Viceroy Hotels (NSE:VHLTD) Q1 2027 Earnings Call

0:01 Ladies and gentlemen, good day, and welcome to Viceroy Hotels Limited Q1 FY 'twenty seven Conference Call hosted by MUFG. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. I now hand the conference over to Mr. Chirag Bhatia from MUFG. Thank you, and over to you, sir. Thank you, Sanya. Good afternoon, everyone, and welcome to Q1 FY 'twenty seven Earnings Conference Call of Viceroy Hotels Limited. From the management, today we have with us Mr. Amiru Greti, Non Executive and Non Independent Director Mr. P. V. Krishnarendi, Chief Financial Officer and Mr. Rajyumna Kutali, Chief Operating Officer.

0:59 Before we proceed with this call, I would like to give you a small disclaimer that this call may contain certain forward looking statements, which are based on opinion, beliefs and expectation of the management as on date. A detailed disclaimer has been given in the company's investor presentation, which has been uploaded on the stock exchange. I hope you all had a chance to go through the same. Now I would like to hand over the call to Mr. Anirud Reddy. Over to you, sir. Good afternoon, everyone, and thank you for joining Viceroy Hotels Limited Q1 FY 'twenty seven Earnings Conference Call. I hope all of you had the opportunity to review our quarterly results presentation and press release circulated earlier.

1:46 We are pleased to report a strong start to FY twenty twenty seven, reflecting the benefits of our ongoing asset enhancement initiatives, operational improvements and growing demand across our hospitality portfolio. The quarter witnessed encouraging operational momentum across our businesses. The broader outlook for the Indian hospitality industry remains positive. Rising business travel, growth in MICE activities, increasing domestic tourism and Hyderabad emergence as a major technology and commercial hub continue to support demand for quality hospitality assets. We believe Viceroy Hotels is well positioned to benefit from these structural trends. At Viceroy Hotels, our focus remains firmly centered on long term value creation through asset enhancement, superior guest experiences and disciplined execution.

2:43 Over the several quarters, we have been implementing a comprehensive transformation and modernization program across our hospitality assets to strengthen their market positioning and unlock future growth opportunities. These initiatives are not only aimed at improving the quality of our offerings, but also at ensuring that our properties remain competitive and relevant in an evolving hospitality landscape. Our executive apartments business continues to be an important strategic differentiator. As global corporations expand their presence in Hyderabad and demand for extended stay accommodation grows, we see significant opportunities in this segment. The combination of premium hospitality services with residential style comfort continues to resonate well with long stay guests and corporate travelers.

3:37 We also remain committed to maintaining a disciplined approach towards capital allocation. Our approach here remains disciplined and focused on enhancing asset quality, elevating guest experiences and creating sustainable long term value. At the same time, we also continue to evaluate selective growth opportunities that complement our portfolio and support our long term strategy. Looking ahead, our priorities remain unchanged. Number one, completing ongoing renovation programs on schedule. Two, driving higher occupancy and RevPAR across our portfolio. Three, improving operational efficiencies and margin profile four, strengthening the contribution from executive apartments and ancillary businesses and five, pursuing disciplined growth opportunities while maintaining a prudent capital allocation framework.

4:32 With strong industry fundamentals, a premium portfolio of assets, ongoing enhancement initiatives and a clear strategic roadmap, we believe Viceroy Hotels is positioned to participate in the next phase of growth in the Indian hospitality industry. With that, I now request our CFO to take you through the financial performance for the quarter before we open the floor for questions. Thank you. Thank you, Anuj. Good afternoon, everyone, and thank you for joining us today for the earnings call of the company. Let me take you through the financial performance of the company during the quarter. For Q1 FY 'twenty seven, on a consolidated basis, the revenue from operations of the company stood at INR44.9 crores as compared to INR25.4 crores in Q1 FY twenty twenty six, showing robust growth of approximately 77%.

