Oriental Hotels Limited (OHL) has received a significant boost as Care Ratings Limited upgraded its long-term bank facilities rating to CARE AA- Stable from CARE A+ Stable. This upgrade reflects the company's sustained improvement in its business risk profile and the near completion of multi-year renovation programs across key properties.

Driving Factors Behind the Upgrade

The upgrade is primarily attributed to:

1. Enhanced average room rates (ARR) and revenue per available room (RevPAR)
2. Robust revenue growth of 12% year-on-year, reaching ₹440.00 crore
3. Projected revenue to hit ₹500.00 crore over the medium term

Financial Performance

OHL's financial performance has shown remarkable improvement:

Despite a slight dip in net profit, the company has maintained strong operational performance, with improved revenue and EBITDA figures.

Strategic Renovations and Future Outlook

The company's multi-year renovation program, nearing completion, is expected to drive further growth:

• Renovations at key properties including Taj Malabar Cochin, Taj Coromandel's ballroom, Gateway Coonoor, and Gateway Madurai
• These upgrades are anticipated to boost ARR and RevPAR in the coming years

Balance Sheet Strength

OHL's balance sheet remains robust:

The company's growing asset base and strengthening shareholder's capital position it well for future growth.

Cash Flow and Operational Efficiency

OHL has demonstrated improved cash flow management:

The positive growth in cash flow from operating activities indicates improved operational efficiency.

Conclusion

Oriental Hotels Limited's credit rating upgrade reflects its strengthening business fundamentals and successful renovation strategy. With improved financial metrics and a positive outlook for the hospitality sector, OHL is well-positioned for sustained growth in the medium term. Investors and stakeholders may view this upgrade as a positive indicator of the company's financial health and future prospects.

Oriental Hotels Limited has announced a significant development in its wholly-owned subsidiary, OHL International (HK) Limited. The subsidiary has allotted 63,000 equity shares, marking a notable corporate action that could impact the company's financial structure.

Key Details of the Share Allotment

Background and Implications

This share allotment follows a previous communication from Oriental Hotels Limited dated October 23, 2025, which provided an update on an acquisition. The current disclosure, made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, suggests that this action may be part of a broader strategic move by the company.

The premium pricing of the shares, issued at USD 28.00 against a face value of USD 10.00, indicates a positive valuation of the subsidiary. This could potentially reflect confidence in the company's future prospects or the strategic importance of the ongoing acquisition process.

Regulatory Compliance

Oriental Hotels Limited has promptly informed the National Stock Exchange of India Ltd. and BSE Ltd. about this development, adhering to the regulatory requirements for listed companies. This transparency in corporate actions helps maintain investor trust and complies with market regulations.

While the specific details of the acquisition mentioned in the previous update are not provided in this disclosure, the share allotment appears to be a step in executing the company's strategic plans. Investors and market analysts may want to keep an eye on further developments related to this acquisition and its potential impact on Oriental Hotels Limited's operations and financial performance.

As the hospitality industry continues to evolve, such corporate actions could play a crucial role in shaping the company's future positioning and market competitiveness. However, the full implications of this share allotment and the related acquisition will likely become clearer as more information becomes available in subsequent company disclosures.