Viceroy Hotels Limited (VHLTD) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Voice of Hotels Limited Q4 and F526 Earnings Conference Call. As a reminder, all participant lines will be the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, pin 0 on its accident form. Please note that this conference has been recorded. I would now hand the conference over to Ms. Darshini Desai from MUFG in time. Thank you, and over to you, ma'am.

Thank you. Good afternoon, everyone, and welcome to the Q4 and FY26 earnings conference call of Viseroy Hotel Limited. From the management, today we have with us Mr. Anirudh Reddy, non-executive and non-independent director, Mr. PV Krishna Reddy, chief financial officer, and Mr. Pragyumna Kodali, chief operating officer. Before we proceed with this call, I would like to give a small disclaimer that this call may contain some certain forward-looking statements which are based upon the beliefs, opinions, and expectations of the management as of date. As detailed disclaimer has been given in the company's investor presentation, which has been uploaded on the stock exchange. I hope you all had the chance to go through the same. Now, I would like to hand over the call to Mr. Anirudh Reddy for his opening remarks. Over to you, sir. Thank you.

Good afternoon, everyone, and thank you for joining our call. The hospitality industry witnessed a relatively softer operating environment during the later part of the quarter, particularly in March, impacted by geopolitical tensions, the ongoing West Asia conflict, and temporary disruptions in travel sentiment. The sector also continued to face inflationary pressures across commodities, energy, and operating costs during this period. However, our performance remains resilient with our company delivering 37% growth in revenue from operations in Q4 F526. Despite these near-term challenges, the long-term outlook for the Indian hospitality sector continues to remain encouraging. Rising disposable incomes, increasing urbanization, improving travel infrastructure, and growing preference towards premium branded hospitality experiences continue to support long-term demand growth across the sector. Consumers are increasingly prioritizing experiential spending, which is expected to remain a favorable structural trend for the hospitality industry over the coming years. Against this backdrop, Y-Toy Hotels delivered a stable operational performance during the quarter while continuing to execute its long-term growth and asset enhancement strategy. While certain hospitality segments witnessed temporary moderation in their occupancy and room rates due to the broader operating environment, the company continued to maintain healthy business momentum across its portfolio. A key development during the quarter was the initial contribution from Marriott Executive Apartments Hyderabad, which was consolidated into the company's operations during this period, which also demonstrated healthy growth in ADR and REFPA, reflecting the strength of demand in the premium extended stay segment and the continued attractiveness of the Hyderabad market. The company also continued to make significant progress on its long-term asset enhancement initiatives. As previously outlined, Viceroy has embarked on a phased investment and renovation program across its hospitality portfolio aimed at strengthening product quality, improving guest experience, and enhancing long-term operating performance. We outlined a plan to invest 100 plus crores to renovate and upgrade existing properties in three phases. The first phase, relating to Courtyard by Marriott Hyderabad, has now been completed successfully and has already started contributing towards improved product positioning and customer experience. Building on this progress, the second phase of renovation and Marriott Hyderabad commenced in the first phase. Week of April and is expected to be completed during FY27, while the third phase is targeted for completion during FY28. These investments are aligned with the company's long-term strategy of upgrading its hospitality assets in line with evolving customer expectations and strengthening competitiveness across premium hospitality segments. We continue to evaluate growth opportunities in Hyderabad and all across India in line with our long-term expansion strategy. Our investment approach remains focused, evaluating greenfield and brownfield development opportunities, along with select distressed assets that can be transformed into sustainable growth opportunities and long-term value creation assets. We believe that consistent execution, prudent capital deployment, timely asset upgrades, and focus on operational efficiencies will continue to strengthen the company's foundation and support long-term shareholders' value creation. With this, I would like to hand over the call to our Chief Financial Officer, Mr. Venkata Krishna Reddy, who will take you through the detailed financial performance for this quarter and provide further insight.

