Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q2 FY25 Earnings Presentation
41 slides from Indian Hotels's earnings presentation, Nov 7, 2024
Slide 1: Soaring to Greater Heights
Soaring to Greater Heights GLOBAL CONFERENCE CALL Q2 FY25 7th November, 2024
Slide 2: Hospitality Sector in an Upcycle, Driven by Strong Domestic Demand
HOSPITALITY SECTOR IN AN UPCYCLE, DRIVEN BY STRONG DOMESTIC DEMAND AND FAVORABLE DEMOGRAPHICS India’s Economic Rising Disposable Strong Demand FTA Recovery & Focus on MICE, Growth Incomes Growth Growth Conventions $7 Tn ↑50% 9% - 11% 25 Mn 18% DEMAND 3rd Largest Economy Disp. Income (‘24->’30) CAGR
Slide 3: Key Achievements for the Quarter
KEY ACHIEVEMENTS FOR THE QUARTER MOMENTUM STRATEGY FINANCIALS Record Signings & Openings Right Mix of Capital Light Q2 Revenue growth YoY (IHCL Consol) 23 signed and 6 opened (Q2) Management fee growth 15% YoY 42 Signed & 14 Opened (YTD Oct) 28% Overall & 16% Hotel Segment New Business EBITDA Indust
Slide 4: Financial Highlights Q2FY25: Ten Consecutive Quarters of Best Ever Performance
FINANCIAL FINANCIAL HIGHLIGHTS Q2FY25 TEN CONSECUTIVE QUARTERS OF BEST EVER PERFORMANCE EBITDA OP. EBITDA REVENUE EBITDA PAT PAT MARGIN MARGIN MARGIN ₹ 555 Crore(1) 29.3%(1) ₹ 1,890 Crore ₹ 565 Crore 29.9% 27.5% ↑ 232% ↑ 18.1 pp CONSOLIDATED ↑ 28% ↑ 40% ↑ 2.7 pp ↑ 2.7 pp ₹ 247 Crore(2) 13.1% (2) ↑ 4
Slide 5: Best Ever Q2 Performance Across All Metrics
FINANCIALS BEST EVER Q2 PERFORMANCE ACROSS ALL METRICES ₹/ CRORES Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 IHCL Consol. FY25 FY24 FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 Operating Revenue 1,826 1,433 1,233 728 257 1,007 965 852 887 894 937 Operating EBITDA 501 355 294 73 (150) 160 99 55 71 58 15 Op. EB
Slide 6: On Track for Yet Another Record Year of Growth
MOMENTUM ON TRACK FOR YET ANOTHER RECORD YEAR OF GROWTH 42 SIGNINGS, 14 OPENINGS 12 3 5 9 3 10 42 SIGNED 1 2 3 1 1 6 14 OPEN For the period April to October 2024 6
Slide 7: Industry Leading Portfolio of 350 Hotels
MOMENTUM INDUSTRY LEADING PORTFOLIO OF 350 HOTELS 232 OPERATIONAL HOTELS , 118 IN PIPELINE 121 Operational Network Pipeline IHCL Share of Branded Rooms in India 100 39 17% 30 50 12% IHCL share of Pipeline 38 IHCL (Active supply) 82 20 share of 13 22 70 19 Existing Branded 2 Rooms 25 30 14 8 17 Data
Slide 8: Robust RevPAR Performance Across Brands in Q2
MOMENTUM ROBUST REVPAR PERFORMANCE ACROSS BRANDS IN Q2 Growth yoy RevPAR (₹) Domestic Domestic 3% 9% ↑12% 8,350 Consol. Hotels Consol. Hotels 12,000 3% 10% ↑13% 6,500 4% 7% ↑11% 1% 10% ↑11% 5,700 4% 5% ↑10% 2,500 Room Nights ARR RevPAR Data for domestic consol. Hotels on Like for Like(LFL) basis. LF
Slide 9: Outperforming Industry, Commanding RevPAR Premium
MOMENTUM OUTPERFORMING INDUSTRY COMMANDING REVPAR PREMIUM 44% 10% 66% points Premium Premium Premium ARR (₹) OCCUPANCY RevPAR (₹) 10,100 71% 7,200 Industry- 7,000 61% 4,300 Leading Metrics (Q2 FY25) Industry IHCL Industry IHCL Industry IHCL *IHCL Like for Like Data for Enterprise Domestic Hotels Mar
