Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q1 FY25 Earnings Presentation
45 slides from Indian Hotels's earnings presentation, Jul 19, 2024
Slide 1: Analyst Presentation Cover Letter to Exchanges
July 19, 2024 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1st Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumbai – 400 001. Scrip Code: INDHOTEL Scrip Code: 50085
Slide 2: Strong Brand Equity Driving Industry Leadership
Strong Brand Equity Driving Industry Leadership GLOBAL CONFERENCE CALL Q1 FY25 19th July, 2024
Slide 3: World's Strongest Hotel Brand 2024
WORLD’S STRONGEST HOTEL BRAND 2024 (2021, 2022) INDIA’S STRONGEST BRAND 2024 (2020, 2022, 2023) 2
Slide 4: Q1 2024-25 Key Highlights
Q1 2024-25 Key Highlights +6% +10% +12% 31% Operating Revenue Operating EBITDA PAT EBITDA Margin Growth YoY Growth YoY Growth YoY Commanding RevPAR Premium Market leadership in Openings & Signings Well above Industry average 325+ Portfolio New Business Reimagined Business Structural Tailwinds Intact
Slide 5: Best Ever Q1 Performance
BEST EVER Q1 Performance ₹/ CRORES Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Description FY25 FY24 FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 Operating Revenue 1,550 1,466 1,266 345 144 1,020 980 911 949 896 937 Operating EBITDA 450 410 378 (149) (266) 173 111 91 94 89 80 Op. EBITDA Margin (%) 29% 28% 30%
Slide 6: Outperforming Industry: Commanding RevPAR Premium
OUTPERFORMING INDUSTRY Commanding RevPAR Premium ARR (₹) OCCUPANCY RevPAR (₹) 38% 9% Points 60% Premium Premium Premium Industry Average 9,900 IHCL Domestic 70% 6,900 (Same Store) Industry- 7,100 61% 4,300 Leading Metrics (YTD May FY25) Industry IHCL Industry IHCL Industry IHCL Business Activity imp
Slide 7: Structural Tailwinds Intact: Demand Continues to Outpace Supply
STRUCTURAL TAILWINDS INTACT Demand Continues to Outpace Supply Limited Supply Additions Industry Demand remained ahead of Supply ~2,900 Branded Rooms added in Q1 (Net) (YTD May) (Only ~600 in Top 8 Cities and ~200 in Luxury Segment) % Addition Growth (Net) in YoY No. of Rooms ‘000 Q1 As on 30th June
Slide 8: Structural Tailwinds Intact: Long Term Drivers, Short Term Triggers
STRUCTURAL TAILWINDS INTACT Long Term Drivers, Short Term Triggers 142 Mn additional Middle Income 80 to 100 Households by 2030 New Airports by 2030 Pick up • Expected GDP growth of 7% 78% 220 for FY25 149 -250 in 54% 300 Business • Large Convention Centers 158 and enabling Larger Events. No. of Air
Slide 9: Entering into a New Segment: Taj Branded Residences
ENTERING INTO A NEW SEGMENT Taj Branded Residences ~2300 branded 23 floors Tallest tower in residences registered in India growing at a Chennai with 123 Taj- branded residences & CAGR of 235 Keys Hotel 12% Business Model Aggregate Market Multiple Fee Sources Value in India is (Brand Fee, Technical F
Slide 10: Achieved Milestone of 325+ Hotels, 100+ in Pipeline
ACHIEVED MILESTONE OF 325+ Hotels, 100+ in Pipeline 114 92 52 36 16 16 224 Operational + 102 Pipeline 326 9
Slide 11: Continued Growth Momentum: Signings, Openings
CONTINUED GROWTH MOMENTUM 16 Signings, 6 openings SIGNED OPEN 6 - 2 1 2 2 3 - 1 1 2 2 10
Slide 12: New Business Growing Consistently at 30%+
NEW BUSINESS Growing Consistently at 30%+ New Business Enterprise Revenue Growth YoY 203 37 % Portfolio 106 Operational Growth in ↑36 % ↑48 % ↑23 % Enterprise Revenue Excl. Qmin ₹ 142 Cr ₹ 106 Cr ₹ 28 Cr F&B growth enabled by Total Revenue Room Revenue F&B Revenue 45% Growth YoY 42% Growth YoY 65% G
