Indian Hotels Co. Ltd. · NSE:INDHOTEL

Indian Hotels — The Indian Hotels Company — Q1 FY2022/23 Earnings Presentation

52 slides from Indian Hotels's earnings presentation, Aug 9, 2022

  1. Slide 1: Delivering Responsible Profitable Growth

    Delivering Responsible Profitable Growth GLOBAL CONFERENCE CALL Q1 FY 2022/23 9th August, 2022 1

  2. Slide 2: World's Strongest Hotel Brand 2022 & India's Strongest Brand 2022

    Cherishing The Dual Honour Of Being WORLD'S STRONGEST HOTEL BRAND 2022 & INDIA’S STRONGEST BRAND 2022 Brand Finance

  3. Slide 3: Strong Q1 22/23 performance across key financial metrics

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Q1 2022/23 EXCEEDS PRE-COVID PERFORMANCE Revenue ↑ 22% EBITDA ↑ 92% EBITDA % ↑ 11.4 pp Strong Q1 22/23 ₹ 1,293 Cr ₹ 405 Cr 31.3 % performance across PAT ↑ 3,005% Strong Free Cash Flows Net Cash Positive key financial metrics ₹ 170 Cr ₹ 198 Cr ₹ 2

  4. Slide 4: IHCL Delivers Best Ever Q1 Performance

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH IHCL Delivers Best Ever Q1 Performance PARTICULARS Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 (₹ CR) 22-23 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 1,293 370 175 1057 995 920 962 922 954 928 866 724 627 EBITDA 4

  5. Slide 5: Robust Performance Across All Our Brands

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Robust Performance Across All Our Brands V/s Pre-COVID ARR ↑ 22 % ↑ 17 % ↑ 34 % Occupancy ↑6% ↑ 21 % ↓ 11 % RevPAR ↑ 30 % ↑ 41 % ↑ 20 % TRevPAR ↑ 18 % ↑ 30 % ↑ 29 % PBT +ve 5

  6. Slide 6: Premiumizing Portfolio

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Premiumizing Portfolio Luxury Unique Premium Upscale Lean Luxe Signature Experiential Delivering premium experiences in every segment 6

  7. Slide 7: Industry Leading Growth

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Industry Leading Growth IMPROVEMENT IN Q1 2022/23 v/s PRE-COVID (Q1 2019/20) Average Rates (ARR) Occupancy RevPAR 31% 9% 42% 16% 4% 20% Industry IHCL Domestic (Same Store) 7

  8. Slide 8: Mumbai, Bengaluru & Delhi Are Back

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Mumbai, Bengaluru & Delhi Are Back IHCL Domestic Hotels – Q1 RevPAR (% of Pre-COVID Levels) *Data for Domestic Hotels Incl. Ginger 180% 167% *Calculated on Same Store Basis 157% 160% 142% 141% 139% 142% 140% 144% 140% 132% 133% 119% 122% 120% 116

  9. Slide 9: Building Capabilities to Drive Direct to Customer (D2C) Business

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Building Capabilities to Drive Direct to Customer (D2C) Business Digital Marketing Tata Neu D2C Projects Campaigns Integration Business › New Website › 4D, Staycations › 1 Mn New Members › D2C contribution at › New Mobile App › Dekho Apna Desh ›

  10. Slide 10: Robust Growth In Signings, Openings and Pipeline

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Robust Growth In Signings, Openings and Pipeline Signings (#Hotels) Openings (#Hotels) Pipeline (#Rooms) 15 14 8,179 8,107 29 7,526 6,244 22 19 12 13 17 4,112 10 7 5 4 2018/19 2019/20 2020/21 2021/22 2022/23 2018/19 2019/20 2020/21 2021/22 2022/2

  11. Slide 11: Enveloping India & Key International Destinations

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH 5 hotels 2 hotels 2 hotels 3 hotels 1 hotel 7 hotels Enveloping India & 2 hotels 6 hotels 7 hotels 16 hotels 2 hotels 3 hotels Presence in key strategic 19 hotels 3 hotels international destinations 19 hotels 1 hotel 7 hotels 7 hotels 1 hotel 5 h

  12. Slide 12: Asset Light Model Driving Growth

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Asset Light Model Driving Growth ₹ /Crores Shift in Management Mix Management Fee Growth by 72% 46% 81 47 39% Mgmt Mix Management fees Q1 2019/20 Q1 2022/23 Q1 2019/20 Q1 2022/23 12

  13. Slide 13: Investing smartly for long-term growth

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Investing smartly for long-term growth Strategic renovations Innovative F&B concepts Pioneering destinations 13

  14. Slide 14: Investing smartly for long-term growth

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Investing smartly for long-term growth Investing in Re-imagining Qminization amã Stays & Trails The Chambers of Ginger 14

