our recently launched 8:22 8 minutes, 22 seconds terrace restaurants at and bar at Mumbai, Nox at Western Pawai and N LB bar at JW 8:30 8 minutes, 30 seconds Sahar have performed very well during the year. We also launched the soak at Novatel Pune and is again doing 8:38 8 minutes, 38 seconds extremely well. Kasba, a rooftop restaurant in western Hyderabad also delivered a very strong growth. In the 8:46 8 minutes, 46 seconds coming quarters, we'll continue to focus on food and beverage outlets, especially at Marriott Bangalore, which also we plan to refurbish and relaunch 8:55 8 minutes, 55 seconds commercial real estate. During the quarter, we contracted an additional 150,000 square foot at Hawaii, which 9:03 9 minutes, 3 seconds takes the total occupancy levels to 80 plus%. 9:08 9 minutes, 8 seconds Rentals will start from quarter 4 for this new uh new business. With multiple 9:17 9 minutes, 17 seconds ongoing discussions, we expect to reach 90% occupancy at POI in the near term. 9:24 9 minutes, 24 seconds Let me now talk about updates on our live project. Work is on at full swing in Signis 2 POI and we are in track for 9:32 9 minutes, 32 seconds an FY27 launch. We expect some delays at Taj project at Delhi International Airport due to ongoing pollution 9:40 9 minutes, 40 seconds stoppages. The revised timelines are partial launch by quarter 4 FY27 with a staggered launch post that also I'm 9:49 9 minutes, 49 seconds pleased to share that we have received requisite environmental clearances for our high regency project. With this we 9:57 9 minutes, 57 seconds have untangled one of our delayed properties and it is fortuitous timing as that part of the city is likely to 10:04 10 minutes, 4 seconds gain from increased demand arising from the new international airport. To remind you the property is a mixed mixeduse one 10:13 10 minutes, 13 seconds with the hotel starting from 26th floor onwards. We expect to take about 36 months from the date we commence constructions post all approvals. 10:24 10 minutes, 24 seconds Therefore, in summary, the Indian hospitality industry's performance is being driven by a potent mix of strong 10:32 10 minutes, 32 seconds domestic travel demand, high higher disposable incomes, improved infrastructure and connectivity, a 10:39 10 minutes, 39 seconds recovery in business travel, event l linked tourism, and a favorable supply demand gap. All underpinned by broader 10:49 10 minutes, 49 seconds macroeconomic stability and consumer confidence. With that I'll hand over to you Nissan who and you can take them through the financial details for the quarter. 10:59 10 minutes, 59 seconds Thank you Shitank. Uh once again good morning to all. I'm happy to share our strong performance for the quarter with 11:06 11 minutes, 6 seconds you. Let me start with broad financial performance. 11:10 11 minutes, 10 seconds On a consolidated basis, our revenue grew 27% year-onear to 5,892 11:17 11 minutes, 17 seconds million with 29% year-on-year growth in EITA to 2726 million. 11:25 11 minutes, 25 seconds Consolidated AITA margin are up 76 bips to 46.3%. 11:32 11 minutes, 32 seconds Excluding our residential business, revenue are up 23% year-on-year to 5,726 11:39 11 minutes, 39 seconds million with 24% year-on-year growth in AITA to rupees 2,686 11:47 11 minutes, 47 seconds million. AITA margin are at 46.9% up 14 bips yearonar. 11:56 11 minutes, 56 seconds Before I dive into business-wise performance, I want to briefly highlight on the labor code impact on our financials. As you are aware, the 12:04 12 minutes, 4 seconds government of India has implemented four comprehensive labor codes effective November 25, 12:12 12 minutes, 12 seconds consolidating 29 central labor laws to simplify compliance, enhance social security, and improve working 12:19 12 minutes, 19 seconds conditions. As a result, we have taken higher provisions during the quarter which we have classified as 12:25 12 minutes, 25 seconds extraordinary expenses. However, since our salary structures were largely aligned with the new requirements, the 12:33 12 minutes, 33 seconds overall impact on the profit and loss is rupees 10 million. 12:39 12 minutes, 39 seconds Revenue from our hospitality business rose 23% yearonear to rupees 4913 million driven by strong repar growth as 12:49 12 minutes, 49 seconds highlighted by shwang on a like forlike basis which is excluding the western resort and spa Himalayas revenue grew 12:57 12 minutes, 57 seconds 15% yearonear abita from our hospitality business rose 20% yearon year excluding the western 13:05 13 minutes, 5 seconds resort and spa Himalayas and one-off expenses is related to property tax, excise license, name change etc. AITA 13:14 13 minutes, 14 seconds margin for hospitality segment is 46% which is flat year on year. 13:20 13 minutes, 20 seconds The profit and loss has also absorbed cost related to the additional inventory at Bangaluru and Kandala. As highlighted 13:28 13 minutes, 28 seconds on the last call as well, higher inventory related impact is transitory and stabilizes as occupancy ramps up over the next few quarters. 13:39 13 minutes, 39 seconds We continue to remain committed to maintain cost efficient structures with focus on enhancing operational efficiencies and disciplined asset management. 13:50 13 minutes, 50 seconds On the CRA business, revenue from our commercial real estate business rose 29% yearonear to rupees 744 million with a 13:59 13 minutes, 59 seconds December monthly revenue exit run rate of rupees 250 million. 14:05 14 minutes, 5 seconds Abita grew by 37% yearonear to rupees 621 million yielding an AITA margin of 83.5%. 14:14 14 minutes, 14 seconds Currently occupancy across our commercial real estate portfolio stands at 83%. 14:20 14 minutes, 20 seconds With various ongoing discussions, we expect occupancy at Sway to increase beyond 90% in the near term. 14:29 14 minutes, 29 seconds While leasing at Bangalore complex remains muted, we expect March 27 monthly revenue exit rate run rate of 14:38 14 minutes, 38 seconds rupees 270 million. We expect to ramp up our monthly renters to rupees 280 to 300 14:45 14 minutes, 45 seconds million over the financial year FI27. 14:52 14 minutes, 52 seconds For the residential project, uh during quarter 3, we sold three units at an average rate of rupees 20,500 per square 14:59 14 minutes, 59 seconds ft² and recognized revenue of 166 million for two units that were handed over in the quarter. 15:08 15 minutes, 8 seconds Let me refresh the Kora Mangla project details. The project has residential towers in two phases and a commercial 15:15 15 minutes, 15 seconds tower. Phase one of residential is completed with 152 units handed over of 15:22 15 minutes, 22 seconds which two were done in quarter 3 and one unit is pending handover. 15:28 15 minutes, 28 seconds Phase 2 has 168 units and is under development which we expect to hand over in FY27. 15:37 15 minutes, 37 seconds The project also has 1 lakh 60,000 ft² of commercial space which is yet to be developed. We are evaluating starter 15:45 15 minutes, 45 seconds sale versus leasing for the commercial tower. We will be able to guide you further during our next earnings call on the commercial tower. 