Slide 10: Management Fee Growth Driving Not Like for Like Revenues
STRATEGY MANAGEMENT FEE GROWTH DRIVING NOT LIKE FOR LIKE REVENUES MANAGEMENT FEE NET UNIT GROWTH NET UNIT GROWTH MANAGED HOTEL ROOMS amã MANAGED BUNGALOWS GROWTH (Operational) (Operational) ₹/ Crores 13,671 100 109 12,320 87 69 Q2 FY24 Q2 FY25 Sep-23 Sep-24 Sep-23 Sep-24 Adding to Capital Light reve
Slide 11: Lean Luxe Qminized Ginger Delivering Results
STRATEGY LEAN LUXE QMINIZED GINGER DELIVERING RESULTS - SIMPLY BETTER Q2 FY24 Q2 FY25 Operational 59 70 Growth 90% Revenue from Hotels Hotels Hotels Lean Luxe Portfolio Revenues ₹ 85 Cr ₹ 133 Cr ↑56% EBITDAR ₹ 30 Cr ₹ 56 Cr ↑88% Ginger Enterprise Revenue ₹ 300 Cr ~ EBITDAR Margin 35% 42% ↑730 bps In
Slide 12: amã Stays & Trails on a Growth Journey
STRATEGY amã STAYS & TRAILS ON A GROWTH JOURNEY 227 amã Portfolio 227 28 Signings Portfolio Growth Journey 200 (YTD Oct-24) 114 80 116 38 Enterprise Revenue 20 Operational ₹ 19 Cr (↑27% YoY) Mar'20 Mar'21 Mar'22 Mar'23 Mar'24 Oct'24 17 Openings In H1FY25 Operational Pipeline (YTD Oct-24) Well poised
Slide 13: Re-imagined Business Strong Growth Trajectory
STRATEGY RE-IMAGINED BUSINESS STRONG GROWTH TRAJECTORY ₹ 254 Cr Growth of Revenues 19% YoY ₹ 30 Cr (↑ 21%) Q2 Membership Revenue Q2 FY25 ₹ 62 Cr 24% EBITDA (IHCL Consol) EBITDA Margin Revenue Presence across ₹ 495 Cr 59% Market Share In H1FY25 by Meals 9 Landmark Taj Hotels 3,000+ Members 13
Slide 14: Gateway Launched in a Fresh New Avatar
STRATEGY GATEWAY LAUNCHED IN A FRESH NEW AVATAR Full-service hotel Quality Capture growth Personalised, location- offering in the upscale accommodations with opportunities Tier II specific experiences segment large banqueting and III cities & facilities Emerging central business districts in metros
Slide 15: The Claridges Brand License Arrangement
STRATEGY THE CLARIDGES BRAND LICENSE ARRANGEMENT ▪ IHCL has entered into a contract with Claridges Hotels Private Limited ▪ This gives IHCL an opportunity to (CHPL) to license the brands ‘THE grow in luxury space with a CLARIDGES’ & ‘CLARIDGES differentiated offering, distinct COLLECTION’ for India
Slide 16: Strategic Investment: ~55% Stake in Rajscape Hotels
STRATEGY STRATEGIC INVESTMENT ~ 55% STAKE IN RAJSCAPE HOTELS PVT LTD. 1 19 16 ₹ 23 Cr ₹ 4 Cr 3 Properties Locations FY24 Revenue FY24 EBITDA 5 1 4 2 • IHCL has entered into a Share Subscription & Purchase agreement and a shareholders 2 1 agreement to acquire ~55% in Rajscape Hotels Pvt Ltd for an in
Slide 17: We Remain Confident: Double Digit Revenue Growth for the Year
WE REMAIN CONFIDENT DOUBLE DIGIT REVENUE GROWTH FOR THE YEAR 30% Higher 7% Growth Wedding Dates Upcoming YoY in H2 this year Demand Supply Wedding 41 season with GAP to continue 2% 30 ~4.8 Mn weddings Domestic Tourists estimated in India momentum & Festive Season to accelerate Q2 Q2 Source – Industr