5:24 EBITDA for the quarter came in at INR 11.8 crores with a margin of 26.3% as compared to INR 4.8 crores with a margin of 19% in Q1 FY twenty twenty six, representing a growth of 144% in EBITDA and an expansion of seven twenty five basis points in margin. In terms of profitability, our profits to profit after tax stood at INR 1.4 crores with a margin of 3.2% as against a loss of INR 3 crores with a margin of negative 11.9% in corresponding quarter of the previous year. Depreciation and amortization for the quarter stood at INR5 crores as against INR3.4 crores, reflecting the capitalization of the Phase one at Courtyard together with the depreciation on the acquired property, while finance cost stood at INR 5.4 crores as against INR 1 crore in Q1 FY twenty six.

6:20 It is this step up in depreciation and finance cost that explains why INR 11.7 crores in EBITDA translates into a profit after tax of INR 1.4 crores. Coming to our operating metrics, combined occupancy across the Marriott and Courtyard hotels, it had improved to 76.25% in Q1 FY27 from 53.65% in corresponding quarter. At Marriott, occupancy improved to 72.04% from 59.96%, while at Courtyard, improved to 83.65% from 38.31%, the latter reflecting the normalisation of the property following the completion of the phase one.

7:06 Combined ADR for the quarter stood at Rs. 6,107 as against Rs. 6,952 with Marriott at 6,188 and Courtyard at 5,985. Courtyard RevPAR nearly doubled to 5,620 thousand 405, while Marriott RevPAR improved 5.7% to 4,457, taking combined RevPAR up 24.85% to 4,657 from 3,730. As the renovated work matures and the convention center returns to service, we expect ADR to follow occupancy. Looking at the revenue composition across the Marriott and Courtyard Hotels, room revenues stood at INR 19.6 crores in Q1 FY twenty seven as again at INR 14.1 crores in Q1 FY twenty six, a growth of 38.9% while Food and Beverage revenues stood at INR 11.8 crores as compared to 10.3 crores, a growth of 15.1%.

7:59 The room revenue growth reflects the full availability of 168 keys at Courtyard together with materially better occupancies at Marriott. The more major growth in food and beverages is a direct consequence of a convention center at Marriott being taken offline from the first week of April for the phase two upgradation, which has temporarily constrained our bank heating capacity through the quarter. Turning to the Marriott executive apartments, the extended state has continued to perform in line with the thesis on which it was acquired. Room revenues for the quarter stood at INR8.5 crores as against INR7.1 crores in the corresponding period, while food and beverage revenues stood at INR3.3 crores. ADR improved by 7.5% year on year to Rs. 13,342 and occupancy improved to 94% from 83%, translating into RevPAR growth of 21.1% to Rs. 12,519.

8:59 Looking ahead, three levels will shape our performance. The renovated Courtyard facility should progressively convert occupancy strength into rate. The Convention Centre At Marriott, once back in service, will materially expand our banking and events revenue, which is among the highest margin streams in our portfolio. And the Marriott executive apartments will continue for a full financial year for the first time, combined with continued cost discipline and efficiency gains now flowing from the upgraded back of the house infrastructure, we remain confident of progressing towards an EBITDA margin above 30% in the near term and towards our long term benchmark of 40%. We believe the investments currently being undertaken across the portfolio will further strengthen the positioning of our assets and support long term value creation for our shareholders.

9:49 With that, I would like to open the floor for question and answers. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Animesh Jain from Dalal and Gupta. Please go ahead. Thank you for the opportunity.

10:36 So I want to ask you that our mine ADR has decreased around 12.15%, but our occupancy is highest by 42. And if we see courtyard, also ADR reduced by 9.9%. So what is the trend going forward? Hi. Thanks thanks for your question. So one of the reasons why the ADR last year was slightly higher was due to a limited availability of rooms because a lot of the courtyard was under renovation. Having all of the inventory back in this thing now was was slight... That's why the slight dip comes along with the fact that we have taken our convention center as well out of order for the renovation. So typically, once the convention center is back in in operations, then what we see is a percentage of groups and social functions that contribute to our overall revenue increase, and with that, our ADR also increased.

