Viceroy Hotels Limited (VHL) has announced an ambitious renovation and expansion plan worth over ₹100 crore, even as the company reported a decline in revenue for the first quarter. The Hyderabad-based hospitality firm aims to enhance its premium offerings and boost long-term profitability through strategic upgrades and a new development project.

Expansion and Renovation Plans

VHL has outlined a comprehensive three-phase renovation strategy for its existing properties:

• Phase I: Upgrading 56 guest rooms at Courtyard by Marriott, developing a full-fledged spa with 7 rooms and a gym on the 8th floor, and creating a rooftop bar with 70 covers overlooking a swimming pool with views of Hussain Sagar lake.
• Phase II: Renovating 168 guest rooms at Marriott to feature contemporary designs and modern bathrooms, along with upgrading the Convention Centre to a total space of 20,000 sq ft.
• Phase III: Upgrading 4 F&B outlets and the Executive Lounge at Marriott, enhancing the Marriott Lobby, renovating 127 additional guest rooms, and converting Altitude into a high-end Pan Asian Restobar.

The company expects to complete these expansions by Q3 FY26, signaling a strong commitment to improving its offerings and guest experience.

New Courtyard Project

In addition to the renovations, Viceroy Hotels has announced plans for a new 200-room Courtyard project in Madhapur. This greenfield development, spanning 7,000 square yards, underscores the company's growth ambitions in the competitive Hyderabad market.

Q1 FY26 Financial Performance

Despite the forward-looking plans, VHL's Q1 FY26 financial results revealed some challenges:

• Revenue from operations decreased to ₹25.37 crore, down 6.37% from ₹27.10 crore in Q1 FY25.
• EBITDA declined by 13.58% to ₹4.82 crore, compared to ₹5.58 crore in the same quarter last year.
• The company reported a net loss of ₹3.02 crore, a significant drop from a profit of ₹1.72 crore in Q1 FY25.

The company attributed the revenue decline primarily to limited inventory availability at Courtyard by Marriott due to ongoing renovations.

Operational Metrics

VHL's operational metrics for Q1 FY26 showed mixed results:

• Combined Average Daily Rate (ADR) increased by 14.7% to ₹6,952.
• Overall occupancy rate decreased to 54.9% from 63.0% in Q1 FY25.
• Revenue Per Available Room (RevPAR) remained relatively flat at ₹3,814.

Management Commentary

Mr. Ravinder Reddy Kondareddy, Managing Director & CEO of Viceroy Hotels Limited, commented on the results and future outlook: "We continue to execute our expansion strategy in a phased and disciplined manner. The development of our new greenfield hotel project at Madhapur is progressing as planned. In parallel, we are actively evaluating select assets that align with our growth vision and can be value-accretive over the long term."

He added, "We expect to complete the phase I expansion by Q3 FY26. This includes 56 additional rooms at Courtyard by Marriott which are expected to command higher Average Daily Rates (ADR), and the financial contribution from these rooms is expected to begin reflecting in our revenue from Q3 FY26."

Looking Ahead

As Viceroy Hotels Limited navigates through its extensive renovation and expansion plans, the company appears focused on long-term growth and improved profitability. The strategic upgrades and new developments are poised to strengthen VHL's position in the premium hospitality segment, particularly in the Hyderabad market. However, short-term financial pressures may persist as the company invests in these improvements and manages the impact of ongoing renovations on its current operations.

Investors and industry observers will be keenly watching how quickly these investments translate into improved financial performance and market share for Viceroy Hotels in the coming quarters.

Viceroy Hotels Limited (VHL) has announced a significant change in its statutory auditors, as approved by the company's Board of Directors on August 8, 2025. The board has accepted the resignation of M/s. Deva & Co. and appointed M/s. MSKC & Associates LLP as the new statutory auditors for a five-year term.

Resignation of M/s. Deva & Co.

M/s. Deva & Co., Chartered Accountants, have stepped down from their role as statutory auditors of Viceroy Hotels Limited. The firm cited internal reallocation of audit resources and strategic priorities as the primary reasons for their resignation. Their tenure, which began on September 9, 2024, was originally scheduled to conclude at the 63rd Annual General Meeting in 2028.

In their resignation letter, M/s. Deva & Co. confirmed that there were no material concerns or circumstances that needed to be brought to the attention of the company's shareholders or creditors. The outgoing auditors will complete their responsibilities by issuing the limited review report for the quarter ended June 30, 2025.

Appointment of MSKC & Associates LLP

The Board of Directors has appointed M/s. MSKC & Associates LLP (formerly known as MSKC & Associates) as the new statutory auditors of Viceroy Hotels Limited. The appointment is subject to shareholder approval at the upcoming Annual General Meeting. The key details of the appointment are as follows:

• Term: Five financial years, from the 60th Annual General Meeting in FY 2025-26 to the 64th AGM in FY 2029-30
• Effective Date: August 8, 2025

About MSKC & Associates LLP

MSKC & Associates LLP is a Limited Liability Partnership registered with the Institute of Chartered Accountants of India (ICAI) and the Ministry of Corporate Affairs. The firm has a strong presence across five major cities in India: Chennai, Mumbai, Bengaluru, Hyderabad, and Gurugram.

Key highlights of MSKC & Associates LLP include:

• Holds a peer review certificate
• Primarily focuses on providing audit and assurance services
• Possesses significant experience across various industries, markets, and geographies

Financial Performance

In addition to the auditor change, Viceroy Hotels Limited has reported its unaudited financial results for the quarter ended June 30, 2025:

The company reported a net loss of ₹302.32 lakhs for Q1 FY2025-26, compared to a net profit of ₹171.75 lakhs in the same quarter of the previous year.

Other Board Decisions

The Board of Directors also approved several other matters during their meeting:

1. The 60th Annual General Meeting is scheduled for September 8, 2025, to be held through video conference or other audio-visual means.
2. M/s. S.S. Reddy & Associates, Practicing Company Secretaries, have been appointed as scrutinizers for the Annual General Meeting.
3. The Corporate Social Responsibility Committee and Risk Management Committee have been reconstituted.

These changes mark a significant transition for Viceroy Hotels Limited as it moves forward with new auditors and prepares for its upcoming Annual General Meeting.