15:56 15 minutes, 56 seconds Our net debt stood at rupees 20 billion with the average cost of finance reducing further by 14 bits quarteron quarter to 7.48. 48%. 16:08 16 minutes, 8 seconds We maintained a healthy liquidity position of rupees 3.8 billion at the end of the quarter. 16:15 16 minutes, 15 seconds I'm glad to convey that we were able to raise rupees 1 billion through issuance of commercial paper at a fixed coupon of 16:23 16 minutes, 23 seconds 6.3% which was rated A1 plus by crystal ratings. 16:30 16 minutes, 30 seconds Our competitive borrowing cost is a clear reflection of the strength of our balance sheet. the credibility we have 16:36 16 minutes, 36 seconds built with our lenders and our continued ability to access capital at increasingly competitive rates. 16:46 16 minutes, 46 seconds On the capital allocation front, the capital work in progress and the assets pending business commencement amounted 16:53 16 minutes, 53 seconds to rupees 7.2 billion at the close of the quarter. 16:58 16 minutes, 58 seconds With a disciplined capital allocation framework, we are strategically investing to drive long-term sustainable 17:04 17 minutes, 4 seconds growth. We have planned capex of around 25 billion over FI27 to FI29 17:12 17 minutes, 12 seconds covering our hospitality and commercial real estate business. 17:17 17 minutes, 17 seconds This will be primarily funded through our internal acrals. 17:21 17 minutes, 21 seconds This does not include any additional project that we may take up. 17:27 17 minutes, 27 seconds The company's balance sheet continues to provide the financial muscle necessary to pursue potential strategic opportunities in the future. 17:37 17 minutes, 37 seconds The CR business provides a stable cash flow and with leasing of existing 2.4 million square ft, it will be generating 17:44 17 minutes, 44 seconds an annual cash flow of around 3 to 4 billion. 17:49 17 minutes, 49 seconds Hotel business AITA adds to this stable cash flows giving us a strong base of free cash flow generation to support our growth aspirations. 18:00 18 minutes With that, I would like to open the floor for questions. 18:06 18 minutes, 6 seconds Thank you. Ladies and gentlemen, 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. 18:18 18 minutes, 18 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. 18:27 18 minutes, 27 seconds Ladies and gentlemen, we will wait for a moment while the question cue assembles. 18:35 18 minutes, 35 seconds We take the first question from the line of Adid from ICI securities. Please go ahead. 18:41 18 minutes, 41 seconds Yeah, good good morning everyone. Uh I have couple of questions. The first question is now on the Delhi airport hotel with the revised timeline. Uh 18:50 18 minutes, 50 seconds could you help us understand how we are looking at the gradual ramping up of the hotel in terms of the number of keys considering it is a big box hotel? So that is the first question. 19:02 19 minutes, 2 seconds Uh thank you Ajv. Uh so the way we are looking at it is that the advantage we have for this hotel is that the 19:09 19 minutes, 9 seconds structure has gone up from bottom up. So we c we have actually already started the interior works for the public areas 19:17 19 minutes, 17 seconds and one or two floors of the rooms. So what it allows us to do is open the room uh the rooms up in a staggered manner. 19:25 19 minutes, 25 seconds So right now we are targeting about 150 rooms for the end for end of this year and then in a staggered manner post that 19:33 19 minutes, 33 seconds uh ramping up to 3780 odd rooms that is required within the next quarter. 19:40 19 minutes, 40 seconds Okay. So, so fair understanding is by Q1 of 28 right financial year we should have all the rooms up and running right 19:47 19 minutes, 47 seconds in the hotel that yes that that's how we see it that is correct okay okay fine fine uh so second question obviously is uh obviously 19:56 19 minutes, 56 seconds demand trends in the current quarter right because it's traditionally been the best quarter for us especially in the business hotels uh any color you'd like to give on the demand and any 20:04 20 minutes, 4 seconds additional drivers which are helping us on the demand side across geographies Uh so it's actually it is one of our 20:13 20 minutes, 13 seconds high quarters and not just uh for uh for the socials it's also for the mice events. Uh so actually this is and and 20:21 20 minutes, 21 seconds and the weather is helpful too and we expect a similar trend in the coming quarter as well. Uh so there's nothing new but basically the you know the 20:28 20 minutes, 28 seconds macros of the country stay strong. uh the only thing now that that is there to look forward to is especially the international travelers coming out of 20:37 20 minutes, 37 seconds the of of the situation easing out with both the European Union and the and the US. So that's something to look forward 20:44 20 minutes, 44 seconds to. Other than that the usual trends and increments should continue. 20:50 20 minutes, 50 seconds Okay. Fine. Fine. Fine. So that's it from my side. I'll come back in the queue for more questions. Yeah. Thank you. Thank you. 20:56 20 minutes, 56 seconds Thank you. We take the next question from the line of Rahul Jan from Philip Capital. Please go ahead. 21:04 21 minutes, 4 seconds Uh good morning sir. Just a question from my side. I just want to understand uh how do you see the ARR progressing in 21:11 21 minutes, 11 seconds the MMR regions and in the near-term to medium-term what is your outlook on the uh ARR growth going forward in this region? 21:22 21 minutes, 22 seconds Hi Rahul this is Gorov from uh chalet. 21:25 21 minutes, 25 seconds uh you know the MMR region uh obviously is driven by many subm markets and we are positioned more in the uh in the 21:33 21 minutes, 33 seconds Sahar belt as well as Pawai on the whole uh we have seen the whole of the region be in early singledigit growth on the 21:41 21 minutes, 41 seconds repar perspective while as Schwait said in his earlier statements that MMR for us has come in in the later singledigit 21:49 21 minutes, 49 seconds growth so we've actually been outperforming the market on the whole uh and we constantly uh keep an eye on our competition. There has been uh a 21:57 21 minutes, 57 seconds substantial increase that has come into the market over the last few uh few months uh particularly in different 22:03 22 minutes, 3 seconds segments of uh uh of the uh hotel uh around the region that we operate in. Uh 22:11 22 minutes, 11 seconds we believe uh that we constantly keeping an eye on on uh the market allows us to be able to pivot to what uh segments we 22:18 22 minutes, 18 seconds need to uh bring our business from and we continue to have a very strong premium uh from the market uh which 22:26 22 minutes, 26 seconds should allow us to uh keep uh uh track with our growth strategy. And just to finish that off in general uh you know 22:34 22 minutes, 34 seconds we should be mindful that uh Mumbai operates at very high levels of performance both on the occupancy and 22:41 22 minutes, 41 seconds the ADR side. So to expect a similar growth story necessarily as what's happening in the south today or what we expect Puna to have may not play out 22:50 22 minutes, 50 seconds here but it's it's good to see that we are still growing and growing decently uh in the market and that's what we expect to happen. 