11:34 So that is something that we see only going upward from here on. To add to that also, the seasonality of quarter two and quarter three where typically we also observe a higher ADR will also kick in. Okay. So as we know that in phase two, 168, the condenser sector is out of service. So how much is a bit displacement we are expecting in FY twenty seven? FY twenty six, you mean FY twenty seven? '27. Yeah. So I I think in terms of displacement, it's close to about 10 crores in the combination of the kind of business that you are losing through the convention and the rooms that comes with it. Okay. And my third question is is our subsidiary, are there any are now deferred are now deferred or any stamp duty left still to discharge?

12:32 No. Nothing is there. Nothing is there. Okay. And my last question is our Greenfield Greenfield Greenfield expansion of Courtyard. It's in our... The current status of it and the approval and design fee... Design plan of it. Yes. We have... So basically, we are in the approval stage with the government. We have a... The new tourism policy just came in. That is why it was in a little of... It took us some time to get in place the approvals. The new tourism policy in place, we are pushing to to get the approval with the government, and we are ready with the design to go on now.

13:19 Okay. Thank you, sir. Thank you so much. Thank you. The next question is from the line of Santosh Shetty from LGC Capital. Please go ahead. Good afternoon, sir. So starting with my... A couple of questions. Like, with the convention center down during the upgrade, are you effectively following a wedding and MIC season? How much of the business has been declared or, like, not declared, deferred versus permanently lost to competitors? We have not lost anything permanently. We have the offer firstly taken already budgeted this in our phase two plan of renovation from April to December that we're going to take it out because we wanted to get in a new facility to get more of businesses.

14:12 But you see, we are still good to still do the numbers we did last year even without the convention center. So with the convention center coming back online, we see to do much more in the coming year. Oh, okay, sir. And just another question, like, what is the current status of approval, and what are the expected dates for construction start and opening for courtyard at Madhavur? So the approvals should be received this year, and we should be on ground this year. We're looking at FY 2930 to go operational. And a last question, sir. With Pat now positive, what is the board's thinking on a dividend policy? And is there any promoter share pledge currently?

15:03 Dividend policy, once we finish our phase II renovation and we have the convention center back and we would like to the Board will surely discuss on the dividend policy and come out with a favorable outcome for the shareholders. The promoters are not to pledge to any of their shareholders. Oh, okay. Thank you, sir. Thank you. The next question is from the line of Madhu Agarwal from STP Securities. Please go ahead. Hi. Hi. Thanks for the opportunity. So my question was for Courtyard by Marriott. So for Courtyard by Marriott in FY '26, your ARR was 7,600.

15:48 Right? So now after the renovation, any, like, any target, like, what can we expect for FY '27, FY '28, the average room rate, any target that you can share, and also the occupancy. So occupancy, like, prior to if I see in FY '25, the occupancy of Courtyard by Marriott was 73%. In FY '26, it was impacted due to the construction work. And now in Q1, you have reported 84%. So for a full year basis, what occupancies are you like are you expecting? Yes. So from an occupancy standpoint, this is an occupancy we'd like to maintain at a YTD level as well. While we strategically maneuver across the various businesses that we pick up based on season and demand once the convention center is back. Because what we do is we position the two hotels as a complex close to 500 rooms along with a massive convention center. So that's when we get to do a lot of mice and social events at much higher ADRs.

16:48 So from an occupancy standpoint, we would like to maintain the 80 to 85% levels across the next two financial years. But ADR is something that we'd like to pick up from about that late sixty eight hundred to 8,500 in the next two financial years. So that is the target for Courtyard. But the thing is with the limited supply in the cities, the ADR have been growing at a faster pace than what, you know, most predictions suggest. So I won't be surprised if we are closer to the 9,000, 9,500 mark by FY '28. Okay. Okay. Understood. So, basically, because of the convention center, currently, you would be focusing more on keeping up the occupancies. And once that is completed, post that you are expecting that you will get the opportunity to increase rates.

