Viceroy Hotels Reports Q2 FY26 Results: Renovation Impact and Future Growth Plans
Viceroy Hotels Limited reported Q2 FY26 results with total income of INR 31.86 crores and EBITDA of INR 8.82 crores, maintaining a 27.70% EBITDA margin despite renovation impact. The company is executing a INR 120 crore investment plan across its Marriott and Courtyard properties in Hyderabad. Phase one of renovation is near completion, adding 56 new rooms to Courtyard. ADR improved for both properties, with Marriott at INR 6,620 (9% YoY growth) and Courtyard at INR 6,837 (13% YoY growth). The company plans to expand its convention center and is exploring new property opportunities.
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Viceroy Hotels Limited , a prominent player in Hyderabad's hospitality sector, has released its financial results for the second quarter of fiscal year 2026, showcasing resilience amidst ongoing renovation work at its Courtyard property.
Financial Highlights
For Q2 FY26, Viceroy Hotels reported:
- Total income: INR 31.86 crores
- EBITDA: INR 8.82 crores
- EBITDA margin: 27.70%
The company's performance reflects its ability to maintain strong margins despite the impact of renovation activities on occupancy rates at the Courtyard property.
Renovation Progress and Impact
Viceroy Hotels is currently executing a phased INR 120 crore investment plan across its Marriott and Courtyard properties in Hyderabad. The renovation project includes:
- Addition of 56 new rooms at the Courtyard property
- Upgrades to existing facilities
- Expansion of convention center space
The company reported that phase one of the renovation is nearing completion, with the 56 new rooms at Courtyard already operational. This expansion brings the total room inventory across both properties to 463 rooms.
Occupancy and ADR Trends
While the ongoing renovation work has impacted occupancy rates at the Courtyard property, the company has seen improvements in Average Daily Rate (ADR):
| Property | ADR (INR) | Year-on-Year Growth |
|---|---|---|
| Marriott | 6,620.00 | 9% |
| Courtyard | 6,837.00 | 13% |
The company expects occupancy levels to improve once the renovations are completed.
Future Outlook
Viceroy Hotels remains optimistic about its future prospects, citing several factors:
Limited Supply in Hyderabad: The company believes that the supply of new hotel rooms in Hyderabad will remain constrained for the next five years, creating favorable conditions for existing players.
Convention Center Expansion: Plans are underway to expand the convention center from 10,000 sq ft to 20,000 sq ft, positioning the company to capture a larger share of the MICE (Meetings, Incentives, Conferences, and Exhibitions) market.
Improved Facilities: The ongoing renovations are expected to enhance guest experiences and enable the company to command higher ADRs.
Potential for New Properties: The company is exploring opportunities for both Greenfield and Brownfield developments, including possible expansion into leisure destinations.
Management Commentary
Anirudh Reddy, Non-Executive and Non-Independent Director, commented on the results: "We are pleased with our performance this quarter, especially considering the ongoing renovation work. The completion of phase one, including the addition of 56 new rooms at Courtyard, marks an important milestone in our journey. We are confident that these upgrades will significantly enhance our guest experience and drive revenue growth in the coming quarters."
As Viceroy Hotels continues its renovation and expansion plans, the company aims to strengthen its position in Hyderabad's competitive hospitality market. With a focus on upgrading facilities and capturing growing demand, particularly in the business and MICE segments, Viceroy Hotels is positioning itself for sustainable growth in the years ahead.
Historical Stock Returns for Viceroy Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.36% | -0.40% | -3.08% | +6.64% | +1.07% | +5,198.71% |
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