  15. Slide 15: Ahvaan 2025: Re-Engineer | Re-Imagine | Re-Structure

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH RE-ENGINEER | RE-IMAGINE | RE-STRUCTURE 15

  16. Slide 16: Doing business the responsible way

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Doing business the responsible way – 10 heritage sites with 8 active 9 pilot projects - UNESCO skilling centres TechEmerge & IFC 16

  17. Slide 17: Doing business the responsible way

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Doing business the responsible way – 29% energy from 45 hotels installed EV 57,000 Qmin meals during renewable sources chargers Assam floods 17

  18. Slide 18: On track to achieve our ambition

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH 33% 35% 50-50 ZERO On track PERFORMANCE EBIDTA EBIDTA from Hotel Net to achieve Margin New Brands and Mgmt. Fees Portfolio Debt our ambition of 300+ Hotel Portfolio 500+ PORTFOLIO 100 75 125 18

  19. Slide 19: Journey to become South Asia's most iconic and profitable hospitality company

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH ICONIC AND PROFITABLE HOSPITALITY COMPANY RE-ENGINEER will further our TRADITIONAL BUSINESS RE-IMAGINE RE-STRUCTURE journey to become NEW BUSINESSES PORTFOLIO South Asia’s most CULTURE ONE TATA EXCELLENCE iconic & profitable ORGANIZATION DIGITAL

  20. Slide 20: Financial Performance Q1 2022/23

    FINANCIAL PERFORMANCE Q1 2022/23 GIRIDHAR SANJEEVI, EVP & CFO 20

  21. Slide 21: Our Profitable Growth Algorithm Positions Us Well

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Our Profitable Growth Algorithm Positions Us Well RE-ENGINEER RE-IMAGINE RE-STRUCTURE Margins Brandscape Portfolio - - - Productivity New Biz Models Asset Light Growth 21

  22. Slide 22: India: Potential revenue recovery scenario

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH INDIA: Potential revenue recovery scenario Financial year: IHCL is well placed for the recovery phase Q2 21-22 Q3 21-22 Q4 21-22 Q1 22-23 Q2 22-23 Q3 22-23 Q4 22-23 MICE/Weddings limited Omicron gathering restrictions 3rd Wave Lockdown RevPAR rec

  23. Slide 23: Key Highlights – Q1 2022/23

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Key Highlights – Q1 2022/23 ₹ /crores IHCL ENTERPRISE* IHCL CONSOLIDATED IHCL STANDALONE 137% 233% 122% 193% 130% 197% 1,293 788 2,420 1,057 608 1,760 405 287 719 308 210 146 Revenue EBITDA Revenue EBITDA Revenue EBITDA Q1 2022 Q1 2019 Q1 2022 Q1

  24. Slide 24: Key Highlights – Q1 2022/23

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Key Highlights – Q1 2022/23 ₹ /crores UOH Inc. USA St. James Court, London 85% 123% 111% 109% 198 110 168 99 35 32 18 15 Revenue EBITDA Revenue EBITDA Q1 2022 Q1 2019 Q1 2022 Q1 2019 EBITDA Margin 10.6% (Pre-Covid : 7.3%) EBITDA Margin*: 37.5% (P

  25. Slide 25: Key Highlights – Q1 2022/23

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Key Highlights – Q1 2022/23 ₹ /crores PIEM HOTELS LTD ROOTS CORPORATION LTD BENARES HOTELS LTD 127% 301% 141% 238% 169% 351% 113 70 20 89 50 12 27 8 26 9 11 2 Revenue EBITDA Revenue EBITDA Revenue EBITDA Q1 2022 Q1 2019 Q1 2022 Q1 2019 Q1 2022 Q1

  26. Slide 26: New Businesses Are Driving Margin Expansion

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH New Businesses Are Driving Margin Expansion PRE-COVID (Q1 2019/20) Q1 2022/23 9% 14% Revenue Contribution 91% 86% 18% 22% EBITDA Contribution 82% 78% Traditional Businesses New Brands, Initiatives & Management Fees* * New Brands & Initiatives inc

  27. Slide 27: Razor Sharp Focus On Costs Strengthening Margin Expansion

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Razor Sharp Focus On Costs Strengthening Margin Expansion Costs as a percentage of consolidated revenues Fixed Costs as % of Revenue Var. Costs as % of Revenue Corp. Overheads as % of Rev. 46% 38% 7.8% 35% 36% 5.5% Q1 2019/20 Q1 2022/23 Q1 2019/2

  28. Slide 28: Productivity initiatives continue through Q1

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Productivity initiatives continue through Q1 Payroll Raw Material Fuel Power Overhead Marketing Expenses Costs Light Efficiencies Effectiveness 27.8% of Revenue Lower as % of F&B Revenue Renewable Sourcing 2.3 pp Drop in Corporate Smart Investmen