Slide 18: Key Enablers
18 TAY SELEQTIONS GATEWAY VIVANTA GINGER ama Qmin me INCL
Slide 19: Tata Neu Enhancing Customer Loyalty
TATA NEU ENHANCING CUSTOMER LOYALTY Total loyalty led revenue ₹ 2,024 Crore + 19% Growth vs. H1 FY24 1446 303 119 156 Copper Silver Gold Platinum Loyalty contribution to enterprise revenue Total Members 42% 6.5 Mn. Loyalty Led Revenues is the revenue generated by Loyalty customers through all channe
Slide 20: Excellence: Consistently High Customer Satisfaction Scores
EXCELLENCE CONSISTENTLY HIGH CUSTOMER SATISFACTION SCORES 75.9 74.9 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 H1 FY25 Data for IHCL Enterprise 20
Slide 21: Doing Business the Responsible Way
DOING BUSINESS THE RESPONSIBLE WAY Waste YTD FY 24/25 UPDATE 100% elimination of single-use plastic 284 Tons of Plastic Saved through Glass Bottles, Bio-degradable Bathroom Amenities, Paper Straws Waste 100% operating hotels will have an organic waste management system 55 hotels have bottling plants
Slide 22: Financial Performance
3 FINANCIAL PERFORMANCE 22 TAY SELEQTIONS GATEWAY VIVANTA GINGER ama Qmin me INCL
Slide 23: Hotel Revenue Bounced Back in Q2 Supplemented by TajSATS
FINANCIALS HOTEL REVENUE BOUNCED BACK IN Q2 SUPPLEMENTED BY TAJSATS CONSOLIDATION ₹/ CRORES Revenue PY Revenue CY Q2 Hotel Segment Revenue EBITDA 27.2% 30.5% 24.4% 27.2% 29.9% increased by Margin 16% YoY - 1,890 168 ↑28% 1,722 TajSATS 2 months Revenue ↑16% consolidated (Aug-Sep) 1,481 1,481 Q2 TajSA
Slide 24: Hotel Segment Performance
HOTEL SEGMENT PERFORMANCE ACHIEVED GUIDANCE OF DOUBLE DIGIT TOPLINE GROWTH IN H1 vs FY24 Q2 FY25 H1 FY25 ₹ 1,722 Cr ↑ 16% ₹ 3,318 Cr ↑ 11% REVENUE EBITDA ₹ 524 Cr ↑ 30% ₹ 1,020 Cr ↑ 18% 30.5% ↑ 3.3 pp 30.7% ↑ 2.0 pp EBITDA MARGIN OP. EBITDA ₹ 462 Cr ↑ 30% ↑ 19% ₹ 912 Cr 27.8% ↑ 3.1 pp 28.4% ↑ 2.0 pp
Slide 25: Consolidated Hotel Segment Revenue: Secular Growth Across Streams
CONSOLIDATED HOTEL SEGMENT REVENUE Revenue ₹ Cr & Growth YoY SECULAR GROWTH ACROSS ALL REVENUE STREAMS Q2 FY25 F&B Revenue (₹/Cr) Q2 FY25 Growth % Revenue from Operations 1,660 16% 561 Room revenue (+16%) Total Non – Operating Revenue 62 31% Operating Revenue 866 (+16%) Total Revenue 1,722 16% 1,660
Slide 26: Operational Costs Under Control Driving Margin Expansion
OPERATIONAL COSTS UNDER CONTROL DRIVING MARGIN EXPANSION FOR HOTEL SEGMENT Variance YoY Raw Material Costs Payroll Costs Power Costs as % of F & B Revenue as % of Operating Revenue as % of Operating Revenue 23.1% 30.7% 29.0% 5.6% 21.8% 5.3% 9% 9% 9% 112 123 441 482 81 88 Q2 FY24 Q2 FY25 Q2 FY24 Q2 F
Slide 27: TajSATS: Air & Institutional Catering Segment
TAJSATS : AIR & INSTITUTIONAL CATERING SEGMENT MAINTAINED MARKET LEADING PERFORMANCE vs FY24 Q2 FY25 H1 FY25 Contribution to IHCL Consol ₹ 254 Cr ↑19% ₹ 495 Cr ↑18% ₹ 168 Cr REVENUE ₹ 62 Cr ↑ 20% ₹ 121 Cr ↑ 18% ₹ 41 Cr EBITDA EBITDA MARGIN 24.5% ↑ 0.1 pp 24.4% ↓ 0.1 pp 24.4% 23.7% 23.6% ↓ 0.1 pp 23.
