Apeejay Surrendra Park Hotels Ltd. · NSE:PARKHOTELS
Apeejay Surrendra Park Hotels — Q4 FY24 Earnings Presentation
61 slides from Apeejay Surrendra Park Hotels's earnings presentation, May 30, 2024
Slide 1: Exchange cover letter on conference call recording
APEEJAY SURRENDRA PARK HOTELS LIMITED Date: May 30, 2024 Listing Manager, BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, 5th Floor Plot 1st Floor, New Trading Ring Rotunda Building, No. C-1, Block G, Bandra Kurla Complex, Phiroze Jeejeebhoy Tow
Slide 2: Q4 & FY24 Investor Presentation
Apeejay Surrendra Park Hotels Limited Q4 & FY24 Investor Presentation May 29, 2024
Slide 3: Disclaimer
Disclaimer Certain statements discussed in this presentation may contain forward looking statements concerning the Company’s future business prospects and business profitability. Such forward- looking statements are not guarantees of future performance and are subject to a number of risks and uncert
Slide 4: Table of Contents
Table of Contents 1 Q4 & FY24 Results Overview 2 Key Strategies 3 Development Update 4 Our Business 3
Slide 5: Q4 & FY24 Results Overview
THE Park, Chennai Q4 & FY24 Results Overview
Slide 6: Q4 FY24 – Key Highlights
Q4 FY24 – Key Highlights Operational & Financial Highlights - Q4 FY24 vs. Q4 FY23 Rs. 156 cr. Rs. 61 cr. Rs. 6,847 Total Income F&B revenue RevPAR 8.7% 5.9% 6.7% 92 Rs. 7,463 Rs. 54 cr. India’s Highest Occupancy Average Room Rate EBITDA (%) 8.4% 22.5% Market Leadership in 34.5 Rs. 18 cr. R
Slide 7: FY24 – Key Highlights
FY24 – Key Highlights Operational & Financial Highlights – FY24 vs. FY23 Rs. 592 cr. Rs. 251 cr. Rs. 6,170 Total Income F&B revenue RevPAR 12.8% 10.0% 10.7% 92 Rs. 6,699 Rs. 205 cr. India’s Highest Occupancy Average Room Rate EBITDA (%) 10.4% 15.9% Term Debt of Rs. 550 cr. Paid 34.7 Rs. 69
Slide 8: Management Comment
Management Comment Commenting on the Q4 & FY24 performance Mr. Vijay Dewan, Managing Director said: “Our robust performance is a result of our sustained growth and strategic achievements in the last fiscal year. In FY24, we added 374 keys through the opening of 8 new hotels, in-line with our commitm
Slide 9: FY24 - Key Developments
FY24 - Key Developments Successful listing on NSE and BSE – achieved overwhelming subscription of ~60x • The IPO attracted strong interest across all investor categories • ASPHL raised Rs. 920 crore through the IPO, with a fresh issue of shares worth Rs. 600 crore and an offer for sale worth Rs. 320
Slide 10: Key Financial Highlights – Q4 & FY24 Financials
Key Financial Highlights – Q4 & FY24 Financials In Rs. Cr. Total Income EBITDA Margins 31% 37% 34% 34% 35% 592 524 205 250 177 200 150 143 164 156 61 54 44 100 50 0 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Shift (%) QoQ: -4.8% YoY: 8.7% 12.8% Shift (%) QoQ: 11.4% Y
Slide 11: Strong Operational Performance – Q4 & FY24
Strong Operational Performance – Q4 & FY24 Occupancy (%) Average Room Rate (Rs.) 7,286 7,463 6,884 93.2 90.1 91.7 91.8 92.1 6,071 6,699 Q4 FY23 Q3 FY24 Q4 FY24 FY 23 FY24 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Shift (%) QoQ: 169 bps YoY: -144 bps 32 bps Shift (%) QoQ: 2.4% YoY: 8.4% 10.4% • Vario
Slide 12: RevPARs maintain upward momentum
RevPARs maintain upward momentum RevPAR (Rs.) 6,847 6,414 6,562 6,170 5,571 ▪ RevPAR during Q4FY24 registered a 6.7% Y-o-Y growth at Rs. 6,847 ▪ High Occupancy levels at the Company’s owned hotels have largely enabled strong RevPAR performance Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Shift (%) QoQ: 4.4%
Slide 13: Strong Operational Track Record: High Occupancy Rate and RevPAR
Strong Operational Track Record : High Occupancy Rate and RevPAR… Our High Occupancy rates are a testament to our expertise and credentials in the hospitality sector THE PARK Y-o-Y Y-o-Y THE PARK Y-o-Y Y-o-Y Q4 FY24 Q4 FY23 FY24 FY23 Q4 FY24 Q4 FY23 FY24 FY23 Kolkata Change (%) Change (%) Bangalore
