Royal Orchid Hotels Limited has reported a robust performance for the second quarter, with consolidated revenue reaching ₹86.8 crores, marking a 10.7% year-on-year increase. The company's EBITDA stood at ₹20.8 crores, reflecting a 7% growth compared to the same period last year.

Key Financial Highlights

ICONIQA Mumbai Launch

A significant milestone for Royal Orchid Hotels this quarter was the successful launch of its ICONIQA Mumbai hotel. The 292-key lifestyle property, located at Mumbai's T2 airport, was delivered ahead of schedule, showcasing the company's execution capabilities. Arjun Baljee, President of Royal Orchid Hotels, highlighted the hotel's positive reception, stating, "As of today, we are ranked #3 out of the Mumbai hotels. For a hotel to be open for a little under two months and to already be ranked #3, we are very, very proud of this."

Expansion and Future Outlook

Royal Orchid Hotels continues to pursue an aggressive growth strategy:

• The company now operates 119+ hotels with 7,437 operational rooms across 80 cities.
• It aims to triple its portfolio to 345 hotels by 2030 through an asset-light expansion model.
• The management has outlined plans for several new properties, including:
  • A 120-key hotel in Gurgaon Sector 20
  • A 172-room property in Lucknow
  • A North Goa asset in Dodamarg under the Regenta Resort brand
  • A boutique 40-key Crestoria hotel

Financial Projections

While specific guidance wasn't provided, management expressed confidence in achieving their previously communicated targets. For the next fiscal year, the company is targeting revenues in the range of ₹450 crores.

Challenges and Strategies

The company acknowledged some challenges, including:

• Lower occupancy rates in Q2 (67%) compared to the previous year (70%), attributed to weather conditions and market-specific issues.
• Increased competition for talent in the hospitality sector, leading to higher employee costs.

To address these challenges and drive growth, Royal Orchid Hotels is:

• Implementing AI and technology solutions to improve efficiency and reduce costs.
• Revamping its F&B offerings to stay competitive with standalone restaurants.
• Focusing on strategic acquisitions to accelerate growth.

Chander K Baljee, Chairman and Managing Director, concluded, "We are building a hospitality ecosystem that blends Indian warmth with global efficiency, greater intelligence, seamless, delightful experience for every guest. A future of scalable, sustainable, and high confidence growth."

Royal Orchid Hotels' strong performance and strategic initiatives position it well for continued growth in the competitive hospitality sector. Investors will be watching closely to see if the company can maintain its momentum and achieve its ambitious expansion goals.

Royal Orchid Hotels has announced a significant expansion of its presence in Punjab with the signing of a new 51-key Regenta Resort in Bathinda. This move aligns with the company's strategy to strengthen its foothold in key regional centers and Tier-II cities with strong tourism and business potential.

Resort Details

The new property, developed in partnership with Firdaus Hotels Pvt. Ltd., will operate under a Management Agreement. Here are the key details of the resort:

Amenities

The resort is designed to cater to both leisure and business travelers, offering a range of facilities:

• Multi-cuisine restaurant and bar
• Swimming pool
• Gymnasium
• Spa and wellness facilities
• Banquet halls
• Two expansive lawns for events

Strategic Importance

Bathinda, known for its historic significance and growing industrial and agricultural prominence in the Malwa region, is emerging as a key market for both leisure and business travel in North India. The city's improved infrastructure, expanding road connectivity, and rising economic activity make it an attractive location for hospitality expansion.

Management Perspective

Mr. Arjun Baljee, President of Royal Orchid & Regenta Hotels, commented on the expansion, stating, "Bathinda is emerging as one of Punjab's most promising cities, with strong growth in both tourism and commerce. With the signing of this 51-key resort, we are deepening our presence in the state and continuing to bring our brand of reliable, contemporary hospitality to new markets."

Company Overview

Royal Orchid Hotels is one of India's fastest-growing hotel chains, operating over 110 hotels across the country. The company primarily focuses on 5-star, 4-star, and resort properties, targeting discerning business and leisure travelers. Royal Orchid Hotels aims to become the preferred hotel chain for discerning global travelers.

This expansion in Bathinda reinforces Royal Orchid's commitment to growth and its strategy of tapping into the potential of emerging markets in India's hospitality sector.