Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q3 2021/22 Earnings Presentation
43 slides from Indian Hotels's earnings presentation, Feb 1, 2022
Slide 1: Analyst Presentation cover letter to exchanges
February 01, 2022 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1 s t 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:
Slide 2: Global Conference Call Q3, 9M 2021/22 Results
GLOBAL CONFERNCE CALL Q3, 9M 2021/22 RESULTS| 2nd FEBRUARY, 2022
Slide 3: Hospitality Awards 2021
+ BEST ICONIC ASSET - TA] MAHAL PALACE AND TOWER ST TEAMACHIEVEMENT~ QMIN RECOGNIZED FOR BEING A GLOBAL ICON RECOGNIZED FORIBUSINESS PERFORMANCE THA HOSPITALITY AWARDS 2021 BEST TEAM ACHIEVEMENT - IHCL GOA TEAM BEST WELLNESS EXPERIENCE - JIVA INNERGISE RECOGNIZED FOR CREATING A PREMIUM LEISURE DESTI
Slide 4: Slump in global recovery, India expected to outperform
SLUMP IN GLOBAL RECOVERY, INDIA EXPECTED TO OUTPERFORM REVISION IN GDP GROWTH ESTIMATES – IMF OUTLOOK (OCT ’21 v/s JAN ’22) 9.0% 8.5% 5.6% 5.2% 4.9% 4.8% 4.4% 4.3% 4.0% 3.9% WORLD UNITED STATES EURO AREA CHINA INDIA Source: IMF World Economic Outlook, January 2022 2022F - Oct 2021 2022F - Jan 2022 3
Slide 5: Indian hospitality industry - RevPAR recovery continues
INDIAN HOSPITALITY INDUSTRY - REVPAR RECOVERY CONTINUES Indian Hospitality Industry RevPAR (₹) Q3 - 79% Recovery 3,804 3,010 Q3 19-20 Q4 19-20 Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 Q3 21-22 Source: STR Global 4
Slide 6: IHCL Performance Key Highlights
IHCL PERFORMANCE KEY HIGHLIGHTS 5
Slide 7: Robust recovery in rates & occupancies
ROBUST RECOVERY IN RATES & OCCUPANCIES Recovery v/s PRE-COVID (2019/20): IHCL Domestic (Same Store) Average Rates Occupancies (RPD) RevPAR 91% Industry 87% Industry 79% Industry 95% 95% 94% 88% 83% 89% 74% 48% 35% Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 *Data for Domestic Hotels Incl. Ginger | Calculated on Same
Slide 8: Stronger recovery vs industry in most markets
STRONGER RECOVERY v/s INDUSTRY IN MOST MARKETS *Data for Domestic Hotels Incl. Ginger *Calculated on Same Store Basis IHCL Domestic Hotels – Q3 RevPAR (% of Pre-COVID Levels) 160% Industry IHCL (Same Store) 139% 140% 131% 120% 104% 105% 100% 89% 90% 88% 83% 79% 77% 77% 80% 76% 75% 64% 65% 61% 60% 57
Slide 9: Increase in rate premium (ability to charge)
INCREASE IN RATE PREMIUM (ABILITY TO CHARGE) Average Rate Premium v/s Industry TAJNESS BRAND 1.48 PORTFOLIO MIX 1.35 SMART RENOVATIONS Q3 2019/20 Q3 2021/22 Source for Industry ARR: STR Global *IHCL data for Domestic Hotels Incl. Ginger 8
Slide 10: Pan-India footprint, asset light growth & robust pipeline
PAN-INDIA FOOTPRINT, ASSET LIGHT GROWTH & ROBUST PIPELINE Strong Pan-India Footprint* 29 97 210+ States / Union Territories Destinations Hotels 17 New Hotels Signed in Jan – Dec 2021 16 Cities 65% 35% 4 New Destinations Management Contracts Leases (Ginger) 60+ Hotel Pipeline Today 8,000 74% 95% Room
Slide 11: To open more than one hotel a month in Jan–Dec 2022
TO OPEN MORE THAN ONE HOTEL A MONTH IN JAN – DEC 2022 4 3 4 6 17 Dubai Kolkata Navi Mumbai Cochin 1,700 Kolkata Rishikesh Katra Noida Rooms Jaipur Jaisalmer Shillong Mumbai Wayanand Ahmedabad Bharuch Srinagar *Relaunch New Opening are based on estimates & actuals may vary Whitefield* 10