Slide 14: F&B Segment: Diversifying Revenue Streams
F&B Segment: Diversifying Revenue Streams F&B to Total Revenue (%) 43% 42% 40% 39% Q4 FY23 Q4 FY24 FY23 FY24 • Strong performance in the Food & Beverage (F&B) and Entertainment segments contributed to overall earnings stability • Expansion of F&B offerings and efforts to engage customers result in h
Slide 15: Performance of Retail F&B Brand Flurys
Performance of Retail F&B Brand “Flurys” In Rs. Cr. Total Income EBITDA Margins 48 15% 29% 15% 17% 18% 9 38 9 8 7 7 5 6 16 5 10 13 2 4 2 3 2 1 0 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Shift (%) QoQ: -19.3% YoY: 21.8% 25.3% Shift (%) QoQ: 57.6% YoY: 23.0% 30.3%
Slide 16: Segment-wise revenue mix (%)
Segment-wise revenue mix (%) Others 6% Others 7% Management Management Fees 2% Fees 2% Room Rent 52% Room Rent 52% Q4 Q4 FY23 FY24 F&B 40% F&B 39% Others 7% Others 7% Management Management Fees 2% Room Rent 48% Fees 2% Room Rent 49% FY23 FY24 F&B 43% F&B 42% 15
Slide 17: Consolidated P&L Statement
Consolidated P&L Statement In Rs. Cr. Y-o-Y Q-o-Q Y-o-Y Q4 FY24 Q4 FY23 Q3 FY24 FY24 FY23 Change (%) Change (%) Change (%) Income 156 144 8.1% 159 -2.0% 579 510 13.4% Other Income 0.1 -1 N.A 5 -97.7% 13 14 -8.9% Total Income 156 143 8.7% 164 -4.8% 592 524 12.8% Total Expenses1 102 99 2.6% 103 -0.9%
Slide 18: Prudent Capital Allocation and Strengthened Balance Sheet
Prudent Capital Allocation coupled with IPO has strengthened Balance sheet allowing Headroom for Growth Net Debt Movement In Rs. Cr. 614 583 550 (26) FY21 FY22 FY23 FY24 Net Cash positive Company Note: (1) Net Cash is when the company has higher cash reserves than gross debt 17
Slide 19: Awards and Accolades – 2023-24
AWARDS AND ACCOLADES – 2023-24 THE Park Lotus, THE Park Aqua, THE Park THE Park Indore won THE Park New Chennai - ‘Best Hyderabad won Kolkata Best Lounge of Delhi won Best Premium Food Best Alfresco at the Year in Dining Buffet in a THE Park New Delhi THE Park Indore won Best Pasha, THE Park Chennai
Slide 20: Awards and Accolades – 2023-24
AWARDS AND ACCOLADES – 2023-24 Zone by The Park, Zone Palace by The Zone Palace by The Zone by The Park, Zone Palace by The Zone Palace by The Zone by The Park Zone by The Park, Pathankot was awarded Park, Phalodi was Park, Phalodi was Odisha won Emerging Park, Phalodi was Park, Phalodi was Jodhpur
Slide 21: Key Strategies
THE Park, Navi Mumbai Key Strategies
Slide 22: Our Key Strategies: Our Growth Portfolio
Our Key Strategies : Our Growth Portfolio 1 Continued focus on the development of existing land banks and strategic 2 Efficient capital allocation with an optimal portfolio of owned, leased and allocation of capital managed hotels ✓ Capitalizing on low historic cost of land and Assets Under ✓ Develo
Slide 23: Our Key Strategies: Improving Operating Efficiency and Strengthen Flurys
Our Key Strategies : Improving Operating Efficiency and Strengthen Flurys 3 Defined ESG goals creating sustained Renovation and Refurbishment & BI Improve Operational Efficiencies outcomes that drive value and fuel implementation growth ✓ Effective cost management by ✓ Investments in renovation and
Slide 24: Development Update
THE Park, Chennai Development Update
Slide 25: Development Update - Hotels
DEVELOPMENT UPDATE - HOTELS THE Park OPERATIONAL HOTELS BRANDS # HOTELS # KEYS LAUNCHED IN FY 2024 The Park Collection THE PARK 8 1,201 Zone by The Park Gopalpur Q1 40 THE PARK COLLECTION 3 64 Zone by The Park Dimapur Q1 62 102 Zone by The Park ZONE BY THE PARK 12 689 Zone Connect Mussoorie Q3 41 ZO
Slide 26: Development Update – Flurys