17:37 Correct. Yes. One... Okay. One of the strategies that the management has taken since the takeover itself is to change the contribution from pure corporate such as airlines and army over time to reduce that and increase our retail bit or even groups that come in from social functions because they are higher paying businesses. It's just that now because of a combination of the convention center going out and the bar for the two, three months in quarter one that we had to, you know, go back to some of these businesses so that your hotel footfall is high and then you have multiple avenues for revenue. And which is how we manage to, in spite of all these challenges, beat our q one numbers from last year. So that's where I mean... What I mean has mentioned is, you know, the target for our management as well in terms of the rest of the quarters this year as well in spite of renovation, we intend to beat the previous year's quarter's numbers.

18:29 Okay. Okay. And finally, on the Marriott executive apartments, so there I see very strong occupancies. So there you believe there is like ample opportunity to increase rates even if we have to compromise a bit on occupancies or what will be your take on executive apartments? See, the the occupancy, as you rightly said, there's no scope of increasing more than this. We are trying to push the ADRs up, and we think we can push the ADR up with the current occupancy because of the big shortage of supply of rooms on the other side and we are the only ones offering the long term stay. The long term stay has become the hot product in the market and some competitors are trying to adopt it by renovating, but still that inventory is very far away from getting in supply.

19:19 So we believe that the ADR can still be pushed in that market. Okay. Thank you. Thank you. The next question is from the line of Prashankrishnagar from UniWed Corporate Research Private Limited. Please go ahead. Yeah. Am I audible? Yes. Yes. Yes, I am. Sir, you mentioned about the phase two expansion in financial year twenty seven. So can you give us a timeline for which quarter it should be completed? So we are expecting to finish this by December of this of this financial year, so third quarter.

20:06 Third quarter. Okay. And secondly, a book... Bookkeeping question. Can you share the gross debt at stand alone and consolidated levels and the net rate? You mean the interest rate or the total debt? No. Gross debt. Total debt. Okay. At a stand alone, the total debt is around 220 crores, and at a consolidated level, it is 259 crores. Now the net debt is... Yeah. Yeah. Net debt, sir. One second. Connected is around 180 crores at a stand alone level, and then it is $2.20 crores at a consolidated level.

20:58 Consolidated. Okay. And the interest rates on that is the similar to which at around 8.75 or something, or is it Blended rate is 8.7. Yeah. 8.7. Okay. Fine. Next question, sir, is how do you see the bookings for the... This quarter q two? Because q one, most of the hotel companies have showed a better occupancy, and they have managed it with domestic business. So how do you see the q two in July? Q Q2 is pretty strong. It is coming back well, and I think everybody has come to terms that this war is not something that is going to...

21:46 If anybody has stopped anytime soon or when it's gonna stop. So overcoming that, we have already taken that into account and have got good business also in Q2. So we see a very strong quarter coming. Okay. And in the executive apartments, what was the mix of the business, international and domestic? Would you be able to share? Yeah. So, I mean, again, it depends from quarter to quarter, but in peak season, it even goes up to about 40% coming in from international business. Whereas, you know, quarters, such as Q1 and Q2, it's slightly lower and closer to the 20% mark. But having said that, that is the micro market that has grown year on year, the strongest in the entire country. So it's not as much a concern, but it's always good to have some of the dollar demand back.

22:43 And in the hotel business, what should be the mix, international and domestic? It's... If you see it across the country, it's it's it's between 15 to 20% in most urban centers. And our portfolio also at a blended level, the contribution will be around the same numbers. Okay. I mean, obviously, in the leisure markets such as Rajasthan and Goa, the contribution will be higher, but the business hotel segment usually is under 20. 20%. And, sir, can you share the number of capital works in work in progress for June as on June 30? Is it possible to share the number? Yeah. Sure. The capital work in progress stands at 8 crores.

23:32 So because we have already capitalized most of the assets that are finished in. Okay. But that's on stand alone and and consolidated? It's a consolidated level. Yeah. It's a con... And stand alone level, what is the capital? It will be close to the same number because in married executive apartments, we don't have anything. Anything. Yeah. Third... Last question. May I have one more? This rights issue, which is in the approval stage, can you share some details, or is it too early to ask the question? I mean, let's see. We have applied for the permission to the exchanges. So we're waiting for the approval to come in.

