Royal Orchid Hotels Limited (ROHL) has announced a significant expansion of its presence in Central India with the signing of a new agreement for a property in Jabalpur, Madhya Pradesh. This strategic move aligns with the company's aggressive growth plans and its focus on tapping into emerging markets.

New Property Details

The upcoming property, named Regenta Resort Jabalpur, will be a 54-key resort developed in partnership with TRIUMPH DEVCON & TRADING PRIVATE LIMITED. Operating under a management agreement, this new addition to ROHL's portfolio is designed to cater to both leisure and business travelers.

Strategic Location and Facilities

Regenta Resort Jabalpur boasts a prime location, situated just 5 km from the railway station and 18 km from the airport, with direct access to the national highway. The resort will offer a range of amenities, including:

• Multi-cuisine restaurant
• Bar
• Gym
• Spa
• Swimming pool

For events and gatherings, the property features:

• Three banquet halls (7,000 sq. ft., 3,500 sq. ft., and 3,500 sq. ft.)
• Two expansive lawns spread over 40,000 sq. ft.

These facilities make the resort an ideal venue for destination weddings, corporate offsites, and large social gatherings.

Expansion Strategy

Arjun Baljee, President of Royal Orchid Hotels Ltd., commented on the signing: "Jabalpur is at an exciting turning point. It's a city with deep cultural roots and growing business importance. With this property, we're tapping into that potential. At Royal Orchid Hotels, we've always believed in identifying emerging markets and delivering dependable hospitality experiences. This signing is another step in that direction, and we're delighted to bring Regenta's service promise to Jabalpur."

This expansion reflects ROHL's strategy to scale aggressively without owning physical assets while maintaining its commitment to providing quality hospitality in high-potential, underexplored markets.

Jabalpur's Growing Importance

Jabalpur, known for attractions like Dhuandhar Falls and Marble Rocks, is emerging as a dynamic growth center in Central India. The city's improving infrastructure, better connectivity to metros, and its role as a defense and administrative hub have led to increased demand for quality hospitality services.

Partnership Perspective

Mrs. Tavinder Gujral, representing the development partners, expressed pride in the collaboration, stating, "We are proud to collaborate with Royal Orchid Hotels to introduce Regenta to Jabalpur. Together, we want to create a property that blends comfort, reliability, and the signature warmth the brand is known for."

About Royal Orchid & Regenta Hotels

Royal Orchid Hotels Limited is one of India's fastest-growing hotel chains, operating over 110 hotels across the country. The company focuses on 5-star, 4-star, and resort properties, catering to discerning business and leisure travelers. The 'Regenta' brand, an extension of the Royal Orchid Hotel Group, is designed to offer convenience and affordability to travelers, encompassing various categories including Regenta, Regenta Central, Regenta Resort, Regenta Place, and Regenta Inn.

This new agreement in Jabalpur marks another milestone in Royal Orchid Hotels' expansion strategy, strengthening its presence in Central India and reaffirming its commitment to growth in emerging markets.

Royal Orchid Hotels Limited has reported a strong start to the fiscal year, with consolidated revenue growing 8% year-over-year to INR 78.80 crores in the first quarter. The hospitality company also announced the soft launch of its new upscale lifestyle brand, Iconiqa, in Mumbai.

Financial Performance

The company's EBITDA increased by 11% to INR 23.70 crores, while profit after tax before exceptional items rose significantly by 28% to INR 11.20 crores from INR 8.70 crores in the same quarter last year. This growth was driven by improvements across various revenue streams:

• Room revenue: Up 6%
• Food and Beverage (F&B) revenue: Increased by 7%
• Other services revenue: Grew by 24%

Operational Metrics

Royal Orchid's Joint Lease Operated (JLO) hotels maintained a steady average occupancy of 69%. The Average Room Rate (ARR) for these properties improved by 6% to INR 5,488 from INR 5,168 in the previous year. Managed hotels also saw an increase in ARR, reaching INR 4,031 compared to INR 3,823 last year, marking a 5.5% growth.

Expansion and Brand Strategy

The company has expanded its portfolio to 118+ hotels across India, with a total of 9,605 keys. This includes:

Royal Orchid is consolidating its brand architecture under five key brands:

1. Regenta Z: Economy segment, tech-driven budget hotels
2. Regenta Place: Vibrant rooms with some F&B options
3. Regenta Hotels and Resorts: Traditional four-star hotels
4. Crestoria: Unique boutique hotels focused on experiences
5. Iconiqa: Upscale lifestyle hotels

Iconiqa Mumbai Launch

The company has soft-launched its new Iconiqa property in Mumbai, featuring 291 keys. This hotel is expected to generate INR 65-70 crores in revenue during its first eight months of operation. Some unique features of Iconiqa Mumbai include:

• In-room smart laundry closets
• Non-alcoholic mini-bars
• Espresso machines with unique blends in all rooms
• Four distinct F&B offerings
• A rooftop day club with the largest swimming pool and Jacuzzi in Mumbai

Vision 2030

Royal Orchid has set ambitious targets for Vision 2030:

• Triple hotel count from 115 to 345 properties
• Grow keys from 9,605 to 22,000

The company aims to achieve these goals through its asset-light expansion model while maintaining a 19%+ Return on Capital Employed (ROCE) at the company level.

Challenges and Outlook

Despite the overall positive performance, Royal Orchid faced some challenges during the quarter:

• Geopolitical situations affecting tourism in North India
• Taxi issues in Goa impacting business
• Increased competition from reopened international destinations like Thailand and Sri Lanka

Looking ahead, the company projects a non-IndAS profit of INR 75.00 crores for FY27 and expects margins to improve significantly. Royal Orchid remains focused on its growth strategy, leveraging its brand consolidation and asset-light model to expand its presence in the Indian hospitality market.

Chander K. Baljee, Chairman and Managing Director, commented, "This is more than incremental progress. This is a gear shift. We are entering a phase of compounding growth where scalability, technology, and unforgettable guest experience will define us."

As Royal Orchid Hotels continues to execute its growth plans and brand strategy, investors and industry observers will be watching closely to see how the company navigates the evolving hospitality landscape in India.