Slide 13: Re-imagined Business on a Continued Strong Growth Trajectory
RE-IMAGINED BUSINESS on a Continued Strong Growth Trajectory Enterprise Revenue 3,000+ Growth YoY Chambers Members 17 % 80% Flowthrough Growth in Revenue ↑18 % ↑17 % Proposed to be ₹ 241 Cr 24% ₹ 59 Cr 59% Consolidated Revenues EBITDA Aug’24 onwards Growth of Sustained Growth of Market Share 18% YoY
Slide 14: Management Fee Growth on Back of Capital Light Strategy
MANAGEMENT FEE GROWTH on Back of Capital Light Strategy MANAGEMENT FEE NET UNIT GROWTH NET UNIT GROWTH Growth MANAGED HOTEL ROOMS amã MANAGED BUNGALOWS GROWTH (Operational) YoY (Operational) 17% 114 47% 100 20% 11% 98 ₹/ Crores 13,214 55% 81 10% 68 11,896 10,769 44 Q12023 Q12024 Q12025 Q12023 Q12024
Slide 15: We Remain Confident of Double Digit Revenue Growth for the Year
WE REMAIN CONFIDENT of Double Digit Revenue Growth for the Year Full Year IHCL Consol. Operating Revenue Forecasted ➢ Sustained Growth in New & Growth Reimagined Business ₹/ CRORES ➢ Not Like for Like Growth 6,769 10%+ ➢ Normalization of RevPAR growth ➢ Expected growth in F&B 1,550 Additional Annual
Slide 16: Key Enablers
TAY SELEQTIONS GATEWAY VIVANTA GINGER ama Qmin me INCL
Slide 17: Focus on Digital Initiatives: New Website Launched
FOCUS ON DIGITAL INITIATIVES New Website Launched Share of Website Contribution for Taj Hotels increased by 150 bps in Q1 on a YoY basis 16
Slide 18: Tata Neu Enhancing Customer Loyalty
TATA NEU Enhancing Customer Loyalty Total loyalty led revenue ₹ 962 Crore + 8% Growth vs. Q1 FY24 696 134 57 75 Copper Silver Gold Platinum Loyalty contribution Total Members to enterprise revenue 37% 5.5 Mn. Loyalty Led Revenues is the revenue generated by Loyalty customers through all channels Out
Slide 19: Excellence: Consistently High Customer Satisfaction Scores
EXCELLENCE Consistently High Customer Satisfaction Scores 75.6 74.8 74.3 73.0 69.4 68.5 67.3 67.2 66.0 66.4 FY 2019/20 FY 2021/22 FY 2022/23 FY 2023/24 Q1 FY25 Data for IHCL Enterprise 18
Slide 20: Doing Business the Responsible Way
DOING BUSINESS The Responsible Way Waste Q1 FY 24/25 UPDATE 100% elimination of single-use plastic 119 Tons of Plastic Saved through Glass Bottles, Bio-degradable Bathroom Amenities, Paper Straws Waste 100% operating hotels will have an 46 hotels have bottling plants to organic waste management syst
Slide 21: Financial Performance
me = NS Sa ia same 20 TAY SELEQTIONS GATEWAY VIVANTA GINGER ama Gmin mo IHCL
Slide 22: Financial Highlights Q1FY25
Growth over PY FINANCIAL HIGHLIGHTS Q1FY25 ENTERPRISE CONSOLIDATED STANDALONE ₹ 3,024 Crore ↑ 7% ₹ 1,596 Crore ↑ 5% ₹ 972 Crore ↑4% REVENUE ₹ 905 Crore ↑4% ₹ 496 Crore ↑ 8% ₹ 368 Crore ↑ 9% EBITDA EBITDA MARGIN 29.9% ↑ 0.7 pp ↓ 0.7 pp 31.0% 37.8% ↑ 1.6 pp OP. EBITDA MARGIN 28.5% ↓ 0.6 pp 29.0% ↑ 1.0
Slide 23: Operating Revenue Breakup
OPERATING REVENUE BREAKUP Revenue ₹ Cr & Growth YoY CONSOLIDATED STANDALONE F&B Revenue Room Revenue, F&B Revenue Room Revenue, 534 (+2%) 776 (+7%) 304 (-5%) 413 (+10%) Total Operating Total Operating Revenue Revenue Management Fees 1,550 (+6%) Management Fees 931 (+5%) 114 (+17%) 108 (+13%) Other O
Slide 24: RevPAR Performance Driven by Key Segments
