28-Oct-2026 10:25:02
BRIGADE HOTEL VENTURES Q2 CONCALL : REVENUE GROWS 10%, EBITDA JUMPS 27% & PAT SURGES 105%; MANAGEMENT RETAINS MID-TEENS FY27 GROWTH OUTLOOK & TARGETS 3,300 HOTEL KEYS BY FY31
• MANAGEMENT REITERATES MID-TEENS FY27 REVENUE & EBITDA GROWTH OUTLOOK ON A YEAR-ON-YEAR BASIS, SUPPORTED BY IMPROVING ROOM RATES, OCCUPANCY & MICE DEMAND • MANAGEMENT EXPECTS H2 FY27 REVPAR GROWTH TO ACCELERATE TOWARDS MID-TEENS LEVELS, COMPARED WITH 9% YOY GROWTH DURING H1 FY27 • MANAGEMENT TARGETS EXPANSION OF HOTEL PORTFOLIO FROM APPROXIMATELY 1,600 KEYS TO 3,300 KEYS BY FY31, WITH AROUND 1,700 KEYS UNDER DEVELOPMENT • MANAGEMENT EXPECTS LUXURY & UPPER-UPSCALE HOTELS TO CONTRIBUTE 31% OF PORTFOLIO KEYS BY FY29 & 38% BY FY31, COMPARED WITH 14% CURRENTLY • MANAGEMENT TARGETS OPENING OF THE 45-KEY COURTYARD BY MARRIOTT CHENNAI DURING H2 FY27, WHILE TWO FAIRFIELD BY MARRIOTT HOTELS IN BANGALORE ARE EXPECTED BY FY28-END • Q2 REVENUE GREW 10% YOY TO ₹142 CR, WHILE EBITDA INCREASED APPROXIMATELY 27% YOY TO ₹52 CR & NET PROFIT SURGED 105% YOY TO ₹22 CR • Q2 EBITDA MARGIN IMPROVED TO 36.7%, DESPITE AN ESTIMATED 140 BPS NEGATIVE IMPACT FROM GST CHANGES • H1 FY27 REVENUE GREW 7% YOY TO ₹273 CR, EBITDA INCREASED 18% YOY TO ₹98 CR & NET PROFIT JUMPED 122% YOY TO ₹39 CR • Q2 AVERAGE ROOM RATE INCREASED 11% YOY TO ₹7,876, WHILE OCCUPANCY REMAINED STABLE AT 75.2% & REVPAR GREW 10% TO ₹5,922 • MANAGEMENT AIMS TO IMPROVE ROOM RATES ACROSS INDIVIDUAL HOTELS, INCLUDING RAISING ARR ABOVE ₹7,500 AT PROPERTIES CURRENTLY BELOW THAT LEVEL; THIS IS NOT A TARGET FOR PORTFOLIO ARR, WHICH ALREADY EXCEEDS ₹7,500 • BANGALORE ARR GREW 8% YOY TO ₹9,400, OCCUPANCY IMPROVED TO 81% FROM 78% & REVPAR INCREASED 12% • Q2 FOOD & BEVERAGE REVENUE GREW 10% YOY TO ₹46 CR, WITH MANAGEMENT EXPECTING STRONGER WEDDING, CONFERENCE & CORPORATE EVENT DEMAND DURING H2 • MANAGEMENT PLANS APPROXIMATELY ₹3,600 CR EXPANSION CAPEX, INCLUDING AROUND ₹700 CR DURING FY28; ₹484 CR HAD BEEN INVESTED BY SEPTEMBER 2026 • COMPANY REPAID ₹468.1 CR DEBT USING IPO PROCEEDS, REDUCING BORROWING COSTS FROM 10.25% TO 8.1%; MANAGEMENT EXPECTS PEAK NET DEBT-TO-EBITDA OF 3.5–4X DURING FY28–FY29 • MANAGEMENT REMAINS POSITIVE ON HOTEL DEMAND, ROOM RATE GROWTH & PORTFOLIO EXPANSION, BUT LARGE CAPEX REQUIREMENTS, RISING LEVERAGE, PROJECT EXECUTION & OCCUPANCY RECOVERY REMAIN KEY RISKS
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