24:18 The main requirement is to reduce it below 75% as mandated by SEBI by October. So that's why we are doing this activity. And once we get the approval, we'll disclose more on. Okay. But can you just share this 107 crores which will be raised? It it will be for the new greenfield, or is it to repay the debt? Or is it No. We are just repaying repaying the debt and to keep the limit open for the greenfield project or any other future expansions. Okay. And when do you expect the greenfield to start? FY '29 to '30. Oh, FY '29, you are expecting that? Operation. Operation. Operation.

25:03 Operational. But construction should start at Yeah. It should start this year. Okay. With the... That's what the Telangana government had a new tourism policy that was just came in last month or two months back. So because of that policy being delayed, the hotel permissions and all that were kept in a bay... Abeyance. So we had done the new policy. We applied, and we have... The tourism department has returned to the MAUD, and then we're waiting on. So your expectation in which quarter you should start the construction? Expecting fourth quarter to start. Fourth quarter. Q four. Okay. So thanks a lot. That answers most of my questions. If there's anything else, I'll join the queue.

25:51 Yeah. Sure. Thank you. The next question is from the line of Siyang from SMSB Securities. Please go ahead. Hello? Am I audible? Yes. You're audible. Hi. Yes, sir. Thank you for the opportunity. Sir, I had a few questions. Starting with, sir, could you just, like, you will apply 27 total income between revenue from operations and other income? And if you could also tell us what is in the other income and how much of it is recurring. Yes. Hello? So on a consolidated basis, the total revenue from operations for the quarter ended June 30 is INR44.90 crores and other income is INR29.25 lakhs.

26:45 So the total income is INR45.19 crores. So other income includes mostly the interest income on the average that we can. Okay. Okay, sir. Got it. And, sir, for FY twenty six as a whole, the courtyard ADR of rupees $7,006.33 sat above the Marriott's rupees $7,003.20. In q one f y twenty seven, Courtyard has lived below Marriott. Even Courtyard is a fully renovated asset, does the 25, 30% premium to this still hold? And, like, on what time frame, if you could just help me out with it? Yeah. So, again, like I said earlier, one of the reasons why you saw such an uptick in the ADR last in Courtyard was because of the limited inventory that was available.

27:38 So now with the new inventory coming in, we've managed to still maintain good ADR in spite of the war and not having the convention center available to us so that, you know, we get businesses from groups or socials. But like I had mentioned, we see this ADR growing over the next two financial years. And once the command center is back, we... Like I said, we would want to see ADR that is above 8,000. Okay. Okay, sir. Got it. And, sir, phase one at Kotia is complete. Right? So what Courtyard, the entire entire renovation. No. So when we divided the phases, phase one was entirely Courtyard's renovation, which is complete now. So phase two is we've... Where where we started the renovation in Marriott. So phase two and phase three entirely will be Marriott hotels.

28:29 So once the three phases are done, we will be done complete with renovation in all of our hotels. Okay. And just to what ADR and RevPAR are you achieving on the renovated inventory versus pre renovation? So there's almost a 30% delta. The ADR, so the renovated inventory, I mean, newer rooms is closer to 9,000 versus the 6 700, 6 thousand 800 mark that you see at a consolidated level. Okay. Okay, sir. Got it. And, sir, your investment strategies like LEANPL, BROWNPL, and NCLTD distressed assets, Are you actively evaluating distressed hospitality assets today, or, like, what is the size of the pipeline, and would those be on the balance sheet or through a separate vehicle?

29:18 See, we are actively looking at distressed assets to integrate into our portfolio. It will all hospitality ones will be done in this entity and not a separate SPV or separate on the promoter side. We are actively looking with different regions, but the current market, the hospitality sector is not in any distress. So it is hard to find good assets, hospitality assets to grab in NCLT. So we're looking at more strategic kind of integration of running assets or brownfield assets, which are allowed to open, integrate them into the portfolio. So something like that we are looking around and we almost on a weekly basis, at least, look at two, three opportunities.