23:00 23 minutes Understood sir. So my second question is basically on uh the Aravi resort right the rebranding and uh how the guest 23:07 23 minutes, 7 seconds experience actually changes after the rebranding and uh how do you see the rate uh change from courtyard to a 23:14 23 minutes, 14 seconds Marriott hotel uh will that be more of a transitionary uh trend or will it be a more one-time uh uplift in the ARR? So 23:23 23 minutes, 23 seconds just want to understand how the metrics will move given the rebranding. 23:28 23 minutes, 28 seconds Thank you Raul Gorov again. Uh you know the rebranding has just concluded and uh at uh in this current repositioning that 23:36 23 minutes, 36 seconds we've done with the hotel we've added some uh some new elements to our service design. Uh we've got a very a new clubhouse with sporting facilities. 23:45 23 minutes, 45 seconds We've got additional meeting and conferencing facilities that have been added in and we've upgraded some of our existing facilities as well uh including 23:52 23 minutes, 52 seconds that of a pool bar which is the uh center of the uh resort uh in in its own positioning. Uh all of these should add 24:00 24 minutes uh to our guest experiences as well as uplift the uh positioning of the hotel on the whole. We believe this will over 24:08 24 minutes, 8 seconds time uh in the next uh you know two to three quarters as we go into contracting of larger mice as well as weddings into 24:15 24 minutes, 15 seconds the season of next year uh we see that this uh this will actually give us a potential uh upside from where we have 24:23 24 minutes, 23 seconds operated in the past. Uh so we we do uh believe that the repositioning will give us upside in our ADR position. 24:34 24 minutes, 34 seconds Got it. Thank you sir. 24:37 24 minutes, 37 seconds Thank you. We take the next question from the line of Samit Senna from Aquiry Capital. Please go ahead. 24:46 24 minutes, 46 seconds Yes, thank you very much. A couple of questions. Um first is uh Nathan for you specifically. Can you speak about um the 24:52 24 minutes, 52 seconds margins in the hospitality business? Uh can you help us through you know what's kind of one time what should go away next year and if anything else u uh is 25:02 25 minutes, 2 seconds going to be added next year? I can understand there's some uh obviously some weightage on that because of uh the the new rooms, new inventory that's been 25:10 25 minutes, 10 seconds added. But anything else that we should be keeping in mind as we model this going forward? Second is um on this Udapur property obviously seems like 25:19 25 minutes, 19 seconds very interesting pricing that you have uh you could potentially get this property at. Can you talk about the 25:26 25 minutes, 26 seconds condition it is in what sort of incremental capex uh any timeline around that? that'll be helpful and then I have one followup. Thank you. 25:36 25 minutes, 36 seconds Yeah, thanks Amit. So, uh as I have already you know spoken on this uh there are uh one-off expenses because of the 25:46 25 minutes, 46 seconds excise license name changes which we have done in our two properties uh Novotel and Bangalore. Uh plus there was 25:54 25 minutes, 54 seconds one property tax issue in Bangalore which was also a one-time settlement. uh this total amounts to around 2.5 to 3 cr 26:02 26 minutes, 2 seconds rupees which will be onetime spent. So uh this is not going to happen uh next year going forward. Uh on Udaur I would 26:11 26 minutes, 11 seconds request uh uh if uh Shayan can add some yeah so Udapur uh as as you're aware we 26:20 26 minutes, 20 seconds have uh we've basically started the due diligence and we are working through the uh steps required to conclude it. uh but 26:28 26 minutes, 28 seconds essentially we have taken a a a resort which is not operational today and will require extensive refurbishment work and 26:37 26 minutes, 37 seconds we'll also look at adding some additional rooms to it. So whilst this whilst the contours of this uh deal get 26:45 26 minutes, 45 seconds clearer as we go along because you know we'll have to figure out how many rooms we can add etc. It's only then we'll be able to give you a full picture of what 26:53 26 minutes, 53 seconds the capex would look like and what the number of rooms would look like. So at this stage we will we will just leave it at that. 27:01 27 minutes, 1 second Got it. One final question. Um you know obviously now we have signed the trade deal with the US EU was uh in the last 10 days. So uh seems that business 27:10 27 minutes, 10 seconds opportunities will increase and uh hopefully travel will also increase. Do you have a sense of what the FDA levels 27:18 27 minutes, 18 seconds whether they are above precoid at level or have they started to increase any any sort of guidance in that would be very helpful. 27:27 27 minutes, 27 seconds Hi Sat Gorav here. Uh so uh just just to add to the FTL levels uh I I think uh uh we've added inventory into our system 27:35 27 minutes, 35 seconds which you're well aware of. Uh given that inventory our uh you know mix of domestic versus foreign travel has remained the same and that essentially 27:43 27 minutes, 43 seconds means that the added inventory has gotten has actually absorbed uh the uh the uh percentage of international 27:51 27 minutes, 51 seconds travel growing. uh if you look at it today uh 40% of our business across the board comes from foreigners uh and uh 27:58 27 minutes, 58 seconds that percentage remains intact with uh the added rooms that have come in. Uh so that essentially means that we are above pre-COVID levels. Uh though the 28:06 28 minutes, 6 seconds percentage may show the same uh and uh given what you just said the positive sentiment coming through particularly the uh last two trade deals uh as good 28:15 28 minutes, 15 seconds as this morning. Uh we we strongly believe that this will only grow further. 28:20 28 minutes, 20 seconds And this this 40% number is it on just your business hotels or your leisure? 28:24 28 minutes, 24 seconds Because leisure has increased significantly as a proportion of total rooms right in the last 5 years. 28:30 28 minutes, 30 seconds This is overall our our portfolio uh including business business and ledger. Okay. Thank you. 28:39 28 minutes, 39 seconds Thank you ladies and gentlemen. In the intrusion of time and fairness to others, we request you to restrict to two questions per participant and rejoin the question queue. 28:51 28 minutes, 51 seconds We take the next question from the line of Pratik Kumar from Jeff. Please go ahead. 28:58 28 minutes, 58 seconds Yeah, good morning. Uh sir from cast for good results. Uh my first question is can you discuss again your stance on luxury segment? You have taken back to 29:05 29 minutes, 5 seconds back positions in luxury assets in recent times including the one to how do you see luxury mix in a roomix evolving over medium. 