Slide 12: Structural cost reduction continues
STRUCTURAL COST REDUCTION CONTINUES Q3 2021/22 v/s Q3 2019/20 (PRE-COVID) ↓ 17% ↓ 15% ↓ 23% Total Expenditure Total Fixed Costs Corporate Overheads *All Numbers Include Fixed Lease Costs 11
Slide 13: Focus on ROCE accretion
FOCUS ON ROCE ACCRETION Asset-light operating model Incremental capital allocation Focus on Free Cash Flows Asset monetization 12
Slide 14: Financial Performance – Q3 and 9M 2021/22
FINANCIAL PERFORMANCE – Q3 and 9M 2021/22 13
Slide 15: Performance snapshot: IHCL consolidated
PERFORMANCE SNAPSHOT: IHCL CONSOLIDATED ₹ Crores Q3 9M 2020/21 2021/22 Variance 2020/21 2021/22 Variance Revenue 615 1,134 85% 1,113 2,257 103% EBITDA 38 344 808% (280) 318 + 598cr PAT* (119) 76 + 195cr (629) (322) + 307cr * (After Share of Profit of Associates and JVs) 14
Slide 16: Among the highest Q3 margins despite Covid-19
AMONG THE HIGHEST Q3 MARGINS DESPITE COVID-19 Particulars – Q3 21/22 20/21 19/20 18/19 17/18 16/17 15/16 14/15 13/14 12/13 11/12 10/11 Revenue 1,134 615 1,409 1,338 1,217 1,146 1,185 1,235 1,169 1,074 1,027 838 EBITDA 344 38 462 350 300 280 274 266 247 223 225 194 EBITDA Margin (%) 30.4% 6.2% 32.8%
Slide 17: IHCL Consolidated Financial Performance (Q3 & 9M 2021/22)
IHCL CONSOLIDATED FINANCIAL PERFORMANCE (Q3 & 9M 2021/22) GIRIDHAR SANJEEVI, EVP & CHIEF FINANCIAL OFFICER 16
Slide 18: Financial snapshot – Q3 2021/22
FINANCIAL SNAPSHOT – Q3 2021/22 Consolidated Q3 revenues 1.9 x PY, EBITDA Margin at 30.4% & PAT positive ₹ /crores IHCL Standalone IHCL Consolidated Q3 2021 Q3 2020 Q3 2021 Q3 2020 Revenue 771 434 Revenue 1,134 615 % of 2019/20 87% 49% % of 2019/20 80% 44% EBITDA 291 73 EBITDA 344 38 EBITDA Margin %
Slide 19: Financial snapshot – 9M 2021/22
FINANCIAL SNAPSHOT – 9M 2021/22 Consolidated YTD December revenues 2 x PY, IHCL Consolidated & Standalone is EBITDA positive on YTD basis ₹ /crores IHCL Standalone IHCL Consolidated 9M 2021 9M 2020 9M 2021 9M 2020 Revenue 1478 766 Revenue 2,257 1,113 % of 2019/20 70% 36% % of 2019/20 65% 32% EBITDA
Slide 20: IHCL consolidated: EBITDA +ve since July 2021, PAT +ve in Q3
IHCL CONSOLIDATED : EBITDA +VE SINCE JULY 2021, PAT +VE IN Q3 ₹ /crores CY PY CY PY 1134 344 752 97 38 TOTAL EBITDA 615 EBITDA REVENUE 370 324 175 (83) (123) (234) Q1 Q2 Q3 Q1 Q2 Q3 CY PY CY PY 109 76 PBT PBT PAT PAT (130) (121) (119) (148) (263) (230) (315) (336) (277) (280) Q1 Q2 Q3 Q1 Q2 Q3 PBT &
Slide 21: IHCL standalone: EBITDA +ve since July 2021, PAT +ve in Q3
IHCL STANDALONE : EBITDA +VE SINCE JULY 2021, PAT +VE IN Q3 ₹ /crores CY PY CY PY 771 291 TOTAL 481 434 EBITDA 80 73 EBITDA REVENUE 226 215 117 (38) (78) (140) Q1 Q2 Q3 Q1 Q2 Q3 CY PY CY PY 145 124 PBT PBT PAT PAT (61) (54) (119) (142) (95) (173) (220) (190) (291) (239) Q1 Q2 Q3 Q1 Q2 Q3 20
Slide 22: Enterprise revenue and revenue recovery – Q1, Q2, Q3 2021/22
ENTERPRISE REVENUE AND REVENUE RECOVERY – Q1, Q2, Q3 2021/22 Q3 2021/22 Revenue Recovery across Same Store hotels @85% vs 19/20, 11pp better than Q2 ₹ /crores Domestic Hotels (incl. Ginger) – Same Store Total Revenue as a % of 19/20 CY PY 71% 89% 33% 80% 2,580 36% 50% 15% 28% 1,353 1,210 849 754 378
Slide 23: Revenue & recovery in key cities vs 2019/20