30:09 So we are looking to add more. So, yeah, we'll let you know when we finalize something soon. Great. Great. Thank Thank you so much for answering my question, sir, and all the best. Alright. Okay. Thank you. The next question is from the line of from SKP Securities. Please go ahead. Yes. Hi. Thanks for the follow-up opportunity. Sir, I wanted to know, like, if you can share the... What is your arrangement with Marriott? Like, Marriott must be taking a certain... I believe really how it functions is, like, Marriott would be taking a certain percentage of your revenue and a certain percentage of your operating profit. So if you can share, like, some... How the arrangement is done?

30:58 Yeah. So on a revenue basis, Marriott takes about 1% to 1.5% of the total revenue. And on the GOP, is a gross operating profit, it takes around six to 7%. So the majority of what goes to Marriott is on the GOP and that is why their interests are aligned with our interests and they just don't concentrate on revenue, but they concentrate on profitability. Okay. And like this percentage, there must be a cycle, after five to six years old, like how is it and when is the next division going to happen? So for us, in the hotels, all three hotels are beyond the first five year mark. So all these percentages stabilize within the first five years. Typically, are some fees that increase from percent to 2% to 3%. So for example, even the percentage fee that you give on the GOP has now stabilized 7%, so there is not going to be any further up... Uptick to this.

32:04 And what we've additionally also done is for the greenfield asset, we have negotiated in a different way, whereas wherein instead of based on the number of years of operations, we've decided to have a matrix where we'll pay them on how high the percentage of GOP is. So the higher the percentage of GOP, the higher the percentage that Marriott makes. So our our our interest are further aligned. Okay. Okay. Got it. Got it. And sir, just one final question. On the... Let's say for four years, what you told us that ARR that you're targeting for next two years. So, like, broadly, very broadly speaking, what I can understand is that for the upscale hotels upscale... For upscale hotels, like, believe that from here on for FY '27, FY '28, possibly the industry can increase their rate from, you know, from mid to high single digit. Is this understanding correct? Let's say, around, like, 7% to 8%.

33:11 Is this understanding correct given the demand supply in next year? So the number you mentioned, I think, is at a national level, but I think Hyderabad specifically and Bangalore, we are expected to grow at a double digit, early double digit level. 10 to 12% is what the industry is suggesting. So we also... What we do is from time to time for any of our new... Either our greenfield projects or any other hotel that we are considering to either acquire through distress or, you know, potentially do another greenfield. We keep do... Getting studies done... Feasibility studies done to see how the market is performing and what the hospitality consultants have. So what we have observed from them and what we've been told from them is that Hyderabad is some... Is is one of the markets where you can expect a 10% to 12% growth in ADS.

33:58 Okay. For your... Like, it depends on the position also, right? So for the midscale hotels, possibly because of the greater supply side risk, so possibly they cannot increase. But for you, for upscale, upper upscale, you expect 10% to 12% growth from here on that. Correct. Got it. Very helpful. Thank you. Thank you. The next question is from the line of Vivek Gupta from Star Investments. Please go ahead. Hi, sir. Am I audible? Yes. Yes. Sir, the... Sequentially, if you see all the financial numbers, the total income is down by 8.7%. The EBITDA is also down by 24.20%.

34:44 That is down of 76% versus the last quarter. So how much of that is like normal Hyderabad q one seasonality versus anything specific to this quarter? No. The... So this is specific to the industry. That's not... Nothing to do with Hyderabad or, like, you know... Okay. Maybe because of the war kicking in in the quarter one, you will see this gap slightly higher than other years for every hotel company, but this is a seasonality that exists every year. So your q three and q four are always outperforming your q one and q two because that is the part of the year where most conferences, most weddings, most, you know, travel leisure trips happen.

