Kamat Hotels (I) Limited (KAMATHOTEL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Kamath Hotels India Limited Q2H1 F5 2027 earnings conference call, hosted by Valorium Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should we assist in during the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Purvangi Jain from Valoram Advisors. Thank you, and over to you.

Thank you. Good evening, everyone, and a very warm welcome to you all. My name is Purvangi Jain from Valoram Advisors. We represent the investor relations of Kamath Hotels, India Limited. On behalf of the company and Valoram Advisors, I would like to thank you all for participating in the company's earnings conference call for the second quarter and the first half of the financial year, 2027. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. I would now like to introduce you to the management team joining us on today's call. We have with us Mr. Vishal Vithalkaman, Executive Director. Mr. Milind Wadhikar, Chief Financial Officer, and Mr. Nikhil Singh, Company Secretary and Compliance Officer. Without any delay, I request Mr. Vishal Kama to start with his opening remarks. Thank you and over to you, sir.

Namaskar, all. Thank you, Purvangi, for the introduction. Thank you, LRM advisors, and thank you all for participating in this call. First and foremostly, I'd like to, as you already mentioned, my colleagues Mr. Milindwade Kars and Mr. Nikhil are with us. The results have been, we are very happy to share the kind of progress we have had. I believe that many of you have gone through them, and I thank you for taking this time to go through, having recorded a great quarter EBITDA with margins of the Q2 FY27 up 1,300 basis points, year-on-year to 26%, and EBITDA more than doubling to... To 24 million and the occupancy also going up by 800 basis points. With all this coming up, the ARF power also has improved by 20%. We also have a set of FY30 vision of the hotels of the Kamas with the number of keys being increased by more than 50% to 3,000 keys. And the average room rate also, we are looking at increasing step by step more than 30% to 8,000. So, this would happen because of the various new properties coming in. We have in the month of December, January, Gwalior, which will open up. Apart from that, we also have Dwarka and Nasik. Though they are under management, Gwalior is under lead, but Dwarka under management, we expect that these properties also will add a lot of boost, adding more than 250 to 166 keys to our portfolio, apart from other additions which are there. Further, even our Rishikesh and our Geradun will eventually also come in. So, we have a nice pipeline and side-by-side active discussion pipeline also going forward. Mr. Mililwadikar will take you through the details in his remarks, which he has prepared, along with any questions and answers, we will be happy to answer. Let me just give you a brief overview of the hospitality industry, the key trends that have shaped the quarter. By and large, the Indian hospitality as a whole has delivered a resilient result. This has various reasons that it has shown a good performance. Despite having challenges of war, fuel shortage, monsoon seasonality, aviation erraticness, and other various, you know, west Asian geopolitical tensions, some going in our favor, some adding to the top line, some going against us, hitting us at our bottom line yet. Overall, the industry has, and in that commerce group, has managed these challenges very well due to certain foresighted decisions also, which will articulate ahead. Quarter 2. The Quarter 2 is a very poor general quarter because of monsoon and because of various other aspects happening in it. You know, you have Pithru perks and others and so on. And all these aspects make the overall spending lower in sentiment and in practicality. But this Quarter 2 has been excellent in terms of the overall performance by various of our hotels. And hence, Quarter 1 has given a holistic improvement. Typically, Quarter 2. Accounts for 60-65% of the annual business. So based on that, we feel the year ending also will be fairly robust. Hospitality, various leaders have also shared their figures how their overall revenue has grown anywhere between 12 to 17%. And within that also in the hotel segment particularly. So we are also optimistic about H2 and FY27 and being quite robust and encouraging. Even our October numbers are fairly encouraging in terms of, you know, now having a good October. Otherwise, normally October end is when Diwali is there, first week November. This year, November may not be as great as what it was last year because having Diwali bang in the middle of November. But the second half of November already looks very, very strong. So that's a very good. And then December is what it is. December is December. So demand remains intact. which we are specializing in and various other events that is also happening wedding season this year's wedding season is not as strong as last year and yet it has been a very good support for the weekdays and weekends you know there has been a sustained demand in leisure spiritual tourism is still going strong and by and large the industry is still seeing the benefits of premiumization trend which is still delivering a very good result for hospitality and other industries also So the gradual recovery of foreign tourists, we expect, though that is not going to have a very significant, considering that today, in all honesty, Indians are richer than many of the foreign country tourists. So Indians are more sought after because they are spending better as compared to many of the foreign tourists who are coming on a shoestring budget or on a limited drink. But that said, we are seeing very good growth in Goa. When we do have, in our orchid pasaros particularly, we have a very high percentage of foreigners who stay with us. So there we see that there has been a very robust demand. And hence Q3 also we seem to be on a good track. In line with our industry peers, we remain optimistic. We are focusing on driving our rev-par, moving our unit-level operational efficiencies further. A lot of things, like we mentioned, we did, which had a high capex, but have given us a long-term benefit. Electrifying our hotels is one of the main, whether it be an EV car. We are the first in the industry to adopt EV cars for our hotel fleet. And today, we are at 100% all EV cars within our organization. So, including my own personal car, which is also EV, with that much we believe that we walk the talk. Similarly, in terms of kitchens also, many of our kitchens which are being upgraded, as they are being upgraded, though the cost of an electric kitchen is higher, various such decisions helped us weather the storm during the war because we had an electric kitchen in Puna Orchid where we are making at times even 3,000 to 4,000 meals a day. In fact, more than that, when we consider breakfast, lunch, and dinner, and the entire kitchen over there is 100% electric. Hence, you know, we were able to weather the shocks of even PNG and rather LPG problems. So there's a lot of focus on this. We are also strengthening further our digital sales and distribution. We are also looking at our expansion in terms of a disciplined asset-like approach while maintaining our net cash being positive philosophy as Mr. Millions will further share, be it, you know, the debts on our books, which is actually from the last year-odd plus has been a non-issue. But still, it shows that how the company is using its surplus, its cash generated to renovate. At the same time, retire, repay. If there is anything. With that, I'd like to hand over to our CFO, Mr. Millen. Thank you, everyone. Thank you, sir.