29:16 29 minutes, 16 seconds Uh thank you Pratik for the congratulations. That's the first one we've heard on this call. We believe we have we've put up put out excellent 29:24 29 minutes, 24 seconds results as well. So thank you so much for that. uh Pratik uh we have always believed that the upper upscale and 29:31 29 minutes, 31 seconds luxury segment is is is our uh playground and uh the way we see the you know the rising income levels uh the 29:38 29 minutes, 38 seconds fact that travel is becoming a non-discretionary spend very rapidly we believe that's where you know the play 29:45 29 minutes, 45 seconds is and the best part about this kind of an when when you when you play in this area is that it allows you to when you 29:52 29 minutes, 52 seconds enter a tier 2 town it allows you to be the best hotel in town and that's where the business is and you get to set the rates. So, you know, we like that space. 30:01 30 minutes, 1 second We see that it will continue continue to be the the most exciting space and that's where we plan to stay as well. If 30:08 30 minutes, 8 seconds you see our brand launch is also largely in that space. Uh that's where we are positioning AIA as well. So, we are highly positive about that space. 30:18 30 minutes, 18 seconds But any percentage mix I know it's like currently trending at 15 to 20% of your total keys mix. city and resort segment. 30:28 30 minutes, 28 seconds How do you see that? 30:29 30 minutes, 29 seconds Quite frankly, I still don't understand the question and none of us do. Can you rephrase the question? 30:37 30 minutes, 37 seconds Sorry, I I meant leisure segment. Sorry, I say if I said luxury leisure segment, I I meant uh I'm so sorry. Uh ledger 30:45 30 minutes, 45 seconds segment. How do you see the mix evolving uh in your business? 30:52 30 minutes, 52 seconds So u if I may Gorov here uh you know our our ledger segment strategy has been uh you know defined over over the last few 31:00 31 minutes quarters where we've continued to grow our uh our our uh positioning as well as acquisition strategies that we've had. 31:07 31 minutes, 7 seconds If you look at the last few quarters uh and last year we did uh go ahead and uh pro uh acquire the the Weston in the 31:14 31 minutes, 14 seconds Himalayas and we continue to look out for opportunities. Therefore, as has been spoken of on this call as well, is one of those to expand our ledger 31:23 31 minutes, 23 seconds footprint. Uh this is something that we consciously are looking at wherever there's an opportunity of of uh uh you know good leisure demand, we would love 31:32 31 minutes, 32 seconds to have our own flag uh there. And and also just to finish that off, we had taken a conscious call that we wanted to 31:40 31 minutes, 40 seconds spread our eggs a little and we want to get up to around the 20% number on the overall business versus versus leisure mix. So that's what we are sticking to 31:48 31 minutes, 48 seconds and that's exactly how our strate acquisition strategy is playing out. 31:54 31 minutes, 54 seconds Uh thank you. And one other question on uh does this mix change of failure versus uh business and geography MMR 32:02 32 minutes, 2 seconds versus others. Uh has this some impact on your margins because we have like been lower on margins as you said there 32:09 32 minutes, 9 seconds are like some monops but uh are your business margins expected to be lower incrementally on year-on-year basis? 32:17 32 minutes, 17 seconds evolving. 32:18 32 minutes, 18 seconds No, not strictly true. So definitely when you bring in leisure portfolio into a very high performing business portfolio, there will be some dilution 32:27 32 minutes, 27 seconds of margins. But that doesn't mean that our asset management teams are not working overnight to sort of correct it and uh as we go along you will start to 32:35 32 minutes, 35 seconds see an improvement in these margins as these hotels stabilize. So we don't see that as a particular challenge. 32:43 32 minutes, 43 seconds Uh thank you and these are my questions. 32:47 32 minutes, 47 seconds Thank you. We take the next question from the line of Avesh Bakshi from Sundara Mutual Fund. Please go ahead. 32:55 32 minutes, 55 seconds Hi sir. Uh hi team. Thank you for taking my question. Uh firstly in terms of the MMR market, I just wanted to understand 33:03 33 minutes, 3 seconds what drove our outperformance versus the broader market. Uh specifically given that paw and aoli were you know 33:10 33 minutes, 10 seconds marginally impacted this quarter. And uh secondly also on the Bangalore micro market the 10% kind of an occupancy decline. Uh so sir what exactly 33:19 33 minutes, 19 seconds explained this uh and also if you could share any like to like occupancy change in case of oneoff uh that would be helpful. That is my first question. 33:31 33 minutes, 31 seconds Hi Gorov here again. uh obviously uh you know on the MMR market as as we explained in our u in our uh earlier 33:39 33 minutes, 39 seconds conversation that we've added in both our hotels uh some sort of food and beverage uh uh you know additionally to 33:47 33 minutes, 47 seconds what we had in the past and what that has done is continued to reposition our hotel in the local market as well as with our uh loyal customer base. Uh we 33:56 33 minutes, 56 seconds do have a very large loyal customer base particularly with Marit Bonvoy uh which is uh where our relationship is. Uh and 34:03 34 minutes, 3 seconds we see that given that uh we uh tend to have a preference uh amongst our competitors of people choosing us beyond 34:11 34 minutes, 11 seconds them. Uh this gives us one opportunity to continue to increase our base. At the same time uh we have been constantly 34:18 34 minutes, 18 seconds pivoting uh based on demand uh and supply that happens in the market to be able to uh you know correct our segments 34:26 34 minutes, 26 seconds where required uh as as alluded in uh the construction works that are happening in Hawaii. Uh we did lose uh 34:34 34 minutes, 34 seconds an opportunity of continuing to have larger crew base uh and we were able to pivot that with mice and wedding segments uh replacing that business. uh 34:43 34 minutes, 43 seconds and these uh these pivots allow us to continue to remain competitive and ahead of the market. Uh in uh Sahar as well uh 34:51 34 minutes, 51 seconds what we have constantly done uh given that there has been new inventory that has come into the market uh is to uh you know reinforce and ring fence our 35:00 35 minutes corporate segment uh which is our largest producing segment in the in the market. uh and we've ring fenced our uh relationships there continuously engage 35:08 35 minutes, 8 seconds them uh so that we are able to ensure that they use us going forward as well. 35:13 35 minutes, 13 seconds Uh these strategies have helped us uh position ourselves as well as give us uh greater guest satisfaction uh and led to 35:21 35 minutes, 21 seconds uh better uh and bigger u you know share of the market. 35:27 35 minutes, 27 seconds Bangalore with respect to Bangalore just to finish that off sorry that was the second part of the question uh so the drop in 35:35 35 minutes, 35 seconds occupancy is mainly because we've added a additional 130 rooms and that's stabilizing very rapidly uh and you can 35:43 35 minutes, 43 seconds see that we've been still able to command a very high ADR growth despite the new rooms coming in so we are we continue to work on that strategy and 35:52 35 minutes, 52 seconds over next two to three quarters we expect these rooms to stabilize and the drop in occupancy is only temporary. It should pick up later. 