Apeejay Surrendra Park Hotels Limited , a prominent player in the Indian hospitality sector, has made a strategic move to expand its presence in Goa. The company recently executed a long-term lease agreement for Casa De Katson, a fully furnished and operational hotel property located in Bardez, Goa.

Key Details of the Lease Agreement

Strategic Implications

This lease agreement marks a significant step for Apeejay Surrendra Park Hotels Limited in strengthening its foothold in the lucrative Goan hospitality market. By taking over the operations of Casa De Katson, the company is poised to leverage its expertise in hotel management and brand reputation to potentially enhance the property's performance.

Property Overview

Casa De Katson is described as a fully furnished and operational hotel, suggesting that Apeejay Surrendra Park Hotels can begin operations swiftly without significant additional investment in infrastructure or furnishings. The property's 42 rooms, along with associated facilities, provide a substantial capacity for the company to cater to tourists and business travelers in Goa.

Operational Control

Under the terms of the agreement, Apeejay Surrendra Park Hotels has secured full operational and commercial rights for the leased property. This arrangement allows the company to implement its own brand standards and operational practices, potentially leading to synergies with its existing portfolio of hotels.

Market Implications

This move by Apeejay Surrendra Park Hotels reflects the company's confidence in the recovery and growth potential of the hospitality sector, particularly in popular tourist destinations like Goa. The long-term nature of the lease (12 years) also indicates a strategic, long-term commitment to expanding the company's presence in key markets.

As the hospitality industry continues to rebound from the impacts of the global pandemic, strategic expansions like this could position Apeejay Surrendra Park Hotels favorably to capture increasing domestic and international tourism demand in Goa.

Investors and industry observers will likely be watching closely to see how this new addition to Apeejay Surrendra Park Hotels' portfolio performs and contributes to the company's overall growth strategy in the coming years.

Apeejay Surrendra Park Hotels Limited (ASPHL) has reported its best-ever second quarter performance for Q2, with robust growth across key financial metrics. The company's focus on organic growth capabilities and strategic expansion has yielded impressive results in a traditionally softer quarter for the hospitality industry.

Financial Highlights

• Revenue increased by 16.8% year-on-year to INR 165.00 crore
• Operating EBITDA grew by 14.9% to INR 49.00 crore
• EBITDA margin stood at 30.00%

Operational Performance

ASPHL maintained its industry-leading position with exceptional operational metrics:

• Occupancy rate of 93.00%, among the highest in the industry
• Average Room Rate (ARR) grew by 13.00% year-on-year
• Revenue Per Available Room (RevPAR) increased by 11.90%

Key Developments

• Completed the strategic acquisition of a 90% stake in Zillion Hotels for approximately INR 206.00 crore, marking ASPHL's entry into the Mumbai market
• Plans to develop an 80-room super luxury boutique hotel in Juhu, Mumbai
• On track to achieve the target of 50 operational hotels by the end of FY26

Expansion and Future Outlook

ASPHL continues to focus on both organic and inorganic growth strategies:

• Expected to add nearly 600 rooms across ownership, lease, and management models during FY26
• Over 400 rooms to be added through new management contracts, reflecting the company's asset-light strategy
• Portfolio set to expand from 36 hotels with 2,436 keys to around 50 hotels with nearly 3,000 keys

Brand Recognition

The company's luxury properties have gained significant international recognition:

• Ran Baas The Palace, Patiala awarded the Michelin One Key
• The Lotus Palace Chettinad featured in Travel + Leisure's 100 best new hotels list

Flurys Expansion

ASPHL's iconic bakery and cafe brand, Flurys, continues its growth trajectory:

• 102 operational outlets as of the earnings call date
• 22.00% topline growth in Q2
• Plans to expand to 130 stores by the end of FY26

Vijay Dewan, Managing Director of ASPHL, commented on the performance: "The second quarter marked our best ever second quarter, a period of accelerated momentum and sustained growth. At the operating level, we have delivered strong high-teen revenue expansion and mid-teen EBITDA growth, reaffirming the strength of our strategy and our brand."

Looking ahead, ASPHL remains optimistic about the industry's growth prospects, citing a significant demand-supply mismatch in the Indian hospitality sector. The company expects to maintain its growth trajectory, leveraging its strong presence in key metro markets and focusing on enhancing organic growth capabilities through technological advancements and strategic initiatives.

As India's hospitality industry enters what ASPHL believes to be a "super cycle" of growth, the company is well-positioned to capitalize on the expanding market opportunities while maintaining its focus on operational excellence and value creation for stakeholders.