Thank you, Anil. Let me begin by taking you through the financial and operational performance of the company for the quarter and financially arranged March 31, 2026. For Q4 FY26, total revenues to debt 49.5 crores as compared to 36.6 crores in Q4 FY25, reflecting a robust growth of 35.3% year-on-year. Operating EBITDA for the quarters to debt 15.6 crores, registering a growth of 43.7% year-on-year, while EBITDA margin improved by 183 basis points to 31.4%. During the quarter, we were able to improve our operating performance through better cost control with lower material consumption and employee cost supporting overall EBITDA growth. Profit of the tax for the quarter stood at INR 6 crores, which was impacted during the quarter primarily due to the higher depreciation and finance costs arising from ongoing renovation, expansion, and acquisition-related investments undertaken by the company as part of its long-term growth strategy. On a full year basis, total revenue stood at 149.7 crores as against 140.8 crores in FY25, reflecting a growth of 6.3% year-on-year. EBITDA for FY26 increased by 20.6% year-on-year to 44.6 crores, while EBITDA margin improved significantly by 353 basis points to 29.8%, reflecting continued focus on operational efficiencies and disciplined execution across properties. ADR performance during the quarter reflected the relatively softer operating environment witnessed across the hospitality sector during March. For Q4 FY26, ADR stood at 7,423 at Marriott and 8,010 at Courtyard, with combined ADR at 7,605. Combined rev bar for the quarter stood at 4,931, which was primarily impacted by software occupancy trends during the period. However, on a full year basis, ADR performance remained encouraging with market and courtyard, reporting ADR growth of 6.8% and 13% occupancy. Room revenues across market and courtyard properties remained stable at 20.5 crores during Q4 F526, while food and beverage revenues stood at 13.4 crores. Supported by banqueting events and corporate activities. So, Marriott Executive Apartments, which became part of the company's reported financial performance during the quarter, recorded encouraging initial operating metrics with ADR increasing by 6.9% year-on-year to 16,578 and REVPAR increasing by 3.2% year-on-year to 13,438 in Q4 FY26, supported by steady traction across corporate and long-stay demand segments in Hyderabad. In its first quarter of contribution, the property reported room revenues of 9 crores, along with food and beverage revenues of 3.7 crores, reflecting healthy initial operating momentum. Looking ahead, we remain focused on strengthening operational performance, improving guest experience, and maintaining disciplined capital allocation while continuing to evaluate long-term expansion opportunities across the hospitality sector. So, we believe the investments currently being undertaken across our portfolio will further strengthen the positioning of our assets and support long-term value creation for shareholders. With that, I would now like to open the floor for questions.

Thank you very much. We will now begin the question and 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 question queue, you may press star and 2. Participants are requested to use hands-up while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

The first question is from the line of Yash Mehta from SKP Capital. Please go ahead. Yes, Mr. Yash, go with the question, please. Hello.

There's no response from the participant. We'll move to the next. The next question is from the line of Varun Mishra from Bava Investments. Please go ahead.

Hello, Mr. Varun. Go with a question, please. Hello.

The next question is from the line of Pahals Sharma from AP Capital. Please go ahead.

Hello? Hello?

Yes, ma'am. Yes, ma'am. Am I audible? Yes, ma'am.

So, yeah. Hi, sir. And hi, everyone. You mentioned interest in acquiring NCLT, destressed assets. So, like, are there specific opportunities currently under evaluation? And, like, how do you assess the risk written in such acquisitions?

Yes, there are many opportunities that we keep looking for in CRT and other distressed scenarios. Currently, the hospitality sector for the last two years has experienced tremendous growth and has outperformed many other industries, and this distress is a little less. But for us, the analysis is based on how the asset is built, what's its performance, and what location is it at, and what can it yield us in the future. So these three metrics, we do an in-depth analysis of the assets that's an offering, and then take a call on it. Yes, we have shown an expression of interest to a lot of these assets, but nothing has materialized as of yet.

Okay, okay. I understood. And like, could you provide a detailed breakdown of your customer mix across the corporate lines or transient travelers and group booking? And also explain which of these segments you are prioritizing for growth?