36:01 36 minutes, 1 second Sure sir. Uh just a followup if I may on the MMR market. Uh while I understand we refrain from uh you know discussing 36:08 36 minutes, 8 seconds asset level performance but uh directionally would it be fair to assume that the JW Sahar would also have outperformed the broader market for Navar? 36:17 36 minutes, 17 seconds Yes absolutely. 36:20 36 minutes, 20 seconds Thank thank you for that sir. Uh and just a second question uh while I understand that dial asset is a cold cell which we will receive but are we 36:28 36 minutes, 28 seconds also participating in the current construction process by any chance? 36:32 36 minutes, 32 seconds No we are not but what we have done is that rather than work in in series we have started to work in parallel. So because the public areas are ready even 36:41 36 minutes, 41 seconds as the facade is being closed we have entered to do our MEP and interior works. 36:46 36 minutes, 46 seconds Oh okay. And so just one thing here with the timeline shift now is there any change in the potential capex outlay on this asset? 36:54 36 minutes, 54 seconds No nothing has changed from that perspective because actually the delay is on the civil side and the civil is being handed over to us by uh GMR. So not really. 37:05 37 minutes, 5 seconds Sure sir. Thank thank you for uh answering my questions in thank you. We take the next question 37:13 37 minutes, 13 seconds from the line of A Katan from Access Capital. Please go ahead. 37:18 37 minutes, 18 seconds Yeah. Hi uh thank you for the opportunity and congrats on good set of numbers. Uh so uh my first question is on the pipeline uh on the Goa market. So 37:27 37 minutes, 27 seconds uh over the last uh couple last year and a half we have seen that uh from the industry data that Goa market has not really done so well and given that we 37:36 37 minutes, 36 seconds have a couple of assets coming up in that. How do we see that now and uh what what do you think that could be the trigger uh for the turnaround in that market? 37:48 37 minutes, 48 seconds So we have always maintained this that we we believe that Goauru uh Jaipur etc are very deep markets and we we are 37:57 37 minutes, 57 seconds actually not phased by these temporary blips of up and down. This has happened to Goa before. I'm sure it'll happen again. We are still about 3 years away 38:06 38 minutes, 6 seconds from our first hotel opening and we see a we we would definitely expect a reversal on trend uh on on that. Uh so 38:15 38 minutes, 15 seconds we we are not really worried on Goa in general and actually if you dig a little bit deeper I think January has been 38:22 38 minutes, 22 seconds quite strong for Goa as compared to uh last year and I think this quarter is expected to be strong. So we will be 38:30 38 minutes, 30 seconds start I think we are going to see some green shoots coming in from this quarter onwards. 38:37 38 minutes, 37 seconds Understood. Thanks. My second question is on uh asset specific uh trends. So in the slides we saw that data on uh 38:45 38 minutes, 45 seconds utakishesh was actually missing. Can you just help us what has been the growth in terms of AR and occupancy in three in the third quarter in the dishes assets 38:54 38 minutes, 54 seconds and if you can share in particular for MMR how has been the trend in uh the JW Marriott Sahar and how has it been in January as well. 39:02 39 minutes, 2 seconds My apologies we don't necessarily give out asset level details but I can tell you that the growth uh has been in line 39:10 39 minutes, 10 seconds with our expectations and actually generally beating the market. 39:16 39 minutes, 16 seconds Okay. Okay. Is it true for both Mumbai as well as Rishiesh? Yes. 39:23 39 minutes, 23 seconds Got it. Thank you. Thank you for this. 39:26 39 minutes, 26 seconds Thank you. We take the next question from the line of Karan Karna from Ambbit Capital. Please go ahead. 39:33 39 minutes, 33 seconds Yeah. Hi, thanks for taking my questions. Uh just a couple of questions from my side. Uh firstly, Shredank on Ata resort in Kandala. Well, it's only 39:42 39 minutes, 42 seconds been a few days uh but could you share some numbers regarding performance of the resort pre and post uh rebranding and how would the ars and occupancy look 39:50 39 minutes, 50 seconds like in third quarter versus uh let's say third quarter last year. 39:55 39 minutes, 55 seconds Uh thank you Karan. Um so Adiva has actually absolutely come in line with the way we wanted it. Uh first of all 40:03 40 minutes, 3 seconds the product is beautiful and if you've not been there I would encourage you to go there and sort of experience it uh and see what we have managed to do with 40:11 40 minutes, 11 seconds the property. Uh so we are no longer actually even looking at uh comparing our performance to pre-branding versus 40:19 40 minutes, 19 seconds postbranding because we expected a massive jump uh in ADRs. Anyways uh we have managed to uh maintain very high 40:27 40 minutes, 27 seconds levels of ADR and most importantly during these days more than the business what counts is the positioning and from a positioning perspective we have had 40:36 40 minutes, 36 seconds excellent guest feedback uh and we are using this time to sort of uh uh spread the word uh to say that we have invested 40:44 40 minutes, 44 seconds in this property invested heavily and we have uh put it put in a brand that delivers on its promise. just for some 40:51 40 minutes, 51 seconds you know very high level numbers as I mentioned in my speech earlier we've already had five to six days of sold out 40:59 40 minutes, 59 seconds position within the first quarter itself and actually we started full full [clears throat] operations only mid of the quarter so already that has come 41:07 41 minutes, 7 seconds through uh the traction on both mice and social is very very good and actually the out of the five sold out days one or 41:14 41 minutes, 14 seconds two of them were free individual travel travel fullout day uh sold out days so that's even more encouraging and uh you 41:22 41 minutes, 22 seconds know the long weekend 26th January for example was absolutely brilliant. We were sold out on two days. So uh and 41:28 41 minutes, 28 seconds with just free tra individual travelers so the word is clearly spreading and we expect Mumbai and Pune alone to keep us filled uh throughout the year. 41:39 41 minutes, 39 seconds Sure this is helpful. Uh just to follow up on the Udaur property are you also looking to rebrand that into an Ativa once you've concluded the uh the the transaction? 41:50 41 minutes, 50 seconds It is a bit early to comment on that. Uh we have always maintained that we we are we will stay brand agnostic and go with 41:58 41 minutes, 58 seconds the brand that actually works for the market. So Adiva is in the consideration set but it's by no means a decision that's already made. 42:07 42 minutes, 7 seconds Sure. And then second and lastly given that hello I would request you to please ch back the queue for follow-up question. Sure. Thank you. 42:14 42 minutes, 14 seconds Thank you. 42:16 42 minutes, 16 seconds We take the next question from the line of Debak Saha from Nirmal Bank institutional equities. Please go ahead. 