Royal Orchid Hotels Limited has reported a strong start to the fiscal year, with consolidated revenue growing 8% year-over-year to INR 78.80 crores in the first quarter. The hospitality company also announced the soft launch of its new upscale lifestyle brand, Iconiqa, in Mumbai.

Financial Performance

The company's EBITDA increased by 11% to INR 23.70 crores, while profit after tax before exceptional items rose significantly by 28% to INR 11.20 crores from INR 8.70 crores in the same quarter last year. This growth was driven by improvements across various revenue streams:

• Room revenue: Up 6%
• Food and Beverage (F&B) revenue: Increased by 7%
• Other services revenue: Grew by 24%

Operational Metrics

Royal Orchid's Joint Lease Operated (JLO) hotels maintained a steady average occupancy of 69%. The Average Room Rate (ARR) for these properties improved by 6% to INR 5,488 from INR 5,168 in the previous year. Managed hotels also saw an increase in ARR, reaching INR 4,031 compared to INR 3,823 last year, marking a 5.5% growth.

Expansion and Brand Strategy

The company has expanded its portfolio to 118+ hotels across India, with a total of 9,605 keys. This includes:

Royal Orchid is consolidating its brand architecture under five key brands:

1. Regenta Z: Economy segment, tech-driven budget hotels
2. Regenta Place: Vibrant rooms with some F&B options
3. Regenta Hotels and Resorts: Traditional four-star hotels
4. Crestoria: Unique boutique hotels focused on experiences
5. Iconiqa: Upscale lifestyle hotels

Iconiqa Mumbai Launch

The company has soft-launched its new Iconiqa property in Mumbai, featuring 291 keys. This hotel is expected to generate INR 65-70 crores in revenue during its first eight months of operation. Some unique features of Iconiqa Mumbai include:

• In-room smart laundry closets
• Non-alcoholic mini-bars
• Espresso machines with unique blends in all rooms
• Four distinct F&B offerings
• A rooftop day club with the largest swimming pool and Jacuzzi in Mumbai

Vision 2030

Royal Orchid has set ambitious targets for Vision 2030:

• Triple hotel count from 115 to 345 properties
• Grow keys from 9,605 to 22,000

The company aims to achieve these goals through its asset-light expansion model while maintaining a 19%+ Return on Capital Employed (ROCE) at the company level.

Challenges and Outlook

Despite the overall positive performance, Royal Orchid faced some challenges during the quarter:

• Geopolitical situations affecting tourism in North India
• Taxi issues in Goa impacting business
• Increased competition from reopened international destinations like Thailand and Sri Lanka

Looking ahead, the company projects a non-IndAS profit of INR 75.00 crores for FY27 and expects margins to improve significantly. Royal Orchid remains focused on its growth strategy, leveraging its brand consolidation and asset-light model to expand its presence in the Indian hospitality market.

Chander K. Baljee, Chairman and Managing Director, commented, "This is more than incremental progress. This is a gear shift. We are entering a phase of compounding growth where scalability, technology, and unforgettable guest experience will define us."

As Royal Orchid Hotels continues to execute its growth plans and brand strategy, investors and industry observers will be watching closely to see how the company navigates the evolving hospitality landscape in India.

Royal Orchid Hotels Ltd. (ROHL), one of India's fastest-growing hospitality groups, has announced robust financial results for the first quarter of fiscal year 2026, demonstrating continued momentum in its growth strategy.

Financial Highlights

For Q1 FY26, ROHL reported:

• Consolidated income of ₹82.80 crore, up 6.6% year-over-year
• Standalone income of ₹48.46 crore
• Consolidated profit after tax (PAT) of ₹11.19 crore, a significant 28.4% increase from the previous year
• Earnings per share (EPS) of ₹3.99, compared to ₹3.21 in Q1 FY25

Expansion and Portfolio Growth

The company has made significant strides in expanding its presence across India:

• ROHL now operates over 118 properties across India, Sri Lanka, and Nepal
• The group added two new properties in Q1 FY26:
  1. Regenta Bharti Resort in Urulikanchan, Pune (70 keys)
  2. Regenta Waterfront Resort in Dapoli (75 keys)
• Over 2,500 additional keys are in the pipeline for the next nine months

Strategic Focus

Mr. Chander K. Baljee, Chairman & Managing Director of Royal Orchid Hotels, commented on the results: "This quarter's performance reinforces our strong growth momentum and the trust our guests and stakeholders place in us. With over 2,500+ additional keys in the pipeline over the next nine months, we are well-positioned to capture emerging opportunities and drive sustained value creation."

The company's growth strategy includes:

• Expanding the Regenta brand, which now operates across 80+ locations in India
• Focusing on asset-light management contracts and franchising to scale efficiently
• Introducing new lifestyle brands and destination-focused resorts

Looking Ahead

Royal Orchid Hotels aims to expand its portfolio to over 150 properties by 2028, pursuing growth through asset-light management contracts. The company is focusing on premium and mid-market segments, forming strategic alliances, and capitalizing on rising domestic travel demand to drive sustainable revenue growth.

With its strong Q1 performance and ambitious expansion plans, Royal Orchid Hotels continues to strengthen its position in the Indian hospitality sector, offering a diverse range of properties catering to various traveler preferences across the country.