Yeah, hi. So, I mean, now that our portfolio also includes the married executive apartments, which is part of a different micro market in the city, now the client base is slightly wider. Previously, when we only had our two hotels near the Tangban side of Hyderabad, it was majorly group business that we were looking for because the convention center is what was contributing to that. But having said that, now in the newer hotel, we have a lot of direct corporate relocation sort of business that comes up for us. And having said that, also, while renovations, we are currently in the process of renovating our commitment centers, so again, there is a lot of transient bookings that we are catering to, along with groups such as airlines and ARMYs. But this is something that is also cyclical in nature, where the fair weather season, once there are weddings, and, you know, other corporate events that start happening, is when, again, the percentage of bookings that we get from groups keep increasing. So, it's a constant switch that, you know, we have to keep objectively looking at and catering to, based on what is the maximum sort of area that we can garner for each of our properties.

Okay, okay, I understand that. That's all right. Thank you.

Thank you. A reminder to all the participants, you may press star and want to ask questions. The next question is from the line of Suhani Singh from Tejra Capital. Please go ahead.

Okay. Hi, sir. Good afternoon. I just wanted to ask, what were the main contributors to 35.3% of your revenue in quarter 4 FY26? And could you please explain whether this momentum is sustainable or partly driven by temporary factors?

The main contributor for the revenue increase is the adding of the portfolio of married equitative apartments. This purchase was done on 1st January of this year, and because of that portfolio being added of 75 rooms with almost a yearly revenue of north of 50 crores, that is why the Q4 numbers added up. So you won't see a jump as this big, but yes, on your growth, we'll have a double-digit growth as we have explained in our previous call just as well.

Understood, sir. So, the EBITDA margins improved by 183 basis points in quarter four. Was this margin expansion primarily due to structural improvements in operations or was it influenced by short-term cost efficiencies that may or may not repeat in future quarters?

See, there are two factors to it. One factor is, again, as I said, the portfolio adding of married exude of apartments. That's full rooms playing, wherein there's only one all-day dinner, and it's 75 rooms. So, the EBITDA margins are higher there. Adding that to this caused an increase in the EBITDA margins in all the three hotels. Secondly, we have completely, we have finished our phase one of renovation, wherein we fixed a lot of the back end of the hotels. So with that also, we were able to push the efficiency up and because of which the EBITDA percentage also has gone up.

One last question, sir. So despite the strong revenue and EBITDA growth, the profit after tax fell to nearly around 40% year on year in quarter four. So can you elaborate on how much of this decline was driven by higher depreciation from innovation versus increased finance costs from borrowing?

See, the main reason why it came down, point number one, is because we love the deferred tax element, which we took last year, wherein we had booked our losses because the company, WhiteStore, had come out of MCLD three years back. We have eight years' period to recoup, to offset the losses against the profits we make. So that was an initial adjustment, accounting adjustment that happened last year, because of which the net profit was seen as a much higher experience. And secondly, yes, the net profit came down a little bit because of the additional financing which we loaded upon. The company to acquire the merit-executive apartments, yeah, these are the two reasons.

Okay, thank you so much. All the very best.

Thank you.

Thank you. The next question is from the line of Yash Mehta from SKP Kadhli. Please go ahead.

Hello, everyone. Hi. So, I've got a few set of questions. So, the first is, like, the ADR grew strongly on a full-year basis, but it got softened in Q4 due to geopolitical tensions. So, how do you see ADR trends evolving in FY27, and what strategies are you using to sustain pricing power while remaining competitive?

