Q2 FY26: Indian Railways Sector Insights

Hotels & Restaurants Sector Analysis: Comprehensive Industry Intelligence (Q2 & H1 FY26)

This comprehensive report synthesizes data from recent investor documents and concall transcripts of key players in the Hotels & Restaurants sector, covering Q2 and H1 FY26 performance, strategic initiatives, market positioning, and future outlook. The analysis delves into industry-wide trends, financial health, competitive dynamics, operational characteristics, growth drivers, risk factors, capital allocation strategies, and future projections, providing a granular view of the sector's current state and anticipated trajectory.

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A. INDUSTRY OVERVIEW & MARKET LANDSCAPE

The Indian Hotels & Restaurants sector is experiencing a robust growth phase, propelled by strong macroeconomic fundamentals, rising discretionary spending, and significant government focus on tourism infrastructure. The market is characterized by a dynamic interplay of luxury, upscale, mid-scale, and budget segments, catering to diverse customer preferences ranging from corporate and MICE (Meetings, Incentives, Conferences, and Exhibitions) to leisure, spiritual, and experiential travel.

**Total Addressable Market Size and Growth Rates:** The Indian Travel & Tourism industry is projected to reach a substantial **US$ 512 billion by 2028**, indicating a significant growth runway. The hospitality sector within this is expected to grow at a **12-14% CAGR through FY28**, with demand for hotel rooms specifically projected to grow at a **10-12% CAGR through FY27**. The current estimated size of the Indian hospitality industry is approximately **₹82,000 Cr**. This growth is underpinned by a resilient Indian economy, which saw headline inflation moderate to 1.5% in September and RBI revising growth estimates for FY26 upward from 6.5% to 6.8%.

**Market Structure and Segmentation:** The sector is broadly segmented by price point and service offering: * **Luxury & Upper Upscale:** Dominated by players like ITC Hotels, The Leela Palaces, Ventive Hospitality, EIH Associated Hotels (Oberoi/Trident), and parts of SAMHI Hotels and Brigade Hotel Ventures. These segments command higher ADRs and RevPARs, often characterized by extensive F&B offerings, MICE facilities, and premium guest experiences. * **Upscale & Upper Mid-scale:** A significant portion of SAMHI Hotels and Brigade Hotel Ventures' portfolios, along with brands managed by ITC (Welcomhotel, Storii, Fortune) and Ventive's Raaya (Maldives). These cater to a growing segment of business and leisure travelers seeking quality and comfort at competitive price points. * **Mid-scale & Economy:** Grand Continent Hotels and Vikram Kamats Hospitality primarily operate in this segment, focusing on value-conscious travelers, highway locations, and Tier-2/3 cities. Mahindra Holidays & Resorts (MHRIL) operates a unique **Vacation Ownership** model, distinct from traditional hotels. * **Experiential & Eco-tourism:** Praveg Limited specializes in eco-responsible luxury hospitality and event management, often utilizing non-permanent structures and PPP models.

**Key End Markets and Applications:** * **Domestic Travel:** The primary growth engine, with robust demand across leisure, spiritual, and business segments. Domestic air passenger traffic, while experiencing a marginal decline in July and August FY26 due to weather and capacity issues, is projected to rise from ~411 million in FY25 to ~620 million by FY30 (CAGR 8-9%). * **Corporate Travel:** Strong demand, particularly in IT and pharmaceutical hubs like Bengaluru, Hyderabad, and Pune. Companies like SAMHI, Brigade, and Viceroy benefit significantly from this segment. * **MICE & Weddings:** A major demand driver, witnessing a strong resurgence. The Indian wedding industry is estimated at INR 3.68 trillion and growing. * **Leisure Travel:** Increasing preference for longer stays, unique experiences, and spiritual tourism. Goa, Rajasthan, Himachal Pradesh, and new destinations are popular. * **Spiritual Tourism:** Identified as the biggest segment of tourism in India, attracting 10-30 million annual tourist traffic to popular religious centers. This is a key focus for players like Grand Continent (Ayodhya pipeline) and Vikram Kamats.

**Geographic Distribution and Regional Dynamics:** * **South India:** Bengaluru, Chennai, and Hyderabad are particularly strong markets due to robust IT and ITES exports (65% of national total in FY24) and commercial activity. Brigade Hotel Ventures is the second-largest owner of chain-affiliated hotels in South India. SAMHI also has significant presence in these markets. * **Western India:** Pune and Mumbai show strong corporate demand. Gujarat is emerging with new infrastructure. * **Leisure Destinations:** Goa, Rajasthan, Kerala, Himachal Pradesh, and new coastal/spiritual sites are targets for expansion by multiple players (ITC, MHRIL, Brigade, EIHA, Praveg, Grand Continent, Viceroy). * **International Presence:** ITC Hotels has launched its first international property in Colombo, Sri Lanka. Ventive Hospitality has a strong ultra-luxury presence in the Maldives. Leela Palaces is expanding into Dubai. Grand Continent aims for UAE and Southeast Asia.

**Market Maturity and Lifecycle Stage:** The Indian hospitality market is in a growth phase, characterized by a significant **demand-supply gap**. * **Supply-Demand Dynamics:** Demand growth continues to outpace supply growth. Ventive Hospitality data indicates a Supply CAGR (FY25-FY30) of 9.9% versus a Demand CAGR of 11.4%. Vikram Kamats Hospitality projects hotel room supply to expand at only 3-4% CAGR, ensuring sustained pricing power. This imbalance creates a favorable environment for pricing power and profitability across the sector. * **Limited New Supply:** Key markets like Pune are expected to see limited new luxury supply for the next 5 years (Ventive). Bengaluru, Chennai, and Hyderabad also show demand growth significantly outpacing supply (Brigade). * **Branded vs. Unbranded:** Only ~12% of India's ~14 lakh rooms are branded, indicating vast potential for branded players, especially in leisure destinations where only 43k out of ~5.5 lakh rooms are branded (MHRIL).

**Industry Value Chain and Ecosystem:** The value chain involves various operating models: * **Owned Assets:** Companies like ITC, Leela, Ventive, SAMHI, Brigade, EIH, and Viceroy own significant portions of their hotel portfolios, requiring substantial capital investment but offering higher control and potential for higher margins. * **Managed Properties:** Many players, including ITC, SAMHI, Brigade, EIH, and Vikram Kamats, manage hotels for third-party owners, earning management fees (e.g., ITC targets 2.5x growth in management fees by FY30). This is an asset-light growth strategy. * **Franchised Operations:** Grand Continent and Vikram Kamats utilize franchise models, leveraging established brands like Royal Orchid and Sarovar Group while expanding their footprint. * **Leased Properties:** Grand Continent and Vikram Kamats also lease properties, offering flexibility and quicker market entry compared to ownership. * **Vacation Ownership:** MHRIL's unique model involves selling memberships for future vacation stays, providing predictable revenue streams. * **Events & Experiential Tourism:** Praveg Limited integrates event management expertise with eco-responsible hospitality, often through PPP models.

B. FINANCIAL & ECONOMIC PROFILE

The sector's financial performance in Q2 and H1 FY26 demonstrates strong recovery and growth, albeit with some seasonal variations and company-specific factors. Profitability levels are generally healthy, particularly in the luxury and upscale segments, supported by pricing power and operational efficiencies.

**Industry Aggregate Revenue Scale and Growth Trajectory:** The aggregate revenue performance across the analyzed companies for H1 FY26 (or Q2 FY26 where H1 is not available) indicates robust growth: * **Grand Continent Hotels:** H1 FY26 Total Income ₹57.19 Cr, a remarkable **79% YoY growth** over H1 FY25. FY25 revenue grew 132% YoY. * **Vikram Kamats Hospitality:** H1 FY26 Revenue from Operations ₹249.52 Mn, a **47.16% YoY growth**. Q2 FY26 revenue grew 42.23% YoY. * **Ventive Hospitality:** Q2 FY26 Consolidated Revenue ₹554.5 Cr, up **28% YoY** (adjusted for FX gain, 16.6% YoY growth). * **Brigade Hotel Ventures:** H1 FY26 Total Income INR 255 crores, up **21% YoY**. * **The Leela Palaces Hotels & Resorts:** H1 FY26 Total Revenue INR 635 crores, up **18% YoY**. * **ITC Hotels Limited:** H1 FY26 Consolidated Total Income ₹1745 Cr, up **17% YoY**. * **SAMHI Hotels Limited:** H1 FY26 Total Income ₹5,836 Mn, up **12.0% YoY**. * **Praveg Limited:** H1 FY26 Net Sales ₹76.89 Cr, up **28.94% YoY**. * **Mahindra Holidays & Resorts India Limited (MHRIL):** H1 FY26 Standalone Total Income ₹791.3 Cr, up **4.7% YoY**. * **EIH Associated Hotels Limited (EIHA):** H1 FY26 Revenue from Operations ₹127.1 Cr, down **5% YoY**, primarily due to renovation impacts on Trident Jaipur and Trident Cochin. Like-to-Like (excluding these) showed 3% revenue growth. * **Viceroy Hotels Limited:** H1 FY26 Total Income INR 58.31 crores. Q2 FY26 Total Income INR 31.86 crores.

Overall, the sector is demonstrating strong top-line expansion, with several players achieving double-digit to high double-digit growth rates, reflecting the post-pandemic demand surge and strategic expansions.