Good evening, ladies and gentlemen. Let me now take you through what has been a breakout quarter for us. This was not just a growth, but this was a decisive turnaround in profitability. Our revenue for the quarter has gone up 12% to 86 crores in a seasonally soft monsoon quarter. EBITDA was at 22 crores, up 131 percent, more than doubling in a single quarter. EBITDA margin stood at 26 percent, a massive 13 percentage point expansion. This is the operating leverage, which is at the best, I mean, each revenue is adding to our EBITDA margin, EBITDA and EBITDA margin. Pat was at 5 crores versus loss of 2 crores. Last year in Q2F526, we have moved decisively from loss to profit with patch margin at 6%. Now, when we look at half-year numbers, revenue was 179 crores, up 11% year-on-year basis. Ebitda, we crossed 50 crore mark for the half year, up 67 percent, with a margin at 28 percent. Nearly one in every three rupees of revenue now flows into EBITDA, PAT at 15 crore, with PAT margin at 8%, a clear demonstration that our business model is now structurally profitable and scalable. Now, what this tells you is simple. Our revenue engine is growing. Our costs are tightly controlled. And every incremental rupee in revenue is dropping to the bottom line at a much faster pace. We are not just growing, we are growing profitably. And this is the only beginning of H2 upcycle. Now let me take you to same store numbers. What we mean by same store is we have excluded ERA Mumbai and Orkid Shimla from Q2 FY26 and ERA Bhavnagar from Q2 FY27. ERA Mumbai was operated by us on lease till 31st March 26 and its revenue cost and EBITDA were included in quarter to FY26 numbers. Orchid Shimla has now been converted into Management contract from S1 Revenue Share Lease Model, and Ira Bhavnagar is new property added to our portfolio in the current financial year. Now, if we, with these adjustments, our revenue was up 31%, same store prices to 85 crores, EBITDA up 98% to 23 crores, almost double, and EBITDA margins were at 27% up 900 bps. 9 percentage points, yeah. We are not just filling rooms, we are filling them with more profitability than ever before. Now, let's look at the balance sheet and our net cash philosophy. As of 30th September 2026, our gross debt was 96 crore, cash equivalent was 65 crore, and net debt was 31 crore. Now, if you look at net debt to EBITDA, it was 0.0. 23x versus 0.52x as of last quarter. More than hauled in just one quarter. And from 0.52, we are at 0.23. And we did not stop there. Subsequent to quarter rate, we have repaired 30 crores loan to Axis Finance Limited. Now, our debt are really manageable position. We are at 31 crore net debt. Bottom line looks strong. We expect profitability to grow at much faster pace in H2. Looking ahead, our growth is not incremental. It is transformational, anchored in our KHIL 3.0 vision for FY2030. We are building Making a larger, stronger, and far more profitable company. Our footprint will expand from 10 states to 11 states. Our portfolio will expand from 24 to 31 properties. Inventory will increase from 1900 plus keys to 3000 plus keys. ARR we are targeting at portfolio level a 33% lift from existing 6000 to around 8000. And this is not just expansion. This is scaled with rising power. Our H1 performance proves the model works, revenue is growing, margins expanding by 800-900 bps, debt collapsing to near zero and profitability compounding. As we enter H2, the strongest half of the year, we are entering with momentum, with a strong balance sheet. And with a clear, aggressive growth map. A growth map with asset-light model, we remain razor-focused on three things. Driving operating efficiencies in our hotels, executing our expansion at pace, and creating sustainable long-term value for all our shareholders. With that, I conclude my rimas and request. The moderator to open the floor for...