Yeah, hi, Ash. So, the thing is, I mean, like you mentioned there, we did see a slide flip in terms of ADR because of the ongoing war, but as we speak, we've found other businesses that, you know, are giving us... ADRs that are close to what we would have otherwise expected, if not for the war. Slightly lower, but what we are compensating with is, you know, occupancies and, you know, other avenues such as outdoor catering. So, if you look at it from a revenue standpoint, we are still protecting our budgets and, in fact, maybe by the end of the year, maybe even beat what we were initially projecting to move because of the slight change in strategies. I mean, none of us know exactly where this is heading, but ideally, we'd like to believe that for the next couple of months, we will see some of the demand start coming back. And once the wedding season and a lot of other domestic corporate events start coming back towards the end of the year, I feel that ADR will go back to the earlier numbers. And having said that, also the one thing, other thing we noticed is that supply is still something that hasn't come to the market, and we don't foresee any new supply coming into the next couple of years as well. So that way, we are not very concerned by what's happening.

Got it, got it. And also the combined RevPAR declined slightly in FY26. So what specific initiatives such as dynamic pricing or bundling with F&B or loyalty programs are being implemented to drive the RevPAR growth across the properties?

Yeah, like I said, for example, typically when the demand was extremely strong, hotels would typically be sold out Monday through Thursday, whereas weekends, relatively, there's lesser corporate booking. So what we started doing is a lot of long-stay weekend packages and things like that, where people can come and then experience your SMB. So what we've also done is, because of these weekend programs recently, we've also launched our new SPA. Which I would like, you know, very confidently and proudly claim is probably the best spa in the city right now. So because of these things, and we also have a new rooftop restaurant, which has a view of the lake and a new secretariat, which we are very confident will do well and contribute to our P&L over the next six, eight months. So these are the things that we have done in terms of initiatives to make up for some of the other demand that may have been lost.

Okay, okay. And the last question about the Marriott Executive Apartments. So, it recorded healthy ADR and REV file growth in the first quarter of the contribution itself. So, how do you see this segment scaling in FY27? And what role will it play in overall profitability compared to your hotel portfolio?

So, like Anirudh had mentioned in a couple of the previous questions, both in terms of overall revenue and EBITDA margins, this property has already contributed significantly. And even going forward, because this hotel is mostly dominant by room revenue, the EBITDA percentages will always be higher than the other hotels where F&B Play is a larger contributor. So that way, this hotel is always going to contribute to improving our EBITDA margins. And in terms of the segment in itself, there's not a lot of supply that typically comes in in this segment. It's not like, you know, a lot of other developers typically look at the hotel room concept. So that way, it's a fairly unique positioning that we have. So we continue to see, in fact, in this current quarter, we are seeing higher occupancies than the previous ones as well.

Okay, okay. Yeah, yeah.

Got it. Thank you so much.

Next question is from the line of charges from Genudy Capital. Please go ahead.

Hi, sir. Thanks a lot for the opportunity. Firstly, what is our revenue guidance for S&P 27 and S&P 28? And how much will it be contributed by the F&D?

Sir, can you repeat that?

Hello, am I audible?

Yes, yes, please.

Hi, what's our revenue in EBITDA guidance for FI27 and FI28 and contributions from FNB's info?

So, I mean, obviously, Ajahn, projections of the numbers is something while I can't share with you, what I can tell you is in general, for our Marriott and Courtyard complex, our room revenue contribution is about 55 to 60%, whereas FNB contributes about 35 to 40%. While in the executive apartments, you know, room revenues contribution is about 64% to 65%, and F&B is about 32% to 33%. That's how the split is in our various assets.

Okay, and like, what's the margin in F&B?

Oh, the margin in F&B is about 45% to 50%, and the gross margin is close to 85%.

I'm not sure. And like going forward, I think we were expecting to increase the F&B share, right?

Yes. Not just share, even in terms of profitability, once our new convention center is back, we expect to see a higher profitability in our F&B. Even the rooms that, you know, as we speak with, there are certain rooms that are continuing to be upgraded, and this is something that will happen for the next two financial years. So as and when newer and newer inventory hits are offering, we continue to see a higher profitability in the rooms business as well.

Oh, so like till when we are expecting this share to increase?

Until FI28, until everything is complete. And even post-FI28, as and when ADR continue to increase, we do keep seeing that the portfolio, at a portfolio level, the profitability in the rooms business will continue to go up.