REVENUE & RECOVERY IN KEY CITIES vs 2019/20 ₹ /crores Domestic Hotels (incl. Ginger) – Same Store Q1 2021 Q2 2021 Q3 2021 240 163 169 168 117 126 107 90 82 80 80 62 65 58 56 51 41 40 23 23 30 22 27 26 21 14 10 Mumbai Delhi & NCR Bengaluru Goa Chennai Rajasthan Hyderabad Kolkata Kerala 38 Q1 21 vs 19
Slide 24: Revenue recovery in key cities vs 2019/20 (International)
REVENUE RECOVERY IN KEY CITIES vs 2019/20 International Hotels – Same Store ₹ /crores 110 Q1 2021 Q2 2021 Q3 2021 100 85 80 69 60 55 47 41 35 28 24 18 16 7 10 10 9 USA UK Dubai Maldives Africa Sri Lanka Q1 21 vs 19 28% 21% 85% 43% 28% 31% Q2 21 vs 19 56% 56% 99% 108% 40% 19% Q3 21 vs 19 50% 80% 148%
Slide 25: Domestic hotels – leisure / non-leisure
DOMESTIC HOTELS – LEISURE / NON-LEISURE OCCUPANCY % ARR in ₹ 16446 66% 67% 58% 54% 11,218 10,112 30% 7547 5,697 21% 4,551 Leisure Non - Leisure Leisure Non - Leisure Q1 2021 Q2 2021 Q3 2021 Q1 2021 Q2 2021 Q3 2021 * IHCL Domestic Hotel Categories Same Store (excluding Ginger) 24
Slide 26: Key international geographies - occupancy & ARR
KEY INTERNATIONAL GEOGRAPHIES - OCCUPANCY & ARR OCCUPANCY % ARR in $ 92% 736 616 75% 607 611 64% 59% 61% 459 51% 392 397 405 44% 338 41% 41% 301 32% 27% 148 137 14% USA UK Maldives Dubai USA UK Maldives Dubai Q1 2021 Q2 2021 Q3 2021 Q1 2021 Q2 2021 Q3 2021 * Key International Geographies Same Store
Slide 27: Revenue drivers
REVENUE DRIVERS Revenue Asset Light Growth New & Reimagined Business Portfolio - 232 Hotels, Ginger – Portfolio 80+ Occupancy – 51% (+ 17 PP) 27900+ Rooms incl. pipeline Hotels ADR - ₹ 9,395 (+ 41%) New Openings in Q4 – On Qmin - 20 Cities, 37 track to open 1 Hotels, 75+Restaurants hotel
Slide 28: New brands & businesses - performance
NEW BRANDS & BUSINESSES - PERFORMANCE • Q3 Revenue at 93% of 2019/20 • Q3 Occupancy ~ 62%, ARR ~ ₹ 2,300 • 9M Revenue - ₹ 62 crores (12M 19/20 - ₹ 65 crores ) • 2450+ members as at December 31, 2021 Management Contracts • 9M Consolidated Fee Income - ₹ 158 crores (12M 19/20 - ₹ 213 crores) • 9 new m
Slide 29: Cost management: driving operating leverage
COST MANAGEMENT: DRIVING OPERATING LEVERAGE ₹ /crores Consolidated Standalone 127% 39% 111% 36% 2,184 1,410 1938 1,185 1393 871 960 669 Operating Revenue Expenditure Operating Revenue 9M - CY 9M - PY Expenditure 9M - CY 9M- PY Corporate Overheads at ₹ 178 crores ( 9M 19/20 ₹ 230 crores) - 23% redu
Slide 30: International hotels: USA & UK showing improvement
INTERNATIONAL HOTELS: USA & UK SHOWING IMPROVEMENT ₹ /crores USA UK 375% 276% 147 245 25 65 39 -10 -8 -130 Revenue EBITDA Revenue EBITDA 9M - CY 9M - PY 9M - CY 9M - PY Occupancy improved from 41 % in Q2 to 44% in Q3 Occupancy improved from 41% in Q2 to 51% in Q3 ADR of $ 736 in Q3, higher tha
Slide 31: 9M 2021/22 - Performance of key subsidiaries
9M 2021 / 22 - PERFORMANCE OF KEY SUBISIDIARIES ₹ /crores PBT Before Legal Entity Revenue EBITDA PAT Exc. Items UOH Inc. - USA 249 (16) (70) (70) St. James Court - UK 147 25 (26) (21) PIEM Hotels Ltd. 189 (2) (46) 2* Roots Corporation Ltd 128 28 (35) (28) * PAT includes Profit on Sale of RCL shares
Slide 32: Debt position – standalone & consolidated