We will now begin the question answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question on the line of Anil, an individual investor. Please go.

Good evening. So, my question is, if the margin has expanded to 26% in Q2FY27, what will be key contributors to this improvement, and how much of the margin expansion can be sustained over the coming quarters? Can you please elaborate on it?

Okay. Now, Anil, if you look at our ADR, ADR growth was flat, around 3%. But our occupancy has grown from 50% to 58% at portfolio level. So higher the occupancy, higher revenue, and excluding the variable cost, everything flows into EBITDA. So that's how our EBITDA margins have improved. Our Puna Hotel has done well compared to last year. I mean, they have shown revenue growth of 32%. That has helped us, our Boone Shore hotel has done well. So all this put together along with the efficiencies what we are bringing in in our hotels on cost side has helped us to improve these margins and these margins are sustainable. Now we are looking at each head of cost, we are controlling costs and maximizing revenue. We'll continue showing good margins quarter on quarter basis.

Okay, sir. Got it. And my follow-up question is, given the improvement in occupancy and rail pass, what is the outlook for revenue growth in H2427? Should we expect this growth to be driven primarily by higher occupancy, ARR improvements, or contributions from new properties?

So, H2 is strongest. Period of the year for hospitality business, and we will see continuous increase in our rates as well as occupancy, and that will be reflected in high-team, short-off, top-line, and EBITDA growth.

Okay, sir. Thank you.

We have the next question from the line of Runit Kapoor from Equity Tree. Kapoor, please go ahead.

Thanks for the opportunity, so I will be able to, yeah, I'm a little bit.

No response, we'll move on to the next question. Rohit Dhawan from Individual Investor. Please go ahead.

Good evening. So, I just have a couple of questions. So, firstly, ERA by Orkid has seen relatively weaker ARR and REF bar trends compared with the Orkid portfolio. What are the key factors affecting its performance and what steps are being taken to improve occupancy and room rates across this brand?

That's a very good question. So first and foremostly, one of the reasons that the metrics don't show at times is when the new hotels come in on board. So some of the new hotels when they come in, they tend to bring the average down. That said, there are also some of the hotels which like are now mature, like our Sambachi Nagar and Nashik, where the ARR based on the market is more or less growing at a slower pace. Hence, we don't find the huge jump as we see in our Orchid hotels, where the performance, because of various reasons, has been far, far more better. For example, Puna Orchid has shown a tremendous jump in terms of its revenue because of the extremely enhanced ADR, sorry, extremely enhanced occupancy, and hence the revenue has shot up. But the ADR has been, remained more or less stagnant for the first... First two quarters. We are seeing now a very good jump in the ADRs in the Q3 and Q4 will also show the same way. So broadly, one of the things is that. Secondly, Mr. Millis, would you like to add something?

So, primarily, if you look at ERA by ORCID portfolio, last year we had ERA Mumbai in our portfolio. It was doing a very high occupancy, good rate compared to average. Now, when we are comparing last year with the current year, whether ADR, occupancy, and Revpar, ERA Mumbai is out of our portfolio. Hence, you will see this drop. Now, if you look at our investor presentation, excluding ERA by Orkid Mumbai, Revpar, for quarter to FY26, stood at 2477. Against 2337 of the current year, a small drop. And for half year, it was at 2472 against 2423 current year. And this little correction has come from Ayurveda as well. Ayurveda occupancy has taken a little hit. Hence, you see this drop. Otherwise, the numbers are looking good.

Thank you so much for that answer. I just have another question. How are the recently opened properties, including Bhavnagar and other additions, progressing in terms of occupancy, ERR, and EBITDA? And by when do you expect these properties to reach a stabilized operating level?