Understood, sir. Just one last quick question. So, I think we have a seasonal business. So, in which month we get the most out of the book, which is in this world idea?

I mean, if I understood your question correctly, you're asking me which months are the best for our business?

Correct, correct.

So Q3 and Q4 undoubtedly are always the best quarters, not just for the business hotels in the cities, even other hotels, whether it's across leg resorts or any other vacation. Q3, Q4 is typically when most of the action happens in terms of conferences, weddings, even general personal travel, that is when it peaks. So Q3 and Q4 are the best months.

So, what is the occupation, like, what is the difference between the percentage? Hello?

So, in Q3 and Q4, you can expect hotels like our Courtyard by Marriott and Marriott Existible Apartments to even breach the 90% mark. Whereas, you know, in a quarter such as Q1, our Marriott hotel could be even operating at about 60-65% occupancy. So that's the sort of difference variance that you can observe through the year. But at the end of the day, what the...

I'm like occupancy level of like Q1, Q2 versus Q3, Q4, if you want to say.

Yeah, so at an entire portfolio level, Q1, Q2, you know, while it operates at, you know, 70% occupancy across the portfolio, at Q3, Q4, we can expect to be 80% and also 80%.

Okay, got it. Thanks a lot.

Thank you. The next question is from the line of Santosh Shetty from LGC Capital. Please go ahead.

Good afternoon, sir.

Good afternoon.

So, my first question is that the finance cost rose sharply from 64 lakhs to 530 lakhs in Q4. What is your plan for managing debt servicing going forward, and do you anticipate further increases in interest expense as expansion projects continue?

So, the major increase was because of the debt being loaded on the company for purchasing the asset of Marriott Executive Apartments for a total concentration of around 215 floors. Before this, considering the cash component in the company and the outstanding debt, the debt was at zero. So based on this, that's why the interest cost has also gone up. We don't see any further increase. We have healthy cash revenues and healthy cash balances to fund our ongoing renovations.

So talking about borrowing, it jumped from 466 crores to 2453 crores during F526. What is the target leverage ratio and how comfortable are you with current debt level given the scale of ongoing investments?

No, we are very comfortable with the current debt levels, and we wish to maintain this at this level, and because we are still making a good amount of surplus with the current debt level. I didn't understand the first part of your question. Can you please repeat that?

So, sir, borrowing jumped from 466 crores to approximately 2400 crores during F526. So, what is your target leverage ratio?

Hi, see, as on 31st March 2026, our borrowings are at 264 crores. That's it. They are not in thousands.

Okay, I think I got the wrong, I just misjudged the data. And so sorry for that. The last question, the courtyard occupancy dropped significantly from 72.6% to 52.2% in F526. What corrective measures have been taken to stabilize occupancy, and how quickly do we expect performance to normalize?

So, the temporary dip in this year, you have seen it because of the massive renovation that happened to courtyard. That's why you see the dip in the occupancy, but it's already back to normal, and you can see it being back to normal this year.

Okay, sir. Thank you so much. That really helps. All the best for future. Thank you. Thank you. Thank you.

Thank you. A reminder to all the participants, you may please start in one to ask questions. The next question is from the line of Varun Mishra from Bava Investments. Please go ahead.

Yeah, hi. Thank you for the opportunity. A couple of questions from Vyant. So, you've outlined like a 100 crore plus phase renovation program. Like, what measurable improvements are we seeing in terms of KDR, occupancy, or guest satisfaction? Like, do you expect it post-completion? And how do you see these benefits like reflecting in our financial performance?

We've already finished our phase one of our renovations, and we see that there's a big impact on it because the new rooms have come into play, and we see the new rooms being occupied almost all the time. That is close to 99 to 95 percent occupancy because these are new rooms at offering. This shows that the product being a premier product is really selling, and people are looking to book these rooms. And also, we have put up a new spa and a new gym to enhance the customer experience, which has worked out really well. The spa revenue has more than doubled. And we have a rooftop restaurant also in play now. So the F&B revenues also will see a substantial increase. So put all these together, this renovation is really going to uplift the product and therefore uplift the revenue as well as their margins because they're also investing in back-end services.