  29. Slide 29: Strong Improvement in Consolidated Performance

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Strong Improvement in Consolidated Performance ₹ /crores P & L Movement 31.3% Var Vs 2019/20 +22% +11.4 pp 80%+ Flowthrough 29

  30. Slide 30: Strong Improvement in EBITDA Margin

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Strong Improvement in EBITDA Margin 11.4 pp vs 19/20 Vs Pre Covid Non – Operating Income includes Sale of Flats ₹ 5 crs in Q1 2022/23 & ₹ 24 crs in Q1 2019/20 30

  31. Slide 31: Focus on Free Cash Flow Generation

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Focus on Free Cash Flow Generation Movement in free cash flow ₹ /crores Free Cash Flow ₹ 198 crores 31

  32. Slide 32: Strong Improvement in Standalone Performance

    AHVAAN 2025: DELIVERING RESPONSIBLE PROFITABLE GROWTH Strong Improvement in Standalone Performance ₹ /crores P & L Movement 36.5% Var Vs 2019/20 +30% +12.5 pp 75%+ Flowthrough 32

  33. Slide 33: Annexures

    ANNEXURES a TAS SeLeQmions VIVANTA GINGER ama Qmin TA INCL

  34. Slide 34: Q1 Consolidated P&L With > 80% EBITDA Flowthru Vs 19/20

    Q1 Consolidated P&L With > 80% EBITDA Flowthru Vs 19/20 ₹ /crores Q1 Particulars 2022/23 2021/22 2019/20 Act. 22/23 Actual Actual Actual Vs 19/20 % Revenue from Operations 1,266 345 1,020 24% Non-Operating Revenue 27 26 37 -27% Total Revenue 1,293 370 1,057 22% Raw Material Cost 104 28 85 22% Employ

  35. Slide 35: Q1 Consolidated – Exceptional Items

    Q1 Consolidated – Exceptional Items ₹ /crores Q1 Particulars 2022/23 2021/22 Var. Actual Actual Change in fair value of derivative contracts - 6 (6) Exchange Gain / (Loss) - IHMS SA (9) 7 (16) Gain on Sale of Property – Ginger Mysore - 7 (7) Total (9) 20 (29) 35

  36. Slide 36: Q1 Standalone P&L – Strong Flowthru > 75%

    Q1 Standalone P&L – Strong Flowthru > 75% ₹ /crores Q1 Particulars 2022/23 2021/22 2019/20 Act. 22/23 Actual Actual Actual Vs 19/20 % Revenue from Operations 761 207 572 33% Non-Operating Revenue 27 19 36 -26% Total Revenue 788 226 608 30% Raw Material Cost 65 18 51 27% Employee Benefits 170 147 173

  37. Slide 37: Q1 Standalone Exceptional Items

    Q1 Standalone Exceptional Items ₹ /crores Q1 Particulars 2022/23 2021/22 Var. Actual Actual Gain / (Loss) on Change in fair value of derivative contracts - 6 (6) Provision for Pierre Cash Loss funding - (13) 13 Provision for Taj Cape Town Cash Loss funding (2) (4) 2 Total (2) (11) 9 37

  38. Slide 38: Q1 2022/23 - Revenue Metrics (Domestic)

    Q1 2022/23 - REVENUE METRICS (DOMESTIC) Standalone Enterprise Particulars Q1 2022/23 Q1 2019/20 Q1 2022/23 Q1 2019/20 Occupancy % 70.4 63.4 65.2 61.8 ARR in ₹ 11,397 9,141 8,315 6,299 RevPAR in ₹ 8,021 5,795 5,424 3,893 (₹/ crores) Room Revenue 325 228 859 529 F & B Revenue 281 234 757 536 Other Rev

  39. Slide 39: Domestic Hotels RevPAR & Recovery Vs Pre-COVID – By Category

    Domestic Hotels RevPAR & Recovery Vs Pre- COVID – By Category - LFL Occ % ARR in ₹ RevPAR in ₹ Domestic Hotels - LFL Q1 2022 Q1 2019 % Q1 2022 Q1 2019 % Q1 2022 Q1 2019 % Business 76% 66% 116% 7,982 7,086 113% 6,096 4,683 130% Leisure 63% 54% 117% 14,285 9,186 156% 8,970 4,915 183% Palaces 34% 36% 9

  40. Slide 40: RevPAR Recovery By Destination vs Pre-COVID – Domestic LFL

    RevPAR Recovery By Destination vs Pre - COVID – Domestic LFL Occ % ARR in ₹ RevPAR in ₹ Domestic Hotels - LFL Q1 2022 Q1 2019 Recovery% Q1 2022 Q1 2019 Recovery% Q1 2022 Q1 2019 Recovery% Mumbai 82% 75% 109% 10,567 8,666 122% 8,625 6,468 133% Delhi & NCR 67% 70% 96% 6,960 5,548 125% 4,646 3,856 120%