So, normally, any new property takes around one year for stabilization. Now, when we look at half yearly numbers for Bhavnagar, Rishikesh. I mean, there is a negative EBITDA, but that amount is not really significant. And we expect in next half, I mean, next two quarters, we'll be able to show positive EBITDA there.

We have the next question from the line of Devant Jain from Eternal Capital. Please go ahead.

Yes. Hi. Thank you so much for the opportunity. So, I just had two questions. So, first, as I understand it, the company has a current pipeline of almost 620 keys across seven properties. And this is, what is the visibility on adding further properties beyond this pipeline? And what are the key markets and destinations that we are prioritizing for the expansion?

Basically, we are looking at various properties. One is within the states where we are already operating, rather than going to fresh states, unless and until there is a good opportunity, which is making financial sense, which is adding value to either our EBITDA, adding value to our network, and creating that kind of positive visibility. So, definitely, one is the expansion within the states we have. There are various opportunities. To give you any speculation would not be fair because while we negotiate with owners, it's very crucial that, you know, the terms work out. And we have now established our set internal norms, which we don't generally deviate from, we don't really deviate from them because we realize that as we grow and as we have integrated various tools, softwares, accountings, various sales. Driving tools, because hospitality is no more about just serving a great cup of tea. There's a lot of back-end stuff which goes into it, and especially with now the way the GST has come in, making sure that there are no leakages in terms of, you know, GST loss many a times. So we have integrated a lot of technology together, right from back-end to operational to... And if an owner does not see that vision through and through, which many a times owners don't, they still feel that they don't design the back end very well, then the operating cost goes high. So it's very crucial for us to get that kind of, once those kind of people are there, we sign up. So, when we have a kind of fixed pipeline, we share it with you all. But for me to speculate and say something like that, that's not. But to broadly answer your question, we have opportunities which we are already deeply negotiating in states where we are already there. And we are going to bolster our presence in those states.

Devan, if I have to answer your question in financial numbers. Now, see, I mean, last year we did EBITDA of around 100 crore. This quarter, we did 50 crore rupees, right? And we are very confident. I don't want to give forward-looking numbers, but even if you take 60-40, 60% in quarter 1, sorry, half 1 and 60, 14, half 1 and 60 in H2, will cross 130-135 crore mark. If you look at our cumulative EBITDA for next five years, it will be in the range of 750 crore rupees. Now, my debt is at zero. By this year end, we will be a net zero debt company. So, there is no interest burden, there is no repayment obligation. So, around 750 crore rupees less tax. 600 crore rupees will be available with us for growth, right? Apart from that, if I take three years down the line, my EBITDA as 200 crore rupees, so debt to EBITDA of three times, EBITDA to debt, so another 600 crore plus some interest. On the lower side, we will have around 1,000 crore for expansion. And as Vishalji has explained, we look at locations, micro market, where returns are good. But from financial standpoint, we have the muscle power now to invest.

Noted, sir. Thanks, Vishal, for the honesty, and thanks, Milind, I think, for the breakdown. Such a very good breakdown. It really helped a lot. And I'll just come to my second question, and then I'll leave to the queue. So, what I wanted to understand is, largely, we are following the least management and revenue sharing model for the expansion. Going forward, are you seeing any mix between these models evolving? And what is the structure that we are offering? So, like, any balance between the returns, risk, and scalability? Are we seeing anything? And how will it pan out over the few years?