Sam, you heard the Marriott Hyderabad Convention Center which is done, like we've expanded it to 20,000 square feet now. So how much incremental revenue do you expect from like events and let's say what could be the breakdowns, like the break-even timeline in terms of your investment?

So the investment is being done as we speak. The convention center went into renovation this year from first week of April. We look to finish this renovation by the end of this year, and we look to recoup the investment made into this in a period of one and a half year.

All right. And with upcoming code card, like, which is, like, being done in Madhavpur, sir, it's positioned near the Hyderabad's IT corridor. So, what do you expect, like, what could be the expected opening date for that, and how do you differentiate this property, like, from the existing ones, which are already there in the city?

So we're targeting the opening date to be F529 or F530. We're currently in the permission stage, land conversion permission stage. And we see this being a hotel or completely a room play, wherein less of banqueting or less of F&B revenue and just a straight-up rooms model because the supply of rooms in that area is very less, and we don't see any other hotels coming up around that area much. So considering the rule played, we are high GOP business that we are looking at.

Oh, that's great. That helps me. That's a lot. Like, that's it from ICA Congresswoman.

Thank you. The next question is from the line of Dheera and Roy, an individual investor. Please go ahead.

My question is, when you start paying dividends?

Yes, sir. Good question, sir. Thanks for the question. It's been about three years. This October, it'll be three years since the new management has come in play. By the end of this year, we will be completing the renovation of the convention center where a lot of capital has been reinvesting the property to uplist it. So, mostly the board also discusses the issue several times, and we expect to give you a good outcome from next year.

Thank you.

The next question is from the line of Suhani Singh from Tejra Capital. Please go ahead.

Hello. I have a couple of more questions. So, with 25 new star hotels planned by 2032, how will the expansion impact Hyderabad's position among India's top hospitality hubs? And the current stock is 4,000 rooms. And these 25 hotels will add to 5,000 rooms. So, double premium capacity. So, how will this impact an ADR? Because sector-wise, bulk of supply is coming from 2029 onwards, which is an investor concern.

Yes, we also see a lot of hotels coming up in our market, but the timeline, as you said, we believe it's more than that. It's going to come at 530-31. But we see that the demand will still go up during this period and will catch up or it will be even more than what the supply is. So we see that in no way affecting our ADRs and our ADRs are still going to be strongly improving because the supply will be less. And second thing, in hotel projects, the planning and the execution and the capital allocation and the time management is very crucial, and the debt management. So we see, even though a lot of hotel projects are being announced, less than half of them actually being open. So, we are still very protected because there is very less supply, and the growing costs, which we see across the sectors, have impacted all these openings, which are deeply now cost-consuming, and the costs have really gone up.

Okay, understood, sir. Also, how does the bookings vary between OTA and how's Marriott loyalty programs? Also, do we have preferential management contract with Marriott and have we explored some other brands as well?

Yeah, so the first question in terms of OTAs versus our direct channel, direct channel is something that started growing significantly over the last two, three years. And, you know, the Marriott Bonvoy program started getting more and more popular. So the target for both the Marriott and even ownership in general is that we increase the contributions on the direct channel so that, you know, your commissions that you pay to the OTAs, you know, are lower. But having said that, because Marriott is such an established brand in itself, the percentages that are being paid to the OTOs compared to some of the other brands in itself is already less. So, you know, that's something that we also push Marriott, you know, to do more and more. And, in fact, as we speak, currently the percentage of occupancy in our hotel is about 65%, you know, are from Marriott 101 members. So, that is a good sign, and the target for them, I believe, at least should be to, you know, take that up to 80-85% and, you know, significantly reduce what the OTAs are contributing. That's the first question. And for the second part, do we have favorable contracts with Mariette? Yes. I mean, the thing is, when we had acquired the company in 2023, we had also acquired two contracts that were signed, you know, one way back in 2006 and one, you know, slightly after that in the courtyard was signed as well. And in fact, the Marriott that was signed was the first in Hyderabad and I believe third in the country. So at that point, you know, we got quite favorable contracts. And now the new contract that we've signed even for our courtyard with Marriott, we were able to leverage, you know, being multi-property owners and, you know, getting a good contract. Whereas a lot of new developers were entering the market may or may not get some of these benefits in terms of budget approvals and, you know, other things that we have access to. And lastly, yes, we are always open to other brands. But the thing is, right now, we are very comfortable with Marriott and believe that Marriott's loyalty program is probably one of the best in the world. And the rate at which Marriott is signing new hotels in India, more and more people will book in that ecosystem than any others. But at any point, if we feel like a certain brand is unavailable and we want to go ahead, we always have our direct networks with the other brands as well.

