Brigade Hotel Ventures Limited (BHVL) has reported a strong financial performance for the second quarter of fiscal year 2026, with plans for significant expansion in the coming years. The company, which currently operates nine hotels with 1,600 keys, aims to double its portfolio over the next five years.

Financial Highlights

BHVL's Q2 FY26 results showcase robust growth:

The company's EBITDA growth was impacted by an additional property tax expense of INR 6.00 crores. Excluding this, operational EBITDA would have registered a 25% growth year-on-year.

Operational Performance

BHVL's hotels, particularly in Bangalore, delivered strong performance:

• Average Room Rate (ARR) grew by 19%
• Average occupancy reached 75.6%
• Revenue Per Available Room (RevPAR) increased by 14% year-on-year

The company's Gift City property also showed impressive growth, with ARR and RevPAR increasing by 23% and 16% respectively.

Expansion Plans

BHVL has announced ambitious expansion plans:

• Addition of approximately 1,700 keys over the next five years
• Total capex investment of INR 3,600.00 crores

Key upcoming projects include:

• Courtyard by Marriott in Chennai World Trade Centre
• Two Fairfield by Marriott hotels in Bangalore
• Grand Hyatt Chennai on ECR
• InterContinental Hotel in Hyderabad
• Ritz-Carlton Wellness Resort in Vaikom, Kerala
• JW Marriott in Chennai
• Marriott in Thiruvananthapuram
• An upscale hotel near Tumkur Road in Bangalore

Strategic Initiatives

The company is focusing on enhancing guest experiences and driving F&B revenue:

• Relaunched the signature restaurant 'By The Blue' at Grand Mercure Bangalore
• Renovation underway for the bar at Grand Mercure Gift City
• Plans to introduce new Pan-Asian restaurants

BHVL is also committed to sustainability, with nearly 60% of its energy coming from renewable sources. Some hotels have achieved over 90% renewable energy usage.

Outlook

Management expects the growth momentum to continue in H2 FY26, supported by:

• Robust corporate demand
• Festival travel
• Longer leisure stays
• Wedding season

With a strong pipeline of projects and a focus on operational excellence, Brigade Hotel Ventures Limited appears well-positioned for continued growth in the Indian hospitality sector.

Recent Awards

The company's Sheraton Grand Bangalore at Brigade Gateway received two prestigious awards from SATA for:

1. Leading City Hotel
2. Leading Meeting and Conference Hotel

Additionally, the hotel's General Manager was honored at the ET F&B Achiever Conclave 2025 by the Times of India.

As the Indian hospitality sector continues to recover and grow, BHVL's strategic expansion and focus on premium properties could potentially lead to enhanced market presence and financial performance in the coming years.

Brigade Hotel Ventures Limited (BHVL), the hospitality arm of the Brigade Group, has reported robust financial results for the second quarter of fiscal year 2026, showcasing significant growth and ambitious expansion plans.

Financial Highlights

For Q2 FY26, BHVL registered:

• Total revenue of ₹130.00 crore, up 20% year-over-year (YoY)
• Profit After Tax (PAT) of ₹11.00 crore, a substantial 58% increase YoY
• EBITDA of ₹41.00 crore, growing 9% YoY

The company's performance was driven by strong operational metrics:

• Average Room Rate (ARR) increased 14% YoY to ₹7,106.00
• Revenue Per Available Room (RevPAR) rose 13% YoY to ₹5,374.00
• Healthy occupancy rate of 75.6%

Segment Performance

• Room revenue stood at ₹79.00 crore in Q2 FY26
• Food & Beverage (F&B) revenue reached ₹42.00 crore, a 14% growth YoY

Geographical Performance

Bengaluru continued to lead BHVL's performance:

• ARR up 19% YoY to ₹8,738.00
• RevPAR increased to ₹6,807.00 from ₹5,959.00 in Q2 FY25

Expansion Plans

BHVL announced plans to invest approximately ₹3,600.00 crore to open 9 new hotels, aiming to double its portfolio to 18 hotels with about 3,300 rooms by FY30. This strategic expansion is set to strengthen the company's footprint in high-potential geographies.

Management Commentary

Nirupa Shankar, Managing Director of BHVL, stated, "Our continued focus on enhancing ARR and driving higher RevPAR has yielded strong results. We are committed to strengthening our footprint in high-potential geographies, backed by a healthy pipeline of new keys and robust brand partnerships."

Future Outlook

The company expects 45 new keys to become operational in FY27, marking the beginning of its expansion phase. BHVL's emphasis remains on driving RevPAR growth through enhanced pricing strategies, guest experience, and asset optimization.

Conclusion

Brigade Hotel Ventures' strong Q2 FY26 performance, coupled with its ambitious expansion plans, positions the company for significant growth in the coming years. The planned investment of ₹3,600.00 crore to double its portfolio by FY30 demonstrates BHVL's confidence in the Indian hospitality sector's potential and its own ability to capitalize on market opportunities.

As the company continues to focus on strategic growth, operational excellence, and market expansion, investors and industry observers will be keenly watching BHVL's execution of these plans and their impact on future financial performance.