**Profitability Levels (Gross Margin, EBITDA, Net Margin):** Profitability metrics show a wide range, influenced by segment, operating model (owned vs. asset-light), and specific operational efficiencies. * **EBITDA Margins (Q2 FY26):** * **The Leela Palaces Hotels & Resorts:** 48.2% (Operating EBITDA Margin 44.4% excluding treasury income), highest in the sector. * **Ventive Hospitality:** 46% (expansion of 7 percentage points YoY), among the highest. India Hospitality 41%, Maldives 14% (same-store 13%). * **SAMHI Hotels Limited:** 37.3% (Consolidated), with Asset EBITDA Margin at 40.5%. * **Mahindra Holidays & Resorts India Limited (MHRIL):** Standalone 36.9% (vs 32.2% in Q2 FY25), Consolidated 24.7% (vs 22.5% in Q2 FY25). * **ITC Hotels Limited:** Consolidated 29% (up 200 bps), Standalone 31% (up 60 bps). * **Brigade Hotel Ventures:** 31.8% (down 320 bps YoY, but operational EBITDA ex-property tax up 25%). * **Viceroy Hotels Limited:** 27.7%. Management targets North of 30% at portfolio level, and 40% long-term. * **Vikram Kamats Hospitality:** 20.96% (up from 17.54% in Q2 FY25). * **Grand Continent Hotels:** 11.34% (down from 20.9% in H2 FY25 and 37.2% in H1 FY25, indicating investment phase). * **Praveg Limited:** 10.45% (significantly down from 29.75% in Q2 FY25, reflecting operational challenges and increased expenses). * **EIH Associated Hotels Limited:** 11.3% (Q2 FY26, down 39% YoY), impacted by renovations. H1 FY26 EBITDA margin was 15.4% (up 1% YoY).

The luxury segment (Leela, Ventive, ITC) consistently demonstrates superior EBITDA margins, often exceeding 40%. Companies with asset-light models or those in an aggressive expansion/renovation phase (Grand Continent, Praveg, EIHA, Viceroy's Courtyard) may show lower or fluctuating margins in the short term.

• **Net Profit After Tax (PAT):**

**Return Profiles (ROCE, ROE, ROIC):** * **The Leela Palaces Hotels & Resorts:** Adjusted ROCE ~14% as of September 2025. Management is confident of achieving high teen ROCE growth over the immediate term. * **Brigade Hotel Ventures:** Adjusted ROCE 9.9% as of September 2025. * **Mahindra Holidays & Resorts India Limited (MHRIL):** Return on Adjusted Capital (Consolidated) H1 FY26: 9.9% (annualized), up from 16.3% in FY25. * **Vikram Kamats Hospitality:** ROCE and ROE declined due to additional CAPEX and equity infusion.

**Working Capital Characteristics and Cash Conversion Cycles:** * **Grand Continent Hotels:** Working Capital (Days) increased significantly from 14 in FY24 to 42 in FY25 and 96 in H1 FY26, suggesting higher investment in operations or slower collections. * **SAMHI Hotels Limited:** Operating Free Cash of ₹3,500 Mn (based on TTM EBITDA and current interest rates) indicates strong cash generation.

**Capital Intensity Requirements:** The sector is generally capital-intensive, especially for owned luxury properties. * **High Capital Intensity:** ITC, Leela, Ventive, SAMHI, Brigade, EIH, and Viceroy are undertaking significant capital expenditures for new greenfield projects, expansions, and extensive renovations. * **Asset-Light Models:** Grand Continent, Praveg, and Vikram Kamats emphasize asset-light strategies (leasing, franchising, PPP) to reduce upfront capital requirements and accelerate expansion. Grand Continent's launch cost per room is ₹7–8 lakhs, significantly lower than owned models.

**Revenue Quality (Recurring vs. One-time, Contract Length):** * **Recurring Revenue:** MHRIL benefits from predictable Annual Subscription Fees (ASF) from its members. Grand Continent and Vikram Kamats generate recurring income from long-term leases and franchise fees. * **Variable Revenue:** A significant portion of revenue for most hotel companies is dynamic, driven by RevPAR (ADR and Occupancy), MICE, and F&B, which can fluctuate with seasonality and market conditions.

C. COMPETITIVE STRUCTURE & DYNAMICS

The Indian Hotels & Restaurants sector exhibits a competitive landscape that is both fragmented and concentrated, with strong branded players vying for market share across various segments. The demand-supply gap, particularly in key markets and luxury segments, currently provides significant pricing power to established players.

**Number of Players and Market Concentration:** The market is characterized by a mix of large, established chains (ITC, Leela, EIH) and rapidly expanding mid-tier and asset-light players (Grand Continent, Vikram Kamats). SAMHI and Brigade are significant owners of chain-affiliated hotels, often partnering with global brands like Marriott, Hyatt, and IHG. MHRIL operates in a distinct vacation ownership niche.

**Market Share Distribution (with specific percentages):** Specific overall market share percentages are not provided, but companies highlight their competitive positioning: * **ITC Hotels:** Commands a **40% RevPAR premium** over the industry (Luxury, Upper Upscale & Upscale) for Q2 FY26 in its Owned Hotels. This premium is even higher in specific cities like Hyderabad (+87%) and Goa (+56%). * **Brigade Hotel Ventures:** Positioned as the **second largest owner of chain-affiliated hotels and hotel rooms in South India**. * **SAMHI Hotels:** Has a dominant share with leading operators: Marriott (66% of Q2 FY26 Asset Income), Hyatt (16%), IHG (15%). * **Grand Continent Hotels:** Mid-value hotels (where Grand Continent operates) lead market share (35% of hotel market) and have the highest occupancy (72%).

**Competitive Intensity Assessment:** * **High Demand, Limited Supply:** The prevailing demand-supply gap across most segments, especially luxury and branded mid-scale, reduces direct competitive pressure on pricing. * **Seasonal Fluctuations:** Q2 (monsoon season, fewer wedding dates) typically experiences seasonal softness, intensifying competition for available demand. * **New Entrants:** While capital barriers are high for owned luxury assets, asset-light models (leasing, franchising) allow for quicker expansion by new or smaller players, increasing competition in the mid-scale segment. * **Online Travel Agents (OTAs):** OTAs represent a significant distribution channel (e.g., ITC: 18%), but companies are also focusing on direct bookings (ITC: 22% website/app, 24% unit reservations) and loyalty programs to reduce reliance and control pricing.

**Entry Barriers and Competitive Moats:** * **Capital Intensity:** Owning and developing luxury hotels requires substantial capital, acting as a significant barrier. * **Brand Reputation & Loyalty:** Established brands (ITC, Leela, Oberoi, Marriott, Hyatt) have strong brand equity, loyalty programs (e.g., ITC Club ITC, Marriott Bonvoy), and customer retention (Leela 79% retention ratio, NPS 86). * **Operational Expertise:** Managing complex hotel operations, F&B, and MICE events requires deep expertise. * **Strategic Land Parcels:** Access to prime locations, often through parent companies (Brigade Enterprises) or long-term leases, provides a competitive edge. * **Sustainability Credentials:** ITC's leadership in LEED certifications and Net Zero goals creates a unique moat in a growing eco-conscious market. * **Unique Business Models:** MHRIL's vacation ownership model and Praveg's eco-responsible event/hospitality model are difficult to replicate.

**Pricing Power Dynamics and Pricing Trends:** * **Strong Pricing Power:** The demand-supply imbalance allows most players to increase ADRs. * **ITC Hotels:** RevPAR growth +9% (Q2 FY26), +11% (H1 FY26) for domestic owned hotels. * **Ventive Hospitality (India):** ADR grew 12% to ₹11,335 (Q2 FY26). RevPAR grew 13% YoY to ₹7,486. * **The Leela Palaces Hotels & Resorts:** H1 FY26 RevPAR up 16%, ADR up 10%. Q2 FY26 RevPAR up 13%. * **SAMHI Hotels:** RevPAR +11.2% YoY (Q2 FY26, same-store). * **Brigade Hotel Ventures:** Q2 FY26 ARR INR 7,106 (up 14% YoY), RevPAR INR 5,374 (up 13% YoY). * **EIH Associated Hotels:** Q2 FY26 ARR ₹9,820 (up 8.4% YoY). RevPAR ₹6,402 (up 9% YoY). * **Viceroy Hotels:** Q2 FY26 ADR (Marriott) INR 6,620 (up 9% YoY), ADR (Courtyard) INR 6,837 (up 13% YoY). * **Dynamic Pricing:** Companies are leveraging dynamic pricing strategies, especially for retail segments (Leela retail contributing 58% of room revenue, 23% growth).

**Differentiation Strategies Employed:** * **Luxury & Service Excellence:** ITC, Leela, EIH focus on unparalleled guest experiences, award-winning F&B, and personalized service. * **Brand Portfolio Diversification:** ITC (Epiq Collection, Welcomhotel, Storii, Fortune), SAMHI (Marriott, Hyatt, IHG brands across segments), Vikram Kamats (VITS, Kamats). * **Geographic Focus:** Brigade (South India), Viceroy (Hyderabad), Grand Continent (mid-tier cities, spiritual destinations). * **Sustainability & Responsible Luxury:** ITC is a leader with numerous LEED certifications and Net Zero goals. * **Asset-Light Expansion:** Grand Continent and Vikram Kamats prioritize rapid, capital-efficient expansion through leasing and franchising. * **Experiential Offerings:** MHRIL (2,000+ curated experiences), Praveg (eco-tourism, theme park).

**Consolidation Trends and M&A Activity:** * **Selective Inorganic Opportunities:** ITC mentions being well-positioned for selective inorganic opportunities, value-accretive M&A, and alliances. * **Active Acquisitions:** * **Ventive Hospitality:** Proposed acquisition of 51% stake in Soboho Private Limited (Soho House India) for ~₹60 crore. Acquired 76% stake in Hilton Goa Resort for an enterprise value of ₹320 crores. * **The Leela Palaces Hotels & Resorts:** Board approved acquisition of 25% stake in an operating beachfront luxury resort on The Palm Jumeirah, Dubai, for ~$49 million (₹437 crores). * **SAMHI Hotels:** Employs an acquisition-led strategy to achieve scale, focusing on assets at a discount to replacement cost.