Okay, so that helped.

Thank you very much.

Thank you. A reminder to all the participants, you may press star and want to ask questions. The next question is from the line of Pahal Sharma from AP Capital. Please go ahead.

Hello.

Hi.

Yeah. Hi. So, I wanted to ask the question, like, what is the ADI growth you expect going forward and breakup of ADI growth due to natural growth and ADI growth due to refurbishments?

Yeah, so, I mean, yeah, like you said, it's always going to be a combination of two things. One is the organic growth and one is the inorganic growth because of our republishment. Organically, what we always expect a minimum every year is about 5% to 7%. So, that is something that anyway happens, I feel, year on year, in spite of the few blips, whether it's because of war or any such other factors. Apart from that, particularly in the case of our Marriott and Fortyard, we expect a growth of at least 20% to 22% from the refurbishment. So in combination of all three, as and when the new inventory comes in, I think we can expect anywhere between 25% to 30% growth in ADR. So the current levels of 7,000 odd is something that we aim to target, you know, reaching 9,000 to 9,500 in a more immediate basis. But in the long run, we want both of those hotels as a complex to be running closer to the 10,000 mark, which is what a lot of hotels in that current comp set are able to achieve.

Thank you. Understood. And also, what efficiency initiatives have you taken in place to reduce OPEX and so going forward? We may have some operating leverage at employee level, heating power level, etc.

Yeah, so, I mean, there are two ways of, again, doing this. Like I said, one is from what Anidu had mentioned in terms of back of the house efficiency is being improved. One of the first things that we had done after we took over was outsourcing the laundry, for example, where now our laundry is running at, you know, 60 to 65% of the cost that it used to run before. So, there was a big saving made there. We've also recently invested into like our HVAC equipment, you know, which has then lowered various HLP costs for the company where, again, we are saving costs. Now, the additional thing that we are intending to do after we had acquired the third hotel is that even from a human resource standpoint, to see how much we can leverage and reduce costs where some of the departments that are not customer facing could be common to all the hotels. So, these are the other initiatives that we are taking in terms of reducing costs.

Okay, understood. Looking ahead, could you outline your strategic priorities for FY27 and beyond? Specifically, what revenue growth targets or margin improvements and expansion milestones are you guiding towards? And also, how do you expect ongoing renovations, new projects like courtyard at Madhapur and the integration of executive apartments to contribute to these goods?

The first thing is the biggest contribution we'll see is the adding of the new convention center and the renovation of the old convention center in Marriott. We are going to see a substantial two-fold increase. In the avatars because of this addition. And also, the integration of all three properties is going to improve our GOP. That is the second area which will be really improving our profitability. The third thing is that we are also building new properties like the Manapur Courtyard, where it's a complete room play, wherein the profitability is much higher. And the fourth point is that the back-end services have really been upgraded, which will provide us efficiency at cost level. So putting all these forward, we see a robust growth in the next year, and we think that the properties in the next year will be at full throttle.

Okay, okay. Thanks a lot. All you guys, thank you so much.

Thank you, everyone,

for taking some time out to participate in this call. In case of any queries, reach out to us or our investor relations agency, MUGF Investor Relations. We wish you all the best and hope to interact with you soon. Thank you very much.

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