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.

Apeejay Surrendra Park Hotels Limited (ASPHL) has announced its best-ever second quarter performance, marking a period of accelerated momentum and sustained growth for the hospitality chain. The company reported a consolidated revenue of Rs. 167.00 crores for Q2, representing a robust 17% year-over-year increase.

Key Financial Highlights

Operational Performance

ASPHL has maintained its leadership position in the Indian hospitality sector, achieving a high occupancy rate of 93%. This impressive occupancy, coupled with a 13% growth in Average Room Rate and a 12% increase in RevPAR, underscores the company's strong market position and operational efficiency.

Expansion and Acquisitions

The company has made significant strides in its expansion strategy:

• Completed the acquisition of Zillion Hotel at Juhu, Mumbai for Rs. 2.64 crores
• Plans to break ground on a new Kolkata project in January

Brand Portfolio and F&B Performance

ASPHL operates under five distinct brands: THE PARK, THE PARK Collection, Zone by The Park, Zone Connect by The Park, and Stop by Zone. The company's food and beverage segment continues to be a strong contributor to its overall performance, with F&B revenue standing at Rs. 71.00 crores in Q2.

Flurys Retail Business

The company's iconic retail brand 'Flurys' has shown remarkable growth:

• Expanded to 102 outlets
• Achieved 22% topline growth

Management Commentary

Vijay Dewan, Managing Director of ASPHL, commented on the Q2 performance: "This has been our best-ever second quarter — a period of accelerated momentum and sustained growth. We have achieved strong high teen revenue expansion and mid-teen EBITDA growth, reaffirming the strength of our strategy and brand. The result is amplified by attaining India's leading occupancy of 93%, 13% growth in ARR and 12% growth in RevPAR."

Future Outlook

ASPHL's focus remains on improving growth, deepening guest engagement, and creating enduring value for all stakeholders. The company's expansion plans, including the new projects in Mumbai and Kolkata, are expected to further strengthen its market position in the coming years.

Awards and Recognition

The company's properties have received several prestigious awards, including:

• Michelin One Key awarded to Ran Baas, The Palace, Patiala
• Prix Versailles featured Ran Baas, The Palace, Patiala in its global list of World's Most Beautiful Hotels
• The Lotus Palace, Chettinad listed among 100 Best New Hotels of the Year by Travel & Leisure

These accolades further cement ASPHL's reputation as a design-led, experience-driven hospitality group.

As Apeejay Surrendra Park Hotels Limited continues to expand its footprint and enhance its offerings, the company appears well-positioned to capitalize on the growing demand in India's hospitality sector.