**Competitive Advantages of Each Player:** * **ITC Hotels:** Strong brand equity, RevPAR premium, sustainability leadership, diverse owned/managed portfolio, F&B excellence. * **Ventive Hospitality:** Ultra-luxury positioning (Maldives), high EBITDA margins, strategic acquisitions, strong credit rating (AA stable). * **The Leela Palaces Hotels & Resorts:** Iconic luxury brand, highest NPS, strong balance sheet (0.5x Net debt/EBITDA), strategic international expansion. * **Mahindra Holidays & Resorts India Limited (MHRIL):** Unique vacation ownership model, predictable revenue, large member base (~3 Lakh+), extensive resort network (~150 globally), debt-free standalone. * **SAMHI Hotels Limited:** Acquisition-led growth, dominant share with global operators, diversified portfolio across price points, strong financial flexibility post-IPO. * **Brigade Hotel Ventures Limited:** Strong parentage (Brigade Enterprises), second-largest owner in South India, strategic land parcels, cost-efficient development within mixed-use projects. * **EIH Associated Hotels Limited:** Association with Oberoi and Trident brands, consistent RevPAR growth higher than industry, healthy fund position. * **Viceroy Hotels Limited:** Strong presence in high-growth Hyderabad market, Marriott branding, phased renovation strategy, focus on operational efficiency. * **Praveg Limited:** Pioneer in eco-responsible luxury, expertise in event management, PPP model, innovative low-cost hospitality concepts. * **Grand Continent Hotels Limited:** Asset-light, rapid expansion in mid-scale, dual operating model, focus on Tier-2/3 cities and spiritual tourism. * **Vikram Kamats Hospitality Limited:** Hybrid business model (COCO/leased & franchised), strong legacy brands (VITS, Kamats), strategic presence across highway and urban markets, focus on vegetarian cuisine.

D. OPERATIONAL CHARACTERISTICS

Operational efficiency, capacity utilization, and strategic asset management are critical for profitability in the hospitality sector. Companies are focusing on optimizing costs, enhancing guest experiences, and leveraging technology for distribution and sustainability.

**Capacity and Utilization Trends Across Companies:** Occupancy rates across the sector are generally healthy, often exceeding 70% for established players, indicating strong demand. * **ITC Hotels (Domestic Owned Hotels):** Q2 FY26: 72%, H1 FY26: 72%. This is an improvement from Q2 FY25 (70%) and Q2 FY24 (64%). * **Ventive Hospitality (India):** Q2 FY26: 66% (Last FY occupancy: 67%). **Maldives (Same-store):** Q2 FY26: 50% (improved 4 points). * **The Leela Palaces Hotels & Resorts:** H1 FY26: 66% (improvement of 3.8 percentage points). Q2 FY26 Bengaluru: 71%. * **Mahindra Holidays & Resorts India Limited (MHRIL):** Consistently high (80%+) across seasons. H1 FY26 Consolidated: 75.1%. * **SAMHI Hotels Limited (Q2 FY26, Same-store):** Upper Upscale & Upscale: 75%. Upper Mid-scale: 76%. Mid-scale: 74%. * **Brigade Hotel Ventures Limited (Consolidated):** Q2 FY26: 75.6% (vs 76.0% in Q2 FY25). H1 FY26: 75.1% (vs 74.7% in H1 FY25). Bengaluru Q2 FY26: 78%. * **EIH Associated Hotels Limited:** Q2 FY26: 65% (flat vs Q2 FY25). * **Viceroy Hotels Limited:** Q2 FY26 Combined Occupancy: 56.9% (Marriott 71.4%, Courtyard 31.5% due to renovation impact). H1 FY26 Combined: 56%. * **Grand Continent Hotels Limited:** H1 FY26: 60% (down from 66% in FY24 and 61% in FY25, possibly due to new property ramp-up). * **Vikram Kamats Hospitality Limited:** System wide Group occupancy: 61%.

Several companies are expanding their key count significantly: * **ITC Hotels:** Current: 13,600+ keys (145+ hotels). Target: 20,000+ keys (220+ hotels) by 2030. Pipeline: 61 hotels with ~5900 Keys. * **Ventive Hospitality:** Current: 2140 keys (with Hilton Goa addition). Target: 4000 keys by FY30. * **Mahindra Holidays & Resorts India Limited (MHRIL):** Current: 5742 keys. Target: 2X inventory base to ~10k keys by FY30. * **SAMHI Hotels Limited:** Current operational rooms: 4,862. Rooms under development: 64. Total inventory addition in FY26: ~8% (378 rooms). * **Brigade Hotel Ventures Limited:** Current: 9 operating hotels with 1,600 keys. Upcoming: 1,700 keys (Total Portfolio ~3,300 keys). * **Grand Continent Hotels Limited:** Current: 1178 keys (24 properties). Target: 3000 key mark over the next 3 years. * **Praveg Limited:** Over 825 rooms across 17 operational resorts + one five-star hotel. * **Viceroy Hotels Limited:** 463 rooms (includes 56 newly added rooms in Courtyard by Marriott).

**Production Economics and Cost Structures:** Companies are actively managing costs to improve margins. * **ITC Hotels (Standalone, Q2 FY26):** * Food & Bev. Cost (% of F&B Revenue): 24.4% (vs 24.5% in Q2 FY25). * People Cost (% of Revenue from Ops): 24.0% (vs 24.6% in Q2 FY25). * Energy Cost (% of Revenue from Ops): 4.8% (vs 5.7% in Q2 FY25), aided by renewable energy adoption. * Other Operating Cost (% of Revenue from Ops): 29.4% (vs 30.3% in Q2 FY25). * **Ventive Hospitality:** Operational flow through of 65% (same-store basis in India). * **Brigade Hotel Ventures:** Utilities as a percentage of operating revenues: 5.6% for Q2 FY26 (vs 7% in previous quarters). Employee Cost as a % Operating Revenue: 20.0% (Q2 FY26). Operating employee cost stood at 18.2% of operating revenue in Q2 FY26 (down from 18.9% last year). * **Viceroy Hotels:** Outsourced laundry, invested in MEP upgrades to improve efficiency.

**Supply Chain Structure and Dependencies:** * Companies manage extensive supply chains for F&B, linen, amenities, and maintenance. Economies of scale in procurement are mentioned by Brigade due to parentage. * Praveg's expertise in creating large, non-permanent structures in short periods highlights a specialized supply chain for event infrastructure.

**Technology Landscape and Innovation Pace:** * **Digital Distribution:** Companies leverage multi-channel distribution networks including websites, apps, OTAs, GDS, and guest call centers (ITC: Unit Reservations 24%, Website and App 22%, OTAs 18%, GDS 20%, Guest Call Centre 16%). * **Loyalty Programs:** All-new Club ITC loyalty programme launched. Marriott Bonvoy program is a key driver for Viceroy. * **Sustainability Tech:** Solar installations (Ventive, Leela, Brigade), biogas plants (Anantara Maldives), LEED certifications (ITC, Ritz Carlton Pune). * **In-house Capabilities:** Praveg has in-house creative studio, architect team, social media, and IT teams.

**Operational Efficiency Benchmarks:** * **EBITDA Flow-through:** Leela achieved 77% incremental revenue flow-through to EBITDA in H1 FY26 (67% excluding other income). * **Guest Satisfaction:** * ITC Hotels: Net Promoter Score (NPS) 84 (Global Average 57). Online Rating 4.78 (Global Average 4.2). * The Leela Palaces Hotels & Resorts: NPS 86 for H1 FY26 (highest in the sector). * Brigade Hotel Ventures: NPS 80% (Q2 FY26). * **Staff to Room Ratio:** Brigade: 0.79 as at Sept'25 (vs 0.74 in Sept'24). * **Property Ramp-up:** Grand Continent's new properties break-even within 24 months.

**Key Performance Indicators (Company-specific and Industry Averages):** * **RevPAR, ADR, Occupancy:** These are the most critical operational KPIs tracked by all companies. * **F&B Revenue Growth:** F&B is a significant revenue contributor (Viceroy expects 45-48% of total revenue from F&B). ITC's F&B revenue growth (Standalone Owned Hotels) was 9% in H1 FY26. * **Sustainability Metrics:** Renewable energy share (ITC >54%, Leela 65%, Brigade ~60%), LEED certifications, Net Zero goals. * **Member Additions/Retention:** MHRIL tracks member additions (1432 in Q2 FY26) and referral rates (66%). Leela tracks retention ratio (79%).

**Asset Efficiency Metrics:** * **Asset-light models** (Grand Continent, Vikram Kamats) aim for quicker asset turnover and lower capital lock-up. * **Renovations and Upgrades:** Companies like Viceroy and EIHA are investing in renovations to enhance asset quality and drive higher RevPARs and occupancies, with Viceroy expecting an ROI of less than two to three years on its renovation investment.

E. GROWTH DYNAMICS & DRIVERS

The Indian Hotels & Restaurants sector is on a strong growth trajectory, fueled by a confluence of macroeconomic tailwinds, evolving consumer preferences, and strategic expansion initiatives by key players. Both organic and inorganic growth avenues are being aggressively pursued.

**Historical Growth Trajectory (3-5 year view with specific rates):** The sector has demonstrated a robust recovery and accelerated growth post-pandemic. * **SAMHI Hotels:** Consolidated Revenue 35% CAGR (11 yrs.), Consolidated EBITDA pre ESOP 43% CAGR (11 yrs.). * **Grand Continent Hotels:** FY25 Total Income grew 132% YoY over FY24. Number of keys grew from 58 in FY19 to 1178 in Oct-25. * **Vikram Kamats Hospitality:** Revenue from operations grew 208.98% in FY23, 15.72% in FY24, and 33.85% in FY25. * **Brigade Hotel Ventures:** Total Income grew from INR 356 Cr in FY23 to INR 471 Cr in FY25.