DEVELOPMENT UPDATE – FLURYS OPERATIONAL OUTLETS Restaurant Café Kiosk Total Q1 FY25 Tearoom Café Kiosk Q2 FY25 Tearoom Café Kiosk Kolkata 4 21 35 60 Kolkata 1 1 Serampore 1 Serampore 1 1 Siliguri 2 1 Durgapur 1 Durgapur 3 3 Mumbai 1 2 2 Darjeeling 1 Chandannagar 1 1 Hyderabad 1 Siliguri 1 Nandakumar
Slide 27: Now Open – Zone by The Park, Digha
NOW OPEN – ZONE BY THE PARK, DIGHA Kolkata New Delhi Navi Mumbai Mumbai Mumbai Total 26
Slide 28: Now Open – Zone Connect, Lansdowne & Manali
NOW OPEN – ZONE CONNECT, LANSDOWNE & MANALI 27
Slide 29: Now Open – Flurys, Mumbai Airport
NOW OPEN – FLURYS, MUMBAI AIRPORT Mumbai Airport T2 – Gate 46 Mumbai Airport T2 – Gate 41 28
Slide 30: Now Open – Flurys, ORB Mumbai
NOW OPEN – FLURYS, ORB MUMBAI Kolkata New Delhi Navi Mumbai Mumbai Mumbai Total 29
Slide 31: Now Open – Flurys, Bhubaneswar Airport
NOW OPEN – FLURYS, BHUBANESWAR AIRPORT Bhubaneswar Airport - 1 Bhubaneswar Airport - 2 Kolkata New Delhi Navi Mumbai Mumbai Mumbai Total 30
Slide 32: Development Update - Upcoming Projects
THE Park, Hyderabad Development Update - Upcoming Projects
Slide 33: Upcoming – Vista, The Park Vizag
UPCOMING – VISTA, THE PARK VIZAG OPENING JUNE 2024 ARCHITECT Picture for representation 32
Slide 34: Upcoming – Flurys, Gateway of India, Mumbai
UPCOMING – FLURYS, GATEWAY OF INDIA, MUMBAI Pictures for representation OPENING JUNE 2024 33
Slide 35: Upcoming – Café C, Zone by The Park, Saket
UPCOMING – CAFÉ C, ZONE BY THE PARK, SAKET OPENING JUNE 2024 ARCHITECT Picture for representation 34
Slide 36: Upcoming – Chettinad Palace by The Park
UPCOMING – CHETTINAD PALACE BY THE PARK NO OF ROOMS 15 UNDER CONSTRUCTION COMMENCEMENT OF OPERATION AUGUST 2024 ARCHITECT Picture for representation 35
Slide 37: Upcoming – Ran Baas Palace by The Park
UPCOMING – RAN BAAS PALACE BY THE PARK Original guest house of the maharaja of the Patiala, now developed in a 37 rooms luxury boutique hotel with indoor and outdoor banqueting spaces. ARCHITECT Picture for representation 36
Slide 38: Upcoming – Ran Baas Palace by The Park
UPCOMING – RAN BAAS PALACE BY THE PARK SOFT OPENING SEPTEMBER 2024 LAUNCH NOVEMBER 2024 Pictures for representation 37
Slide 39: Upcoming – The Park Pune
UPCOMING – THE PARK PUNE NO OF HOTEL ROOMS 200 ARCHITECT Karan Grover and Associates Picture for representation 38
Slide 40: Upcoming – The Park Pune
UPCOMING – THE PARK PUNE COMMENCEMENT OF CONSTRUCTION SEPTEMBER 2024 COMMENCEMENT OF OPERATION OCTOBER 2027 Picture for representation 39
Slide 41: Upcoming – The Park New Delhi
UPCOMING – THE PARK NEW DELHI No of Rooms & Suites - 38 OPENING SEPTEMBER, 2024 ARCHITECT Picture for representation 40
Slide 42: Upcoming – Roxy, The Park Kolkata
UPCOMING – ROXY, THE PARK KOLKATA RE-LAUNCH SEPTEMBER, 2024 ARCHITECT Pictures for representation 41
Slide 43: Upcoming – Flurys, Crescenzo, BKC Mumbai
UPCOMING – FLURYS, CRESCENZO, BKC MUMBAI Pictures for representation 42
Slide 44: Upcoming – 601, The Park Chennai
UPCOMING – 601, THE PARK CHENNAI OPENING OCTOBER 2024 ARCHITECT Picture for representation 43
Slide 45: Upcoming – The Park EM Bypass, Kolkata
UPCOMING – THE PARK EM BYPASS, KOLKATA NO OF HOTEL ROOMS 200 ARCHITECT SINGAPORE Picture for representation 44
Slide 46: Upcoming – The Park EM Bypass, Kolkata
UPCOMING – THE PARK EM BYPASS, KOLKATA NO OF APARTMENTS 100 COMMENCEMENT OF CONSTRUCTION & LAUNCH OF APARTMENTS FEBRUARY 2025 HANDOVER OF APARTMENTS MARCH 2028 COMMENCEMENT OF HOTEL March 2029 Picture for representation 45
Slide 47: Upcoming – The Park EM Bypass, Kolkata
UPCOMING – THE PARK EM BYPASS, KOLKATA Picture for representation 46
Slide 48: Upcoming – The Park Vizag
UPCOMING – THE PARK VIZAG NO OF ADDITIONAL ROOMS 100 ADDITIONAL BANQUETING, RESTAURANT, BAR, SPA & POOL. ARCHITECT Picture for representation 47
Slide 49: Upcoming – The Park Vizag