DEBT POSITION – STANDALONE & CONSOLIDATED ₹ /crores Standalone Consolidated Particulars December 31, September 30, March 31, 2021 December 31 September 30, March 31, 2021 2021 2021 2021 2021 Gross Debt 1,665 2,886 2,592 2,730 4,081 3,633 Liquidity (580)* (311) (413) (825)* (509) (523) Net Debt 1,085
Slide 33: Summarised results
SUMMARISED RESULTS a2 TAS SELEQTIONS VIVANTA GINGER ama Qenin we INCL
Slide 34: Q3, 9M 2021/22 – IHCL consolidated P&L
Q3, 9M 2021 / 22 – IHCL CONSOLIDATED P&L ₹ /crores Q3 9M Particulars 2021/22 2020/21 Actual 2021/22 2020/21 Actual Actual Actual Vs LY % Actual Actual Vs LY % Revenue from Operations 1,111 560 98% 2,184 960 127% Non-Operating Revenue 23 55 -58% 72 153 -53% Total Revenue 1,134 615 85% 2,257 1,113 103
Slide 35: Q3, 9M 2021/22 – IHCL consolidated exceptional items
Q3, 9M 2021 / 22 – IHCL CONSOLIDATED Exceptional Items: ₹ /crores Q3 9M Particulars 2021/22 2020/21 2021/22 2020/21 Var. Var. Actual Actual Actual Actual Change in fair value of derivative contracts - 6 (6) 6 23 (17) Exchange Gain / (Loss) on borrowings (10) 22 (32) (14) 30 (44) Profit on acquisitio
Slide 36: Q3, 9M 2021/22 – IHCL standalone P&L
Q3, 9M 2021 / 22 – IHCL STANDALONE P&L ₹ /crores Q3 9M Particulars 2021/22 2020/21 Actual 2021/22 2020/21 Actual Actual Actual Vs LY % Actual Actual Vs LY % Revenue from Operations 741 409 81% 1,410 669 111% Non Operating Revenue 30 25 20% 68 97 -30% Total Revenue 771 434 78% 1,478 766 93% Raw Mater
Slide 37: Q3, 9M 2021/22 – IHCL standalone exceptional items
Q3, 9M 2021 / 22 – IHCL STANDALONE Exceptional Items: ₹ /crores Q3 9M Particulars 2021/22 2020/21 2021/22 2020/21 Var. Var. Actual Actual Actual Actual Gain / (Loss) on Change in fair value of derivative contracts - 6 (6) 6 23 (17) Provision for Cash Losses in Pierre (2) (62) 60 (23) (133) 110 Provi
Slide 38: Q3, 9M 2021/22 – IHCL standalone revenue metrics
Q3, 9M 2021/22 – IHCL STANDALONE REVENUE METRICS Particulars Q1 Q2 Oct Nov Dec 9M 9M LY Occupancy % 28.4 56.6 64.4 66.5 68.9 50.6 33.5 ARR in ₹ 7,024 8,273 9,671 11,347 12,915 9,395 6,680 RevPAR in ₹ 1,992 4,679 6,232 7,541 8,904 4,752 2,237 (₹/ crores) Room Revenue 88 199 87 101 123 598 271 F & B R
Slide 39: Q3, 9M 2021/22 – Enterprise revenue metrics (domestic)
Q3, 9M 2021/22 – ENTERPRISE REVENUE METRICS (DOMESTIC) Particulars Q1 Q2 Oct Nov Dec 9M 9M LY Occupancy % 28.6 53.9 60.1 62.5 65.4 48.6 29.8 ARR in ₹ 4,656 5,878 6,919 8,164 9,084 6,610 4,645 RevPAR in ₹ 1,331 3,168 4,159 5,103 5,939 3,212 1,386 (₹/ crores) Room Revenue 207 494 218 259 315 1,494 611
Slide 40: Brandscape
BRANDSCAPE LUXURY SELECT HOTELS UPSCALE LEAN LUXE 27,900+ KEYS 232 HOTELS 13,500 KEYS 1850 KEYS 5,000 KEYS 7,650 KEYS 89 HOTELS 24 HOTELS 35 HOTELS 84 HOTELS *Portfolio figures include hotels under various stages of development 39
Slide 41: Operating portfolio
OPERATING PORTFOLIO Inventory by Geography Inventory by Contract Type 2560 4485 8547 17360 6888 Domestic International Holding Company Management Contract Group Companies As of 31st December 2021, IHCL has 171 hotels operational with 19,920 Rooms 40
Slide 42: 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 43: Global Conference Call Q3, 9M 2021/22 Results
GLOBAL CONFERNCE CALL Q3, 9M 2021/22 RESULTS| 2nd FEBRUARY, 2022 42
The Indian Hotels Company — Q3 2021/22 Earnings Presentation on 6ix