35:30 It's just seasonality of the industry. So that way, it's it's never a concern for any hotel company that your q one is, like, you know, slightly weaker than your q four of the previous year. Okay. Okay, sir. So the combined ADR for Marriott and Courtyard fell twelve percent five zero eight to 6,100 crores approximately. With Marriott down 12% and Courtyard down 9.9%. Like, what, you know, drove the rate decline, and was this a conscious decision to trade rate for the occupancy? No. See, again, like I said, the decline comes from the demand supply factors that changed from q one to... From q four to q one. Your January, February, March are, you know, still months where there's a lot of conferences being held by by a lot of companies to set up the year.

36:29 And the the fact that, you know, your weddings continue to happen through the month of February versus your q one where, you know, there's a lot of summer holidays and a lot of corporates then cut down on how much corporate travel there is and meetings and conferences that happen. So some some of the leisure travel increases, but, you know, business travel typically is always lesser in q one. Along with the fact that again, like I said, we also witnessed a war where a lot of the foreign demand dropped in the country. So that is where you see the drop in ADR. So what we have also did strategically in this Q1 quarter is because of some of these sorts of businesses not coming in, we then ventured and got others other group corporate businesses such as the army and the airlines, which is what is indicated in their occupancy increase.

37:16 So we just increased our footfalls in the water and increased our occupancies, which was a slightly lower paying business in terms of room rate. So that is what we observed. But the important metric for any hospitality company at the end of the day is RevPAR because that's the absolute money that you are making, and that is something that we continue to grow year on year. Okay. Okay, sir. Sir, how was the 200... Approximately 200 crore funded? Like, how was this? I mean, debt through equity or the internal accruals, and what is the interest cost on the acquisition financing? So before the acquisition of Marriott Executive Apartments, we were not levered at all. We had almost zero leverage compared to the cash balances we had. So we levered it by picking up the 200 crore debt at an interest rate of about 8.7, and that's how the deal was financed.

38:15 Okay. Okay, sir. For the 200 key greenfield courtyard at Madhapur, what is the total project cost cost per key and the funding mix? So the total project cost would be around INR 120 crores to INR 130 crores, the total project cost, and we look to build about INR 180 to INR 260. Okay. Okay, sir. Thank you. That was all from my end, and all the best. Thank you. Thank you. The next question is from the line of Pahal Sharma from DD Capital. Please go ahead. Hi, sir. Thanks for the opportunity. I have some questions with me. So my first question will be that if India, Marriott, and Courtyard is 12 crores against the rooms revenue of almost $19.19.5 crores or something. So, like, about... That is about 38% of total revenue. Right? So, like, what is your contribution margin on F and B relative to Rooms? And also, how does that shape your overall margin trajectory?

39:25 So in terms of contribution to revenue, that is a mark that we probably continue to witness. I mean, we're 40% to 45% from the overall F and B, which includes your banqueting and your restaurants. That is about 50%, 55% kind of contributes from the rooms. In terms of the profit we made from these businesses, obviously, the rooms business comes at a significantly higher, you know, gross margins closer to 80%, 85%, whereas the F and B gross margins are typically in the 45% to 50% region. So that's where, you know, end of the day, like, you know, whether the acquisition of MEA also came from the fact that the contribution of rooms business is very high, even the greenfield projects that we've signed is, you know, majorly like a room play where we're looking at a potentially a 200 room courtyard in, like, the best micro market of the city.

40:13 Understood, sir. The next question is that, like, what is the debt match... Maturity profile and the annual repayment obligation over the next three years? And, also, are there covenants tied to leverage or DSCR? Like... And what is the current headroom? So monthly, 0.25 crores is the, like, repayment that we do, like, repayment that we do. Close to 39 to 40 crores per annum. And, yeah, and the the interest rates are around 8.75%, ranges from 8.7...

40:58 The blended interest rates ranges from 8.75% to 9%. So what is the third question? Sorry. If you repeat it. Like, what is the current headroom? So we are at, like, debt equity ratio of close to one now. So we can go to... Like, and we can take another 100 crores based on the current portfolio. And all these are long term debts, about twelve years to pay that. Yeah. Yeah. Could you hear me?