REVPAR PERFORMANCE Driven by Key Segments RevPAR by Brand (LFL Q1FY25) Growth yoy ‘TAJ’ showed strong Resilience 10,400 with RevPAR growth of 4% Within ‘TAJ’, RevPAR for Business 7,500 hotels (75% share), grew strongly at 8% 6,200 with double digit RevPAR growth in 5,500 all customer segments other
Slide 25: IHCL Leisure & Palace Hotels Outperformed on RGI
IHCL LEISURE & PALACE HOTELS Outperformed on RGI RevPAR Index Q1FY25 (Hotels in similar segment across City) OUR PALACES GOA HOTELS OTHER LEISURE HOTELS 209% Rambagh Palace, Jaipur 164% Taj Exotica Resort & Spa, Goa 165% Taj Bekal Resort & Spa Kerala Taj Fort Aguada Resort & 186% Taj Lake Palace Uda
Slide 26: Operational Efficiencies Driving Margin Expansion
OPERATIONAL EFFICIENCIES Driving Margin Expansion Data for IHCL Consol. Raw Material Costs Payroll Costs Power Costs as % of F & B Revenue as % of Operating Revenue as % of Operating Revenue 22.0% 21.4% 29.2% 29.7% 5.4% 5.3% Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 License Fees Other Expenditure* C
Slide 27: Strong Balance Sheet with Healthy Cash Reserves
STRONG BALANCE SHEET with Healthy Cash Reserves ₹ /crores Free Cash Flow 3x of PY CY : ₹ 146 crores PY : ₹ 47 crores Data for IHCL Consol. 26
Slide 28: Brand & Revenue Enhancing Capex
BRAND & REVENUE ENHANCING CAPEX Key Asset Management & Expansion Artist Impression Vivanta Ekta Nagar Taj Cochin Airport Taj Malabar, Cochin (Under Construction) (Under Construction) (Partly reopened) Chambers Taj Cochin Airport Taj Mahal Palace, Taj Bengal (Q4 FY25 - 112 Rooms) New Delhi Vivanta &
Slide 29: Return Ratios Continue to Grow
RETURN RATIOS Continue to Grow Jun-23 Jun-24 Jun-23 Jun-24 16.5 14.5 14.6 13.9 Operating RoCE% Return on Equity % 1. Operating RoCE is operating EBIT for trailing twelve months divided by average operating capital employed for June 2024 & June 2023. 2. Return on Equity is PAT after minority interest
Slide 30: Corporate Actions Announced
CORPORATE ACTIONS ANNOUNCED TajSATS – Amendment to the Subscription cum Shareholders Agreement (‘SSHA’) ▪ The Board of IHCL has approved certain changes to the SSHA Agreement of TajSATS Ltd which will allow IHCL to consolidate TajSATS as a subsidiary in its consolidated accounts. ▪ SATS Ltd, Singapo
Slide 31: Proforma Impact of TajSATS Consolidation Q1FY25
PROFORMA IMPACT OF TajSATS Consolidation Q1FY25 ₹ /crores IHCL Consol. TajSATS Proforma with TajSATS Increase % Particulars (As Is) (Post Inter Co. Elimination) Q1FY25 Q1FY25 Q1FY25 Q1FY24 YoY Total Revenue 1,596 241 1,836 1,719 +7% EBITDA 496 59 554 509 +9% EBITDA Margin 31.0% 24.3% 30.2% 29.7% +0.
Slide 32: Annexures
31 TAY SELEQTIONS GATEWAY VIVANTA GINGER ama Gmin mo IWCL
Slide 33: Consolidated P&L Q1FY25
CONSOLIDATED P&L Q1FY25 ₹ /crores Particulars Q1FY24 Q1FY25 Var % Revenue from Operations 1,466 1,550 6% Non-Operating Revenue 49 46 -7% Total Revenue 1,516 1,596 5% Raw Material Cost 115 114 -1% Employee Benefits 429 460 7% Fuel, Power and Light 80 82 2% Other Expenditure 432 444 3% Total Expenditu
Slide 34: Standalone P&L Q1FY25
STANDALONE P&L Q1FY25 ₹ /crores Particulars Q1FY24 Q1FY25 Var % Revenue from Operations 890 931 5% Non-Operating Revenue 45 40 -9% Total Revenue 935 972 4% Raw Material Cost 70 67 -5% Employee Benefits 202 216 7% Fuel, Power and Light 51 52 2% Other Expenditure 273 269 -2% Total Expenditure 596 604
Slide 35: Performance of Key Legal Entities