**Current Growth Rates and Acceleration/Deceleration:** The sector is currently experiencing strong growth, with many companies reporting double-digit increases in revenue and EBITDA for H1 FY26. * **Revenue Growth (H1 FY26 YoY):** * Grand Continent Hotels: +79% * Vikram Kamats Hospitality: +47.16% * Ventive Hospitality (Q2 adj.): +16.6% * Brigade Hotel Ventures: +21% * The Leela Palaces Hotels & Resorts: +18% * ITC Hotels: +17% * SAMHI Hotels: +12.0% * Praveg Limited: +28.94% * MHRIL: +4.7% * EIH Associated Hotels: -5% (due to specific renovations) * **EBITDA Growth (H1 FY26 YoY):** * Vikram Kamats Hospitality: +76.52% * The Leela Palaces Hotels & Resorts: +34% * SAMHI Hotels: +16.3% * ITC Hotels: +17% * Brigade Hotel Ventures: +16% * MHRIL (Standalone): +29.4% * Ventive Hospitality (Q2 adj.): +22.2% * EIH Associated Hotels: +1% * Grand Continent Hotels: -23.6% (H1 FY26 vs H2 FY25, due to investments) * Praveg Limited: -62.5% (Q2 FY26 YoY, due to increased expenses)

**Volume vs. Price Contribution to Growth:** Both volume (occupancy) and price (ADR) are contributing significantly to growth. Occupancy levels are high across most segments, and the demand-supply gap is enabling companies to increase ADRs. * **RevPAR Growth (Q2 FY26 YoY):** * Brigade Hotel Ventures: +13% * The Leela Palaces Hotels & Resorts: +13% * Ventive Hospitality (India): +13% * SAMHI Hotels: +11.2% * ITC Hotels: +9% * EIH Associated Hotels: +9% (ARR) * **Occupancy & ADR:** Most companies report stable to improving occupancies and healthy ADR growth, indicating a balanced contribution from both factors.

**Organic vs. Inorganic Growth Components:** Companies are pursuing a dual strategy of organic expansion and strategic inorganic opportunities. * **Organic Growth:** * **New Hotel Openings:** ITC (4 hotels, 281 keys in H1 FY26; pipeline of 61 hotels), MHRIL (new resort at Mahabaleshwar, 3 greenfield/brownfield projects), SAMHI (378 rooms in FY26, Navi Mumbai dual-branded hotel, Hyderabad Financial District), Brigade (1,700 keys pipeline including Courtyard Chennai, Fairfield Bengaluru, Grand Hyatt Chennai, InterContinental Hyderabad, Ritz-Carlton Kerala), EIH (Trident Vishakhapatnam, Banquet at Agra), Viceroy (56 new rooms in Courtyard, greenfield at Madhapur), Grand Continent (Ayodhya, Vellore, Jaipur, Gurgaon, Dubai soon), Vikram Kamats (VITS Hotel Karad, Lonavala, Panchgani, Bharuch, Pune Kharadi, Sasangir, Gangtok, Gurugram, Daman, Manyata Tech Park, Devka Hotel expansion). * **Renovations & Upgrades:** ITC (new block at Bhubaneshwar), Leela (rebranding Dubai asset, Le Cirque reopening, retail space), Viceroy (phased renovation of Marriott and Convention Center), EIH (Trident Jaipur renovation), Brigade (F&B enhancements). * **New Brands/Concepts:** ITC (Epiq Collection), Leela (ARQ members' club), Vikram Kamats (Kamats Legacy, Urban Dhaba, Pepper Fry). * **Inorganic Growth:** * **Acquisitions:** Ventive (Soho House India, Hilton Goa Resort), Leela (25% stake in Dubai resort), SAMHI (acquisition-led strategy). * **M&A:** ITC is open to selective inorganic opportunities.

**Geographic Expansion Opportunities and Progress:** * **Domestic:** * **Tier-2/3 Cities:** MHRIL, Grand Continent, and Vikram Kamats are actively expanding into these markets, recognizing the growing demand for branded hospitality. * **New Leisure Destinations:** ITC (Puri, Vizag, Wayanad), MHRIL (Mahabaleshwar, Theog, Puducherry), Brigade (Vaikom, Kerala; Thiruvananthapuram), Praveg (Rajasthan, Uttarpradesh, Lakshadweep, Maharashtra, Diu & Daman). * **Spiritual Tourism Hubs:** Grand Continent (Ayodhya pipeline), Vikram Kamats. * **International:** * **ITC Hotels:** Launched first international property, ITC Ratnadipa, in Colombo, Sri Lanka (352 Keys + 132 Residences) in April 2024. * **Ventive Hospitality:** Strong presence in Maldives (Conrad, Anantara, Raaya). * **The Leela Palaces Hotels & Resorts:** Acquiring a stake in a luxury resort in Dubai. * **Grand Continent Hotels:** Plans to add international destinations (UAE, SEA etc.), with Dubai in the pipeline.

**Product/Service Innovation Pipeline:** * **ITC Hotels:** Launched 'Epiq Collection - Member ITC Hotels' Group' for premium segment. Launched all-new Club ITC loyalty programme. * **The Leela Palaces Hotels & Resorts:** Launched ARQ (invite-only members' club) in Bengaluru, with rollout planned for other cities. Relaunched high-end retail space. * **Mahindra Holidays & Resorts India Limited (MHRIL):** Evolved product portfolio to include longer tenure (CMH 25/15/10, Bliss) and shorter tenure (Go-Zest) products for diverse age groups. * **Praveg Limited:** Developing Praveg Adalaj Theme Park as a landmark destination for premium events, blending heritage with modern infrastructure. * **Vikram Kamats Hospitality Limited:** Innovation through new concepts like Urban Dhaba and Pepper Fry.

**Adjacent Market Opportunities:** * **F&B Expansion:** Companies are enhancing and expanding F&B offerings (ITC's award-winning restaurants, Leela's Le Cirque, Viceroy adding new restaurants). * **Retail Space:** Leela relaunched 34,000 sq ft of high-end retail space at The Leela Palace, Bengaluru. * **Branded Residences:** Leela's Dubai acquisition includes residences for sale, offering equity payback. ITC Ratnadipa also has residences. * **Event Management:** Praveg's core competence, now transitioning to experiential tourism.

**Customer Acquisition and Penetration Trends:** * **Digital & Referral:** MHRIL's member additions through Referral (HFRP) & Digital route reached 66% in Q2 FY26 (vs 58% in Q2 FY25). * **Loyalty Programs:** Crucial for customer retention and direct bookings. * **Multi-channel Distribution:** ITC leverages a strong multi-channel network.

F. RISK LANDSCAPE

While the Hotels & Restaurants sector is currently experiencing robust growth, it remains susceptible to various systemic and company-specific risks. Management teams are actively monitoring these factors and implementing strategies to mitigate their impact.

**Industry-wide Systematic Risks:** * **Cyclicality and Economic Sensitivity:** The hospitality sector is inherently cyclical and sensitive to economic fluctuations. While the Indian economy is resilient, global uncertainties (e.g., Middle East conflict mentioned by Leela and EIHA) can impact international travel and overall sentiment. Rising discretionary spending is a key driver, making the sector vulnerable to any slowdown in consumer confidence or income growth. * **Seasonal Softness:** Q2 (July-September) is typically a seasonally softer quarter due to heavy monsoon rains, reduced leisure travel, and fewer auspicious dates for weddings. This was observed by ITC, Ventive, EIHA, and Viceroy. * **Adverse Weather Conditions:** Extended monsoons and above-normal rainfall can adversely affect domestic travel, as noted by EIHA. * **Air Passenger Traffic Fluctuations:** While the long-term outlook for air travel is positive, short-term declines (e.g., 2% YoY in July & August due to reduced operating capacities and adverse weather, mentioned by ITC and EIHA) can impact demand, especially for city hotels. Geopolitical tensions (Ahmedabad plane crash, airline passenger growth impact mentioned by SAMHI) can also cause disruptions. * **Inflation and Interest Rates:** While headline inflation has moderated, persistent inflationary pressures could impact operating costs (F&B, energy, employee benefits). Rising interest rates could increase finance costs for companies with significant debt, although some players (Leela, SAMHI, Viceroy) have successfully refinanced to lower their cost of debt. * **New Supply:** While currently demand outstrips supply, a rapid increase in new hotel inventory in specific micro-markets could intensify competition and put pressure on ADRs and occupancies in the long term. However, most companies highlight limited new supply in their key markets for the next 3-5 years.

**Regulatory and Policy Risks by Geography:** * **Taxation and Fiscal Policies:** Changes in GST rates or other tourism-related taxes could impact consumer spending and profitability. Policy measures (GST rate rationalization, monetary easing) are generally expected to boost consumer spending. * **Real Estate Sector Regulations:** Regulations related to land acquisition, construction, and property development can impact project timelines and costs. * **Environmental Regulations:** Stricter environmental norms could increase compliance costs, though many companies (ITC, Leela, Ventive, Brigade, Praveg) are proactively investing in sustainability.

**Technology Disruption Threats:** * **Online Travel Agents (OTAs):** While a key distribution channel, over-reliance on OTAs can lead to higher commission costs and reduced pricing control. Companies are investing in direct booking channels and loyalty programs to mitigate this. * **New Business Models:** Emergence of new hospitality models or technology-driven platforms could disrupt traditional operations.

**ESG and Sustainability Challenges:** * **Climate Change:** Increased frequency of extreme weather events could impact operations and travel patterns. * **Resource Scarcity:** Water scarcity or energy price volatility could affect operational costs. Companies are investing in renewable energy and water efficiency to address this. * **Social Impact:** Labor market dynamics, employee welfare, and community engagement are increasingly scrutinized. Companies are focusing on being an 'Employer of Choice' (ITC) and social impact initiatives (Ventive).