Slide 28: IHCL Consolidated Balance Sheet as at September 30, 2024
IHCL CONSOLIDATED BALANCE SHEET AS AT SEPTEMBER 30, 2024 Particulars (₹) March 2024 September 2024 Non Current Assets Fixed Assets 6,934 7,879 Right to use Assets 1,970 2,196 Goodwill 662 675 Investments 1,537 1,440 Other Non Current Assets 684 785 Cash & Cash Equivalents (1) 2,206 2,460 Current Ass
Slide 29: Strong Balance Sheet with Healthy Cash Reserves
STRONG BALANCE SHEET WITH HEALTHY CASH RESERVES ₹ /crores TajSATS cash balance as on August 1 116 Free Cash Flow CY : ₹ 395 crores (Q1: ₹ 146 Cr, Q2: ₹ 249 Cr) 2206 PY : ₹ 266 crores (Q1: ₹ 47 Cr, Q2: ₹ 219 Cr) Cash Flow Conversion(1) increased to 67% in H1FY25 as against 56% (2) in H1FY24 (1) Cash
Slide 30: Return Ratios Continue to Grow Despite Increased Balance Sheet Size
RETURN RATIOS CONTINUE TO GROW DESPITE INCREASED BALANCE SHEET SIZE Sep-23 Sep-24 Sep-23 Sep-24 15.7 14.8 14.7 14.2 Return on Capital Employed%(1) Return on Equity %(2) (₹/Cr) Sept 23 Sept 24 (₹/Cr) Sept 23 Sept 24 EBIT (TTM) 1,650 2,063 PAT (TTM) 1,100 1,365 (3) Capital Employed (Avg.) 11,254 13,14
Slide 31: Annexures
31 TAY SELEQTIONS GATEWAY VIVANTA GINGER ama Qmin me INCL
Slide 32: Consolidated P&L Q2FY25 & H1FY25
CONSOLIDATED P&L Q2FY25 & H1FY25 ₹ /crores Particulars Q2FY24 Q2FY25 Var % H1FY24 H1FY25 Var % Revenue from Operations 1,433 1,826 27% 2,900 3,376 16% Non-Operating Revenue 48 64 34% 97 110 14% Total Revenue 1,481 1,890 28% 2,997 3,486 16% Total Expenditure 1,078 1,325 23% 2,135 2,425 14% EBITDA 402
Slide 33: Standalone P&L Q2FY25 & H1FY25
STANDALONE P&L Q2FY25 & H1FY25 ₹ /crores Particulars Q2FY24 Q2FY25 Var % H1FY24 H1FY25 Var % Revenue from Operations 893 1,035 16% 1,783 1,967 10% Non-Operating Revenue 56 90 61% 100 130 30% Total Revenue 949 1,125 19% 1,884 2,097 11% Total Expenditure 619 691 12% 1,216 1,295 7% EBITDA 330 434 32% 6
Slide 34: Performance of Key Legal Entities – Q2
PERFORMANCE OF KEY LEGAL ENTITIES – Q2 ₹ /crores Revenue EBITDA EBITDA MARGIN PAT Legal Entities Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 UOH Inc. – USA 142 178 (27) (10) -ve -ve (49) (32) St. James Court – UK 143 151 47 50 32.9% 33.2% 17 23 PIEM Hotels Ltd. 119 135 23 31 19.3% 22.9%
Slide 35: India (IHCL Consol.) Statistics – By Key Cities
INDIA (IHCL CONSOL.) STATISTICS – BY KEY CITIES Occ% ARR RevPAR Domestic Hotels Like for Like % points % % Q2 FY25 Q2 FY25 Q2 FY25 Growth Growth Growth Mumbai 83% 0% 15,500 25% 12,900 25% New Delhi 84% 2% 12,050 0% 10,200 2% Bengaluru 79% 0% 9,700 11% 7,650 11% Goa 76% -1% 14,350 1% 10,850 -1% Chenn
Slide 36: Room Revenue Customer Segments & Channel Mix
ROOM REVENUE CUSTOMER SEGMENTS & CHANNEL MIX SEGMENT CONTRIBUTION % CHANNEL CONTRIBUTION % Q2FY24 Q2FY25 Q2FY24 Q2FY25 Transient 59% 58% Hotel Reservation (HRO) 46% 46% Corporate 12% 12% Central Reservation (Call Centre) 7% 7% MICE 16% 17% Global Distribution System 5% 6% Long Stay 3% 3% Leisure 7%
Slide 37: Inventory Brandscape as on 31st October 2024
INVENTORY BRANDSCAPE AS ON 31st OCTOBER 2024 Operational Pipeline Total Brands Hotels (Rooms) Hotels (Rooms) Hotels (Rooms) 82 39 121 Taj 12,302 6,912 19,214 30 20 50 Vivanta 4,062 2,933 6,995 25 13 38 SeleQtions 1,893 1,521 3,414 70 30 100 Ginger 6,164 3,933 10,097 8 14 22 Gateway 591 1,997 2,588 1
Slide 38: Opening Schedule
OPENING SCHEDULE FY25 Beyond Total Signed Pipeline – IHCL & Group FY26 FY27 (Nov-Mar) FY27 Pipeline Taj 112 233 279 624 Vivanta 125 125 Ginger 421 150 529 1,683 2,783 Total Owned Pipeline 533 508 529 1,962 3,532 Beyond Total Signed Pipeline - Managed Hotels FY25 FY26 FY27 FY27 Pipeline Taj 535 773 1
Slide 39: Hotels Opened in Q2FY25 & Planned for Next 6 Months
HOTELS OPENED IN Q2FY25 & PLANNED FOR NEXT 6 MONTHS Sl No Hotel Name (Opened in Q2) Brand Ownership Inventory 1 Taj City Centre, Patna Taj Management Contract 124 2 Gateway Bekal Gateway Management Contract 152 3 Ginger Coimbatore, Avinashi Road Ginger Management Contract 68 4 Ginger Udaipur Shastri
Slide 40: 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 41: Soaring to Greater Heights
Soaring to Greater Heights GLOBAL CONFERENCE CALL Q2 FY25 7th November, 2024
The Indian Hotels Company — Q2 FY25 Earnings Presentation on 6ix