PERFORMANCE OF KEY LEGAL ENTITIES ₹ /crores Revenue EBITDA EBITDA MARGIN PAT Legal Entities Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 UOH Inc. – USA 184 204 5 10 2.6% 4.8% (17) (11) St. James Court – UK 142 136 49 44 34.4% 32.0% 22 18 PIEM Hotels Ltd. 122 126 25 28 20.8% 22.2% 10 10 Ro
Slide 36: Room Revenue Customer Segments Mix
ROOM REVENUE CUSTOMER SEGMENTS MIX SEGMENT CONTRIBUTION % Q1FY24 Q1FY25 Transient 58% 59% Corporate 12% 12% MICE 16% 13% Long Stay 3% 3% Leisure 8% 9% Groups 1% 2% Crew 2% 2% Data for IHCL Enterprise excluding Ginger 35
Slide 37: Room Revenue Channels Mix
ROOM REVENUE CHANNELS MIX CHANNEL CONTRIBUTION % Q1FY24 Q1FY25 Hotel Reservation (HRO) 48% 44% Central Reservation 8% 8% Global Distribution System 5% 6% Alternate Distribution System 25% 26% (Online Travel Agents/ADS) Website 14% 16% Data for IHCL Enterprise excluding Ginger 36
Slide 38: India (IHCL Consol.) Statistics by Key Cities
INDIA (IHCL CONSOL.) STATISTICS – BY KEY CITIES Occ% ARR in ₹ RevPAR in ₹ Domestic Hotels Like for Like Q1 FY25 % Growth Q1 FY25 % Growth Q1 FY25 % Growth Mumbai 85% 0% 13,100 3% 11,100 3% Delhi & NCR 82% 2% 10,000 7% 8,200 10% Bengaluru 78% 1% 9,300 9% 7,200 10% Goa 81% 1% 14,200 -9% 11,400 -8% Che
Slide 39: International Statistics (IHCL Consol.)
INTERNATIONAL STATISTICS (IHCL CONSOL.) Occ % ARR in $ RevPAR in $ International Hotels Q1FY25 pp vs PY Q1FY25 % vs PY Q1FY25 % vs PY USA 65% 4% 630 -3% 410 3% UK 81% 2% 440 -9% 350 -7% Cape Town 71% 0% 160 18% 115 18% Grand Total 74% 2% 450 -4% 330 -1% Data for International consol. Hotels on Like
Slide 40: Standalone Key Statistics
STANDALONE KEY STATISTICS IHCL Standalone Particulars – Like for Like Q1 FY24 Q1 FY25 Var Occupancy % 74.8 76.0 120 bps ARR in ₹ 12,613 12,906 +2% RevPAR in ₹ 9,433 9,810 +4% Ginger Mumbai Airport Particulars Q1 FY25 Revenue ₹ Cr. 21.4 Occupancy % 87% ARR in ₹ 5,700 RevPAR in ₹ 5,000 39
Slide 41: Inventory Brandscape as on 30th June 2024
INVENTORY BRANDSCAPE AS ON 30TH JUNE 2024 Operational Pipeline Total Brands Hotels (Rooms) Hotels (Rooms) Hotels (Rooms) 81 33 114 Taj 12,127 5,529 17,656 30 22 52 Vivanta 4,057 3,141 7,198 23 13 36 SeleQtions 1,717 1,484 3,201 66 26 92 Ginger 5,882 3,183 9,065 8 8 16 Gateway 531 1179 1710 16 - 16 T
Slide 42: Portfolio Pipeline
PORTFOLIO PIPELINE Pipeline – IHCL+Subsidiaries FY25 FY26 FY27 FY28 FY29 Total Taj 112 134 183 429 Vivanta 125 125 Ginger 537 150 312 678 667 2,344 Total Owned Pipeline 649 409 312 861 667 2,898 Pipeline - Managed Hotels Taj 694 1735 1186 801 684 5,100 Vivanta 100 1397 690 590 239 3,016 SeleQtions 4
Slide 43: Hotels Opened in Last Quarter / Likely to Open in Next 6 Months
HOTELS OPENED IN LAST QUARTER Sl No Hotel Name Ownership Inventory 1 Fountain Mahabaleshwar - IHCL SeleQtions Management Contracts 77 2 Vivanta Jamshedpur Golmuri Management Contracts 94 3 Ginger Jamshedpur Tata Steel GH Group Companies 89 4 Ginger Nagpur Airport Road Group Companies 88 5 Tree of Li
Slide 44: Disclaimer
DISCLAIMER These presentations may contain forward-looking statements within the meaning of applicable securities laws. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Forward-looking statements are not g
Slide 45: Strong Brand Equity Driving Industry Leadership
Strong Brand Equity Driving Industry Leadership GLOBAL CONFERENCE CALL Q1 FY25 19th July, 2024
The Indian Hotels Company — Q1 FY25 Earnings Presentation on 6ix