**Supply Chain Vulnerabilities:** * Disruptions in the supply chain for F&B, construction materials, or other operational necessities could impact costs and service delivery.

**Competitive Threats (New Entrants, Substitutes):** * **New Entrants:** While high capital barriers exist for luxury, asset-light models facilitate quicker entry for new players in mid-scale segments. * **Substitutes:** Alternative accommodation options (e.g., homestays, serviced apartments) could pose a threat, especially in leisure segments.

**Customer Concentration Risks:** * While not explicitly mentioned as a major risk, over-reliance on specific customer segments (e.g., corporate MICE) could be a vulnerability if that segment faces a downturn. Diversification across corporate, leisure, MICE, and spiritual segments helps mitigate this.

**Company-Specific Risks:** * **Renovation Impact:** Companies undergoing extensive renovations (Viceroy, EIHA) face temporary revenue and occupancy disruptions. Viceroy's Convention Center renovation will impact revenue. * **Project Execution Risks:** New greenfield projects and large-scale expansions (ITC, Leela, Brigade, SAMHI, EIH, Viceroy) are subject to construction delays, cost overruns, and regulatory hurdles. EIHA explicitly states project pipeline is subject to various risks and uncertainties. * **Sales Performance:** MHRIL's HCR Timeshare sales were impacted due to changes in credit policy. * **Financial Performance Volatility:** Praveg Limited's significant PAT losses in H1 FY26 highlight operational challenges and increased expenses, which could be a risk if not addressed. Grand Continent's declining EBITDA margins in H1 FY26 indicate the financial impact of aggressive expansion and investment. * **Debt Levels:** While many companies have healthy debt metrics, high debt levels (e.g., SAMHI's historical debt, though significantly reduced post-IPO) can pose a risk if market conditions deteriorate or interest rates rise sharply.

G. CAPITAL ALLOCATION & INVESTOR RETURNS

The hospitality sector is characterized by significant capital requirements for asset creation, maintenance, and expansion. Companies are balancing these needs with debt management, strategic acquisitions, and efforts to enhance shareholder returns.

**Capex Trends and Requirements (Growth vs. Maintenance):** All major players are committing substantial capital to expand their footprint, upgrade existing assets, and develop new properties, reflecting confidence in the sector's long-term growth. * **ITC Hotels:** Estimated **c.8-10% of Revenue cumulatively** for Capital Investments (Renovations, on-going Projects, new Greenfields & others). Upcoming owned projects include 2 Greenfield projects (Puri & Vizag) and expansion at Bhubaneshwar. * **Ventive Hospitality:** Plans to generate cumulative EBITDA of ₹6,500 crore over the next 5 years, with a total capex of **~₹2,000-₹2,200 crore** over the same period. This includes ~₹900-₹1,000 crore for assets on books (refurbishment of Bangalore asset, Sri Lanka resort, Varanasi Hotel) and ~₹1,000 crore for ROFO assets. An additional ₹100 crore is planned for Hilton Goa Resort over 18 months. * **The Leela Palaces Hotels & Resorts:** Anticipates **~INR 2,000 crores** in future CAPEX over the next five years for existing ownership hotels, value drivers, and new pipeline. The Dubai acquisition involves an upfront capital investment of ~$49 million (circa INR 437 crores) for Leela's 25% stake. The BKC Mumbai project involves Leela co-investing 50% in the hotel, with a share of CAPEX of circa INR 800 crores over 4 years. * **Brigade Hotel Ventures Limited:** Plans a total capex investment of **INR 3,600 crores** over the next five years for its pipeline of ~1,700 keys. This capex is mostly back-ended (60% in year 3, some in year 4). * **EIH Associated Hotels Limited:** Has a healthy fund position to drive expansion. Projects pipeline includes Trident Vishakhapatnam (125 keys, Estimated Capex 160 Cr), Trident Jaipur (Renovation, 127 keys, Estimated Capex 156 Cr), and Banquet at Trident Agra (Estimated Capex 29 Cr). * **Viceroy Hotels Limited:** Budgeted **~INR 120 crores** for 3 phases of renovation, with ~INR 50 crores spent for phase one (Courtyard). The balance ~INR 70 crores is for Marriott room upgradation, Convention Center upgradation, and F&B upgradation. * **SAMHI Hotels Limited:** Has significant internal growth projects underway, including rebranding 473 rooms and adding 1,500 rooms. The Navi Mumbai dual-branded hotel is its largest asset. The Hyderabad Financial District hotel is estimated at ₹1,250 – ₹1,430mn. * **Praveg Limited:** Operates on a PPP model for projects like Adalaj Theme Park, reducing direct capital outlay. * **Grand Continent Hotels Limited:** Employs an asset-light model with a launch cost per room of ₹7–8 lakhs, focusing on leasing properties. * **Vikram Kamats Hospitality Limited:** Shows significant Capital work-in-progress (₹260.52 Mn as of Sept 2025), indicating ongoing investments.

**R&D Investment Levels as % of Revenue:** Specific R&D figures are not provided, but investments in technology, sustainability, and new product development (e.g., ITC's loyalty program, Praveg's creative studio, Vikram Kamats' new F&B concepts) indicate a focus on innovation.

**Dividend Policies and Payout Ratios:** * **Vikram Kamats Hospitality Limited:** Declared 5% dividend for FY23 and 3% for FY24 and FY25.

**Share Buyback Programs:** No specific share buyback programs were mentioned in the provided data.

**M&A Activity and Strategy:** M&A is a key strategy for some players to accelerate growth and consolidate market position. * **Ventive Hospitality:** Actively pursuing acquisitions, including Soho House India and Hilton Goa Resort. * **The Leela Palaces Hotels & Resorts:** Expanding internationally through a strategic acquisition in Dubai. * **ITC Hotels:** Open to selective inorganic opportunities and value-accretive M&A. * **SAMHI Hotels:** Employs an acquisition-led strategy to achieve scale and acquire assets at a discount to replacement cost. * **Viceroy Hotels:** Actively looking for more Brownfield and existing hotels in Hyderabad and other tourist destinations.

**Cash Generation and Free Cash Flow Profiles:** * **SAMHI Hotels Limited:** Reported Operating Free Cash of ₹3,500 Mn (based on TTM EBITDA and current interest rates), indicating strong cash generation. * **Mahindra Holidays & Resorts India Limited (MHRIL):** Standalone cash and cash equivalents of ₹1532 Cr (+6% YoY), making it debt-free on a standalone basis. * **Brigade Hotel Ventures Limited:** Net Cash of INR 111 crores as of September 2025, with INR 468 crores utilized for debt repayment from IPO proceeds. * **EIH Associated Hotels Limited:** Healthy Cash Position of INR 247 Cr as of September 2025.

**Capital Efficiency Improvements:** * **Debt Reduction/Refinancing:** * **SAMHI Hotels Limited:** Net Debt: EBITDA improved significantly from 4.4x in Mar'25 to 2.9x in Sep'25. Interest rate reduced from 9.2% to 8.5%. * **The Leela Palaces Hotels & Resorts:** Net debt to EBITDA of 0.5x and Net debt to equity of 0.2x. Average cost of debt lowered from 9.1% to 8.4%. * **Brigade Hotel Ventures Limited:** Net Debt/Equity improved from 5.8x in FY25 to -0.1x in H1 FY26, becoming net cash positive. * **Ventive Hospitality:** Cost of funds declined in both India (0.8%) and Maldives (0.5%). * **Viceroy Hotels Limited:** Current cost of debt reduced to 8.25% due to refinancing. * **Asset-Light Models:** Grand Continent and Vikram Kamats' asset-light strategies improve capital efficiency by reducing direct ownership and leveraging leases/franchises. * **PPP Models:** Praveg's use of PPP models for large projects reduces capital outlay and risk.

H. FUTURE OUTLOOK & PROJECTIONS

The outlook for the Indian Hotels & Restaurants sector remains overwhelmingly positive, with management teams across companies expressing strong confidence in sustained growth, driven by robust demand fundamentals and strategic expansion plans.

**Industry Growth Projections (with timeframes):** * **Overall Hospitality Sector:** Expected to grow at a **12-14% CAGR through FY28** (Vikram Kamats). * **Hotel Room Demand:** Projected to grow at **10-12% CAGR through FY27** (Vikram Kamats). * **Demand-Supply Gap:** Expected to persist in the medium to long term, ensuring continued pricing power. * **Domestic Tourism:** Projected to reach 5,000 million trips by 2030 (Brigade). * **Air Passenger Traffic:** Projected to rise from ~411 million in FY25 to ~620 million by FY30 (CAGR 8-9%) (Vikram Kamats). * **H2 FY26 Outlook:** Expected to be seasonally stronger, powered by weddings, MICE, and peak leisure demand, leading to accelerated occupancy and pricing (Ventive, Brigade).