41:44 The current participant has been disconnected. The next question is from the line of from Nirva Securities. Please go ahead. Good afternoon good afternoon, sir. Thank you so much for the opportunity. So in the q three FY twenty six call, had said the company is confident of holding EBITDA margins above 30% and working to a 40% long term benchmark. But coming to q one f I twenty seven, it came at 26.1% consolidated against 31.4% in q four. Is 30% still the working flow for FY twenty seven?

42:32 And which quarter do you expect it to be back above it? Yeah. So, I mean, like mister Eddie had mentioned, the 30% EBITDA margin is something that is our target for us this year, and I think that's a fairly easy target because once your q three, q four numbers kick in, your EBITDA margin significantly go up. Q1, Q2 are like I mentioned earlier on the call are slightly quieter month in terms of high ADRs and things like that. To add to that, the other reason we're also confident is that now we have a portfolio of either includes the married executive apartments where the room revenue contribution is very high at extremely high ADS. So that's where we see our EBITDA percentages further going up for the next financial year.

43:20 And going forward, also the nature of the hotels, I think that we would be adding as a company would only take our EBITDA percentages higher. Along with the fact that including our existing portfolio, also we'll see a convention center coming back, which will improve our EBITDA percentages. Also, if you see quarter last quarter in the first Q1 in the previous financial year, the EBITDA margin was 19%. Now it has improved to 26.25% this year. So that's almost a 31% jump and that is on a weak quarter. So all the other quarters put together, we will easily cross that 30% EBITDA margin and we are looking once we have a complete renovated product, we'll be looking to hit that 40% margin as I already promised.

44:11 Okay, sir. Okay, sir. Sir, the consolidated finance cost rose from 1 crore to 5.4 crore and annualized run rate of about 21.8 crore, which is close to the 21.45 crore in FY twenty five EBITDA of the acquired asset. On a full year basis, is the acquisition part accretive after interest and appreciation? Yes. It is after... The past is after the interest and appreciation. And, also, we picked up this debt in January of 01/01/2026. So from then, the revenues of Managed Exit apartments also started getting added here to the combined portfolio of Viceroy Hotels.

45:00 So together, yes, the numbers you said are right. Okay, sir. Okay, sir. Got it. Standalone stand alone revenue grew from 35.8% to 35.9 crore, while consolidated grew 70.8%. The gap between consolidated and stand alone is about 9.3 crore. But the executive apartment section shows around 8.5 crore of revenue. Could you reconcile which revenue stream sit in the consolidated entity versus the subsidiary? So there is an elimination which we do on a consolidation level.

45:47 So the subsidy pays the rent to the, like, holding entity. So that gets eliminated in the consolidated level. That... That's the gap. Because what happened is when we did the acquisition, the asset was purchased in two forms. One was the land, which was purchased by Viceroy Hotels and Viceroy Hotels also purchased equity in the SLN terminals, which was running the managerial apartments on a lease basis on the property. So that's why this is a this is a gap which you see. Okay. Okay, sir. Just one last question from my end. Phase one closed at 50 crore and delivered 56 additional rooms, a spa, gym, rooftop bar, and full... Pool.

46:38 With the full quarter of operation behind it, what incremental revenue and EBITDA has phase one actually generated, and what return does that imply on the 50 crore? So so... Yeah. So, basically, from a revenue standpoint, the previous, let's say, calendar year of Courtyard, which, you know, fifty... Full calendar year where we didn't have any renovation was about 30 crores. This is excluding any of the new inventory. But this year, with the first year in itself, we expect this number to be a little north of 50 crores. So that's basically, like, a 60% jump that, you know, we see in both revenue, and EBITDA will also see a similar jump. Okay, sir. Alright. Alright. That's it from my side, sir. Thank you so much.

47:30 Thank you. As there are no further questions from the participants, I now hand the conference over to mister for closing comments. Thank you, everyone, for taking the time out to participate in this call. In case of any queries, reach out to us or our Investor Relations Agency MUFG Investor Relations. We wish you all the best and hope to interact with you soon. Thank you very much. On behalf of Viceroy Hotels Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.