42:24 42 minutes, 24 seconds Hi uh thanks for the opportunity and congratulations for good set of numbers. 42:27 42 minutes, 27 seconds Uh just a couple of questions. So if I see your addition of these have been quite meaningful YI specifically two portfolios one Bangalore and Kandala. So 42:36 42 minutes, 36 seconds almost 130 odd keys Bangalore and Kandala 67. Now if I take say um one year forward as you target higher 42:44 42 minutes, 44 seconds occupancies because these two properties so far the occupancies uh would be a little bit lower as you were stabilizing. [clears throat] So once you target higher occupancy in next year uh 42:53 42 minutes, 53 seconds during the season tanks can we see a tradeoff of limited expansion uh for higher occupancy or you think overall 43:00 43 minutes your rate momentum would stay strong for these two properties at the same time you can deliver a little bit higher occupancy. 43:08 43 minutes, 8 seconds So that's a great question because at the end of the day what drives revenue is the ref power and uh whilst occupancy stabilize rates also tend to creep up. 43:18 43 minutes, 18 seconds They may not grow at the same levels as before but we are expecting a a high singledigit growth on the rate 43:25 43 minutes, 25 seconds on both these properties as we as we stabilize the occupancy. So overall refar improvements would be definitely in double digits or higher. 43:35 43 minutes, 35 seconds Got it. that should lead to meaningfully you know strong revenue growth but as your rates uh I mean the interpretation uh that I'm getting you can correct me 43:43 43 minutes, 43 seconds if I'm wrong then essentially your margins should reverse back to even it's a high single digit kind of an arrow 43:50 43 minutes, 50 seconds essentially should reverse back to the numbers that we had earlier so 25 kind of a number yes that is 43:58 43 minutes, 58 seconds that would be correct for Bangalore the only thing that I I want you all to stay cognizant of is that resorts don't 44:06 44 minutes, 6 seconds operate at the same margins as business hotels. So you know if if a if if a business hotel is running less let's say 44:13 44 minutes, 13 seconds 60% GOP don't expect a resort to be doing that. So there will be there'll be that correction but that's the nature of the beast. That's all I want you to remain cognizant of. 44:24 44 minutes, 24 seconds Got it. One last question. Uh on the Bangalore side we have seen uh meaningful addition of keys and the rates have been very strong. uh now we 44:32 44 minutes, 32 seconds are coming up with our portfolio uh the Taj one next year. So do you see uh that particular market heading into more of a 44:40 44 minutes, 40 seconds stabilization phase or overall the momentum of ADR will stay strong for Bangalore market? 44:49 44 minutes, 49 seconds No, we expect the the the market to stay strong because there's very little supply that is coming into Whitefield 44:56 44 minutes, 56 seconds and and and and whilst that's happening, we are clearly seeing a trend of uh of increasing expat travel. So, we 45:03 45 minutes, 3 seconds definitely expect that market to stay strong and and not showing signs of receding. 45:11 45 minutes, 11 seconds Got it. Thanks. Thanks for all the answers and all the best for upcoming quarters. Thank you. 45:17 45 minutes, 17 seconds Thank you. We take the next question from the line of Vikas Auja from Antic Stock Broking. Please go ahead. 45:26 45 minutes, 26 seconds Yeah. Hi. Uh thank you for the opportunity and congrats on on the strong quarter. Uh so sir my first question is uh so far if I look at our 45:34 45 minutes, 34 seconds revenue growth it has been uh in the first 9 months it has been growing at double the pace of the ref pack growth 45:41 45 minutes, 41 seconds hel held by uh obviously the strong inventory additions. So given the most of the in inventory edition now 45:48 45 minutes, 48 seconds occurring in I'm talking about the future expansion is coming in Q4 FY27 and the revenue contribution meaningfully will start flowing in from 45:57 45 minutes, 57 seconds FI28. So is it reasonable to assume the convergence of uh revenue growth towards refin in FI27? 46:06 46 minutes, 6 seconds Uh that's my first question. 46:09 46 minutes, 9 seconds So whilst in terms of inventory addition you're right but there's a lot of stabilization of inventory that we still have to go through the 130 rooms in 46:17 46 minutes, 17 seconds Bangalore the the the rooms at Aiva Kandala and of course the improved 46:23 46 minutes, 23 seconds performance of uh rooms coming in into Nav'i Mumbai. So all that will stabilize 46:30 46 minutes, 30 seconds through the year. So we still expect to stay strong in revenue and refer growth for the for the coming year and then of course once Bombay comes in uh sorry 46:39 46 minutes, 39 seconds once Delhi comes in then we will start to add in uh additional inventory and and revenue and also let's not forget 46:47 46 minutes, 47 seconds that Rishih and the and the courtyard which is now going to be the is now the Marriott has had a very difficult year 46:56 46 minutes, 56 seconds uh calendar year especially with rains and and and and the disruption of India Pakist Pakistan war. So all of that 47:03 47 minutes, 3 seconds correct getting corrected itself for the coming year should add very decently to the overall growth. 47:10 47 minutes, 10 seconds Okay. So so largely the key is addition in Bangalore and Kandala. Uh when do you think it's going to stabilize because you know our margins are also impacted 47:18 47 minutes, 18 seconds because of that. So when do we do you think we can go back to above 70% margins u or not 70% 70% occupancy and 47:29 47 minutes, 29 seconds the margins which declined by 80 82 basis point this quarter when we see that stabilizing once you know this 47:35 47 minutes, 35 seconds inventory which is uh going to stabilize which you said it's it's going to take more quarters. So just uh just to again 47:44 47 minutes, 44 seconds sort of split this question into two parts. Bangalore being a business hotel in a very sort of deep market we expect 47:52 47 minutes, 52 seconds that stabilization to happen more rapidly. So that should happen over the next two to three quarters at best. Uh 47:59 47 minutes, 59 seconds when it comes to the resort uh resorts typically don't tend to operate at such high levels of occupancy and we expect an occupancy in the range of 65 to 70%. 48:10 48 minutes, 10 seconds So that that may take the best part of this year sorry coming year and a little more uh only to remind all of you that 48:18 48 minutes, 18 seconds we are only in the second we are only going to enter first full year of operations as a tha so you know let's be a little bit more patient patient hotels 48:27 48 minutes, 27 seconds take about uh two to three years to stabilize now uh just [clears throat] to continue on what was uh you know uh telling about 48:36 48 minutes, 36 seconds the additional inventory if I look at my uh quarter on quarter same store margin 48:43 48 minutes, 43 seconds uh contraction is 6 uh basis points only and if I add back the one-offs which you 48:50 48 minutes, 50 seconds know I just stated uh in the call my uh same store a bit margin is actually flat year on year with the additional 48:58 48 minutes, 58 seconds inventory coming in both from Kandala and as well as Bangalore we expect margins to go up so I I think that 49:05 49 minutes, 5 seconds answers your question okay thank and also in the I would request you to please join back the queue for follow-up questions. 