**Management Guidance Across Companies:** * **ITC Hotels Limited:** * Targeting **220+ operational hotels with 20,000+ keys by 2030**, with 2/3rd salience of Managed Portfolio. * Outlook for H2 FY26 remains positive with strong fundamentals and rising discretionary spending. * Committed to Long-term Value Creation. * **Ventive Hospitality Limited:** * Target to reach **4000 keys by FY30**. * Expect to generate cumulative EBITDA of **₹6,500 crore over the next 5 years**. * Expect occupancy to rise to 72% in the short term and stabilize at around 75% in the medium term (4-5 years). * Confident in achieving double-digit growth on both TRevPAR and RevPAR. * **The Leela Palaces Hotels & Resorts Limited:** * Target approximately **Rs. 2,000 crores in EBITDA by FY'30**. * Expect **mid-to-high-teen EBITDA growth in FY'26**. * Confident of achieving high teen ROCE growth over the immediate term. * Confident of **double-digit RevPAR growth for H2 FY26**. * Existing ownership hotels should reach EBITDA of close to INR 1,200 crores by FY'30 (on 10-11% RevPAR growth on same store). * **Mahindra Holidays & Resorts India Limited (MHRIL):** * Target **2X inventory base to ~10k keys by FY30**. * Focus on continuous member engagement to enhance lifetime value. * **SAMHI Hotels Limited:** * Same-store growth continuing in range of forecast (**~9%-11% CAGR**). * By end of December 2025, will have added about 8% inventory to portfolio in current year, aiding performance in Q4 FY26 and FY27. * Secured Growth of ₹19,000mn – ₹21,000mn (Incremental ~₹8,000mn revenue potential from committed projects). * Market Growth (till FY30) of ₹29,000mn – ₹31,500mn (in line with 9-11% CAGR forecast). * **Brigade Hotel Ventures Limited:** * Aiming to **double hotel portfolio by adding ~1,700 keys over next five years**. * Expect growth momentum to sustain in H2 FY26. * Expect 45 keys to become operational in FY27 (Courtyard by Marriott in Chennai WTC). * Expect ARR growth in Bangalore to stick to **mid-teens to high-teens for the next two quarters**. * Once new luxury properties come in, at least a third of the portfolio will be in the 5-star luxury deluxe category, leading to significant uptake in ARR. * **Viceroy Hotels Limited:** * Target at portfolio level to have an **EBITDA margin North of 30%**, with a longer-term target of **40%**. * Expect to grow at least **30-35% from annual revenue** once entire renovation is completed. * ROI from renovation and upgrade investment expected to be less than two to three years. * Bullish on Hyderabad due to maximum growth potential and less supply of rooms. * **Grand Continent Hotels Limited:** * Confident to reach **3000 key mark over the next 3 years**. * Plans to change business mix: Leisure : Spiritual to 60:15:25. * Aims to improve male : female employee ratio to 3:1 by end of FY27. * **Vikram Kamats Hospitality Limited:** * Focused on sustaining growth, with a clear expansion pipeline and favorable industry trends. * Well-positioned to seize emerging opportunities and enhance profitability.

**Emerging Opportunities and Whitespace:** * **Spiritual Tourism:** A major growth segment, with companies like Grand Continent and Vikram Kamats targeting new properties in religious centers like Ayodhya. * **Experiential Stays:** Growing traveler preference for unique experiences, driving demand for boutique hotels, eco-resorts, and curated activities. * **Tier-2 and Tier-3 Cities:** Rapidly growing demand for branded mid-scale hotels in these cities, offering significant expansion opportunities. * **International Expansion:** Opportunities in neighboring countries (Sri Lanka) and key global tourist hubs (Dubai, SEA). * **Mixed-Use Developments:** Integrating hotels within larger commercial or residential projects (Brigade, SAMHI's Navi Mumbai) offers synergistic benefits. * **Wellness Tourism:** The Ritz-Carlton Wellness Resort in Vaikom, Kerala (Brigade) highlights this niche.

**Transformation Themes and Inflection Points:** * **Sustainability:** Net Zero goals, renewable energy adoption, and eco-responsible operations are becoming standard and a competitive differentiator. * **Digitalization:** Enhanced online presence, loyalty programs, and data analytics for personalized guest experiences. * **Asset-Light Models:** A growing trend for rapid, capital-efficient expansion, particularly in the mid-scale segment. * **Premiumization:** Guests seeking value-driven premium stays and authentic regional cuisines.

**Long-term Structural Trends (5-10 year view):** * **Strong Demographics & Discretionary Spending:** India's favorable demographics and rising incomes will continue to fuel demand for travel and hospitality. * **Infrastructure Development:** Continued government investment in highways, airports, and tourism circuits will enhance connectivity and accessibility. * **Shift to Branded Hotels:** Increasing preference for branded accommodations, especially in leisure and mid-tier segments. * **Focus on Experiences:** Travelers prioritizing experiences and memories over material possessions.

**Potential Disruptions on the Horizon:** * While the outlook is positive, unforeseen global economic downturns, geopolitical conflicts, or major health crises (like COVID-19) could disrupt travel patterns and industry performance. Rapid shifts in consumer preferences or technological advancements could also necessitate quick adaptation.

**Expected Margin Evolution:** * Many companies (Viceroy, Ventive, Leela) expect margin expansion driven by increased occupancies, higher ADRs, operational efficiencies, and the ramp-up of new/renovated properties. * Asset-light models may maintain lower but stable margins, while owned luxury properties aim for 40%+ EBITDA margins in the long term.

I. COMPANY-BY-COMPANY PROFILES

ITC Hotels Limited

**Brief Description:** A leading luxury hotel chain in India, part of the ITC Group, known for its 'Responsible Luxury' ethos and extensive portfolio of owned and managed properties across various segments. **Scale Metrics:** 145+ operational hotels, 13,600+ keys (as on 30th Sept '25). Target: 220+ Hotels, 20,000+ Keys by 2030. Owned/Managed Mix: 41%/59% currently, targeting 33%/67% by 2030. **Financial Performance Summary (H1 FY26 Consolidated):** * Total Income: ₹1745 Cr, up 17% YoY. * EBITDA: ₹490 Cr, up 17% YoY (up 24% on comparable basis). * EBITDA Margin: 30%, up 150 bps (up 300 bps on comparable basis). * PAT: ₹267 Cr, up 63% YoY. * PAT Margin: 15%, up 437 bps. **Strategic Priorities:** * **Expansion:** Robust pipeline of 61 hotels (~5900 keys). Launched 'Epiq Collection' for premium segment. Greenfield projects at Puri and Vizag. International expansion with ITC Ratnadipa in Colombo. * **Sustainability:** Net Zero Carbon Goal, LEED® Zero Carbon/Water certifications, 54%+ electricity from renewable sources. * **F&B Excellence:** Award-winning restaurants (Avartana, Bukhara, Dum Pukht). * **Digital & Loyalty:** Launched new Club ITC loyalty programme, strong multi-channel distribution. **Competitive Advantages:** Strong brand equity, significant RevPAR premium (40% over industry), sustainability leadership (largest number of LEED Platinum® certifications), diverse portfolio across luxury to mid-market segments. **Key Metrics & KPIs:** RevPAR & Goly (Domestic Owned Hotels) H1 FY26: ₹8000, 72% Occ% (RevPAR growth +11%). NPS: 84. Online Rating: 4.78. **Management Outlook:** "Highest ever Q2 revenue and profits, despite subdued travel... Outlook for H2 FY25-26 remains positive." Targeting 220+ operational hotels with 20,000+ keys by 2030.

Ventive Hospitality Limited

**Brief Description:** A hospitality company with a portfolio of luxury hotels in India and ultra-luxury resorts in the Maldives, focused on disciplined capital allocation and active asset management. **Scale Metrics:** Currently 2140 keys (with Hilton Goa addition). Target: 4000 keys by FY30. **Financial Performance Summary (Q2 FY26 Consolidated):** * Revenue: ₹554.5 crores, up 28% YoY (Adjusted for FX gain, 16.6% YoY growth). * EBITDA: ₹254.8 crore, up 50% YoY (Adjusted for FX gain, 22.2% growth). * EBITDA Margin: 46%, expansion of 7 percentage points YoY (amongst the highest in the sector). **Strategic Priorities:** * **Acquisitions:** Acquired 51% stake in Soho House India, 76% stake in Hilton Goa Resort. * **Development Pipeline:** Varanasi (by FY28), Ritz Carlton Reserve (by FY28), AC by Marriott (by FY27). Development potential for additional keys at Hilton Goa. * **Sustainability:** Solar installation program in Maldives, biogas plant at Anantara Maldives. * **Debt Management:** Reduced cost of funds in India and Maldives. **Competitive Advantages:** Ultra-luxury positioning (Maldives), high EBITDA margins, strategic acquisitions, strong credit rating (AA stable), limited new supply in key markets like Pune. **Key Metrics & KPIs:** India ADR: ₹11,335 (+12%), Occupancy: 66%, RevPAR: ₹7,486 (+13%) in Q2 FY26. Maldives same-store occupancy: 50%. Net Debt: ₹1,646 crore. **Management Outlook:** "Four consecutive quarters of strong and sustained growth." Confident in growing EBITDA margin and EBITDA per key. Expect occupancy to rise to 72% short term, 75% medium term. Target to reach 4000 keys by FY30 and generate cumulative EBITDA of ₹6,500 crore over the next 5 years.

Leela Palaces Hotels & Resorts Limited

**Brief Description:** An iconic luxury hotel brand in India, known for its palaces and resorts, now formally adopted as Leela Palaces Hotels & Resorts Limited. **Scale Metrics:** Portfolio of luxury hotels. **Financial Performance Summary (H1 FY26):** * Total Revenue: INR 635 crores, up 18% YoY. * EBITDA: INR 289 crores, up 34% YoY. * EBITDA Margin: 45%, expansion of 5.6%. * PAT: INR 83 crores (compared to loss of INR 126 crores last year). **Strategic Priorities:** * **International Expansion:** Acquiring 25% stake in a beachfront luxury resort in Dubai. * **New Developments:** Co-investing 50% in The Leela Palace BKC Mumbai (250+ keys). Development underway in Udaipur, Mumbai, Srinagar, Agra, Ayodhya, Ranthambore and Bandhavgarh. * **Value Drivers:** Launched ARQ members' club, relaunched high-end retail space, reopened Le Cirque restaurant. * **Sustainability:** Commissioned 2.25 MW solar plant, 65% energy from renewable sources. **Competitive Advantages:** Iconic luxury brand, highest NPS (86), strong balance sheet (Net debt to EBITDA 0.5x), strong AA Stable credit rating, high incremental revenue flow-through to EBITDA (77%). **Key Metrics & KPIs:** H1 FY26 RevPAR: INR 12,616, up 16%. ADR up 10%. Occupancy: 66%. Adjusted ROCE: ~14%. **Management Outlook:** "Firmly on course to deliver another year of strong performance." Expect mid-to-high-teen EBITDA growth in FY'26. Target approximately Rs. 2,000 crores in EBITDA by FY'30. Confident of double-digit RevPAR growth for H2 FY26.

