Asian Hotels (North) Reports INR 5,352.72 Crore Net Loss in Q2, Approves Preferential Equity Issue

Asian Hotels (North) , the owner of Hotel Hyatt Regency Delhi, has reported a significant net loss of INR 5,352.72 crore for the quarter ended September 30. This marks a substantial increase from the INR 2,656.28 crore loss reported in the same period last year, highlighting the ongoing financial challenges faced by the hospitality sector.

Financial Performance

The company's financial results for Q2 reveal a complex picture:

Particulars	Q2 (INR in lakhs)	Q2 Previous Year (INR in lakhs)
Total Income	8,423.74	7,813.24
Total Expenses	10,255.44	10,152.77
Loss before Exceptional Items and Tax	(1,831.70)	(2,339.53)
Exceptional Items	5,674.02	-
Net Loss	(6,352.71)	(5,196.28)

Despite a slight increase in total income, the company's expenses remained high, resulting in a loss before exceptional items and tax of INR 1,831.70 lakhs. The recognition of exceptional items, primarily interest charges including penal interest amounting to INR 5,674.02 lakhs, significantly impacted the bottom line.

Borrowing Defaults and Equity Issue

Asian Hotels (North) has defaulted on repayments of both principal and interest on its borrowings. As of September 30, the outstanding defaults amount to:

Principal: INR 58,997.32 lakhs
Interest: INR 17,327.42 lakhs (including penal interest of INR 5,674.02 lakhs)

In response to these financial challenges, the company has taken a significant step. On November 8, an Extra-Ordinary General Meeting was held where shareholders approved a preferential equity issue amounting to INR 76,494.00 lakhs. The proceeds from this issue are intended to be utilized for the repayment of the outstanding borrowings.

Going Concern and Future Outlook

Despite the current financial difficulties, Asian Hotels (North) has prepared its financial results on a going concern basis. The company cites expectations of significant improvements in operating performance and the implementation of cost-reduction measures as reasons for this approach. The management's plan for repayment of borrowings through the newly approved equity issue also supports this stance.

Corporate Restructuring

The company has undergone some corporate restructuring:

Voluntary liquidation of foreign subsidiaries: Fineline Hospitality & Consultancy Pte Ltd, Mauritius and Lexon Hotels Venture Ltd., Mauritius.
Incorporation of a new subsidiary: AHNL Realty Private Limited, though control is pending due to incomplete share acquisition.

As a result of these changes, Asian Hotels (North) is not required to present consolidated financial results for the quarter ended September 30.

The hospitality sector continues to face challenges, and Asian Hotels (North)'s financial results reflect these industry-wide pressures. The company's efforts to address its debt through a new equity issue and its focus on improving operational performance will be crucial in navigating the current economic landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.52%	+1.64%	-1.75%	-7.93%	+80.64%	+461.69%

Asian Hotels (North) Limited, a prominent player in the hospitality sector, recently held an Extraordinary General Meeting (EGM) that saw the passage of two significant resolutions. The meeting, conducted through video conferencing on November 8, 2025, marked important decisions for the company's future.

Key Resolutions Passed

The EGM, which commenced at 11:30 AM and concluded at 12:11 PM, saw robust participation from shareholders. Two resolutions were put to vote:

Increase in Authorized Share Capital: An ordinary resolution to increase the authorized share capital and amend the capital clause of the memorandum of association.
Issuance of Equity Shares: A special resolution for the issuance of equity shares on a preferential basis.

Both resolutions received overwhelming support from the shareholders, with over 99% votes cast in favor.

Shareholder Participation and Voting Results

The meeting witnessed significant engagement from public shareholders:

Particular	Details
Total Shareholders	9,958
Public Shareholders Present	71
Shares Represented	16,03,975

The voting results for the resolutions were as follows:

Resolution	Type	Votes in Favor	Votes Against
Increase in Authorized Share Capital	Ordinary	99.97%	0.03%
Issuance of Equity Shares on Preferential Basis	Special	99.96%	0.04%

Corporate Governance and Compliance

The EGM was conducted in compliance with the applicable provisions of the Companies Act, 2013, and relevant circulars issued by the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI). The company ensured transparency by appointing M/s. Chandrasekaran Associates as the scrutinizer for the e-voting process.

Management Presence

The meeting was attended by key management personnel, including:

Mr. Arjun Raghavendra Murlidharan (Chairman & Independent Director)
Dr. Arun Gopal Agarwal (CEO & Executive Director)
Mr. Krishna Kumar Acharya (Executive Director)
Dr. Sharad Sharma (Whole Time Director)
Other independent directors and key executives

Implications for Investors

The passage of these resolutions signals potential strategic moves by Asian Hotels (North) Limited. The increase in authorized share capital could pave the way for future fundraising activities, while the approval for issuing equity shares on a preferential basis might indicate plans for targeted capital infusion or strategic partnerships.

Investors and market watchers may keep a close eye on how the company utilizes these newly granted authorizations to drive growth and enhance shareholder value in the competitive hospitality sector.

Asian Hotels (North) Limited may provide further announcements detailing the specifics of the share capital increase and the terms of the preferential share issuance in the coming weeks.