49:14 49 minutes, 14 seconds Okay. 49:15 49 minutes, 15 seconds Thank you. We take the next question from the line of Harshett Mantri from HSBC. Please go ahead. 49:23 49 minutes, 23 seconds Yeah. Hi, thank you. Um congratulations for a good set of numbers. Uh most of my questions have been answered just one that are you still in the race for 49:32 49 minutes, 32 seconds bidding of JW Marriott Bangalore and uh where do you expect to fund that acquisition? Will that be internal acrovers or you might raise debt for that? 49:41 49 minutes, 41 seconds Thank you. Hashid, can you help us win the bid? 49:44 49 minutes, 44 seconds If you can then that answers your question. No, we are definitely in the race. Uh we like that asset and uh we have put in our bid as many others have. 49:53 49 minutes, 53 seconds So we would like to win that one if possible. With respect to where we can get the funding from, I'll let the CFO give give us that answer. I think we 50:02 50 minutes, 2 seconds have enough headroom in the balance sheet and I you know in the earlier calls also I have stated that we have commercial run rate which is getting 50:11 50 minutes, 11 seconds very strong and by the year end if my closing run rate is already uh 30 crs 50:17 50 minutes, 17 seconds per month. Uh the entire LD eligibility covers my current uh entire loans. So I 50:24 50 minutes, 24 seconds have enough headroom to uh you know look at the allocations. Yeah. Okay. Okay. Good. Great. Thank you. 50:31 50 minutes, 31 seconds That's that's it on my side. Yeah, thank you. We take the next question 50:38 50 minutes, 38 seconds from the line of Janesh Toshi from PL Capital. Please go ahead. 50:44 50 minutes, 44 seconds Thanks for the sorry uh thanks for the opportunity. Uh sir, I needed one small uh clarification. Uh in the presentation 50:51 50 minutes, 51 seconds we have uh mentioned that uh uh renovation at four points uh washi basically had an impact on occupancy. uh 51:00 51 minutes so just wanted to confirm I mean uh do we include non-operational rooms as well into the base uh while calculating 51:07 51 minutes, 7 seconds occupancy so that is one and uh secondly we also mentioned that uh uh due to the ongoing construction work at uh paw uh 51:16 51 minutes, 16 seconds the occupancy in the nearby hotel was impacted. Now given the fact that uh uh the tower 2 is expected to come up by uh 51:24 51 minutes, 24 seconds full key of FI27 uh that construction will continue. So do you expect this uh 51:32 51 minutes, 32 seconds occupancy hit that we saw in this quarter to continue for the next financial year as well? 51:38 51 minutes, 38 seconds Uh uh thank you. I will answer the first question. You may have to repeat the second one. We kind of lost your voice in between. The first question we heard 51:47 51 minutes, 47 seconds so whilst the occupancy gets reported on only the available rooms and not the out of order rooms but construction 51:56 51 minutes, 56 seconds because of the disruption is not a great environment for uh you know guests to stay in and therefore that's why we say that the occupancy gets hit hit overall. 52:06 52 minutes, 6 seconds Uh can you repeat the second part of the question please? Yeah. Yeah. Uh sir, because of the ongoing construction work 52:14 52 minutes, 14 seconds at Pawai, uh we also had an impact on our uh hotel which is located nearby. 52:19 52 minutes, 19 seconds Right now, given the fact that this construction is expected to last till 40 of FY27, uh do you expect uh the 52:28 52 minutes, 28 seconds occupancy hit to kind of maybe continue for the next three to four quarters? 52:34 52 minutes, 34 seconds Yeah, whilst uh the construction is causing a disruption and we don't want to deny that uh one of the main reasons 52:42 52 minutes, 42 seconds for the disruption is the fact that the porch is not available for us for the banquet space which actually formed the 52:49 52 minutes, 49 seconds drop off of the banquet space. So that will get available to us over the next couple of quarters and that will bring 52:56 52 minutes, 56 seconds back the socials and therefore give us uh give us the edge back on the occupancy side as well as the social business side. Uh also very rapidly once 53:05 53 minutes, 5 seconds the civil work gets over the noisy work is out of the way and the dust etc is gone uh and and therefore that will also 53:14 53 minutes, 14 seconds not necessarily last till the end of the project. So with that we expect over next two quarters for this uh issue to stabilize. 53:23 53 minutes, 23 seconds Uh got that. Uh one last question from my side. I mean uh in the last earning call we had mentioned that construction 53:30 53 minutes, 30 seconds at our south Goa hotel will begin in food. So what is the progress on that? 53:35 53 minutes, 35 seconds And secondly I think we have also bought some land at Rishies for about uh 60 crores which is right next to our existing property. Uh so are we planning 53:44 53 minutes, 44 seconds any brownfield expansion over there? if you can give some color on that as well. 53:49 53 minutes, 49 seconds So, so the to answer your first part of the question, Goa as you know is notoriously hard to to get through and 53:56 53 minutes, 56 seconds uh and current situation to be precise is that we are waiting for the uh local uh authorities to form the uh the CRZ 54:06 54 minutes, 6 seconds committee which is called GCZMA which got dissolved in the in the middle of December. So a new committee is going to 54:13 54 minutes, 13 seconds be formed and there's a critical approval we need from them before the file moves to MOEF in Delhi. So we expect over the next couple of months 54:21 54 minutes, 21 seconds for this to come through. Uh but you know these are all basically educated guesses. So we go along with it as we go 54:29 54 minutes, 29 seconds along. Uh what was the second part? Your question was with respect to the land that we have bought in Rishikh. 54:36 54 minutes, 36 seconds Yeah. Sorry. The land that we have bought in Rishies. The land that we bought in Rishiesh was done for two reasons. Number one is it's it's right 54:44 54 minutes, 44 seconds in front of the existing hotel and we wanted to protect our views so that nobody comes and builds anything and and and spoils the view from the hotel. 