Mahindra Holidays & Resorts India Limited (MHRIL)

**Brief Description:** India's leading vacation ownership company, offering family holidays through its Club Mahindra memberships and extensive resort network. **Scale Metrics:** ~3 Lakh+ members, ~150 resorts globally, 5742 keys. Target: 2X inventory base to ~10k keys by FY30. **Financial Performance Summary (H1 FY26 Standalone):** * Total Income: ₹791.3 Cr, up 4.7% YoY. * EBITDA: ₹301.4 Cr, up 29.4% YoY. * EBITDA Margin: 38.1%, up from 30.8% in H1 FY25. * PAT: ₹127.9 Cr, up 38.6% YoY (42.5% ex-forex). **Strategic Priorities:** * **Product Portfolio:** Evolved to include multiple products (CMH 25/15/10, Bliss, Go-Zest) for diverse consumer segments. * **Network Expansion:** New resort at Mahabaleshwar, expansion of 4 existing resorts, 3 ongoing greenfield/brownfield projects. Target to double inventory to ~10k keys by FY30. * **Member Engagement:** Focus on continuous member engagement to enhance lifetime value. **Competitive Advantages:** Unique and sustainable vacation ownership business model, predictable revenue streams, large and loyal member base, extensive network of resorts and experiences, strong brand for quality family vacations, debt-free on standalone basis. **Key Metrics & KPIs:** Cumulative Member Base: 304k. Resort Occupancies: 80%+. H1 FY26 Consolidated RevPAR: ₹5,209, Occupancy: 75.1%. Return on Adjusted Capital (Consolidated) H1 FY26: 9.9% (Annualised). **Management Outlook:** Confident in growth and value creation. Focus on family vacations and multi-product portfolio.

SAMHI Hotels Limited

**Brief Description:** An acquisition-led hotel asset owner in India, partnering with leading global hotel operators, with a diversified portfolio across mid-scale to upscale segments. **Scale Metrics:** 4,862 operational rooms (as on 30th Sept '25). Total inventory addition in FY26: ~8% (378 rooms). **Financial Performance Summary (H1 FY26 Consolidated):** * Total Income: ₹5,836 Mn, up 12.0% YoY. * Consol. EBITDA: ₹2,161 Mn, up 16.3% YoY. * EBITDA Margin: 37.0%, up from 35.7% in H1 FY25. * PAT: ₹1,190 Mn, up 606.3% YoY (attributable to SAMHI ~₹1,097 Mn, significantly boosted by Navi Mumbai land impairment reversal). **Strategic Priorities:** * **Acquisition-led Growth:** Delivered scale with 35% CAGR in revenue over 11 years. * **Development Pipeline:** Navi Mumbai (700-room dual-branded hotel), Hyderabad Financial District (260-room hotel), rebranding 473 rooms, adding 1,500 rooms. * **Financial Flexibility:** Reduced Net Debt : EBITDA to 2.9x (Sep'25) and interest rate to 8.5%. Upgraded to A+ stable credit rating. * **Operator Partnerships:** Dominant share with Marriott (66%), Hyatt (16%), IHG (15%). **Competitive Advantages:** Acquisition-led strategy for rapid scale, strong partnerships with global brands, diversified portfolio across price points, strong financial flexibility post-IPO, focus on key commercial districts. **Key Metrics & KPIs:** Q2 FY26 RevPAR: ₹5,026 (+11.2% YoY, same-store). Asset EBITDA Margin: 40.5%. Net Debt : EBITDA: 2.9x. **Management Outlook:** "Strong base for the remaining part of FY2026 and for FY2027." Confident of SAMHI's growth and value creation. Same-store growth continuing in range of 9%-11% CAGR.

Brigade Hotel Ventures Limited (BHVL)

**Brief Description:** The hospitality arm of Brigade Enterprises Limited, a prominent real estate developer, focused on owning and operating chain-affiliated hotels primarily in South India. **Scale Metrics:** 9 operating hotels with 1,600 keys. Upcoming keys: 1,700 (Total Portfolio ~3,300 keys). Second largest owner of chain-affiliated hotels in South India. **Financial Performance Summary (H1 FY26 Consolidated):** * Total Income: INR 255 crores, up 21% YoY. * EBITDA: INR 83 crores, up 16% YoY. * EBITDA Margin: 32.6% (vs 34.0% in H1 FY25). * PAT: INR 18 crores (vs INR 1 crore in H1 FY25), 18 times growth. **Strategic Priorities:** * **Expansion:** Aiming to double hotel portfolio by adding ~1,700 keys over next five years, with a capex of INR 3,600 crores. Focus on Luxury/Leisure sites. * **Operational Efficiency:** Cost control, productivity efforts, renewable energy adoption (close to 60%). * **Parentage Leverage:** Benefits from Brigade Enterprises' expertise in strategic land parcels, cost-efficient development, and shared services. **Competitive Advantages:** Strong parentage, significant presence in high-growth South Indian markets, strategic land parcels, cost-efficient development within mixed-use projects, increasing luxury portfolio. **Key Metrics & KPIs:** H1 FY26 ARR: INR 6,936 (+10% YoY). Occupancy: 75.1%. RevPAR: INR 5,209 (+11% YoY). Net Cash: INR 111 crores. Adjusted ROCE: 9.9%. NPS: 80%. **Management Outlook:** "Expect this growth momentum to sustain in H2 FY26." Expect 45 keys to become operational in FY27. Confident of mid-teens to high-teens ARR growth for Bangalore in the next two quarters.

EIH Associated Hotels Limited (EIHA)

**Brief Description:** Operates hotels under the prestigious Oberoi and Trident brands, with a national presence across India. **Scale Metrics:** 784 keys in India (7 hotels). **Financial Performance Summary (H1 FY26):** * Revenue from Operations: ₹127.1 Cr, down 5% YoY (impacted by renovations). Like-to-Like (excl. Trident Jaipur/Cochin) Revenue Growth: 3%. * EBITDA: ₹21.0 Cr, up 1% YoY. Like-to-Like EBITDA Growth: 1%. * PAT: ₹8.9 Cr, up 56% YoY. **Strategic Priorities:** * **Projects Pipeline:** Trident Vishakhapatnam (125 keys), Trident Jaipur (renovation, 127 keys), Banquet at Trident Agra. * **Fund Position:** Healthy fund position to drive expansion. **Competitive Advantages:** Association with highly reputed Oberoi and Trident brands, consistently higher RevPAR growth than industry, focus on renovations to enhance asset quality. **Key Metrics & KPIs:** Q2 FY26 Occupancy: 65%. ARR: ₹9,820 (+8.4% YoY). RevPAR: ₹6,402 (+9% YoY). Cash Position: INR 247 Cr. **Management Outlook:** Projects pipeline is subject to risks. Period of Opening may differ.

Viceroy Hotels Limited

**Brief Description:** Owns and operates two flagship properties in Hyderabad under Marriott and Courtyard by Marriott brands, with a focus on renovation and expansion in the high-growth Hyderabad market. **Scale Metrics:** 463 rooms (includes 56 newly added rooms in Courtyard by Marriott). **Financial Performance Summary (H1 FY26 Standalone):** * Total income: INR 58.31 crores. * EBITDA: INR 13.64 crores. * EBITDA margin: 23.4%. * PAT: INR 1.36 crores. **Strategic Priorities:** * **Phased Renovation/Upgrade:** Phase one (Courtyard) completed, adding 56 new rooms. Phase two (Marriott) expanding Convention Center and upgrading rooms. Phase three (Marriott) enhancing F&B outlets. * **Greenfield/Brownfield Expansion:** Progressing with greenfield project at Madhapur. Actively looking for more Brownfield and existing hotels in Hyderabad and other tourist destinations. * **Operational Efficiency:** Outsourced laundry, MEP upgrades. **Competitive Advantages:** Strong presence in Hyderabad (promising hospitality market with limited new supply), Marriott branding and loyalty program, almost a monopoly in its current market. **Key Metrics & KPIs:** Q2 FY26 Combined Occupancy: 56.9%. Combined RevPAR: INR 3,794. ADR (Marriott) INR 6,620 (+9% YoY). ADR (Courtyard) INR 6,837 (+13% YoY). Current cost of debt: 8.25%. **Management Outlook:** Expect renovation program to be completed by Q3 FY26, enabling higher ADRs and occupancy. Target EBITDA margin North of 30% at portfolio level, longer term 40%. Expect 30-35% annual revenue growth once renovation is completed. Bullish on Hyderabad.

Praveg Limited

**Brief Description:** A pioneer in eco-responsible luxury hospitality and a strong player in event management, transitioning towards experiential tourism with innovative, low-cost hospitality concepts. **Scale Metrics:** Over 825 rooms across 17 operational resorts + one five-star hotel. **Financial Performance Summary (H1 FY26 Consolidated):** * Net Sales: ₹76.89 Cr, up 28.94% YoY. * EBITDA: ₹10.17 Cr, up 13.09% YoY. * EBITDA Margin: 13.09% (vs 14.93% in H1 FY25). * PAT: -₹14.97 Cr (vs -₹7.04 Cr in H1 FY25), showing increased losses. **Strategic Priorities:** * **Experiential Tourism:** Transitioning from events to experiential tourism, backed by infrastructure capabilities. * **New Initiatives:** Praveg Adalaj Theme Park (PPP model), awarded contract for World Lion Day 2025 celebrations. * **Eco-responsible Luxury:** Focus on non-permanent structures and sustainable operations. **Competitive Advantages:** Pioneer in eco-responsible luxury, strong expertise in event management, innovative low-cost hospitality concepts, long-standing partnerships with tourism departments, extensive network. **Key Metrics & KPIs:** Q2 FY26 EBITDA Margin: 10.45% (down from 29.75% in Q2 FY25). **Management Outlook:** Evolution towards experiential tourism.