Let me share a little industry general point first of when we talk about expansion. See, what's happening in our industry, and this is where a lot of people... I'm talking about the mass. I'm not talking about big brands or big hotels. I'm talking about the common general mass person who is not from hospitality. He comes and he says, I want to make a hotel. He has an architect friend. He has a plot. Okay. He puts up his architect friend. Architect friend is very good at making homes. So he thinks he can make a hotel. Then he puts a set up a hotel. How much for the hotel to make a hotel? Why? Because that's what a residential building with two lifts and some little basic amenities will cost. Then he realized there's so many nuances. There's compliances. There's so many things which are required above and beyond which are normal buildings. Even an office building doesn't have. Lots of things are there. Now, all these things, when you take together as a dream, the problem is that his vision and his thought is that I'm going to make a hotel for a 34-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40-40 Cost is more or less the same wherever you do it in India, but that fundamentally doesn't change the problem of what can you charge for a 40-50 room hotel, and what is the output of that EBITDA or what we call GOP in our hospitality parlance, and whether that is okay to sustain your entire loan, not to just make a profit to run. You know, like my cousins who are in the Kamath restaurants, they're debt-free property, so even whatever they earn, even if they earn a few lakhs, they're taking it home because there's no liability. But the minute they would have had to open a second new restaurant, and you take a loan, and you have to pay interest, and you have to then recover your capital cost, and then what is left is actually your profit. If that is the true, honest way of looking, then many places would not sustain. So our industry, that is a big problem because, now why it's relevant to me, is because many of the owners who come, they say, sir, they make it very beautifully, they spend a bomb, but the viability is not there, neither for him nor for me. Why? Because he is assessing it from a capital value perspective, okay, and I am assessing it from an operative perspective. So, one of the challenges we have as a brand is because of all our compliance norms, which we don't bend on, we adhere to all our compliance norms, we have then various other aspects, overheads. Apart from all the software, Wiftware, and all the Jigmic, which I told you, we need basically properties which are in the range of 80 to 100 for us to take on particularly lease. On particularly lease. Today, especially because of GST and the way GST is structured, the cost of GST has again gone back to the old VAT days where the cost of VAT was a cost. So now today again in the smaller hotels where GST is not above 18%, the cost of GST is an added burden. While it may be sounding very consumer friendly, the reality is that it is not industry friendly. Of course, there are various deviating a bit, but I must let you know, the industry has done various representations. I don't think that they will really be taken on because government is happy because it's directly coming in their pocket bowl from the top side from the customer and from the bottom side from the vendors and payouts. So government is not really going to be that keen to handle that topic. But how it affects me again, because now I have to build in that cost when my expansion. So when we are taking the input. 5% or 18% based on whatever the cost is there. And on top, I'm taking from the customer only a 5%. The overall sandwiching doesn't allow a sustainability model of around 40 to 50 rooms at all. Unless the ADR is extremely high, and there's always an exception to the rule, but the rule is that we need sustainable hotels, which is 80 to 100, and if they come between the 80 to 100 plus bracket, then only we can look at expansion from the lease perspective. Now, coming to management. In management, it doesn't matter. Even if it's a 40-room hotel, because we charge a flat 6%, we evolved our model, and our model now goes in for a flat 6% of the top. We don't have a model anymore, which is part GOP-based, which is gross operating, profit-based, which is an incentive fee, and then a top-line fee. We stopped all that model. Why? Because in India, particularly, owners have certain benefits which I cannot capture in my GOP, which I don't want to also capture in my GOP. I'd rather allow him to have the full benefit, and I focus on my ability to drive and bring in business from sales. From marketing, from footfalls, from F&B, and I get my 6% on that. On one hand, the management model works, even if it's a, again, there also we don't go for hotels which are below 35-40 rooms, frankly speaking, because it also is too much taxing on our bandwidth. So, we have understood that 40-45 rooms is a sweet spot onwards for management. Below that, we also know the hotel owner will not be able to sustain, maintain our various compliance requirements which we have, and hence, in our expansion, the only windows we have is any hotel which is above 40 rooms and above, in terms of Thank you. And any hotel which is basically 60, 70 rooms above minimum, and there are also with the exceptions I'm throwing in for leasing or revenue share model. So that's why we are very cautious on our expansion. We don't want to be like we know certain cases in the industry and otherwise we know where, you know, the lease were done earlier. And today because of GST requirements and other things as it has evolved, they are not making an interesting proposition for the operator anymore. So, that is basically the expansion point. I hope that clarifies your thing.

Yes, sir, very detailed. Thank you so much. It really answers a lot of my questions. Thank you so much.

We have a question from the line of Runit Kapoor from Equitary Capital. Please go ahead.

Yeah, uh, hi.

Am I audible? Hello, am I audible? Mr. Runit Kapoor, can you hear us? Am I audible? We'll move on to the next speaker. Our next speaker is Kunit Singh from Countla PMS. Please go ahead.

Hi, thank you for this opportunity. I would like to understand our hotel land is owned by a plaza, right? Thank you very much, everyone, and thank you very much, everyone, and thank you very much. I just want to understand one thing. So we had deposited interest-free, amazing interest-free deposit to Plaza around 60 crores in 1994, and I think around 20 crores subsequently. So even if that is compounded at 7% per annum, the current value of that should be around 500 crores, right? So I want to understand why are we still paying 30 on top of, I mean, providing an interest-free deposit to Plaza currently? And why did we revise the royalty upwards for the Mumbai hotel from 3% to 5%? Because this seems to be against the interest of minority shareholders. So I want to understand the rationale for this, and going forward, do we plan to reduce this royalty payments to 0% in the interest of the minority shareholders? Because this does not make sense to me. I mean, if you can throw some red on the rationale there.