UPCOMING – THE PARK VIZAG CRZ Permission In progress COMMENCEMENT OF CONSTRUCTION MARCH 2025 COMMENCEMENT OF HOTEL APRIL 2028 Picture for representation 48
Slide 50: Our Business
THE Park, Hyderabad Our Business
Slide 51: ASPHL: A Pan India Branded Hospitality Company
ASPHL : A Pan India Branded Hospitality Company Our Hospitality Portfolio : Pan India Presence(1) Our Hospitality Brand 1967 Brand curated over 5 decades starting with our first hotel in Park Street 33 23 2,395 Kolkata Hotels Cities Keys Luxury Boutique Upscale and 7 1,101 Our Diversified Hospitalit
Slide 52: Our Hotel Brands: Product innovation and service excellence
Our Hotel Brands : Product innovation and service excellence attracting customer through a diversified and holistic offering Owned Hotels Leased Hotels Managed Hotels Our Diversified Asset and land parcel is owned Assets on land and building leased Assets operated and managed Business Model or lease
Slide 53: Our Hotel Portfolio: Strategically located across metros and emerging cities
Our Hotel Portfolio : Strategically located across metros and emerging cities THE PARK – Delhi NCR THE PARK – Bangalore THE PARK – Chennai THE PARK – Kolkata THE PARK – Hyderabad THE PARK – Navi Mumbai THE PARK – Goa Zone by the Park – Jaipur ASPHL has presence in 8 of 10 Key Markets(1) and is pursu
Slide 54: Strong F&B and Entertainment Brands coupled with Iconic Retail F&B chain
Strong F&B and Entertainment Brands coupled with our Iconic Retail F&B chain… Our Creative F&B offerings coupled with our Unique Bars and & Nightclub brands ensure a Resilient Business Model attracting both hotel guests and non resident patrons around the year Restaurants Night Clubs Bars & Clubs Re
Slide 55: Differentiated by design and experiences
… differentiated by design and experiences … Someplace Else – Mumbai Someplace Else – Kolkata Six 'O' One - Chennai Zen, THE PARK – Kolkata The Shack – Vizag Aqua, THE PARK – Delhi Lotus, THE PARK – Chennai Monsoon - Bangalore 54
Slide 56: High F&B and Entertainment contribution: stable non-cyclical earnings
… with high F&B and Entertainment contribution : Adding to stable and non-cyclical earnings while complementing the hotel business F&B Contribution to Total Revenue F&B to Total Rev (%) 42% 42% 43% 42% FY21 FY22 FY23 FY24 Demographic dividend to boost discretionary spending on food services 67.8% Pr
Slide 57: Flurys: Our Iconic Brand
“Flurys” : Our Iconic Brand… Recent Awards Best All Day Breakfast Best Bakery in Kolkata Culinary Heritage in Kolkata – Zomato Restaurant Award – Zomato Restaurant Awards 2023 – INTACH(1) 2023 Awards 2023 Note: (1) Indian National Trust for Art and Cultural Heritage. 56
Slide 58: Successful and Profitable Track Record of Industry Leading EBITDA margins
…with a Successful and Profitable Track Record of Industry Leading EBITDA margins As of date Asset Light Business Model Provides with Diversification, Resiliency and Scalability 82 Total Outlets Number of Outlets 82 77 4 1 Outlets 69 4 59 4 30 52 3 29 68 Outlets 3 26 22 20 2 Outlets 48 11 Outlets 44
Slide 59: Dedicated and Experienced Leadership Team
Dedicated and Experienced Leadership Team with High Standards of Corporate Governance Board of Directors Priya Paul Karan Paul Vijay Dewan Debanjan Mandal Suresh Kumar Ragini Chopra Designation: Chairperson, Designation: Non-Executive Designation: Managing Director Designation: Independent Designati
Slide 60: About Us
About Us Apeejay Surrendra Park Hotels Limited (ASPHL) is a leading player in the hospitality sector renowned for its upscale properties and diverse F&B offerings. Since its inception in 1967, with the opening of its first property in Kolkata under the renowned brand "THE PARK," the Company has expa
Slide 61: Thank you
THE Park, Bangalore Thank you
Apeejay Surrendra Park Hotels — Q4 FY24 Earnings Presentation on 6ix