54:53 54 minutes, 53 seconds Number two, it does give us an opportunity for a future expansion, but we are basically monitoring our current inventory and and and expect it to 55:02 55 minutes, 2 seconds stabilize first before we decide as to what the uh usage of that additional land could look like. uh very early 55:11 55 minutes, 11 seconds stage our thought process is to bring in high levels of uh villa type setup but you know I don't want to comment on it 55:19 55 minutes, 19 seconds until we have sort of stabilized the current inventory and and and have have steady revenues from that 55:26 55 minutes, 26 seconds uh sure sir uh thank you so much and all the best thank you we take the next question from 55:34 55 minutes, 34 seconds the line of vib Malik from high securities please go ahead Hi Shwang and Gorav. Uh thanks for the 55:42 55 minutes, 42 seconds opportunity. Congratulations on a good set of numbers. Uh my first question was on our uh Ativa brand. Uh we had announced dur at the time of launch of 55:50 55 minutes, 50 seconds the brand that we'll be taking up uh the resort property uh owned by the promoters on a management contract basis. So wanted to understand the 55:58 55 minutes, 58 seconds timeline of that. Have we taken that property and uh when do you expect the management fees to start flowing in the 56:05 56 minutes, 5 seconds business? Uh uh secondly on our uh ioli property uh we have received the environmental clearance. So what are the 56:12 56 minutes, 12 seconds next steps and when do you expect the constructions to commence and uh what are the expected timelines? 56:19 56 minutes, 19 seconds Okay. Uh so the resort property we wanted to take it under the under the wings of aiva. It belongs to the group 56:26 56 minutes, 26 seconds as you're well aware. Uh so there are two parts to this. The first part is for it to operate as an AIA which we can 56:34 56 minutes, 34 seconds quite easily do under a management contract with the group. Uh and the second part is to take over the property. The taking over of the 56:42 56 minutes, 42 seconds property will happen. There are quite a few decisions to be made uh particularly around how what the acquisition structure would look like. But as we 56:51 56 minutes, 51 seconds speak the group has already commenced construction there uh for an additional 250 odd keys uh right next to that and 57:00 57 minutes whilst we do that the buildings are connected. So uh the public areas will be shared between the existing building as well as the new building that comes 57:08 57 minutes, 8 seconds up. So that work has already started and eventually this place will have the existing 94 keys plus another 250. So we are looking at a very large hotel there. 57:19 57 minutes, 19 seconds uh hoping to take advantage of the infrastructure development that is currently taking place in Mumbai and for it to become a very strong hotel for us 57:26 57 minutes, 26 seconds in the future. So the short answer is that we are still trying to figure out the structure of acquisition and and also the timing of when it can become a 57:34 57 minutes, 34 seconds tha we'll come back to you as it as it gets cleared. 57:40 57 minutes, 40 seconds Understood sir. And secondly on the ioli property on the ioli property uh as I said uh in my speech it has been a very significant 57:49 57 minutes, 49 seconds step to get through the environmental clearances because we were stuck in the entangle of entanglement of NGT orders. 57:55 57 minutes, 55 seconds Now that that's clear, we expect another two to three months to hit the ground for excavation. And I say when I say we, it basically means the group because 58:04 58 minutes, 4 seconds they are to sh hand over a shell to us which is then being going to be leased uh to us uh for for the hotel. And as I 58:12 58 minutes, 12 seconds said, it's a mixed use. So it's only when the shell is complete that we come into play in terms of fit outs etc. So 58:19 58 minutes, 19 seconds we expect 2 to 3 months to start and 36 months uh from then on uh to sort of start get the hotel operational. 58:28 58 minutes, 28 seconds Understood sir. My second question was on our uh JW Sahar property. So uh what I understand is the competitor in the 58:36 58 minutes, 36 seconds micro market has been very aggressive on the banquet and uh banquet elected FnB side. uh have we seen any sort of 58:44 58 minutes, 44 seconds pressure over there in terms of the mice demand for banquet facilities? 58:50 58 minutes, 50 seconds Thank you uh for the question Bab of Gorov here. Uh typically in in mice and weddings and large format uh you know 58:57 58 minutes, 57 seconds conferences what happens is that when you have more availability of uh such venues uh you tend to have the 59:04 59 minutes, 4 seconds neighboring uh uh location also lift uh the opportunity to host such venues. 59:09 59 minutes, 9 seconds becomes a subm market in itself to continue to grow uh the business in that uh in that space. Uh let's take case in point of the geo convention center 59:18 59 minutes, 18 seconds coming into BKC. Uh it essentially lifted the entire central Mumbai uh region uh for uh you know demand coming 59:26 59 minutes, 26 seconds in for you know mice and conferences. uh we believe with the the the competition uh adding uh inventory into into the 59:34 59 minutes, 34 seconds banking facilities uh it will only help uh you know grow uh the demand in the whole subm market. Uh additionally we 59:41 59 minutes, 41 seconds have a very significantly different uh uh you know product. Uh we have open areas, we have uh we have uh areas which 59:49 59 minutes, 49 seconds the uh competition does not have. they have uh you know banquet halls which are uh halls while we have uh in internal 59:56 59 minutes, 56 seconds halls as well as open areas both. Uh therefore again uh when you have large format weddings and conferences people tend to use two or three different 1:00:05 1 hour, 5 seconds venues for two or three functions and being in such close proximity typically helps us in getting that uh that sort of 1:00:13 1 hour, 13 seconds demand. uh so uh on the whole if I was to say uh today we obviously watching uh what the new inventory is doing but at 1:00:20 1 hour, 20 seconds that same time we believe that in the long run this will help us grow our demand understood sir just lastly wanted 1:00:28 1 hour, 28 seconds by I would request you to please join back the queue no sorry this is here sorry in the interest of time we have a couple of 1:00:36 1 hour, 36 seconds more engagements to go through can we call it a day and uh such sukrit and pratik I'm sorry we are missing out on 1:00:43 1 hour, 43 seconds your queries. Uh but please feel free to write to us and we will be able to respond to you if that's okay with all of you. 1:00:54 1 hour, 54 seconds Okay. So ladies and gentlemen, with that we conclude the question and answer session. I now have the conference over to Mr. Schwatthang Singh for his closing comments. 1:01:04 1 hour, 1 minute, 4 seconds Uh thank you all once again for joining. 1:01:06 1 hour, 1 minute, 6 seconds As always we appreciate your insightful suggestions and queries. We hope that we have been able to respond to your queries uh barring the two gentlemen 1:01:14 1 hour, 1 minute, 14 seconds that we missed out on. In case you need any further clarifications or insight on our business, please feel free to contact Deepak and he shall be able to 1:01:23 1 hour, 1 minute, 23 seconds help you. Good day and thank you so much. 1:01:26 1 hour, 1 minute, 26 seconds Thank you. On behalf of Shalik Hotel Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.