  41. Slide 41: RevPAR Recovery By Destination vs Pre-COVID – International LFL

    RevPAR Recovery By Destination vs Pre - COVID – International LFL Occ % ARR in $ RevPAR in $ International Hotels - LFL Q1 2022 Q1 2019 % Q1 2022 Q1 2019 % Q1 2022 Q1 2019 % USA 59% 85% 69% 660 511 129% 387 435 89% UK 74% 88% 84% 419 354 118% 311 313 99% Maldives 65% 60% 108% 601 543 111% 391 328 11

  42. Slide 42: Channels - Room Revenue (All Hotels)

    Channels - Room Revenue (All Hotels): Q1 22/23 V/S Q1 19/20 YTD Jun'22 YTD Jun'19 HRO TRW GDS ADS Taj Website % of Revenue YTD Jun’22 50% 7% 5% 24% 14% % of Revenue 48% 13% 9% 22% 8% YTD Jun’19 42

  43. Slide 43: Market Segment – Room Revenue (All Hotels)

    Market Segment – Room Revenue (All Hotels): Q1 22/23 V/S Q1 19/20 YTD Jun'22 YTD Jun'19 Transient Corporate MICE Long Stay Leisure Groups Crew % of Revenue 58% 11% 16% 4% 8% 1% 2% YTD Jun’22 % of Revenue 17% 12% 5% 8% 3% 3% 53% YTD Jun’19 43

  44. Slide 44: Chambers

    Chambers ₹ /crores Chambers Q1 FY 23 Q1 FY 22 Initiation Fees 14 8 Renewal Fees 12 8 Total Income 26 16 No. of Chambers members 2,496 2,274  60+ Members added during the Quarter 44

  45. Slide 45: Qmin

    Qmin 1 city 1 city 3 cities 1 city 1 city 1 city 1 city | 40 Hotels | 4 Shops | 3 Trucks |12 QSR |20 Cities| 1 city 1 city 3 cities 1 city 1 city 1 city 2 cities 1 city

  46. Slide 46: amã Stays & Trails

    amã Stays & Trails Operational Pipeline Total Maharashtra 10 8 18 Himachal Pradesh Kerala 11 5 16 Uttarakhand Karnataka 11 2 13 Haryana Haryana 1 9 10 Rajasthan Goa 9 1 10 Tamil Nadu 2 4 6 West Bengal 3 1 4 Madhya Pradesh West Bengal Rajasthan 2 2 4 Himachal Pradesh 1 2 3 Maharashtra Uttarakhand 1 3

  47. Slide 47: Manpower / Room By Brand

    Manpower / Room By Brand 3.39 2.93 2.96 2.17 2.24 1.95 1.80 1.41 1.48 1.10 0.48 0.41 Taj Palaces SeleQtions Vivanta Safari Ginger Apr-20 Jun-22 Manpower Rationalized Through  Redeployments – 449 Associates  Reimagine ways of working - Multiskilling, Cluster Approach, Shared Services 47

  48. Slide 48: Brandscape – Operating + Pipeline

    Brandscape – Operating + Pipeline LUXURY SELECT HOTELS UPSCALE LEAN LUXE 28,650+ KEYS 240 HOTELS 13,100 KEYS 2,250 KEYS 5,200 KEYS 8,100 KEYS 87 HOTELS 28 HOTELS 37 HOTELS 88 HOTELS *Portfolio figures as on June 30, 2022 including hotels under various stages of development 48

  49. Slide 49: Operating Portfolio

    Operating Portfolio Inventory by Geography Inventory by Contract Type 2885 4476 8687 17941 7663 Domestic International Holding Company Management Contract Group Companies As of 30th June 2022, IHCL has 178 hotels operational with 20,826 Rooms 49

  50. Slide 50: Upcoming Hotels in FY 22-23

    Upcoming Hotels in FY 22-23 Hotel Name Ownership Inventory Vivanta Ahmedabad Managed 176 Ginger Ahmedabad - Hotel Central Inn, RTO Circle Group Co 111 Taj Resort, Wayanad, Kerala Managed 62 Sawai Man Mahal, a Taj Palace Managed 47 Ginger Hotel, Bharuch- Station Road Managed 55 Ginger Aurangabad Jalg

  51. Slide 51: 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

  52. Slide 52: Delivering Responsible Profitable Growth

    Delivering Responsible Profitable Growth GLOBAL CONFERENCE CALL Q1 FY 2022/23 9th August, 2022 52

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