Now, if you look at the value, I mean, let's assume if we decide to buy this land parcel from promoters, right, and prevailing market price, it could be very high. And if we look at the cost of finance, I think the royalty what we are paying, even after adjusting the security deposit. The royalty is on lower side. I mean, this property is expected to do, let's say, 150 crore top line. And 6% royalty comes to around 9 crore rupees. And if I take land value at around 300, 350 crore, I do not know what is the market value today. But then cost of finance could be in the range of 35 crore rupees. From that perspective, I mean, we consider it once, can these be amalgamated both so that the royalty component goes away and promoters get incremental shares. We are still evaluating that, but it is not in the interest of minority shareholders. But again, we'll look at it.

The merger, you mean? Yeah.

Yeah.

So, first and foremostly, an arrangement which was done in 94. I was extremely a child at that time. I was born in 83, so you can do the math. Now, historically, we've had this one thing, and hence, what is there? There are pros and cons to both the sides. On one hand, if tomorrow the promoters decide, like Mr. Milind has said, that if the promoters and all decide that, okay, let's look at the fair valuation merger, considering it's almost... Three acres and next to the international domestic airport. So you can imagine what its value of just the land would be. It may not necessarily be conducive to the overall thing. So what has been there, we have not tried to tinker with it. We have tried to see what best we can do. And within that... Just as it is, based on that, we have the situation. Whether how to enhance, improve, do the needful, we are definitely there. And we would, because as you have also rightly said, the promoters also are not benefiting. The companies also are not benefiting. How to make both benefited, we have a board, which I should not speak beyond the purview of that. Whatever, based on best idea we can do in future, we will see that. Thank you.

Right, got it. Thank you very much. The deposit amount, the fair value, I mean, I just use the 7% interest on that. And that comes out to be around 500 crores currently. So I just kindly, I mean, for the minority shareholders, I just kindly ask you to reconsider this and maybe lower the royalty payment, which was increased in 2024 itself. That will be a huge indication about how you value the minority shareholders. Thank you very much.

Good afternoon, sir.

Congratulations on such outstanding numbers. I have a question that was like, how has demand evolved across popular leisure, weddings, and MICE segments during Q2? What is the dawned outlook for the upcoming festive and wedding season, particularly across your key markets?

So, outlook looks very promising. The demand is expected to be robust, and as I said earlier, we'll show height in revenue and EBITDA growth in H2 as compared to previous H2. And the business Lean Q2 came from mostly a corporate for our business hotels and ledger travel for our ledger properties.

My next question would be that while occupancy has improved, how should we look at the ARR base of the portfolio? What do you expect room rates to, when do you expect the room rates to improve meaningfully, particularly in markets where pricing demands relatively subdued?

Say, even hotels, you should look at repair growth. I mean, when I push occupancy. The revenue per available room is a key matrix for any hospitality company. I mean, increasing the rates and keeping rooms unoccupied does not necessarily give you good revenue and good EBITDA. And when occupancy picks up, we start pushing up rates. So, now, last quarter, we played occupancy route. I mean, it depends property to property, each micro market, each day, each month, each quarter. So, we'll do whatever best for the company.

Okay, sir. Thank you for your such well-put answers, and all the best for the future.

If you wish to ask a question, you may press star and one on your touchtone telephone. We have the next question from the line of Yashvi Dutta, an individual investor. Please go ahead.

Yeah, thank you for this opportunity. So, I had a question, like, apart from...

Yashvi Dutta, you may go ahead with your question.

Hello. Yeah, thank you so much for this opportunity.

As there is no response, we'll move on to the next question. Our next speaker is Roshni Shukla from An Individual Investor. Please go ahead. Shukla, if you can hear us, please go ahead with your question. As a general response, we move on to the next speaker. Participants who wish to ask a question may press star and one on your touchtone telephone. Participants who wish to ask a question may press star and one on your touchtone telephone.

If suppose there are no more questions, then I think let us not think. First and foremostly, we are always available. Our doors are always available. Mr. Nikhil is also there from the CS and the Compliance Department. Mr. Milind Wadekar from our CFO and finance side also. So we are always available to be reached out. You can reach out directly to us or through Valoram. And I think we can end the conference early. Thank you, everyone. I think moderator, please do the NIFL.

On behalf of Karmath Hotels Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.