Grand Continent Hotels Limited

**Brief Description:** A rapidly expanding mid-scale hotel chain in India, employing an asset-light strategy with a dual operating model (franchise and own brand). **Scale Metrics:** 24 properties, 1178 keys (as on Oct-25). Target: 3000 key mark over the next 3 years. **Financial Performance Summary (H1 FY26):** * Total Income: ₹57.19 Cr, up 79% YoY. * EBITDA: ₹6.49 Cr (down 23.6% H1 FY26 vs H2 FY25). * EBITDA Margin: 11.34% (down from 20.9% in H2 FY25). * PAT: ₹2.39 Cr (down 26.4% H1 FY26 vs H2 FY25). **Strategic Priorities:** * **Asset-Light Model:** Leasing properties for 10–15 years, quick property launch (3–6 months), low launch cost per room (₹7–8 lakhs). * **Dual Operating Model:** Franchise partnerships (Regenta, Golden Tulip, Sarovar) and own brand development. * **Geographical Expansion:** Into West and North India (Dwaraka & Udaipur live; Jaipur, Ayodhya, Gurgaon signing). International expansion (UAE, SEA). * **Business Mix Change:** Leisure : Spiritual to 60:15:25. **Competitive Advantages:** Asset-light model for rapid, capital-efficient expansion, dual operating model, focus on mid-scale segment (highest occupancy), strong growth in Tier-2/3 cities. **Key Metrics & KPIs:** H1 FY26 Occupancy: 60%. ARR: ₹3,648. Working Capital (Days): 96 (H1 FY26, increasing). Debt/Equity: 0.2 (H1 FY26). **Management Outlook:** Optimistic about leveraging hospitality industry growth trend. Robust and strong pipeline for growth. Confident to reach 3000 key mark over the next 3 years.

Vikram Kamats Hospitality Limited

**Brief Description:** Operates mid-scale hotels under the VITS brand and iconic vegetarian restaurant chains under Kamats, with a hybrid business model across highway and urban markets. **Scale Metrics:** More than 19 Hotels (including under construction), more than 30 Restaurant Outlets. System wide Group occupancy: 61%. **Financial Performance Summary (H1 FY26):** * Revenue from operations: ₹249.52 Mn, up 47.16% YoY. * EBITDA (excl. Other Income): ₹53.54 Mn, up 76.52% YoY. * EBITDA Margin: 21.45%, up from 17.89% in H1 FY25. * PAT: ₹1.42 Mn, down 53.17% YoY (due to higher finance and depreciation costs). **Strategic Priorities:** * **Hybrid Business Model:** COCO/leased and franchised/managed models across hotels, restaurants, cloud kitchens, packaged foods. * **Brand Portfolio:** Strong legacy brands (VITS, Kamats, Vithal Kamats). * **Strategic Presence:** Across highway and urban markets. * **Expansion:** Acquired under-construction hotel at Daman, leased hotels in Lonavala, Panchgani, Bharuch, Pune Kharadi, Gurugram, Manyata Tech Park Bengaluru, Devka Hotel expansion. **Competitive Advantages:** Hybrid business model with multiple revenue streams, strong brand portfolio with legacy value, strategic presence across highway and urban markets, innovation through new concepts, focus on vegetarian-friendly options. **Key Metrics & KPIs:** H1 FY26 System wide Group ARR: INR 3,085/-. Capital work-in-progress: ₹260.52 Mn. **Management Outlook:** Robust performance in Q2 FY26. Focused on sustaining growth, with a clear expansion pipeline and favorable industry trends. Well-positioned to seize emerging opportunities and enhance profitability.

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J. TABLES

**Table 1: Key Financial Performance Summary (Q2 FY26 & H1 FY26)**

| Company | Metric | Q2 FY26 Value (Unit) | Q2 FY26 YoY Growth | H1 FY26 Value (Unit) | H1 FY26 YoY Growth | | :--------------------------- | :------------------- | :------------------- | :----------------- | :------------------- | :----------------- | | **ITC Hotels Ltd.** | Total Income (Cr) | ₹885 | 13% | ₹1745 | 17% | | | EBITDA (Cr) | ₹246 | 16% | ₹490 | 17% | | | EBITDA Margin (%) | 29% | +200 bps | 30% | +150 bps | | | PAT (Cr) | ₹133 | 74% | ₹267 | 63% | | **Ventive Hospitality Ltd.** | Revenue (Cr) | ₹554.5 | 28% (16.6% adj.) | - | - | | | EBITDA (Cr) | ₹254.8 | 50% (22.2% adj.) | - | - | | | EBITDA Margin (%) | 46% | +700 bps | - | - | | | PAT (Cr) | - | - | >₹100 | - | | **Leela Palaces H&R Ltd.** | Revenue (Cr) | INR 333 | 11% | INR 635 | 18% | | | EBITDA (Cr) | INR 161 | 17% | INR 289 | 34% | | | EBITDA Margin (%) | 48.2% | +250 bps | 45% | +560 bps | | | PAT (Cr) | INR 75 | - | INR 83 | - | | **Mahindra Holidays & RIL** | Total Income (Cr) | ₹381 (Standalone) | 3% | ₹791.3 (Standalone) | 4.7% | | | EBITDA (Cr) | ₹141 (Standalone) | 18% | ₹301.4 (Standalone) | 29.4% | | | EBITDA Margin (%) | 36.9% (Standalone) | +470 bps | 38.1% (Standalone) | +730 bps | | | PAT (Cr) | ₹52 (Standalone) | 10% | ₹127.9 (Standalone) | 38.6% | | **SAMHI Hotels Ltd.** | Total Income (Mn) | ₹2,963 | 11.0% | ₹5,836 | 12.0% | | | Consol. EBITDA (Mn) | ₹1,105 | 14.2% | ₹2,161 | 16.3% | | | EBITDA Margin (%) | 37.3% | +110 bps | 37.0% | +130 bps | | | PAT (Mn) | ₹998 | 691.1% | ₹1,190 | 606.3% | | **Brigade Hotel Ventures** | Total Income (Cr) | INR 130 | 20% | INR 255 | 21% | | | EBITDA (Cr) | INR 41 | 9% | INR 83 | 16% | | | EBITDA Margin (%) | 31.8% | -320 bps | 32.6% | -140 bps | | | PAT (Cr) | INR 11 | 58% | INR 18 | 18x | | **EIH Associated Hotels** | Revenue from Ops (Cr)| ₹58.3 | -16% | ₹127.1 | -5% | | | EBITDA (Cr) | ₹7.1 | -39% | ₹21.0 | 1% | | | EBITDA Margin (%) | 11.3% | - | 15.4% | - | | | PAT (Cr) | ₹2.7 | 27% | ₹8.9 | 56% | | **Viceroy Hotels Ltd.** | Total Income (Cr) | INR 31.86 | - | INR 58.31 | - | | | EBITDA (Cr) | INR 8.82 | - | INR 13.64 | - | | | EBITDA Margin (%) | 27.7% | - | 23.4% | - | | | PAT (Cr) | INR 4.38 | - | INR 1.36 | - | | **Praveg Limited** | Net Sales (Cr) | ₹37.50 | - | ₹76.89 | 28.94% | | | EBITDA (Cr) | ₹3.96 | -62.5% | ₹10.17 | 13.09% | | | EBITDA Margin (%) | 10.45% | -1930 bps | 13.09% | -184 bps | | | PAT (Cr) | -₹9.22 | - | -₹14.97 | - | | **Grand Continent Hotels** | Total Income (Cr) | - | - | ₹57.19 | 79% | | | EBITDA (Cr) | - | - | ₹6.49 | -23.6% (HY-o-HY) | | | EBITDA Margin (%) | - | - | 11.34% | - | | | PAT (Cr) | - | - | ₹2.39 | -26.4% (HY-o-HY) | | **Vikram Kamats Hospitality**| Revenue from Ops (Mn)| ₹120.01 | 42.23% | ₹249.52 | 47.16% | | | EBITDA (Mn) | ₹25.16 | 70.00% | ₹53.54 | 76.52% | | | EBITDA Margin (%) | 20.96% | +342 bps | 21.45% | +356 bps | | | PAT (Mn) | ₹0.14 | -89.13% | ₹1.42 | -53.17% |

**Table 2: Key Operational Metrics (Q2 FY26 & H1 FY26)**

| Company | Metric | Q2 FY26 Value (Unit) | Q2 FY26 YoY Change | H1 FY26 Value (Unit) | H1 FY26 YoY Change | | :--------------------------- | :------------------- | :------------------- | :----------------- | :------------------- | :----------------- | | **ITC Hotels Ltd.** | RevPAR (₹) | ₹8100 | +9% | ₹8000 | +11% | | | Occupancy (%) | 72% | +2 pp | 72% | +2 pp | | **Ventive Hospitality Ltd.** | India RevPAR (₹) | ₹7,486 | +13% | - | - | | | India Occupancy (%) | 66% | - | - | - | | | India ADR (₹) | ₹11,335 | +12% | - | - | | **Leela Palaces H&R Ltd.** | RevPAR (₹) | INR 13,262 | +13% | INR 12,616 | +16% | | | Occupancy (%) | - | - | 66% | +3.8 pp | | | ADR | - | - | +10% | - | | **Mahindra Holidays & RIL** | RevPAR (Consol, ₹) | - | - | ₹5,209 | +1.4% | | | Occupancy (Consol, %)| - | - | 75.1% | +0.4 pp | | | ARR (Consol, ₹) | - | - | ₹6,936 | +3.6% | | **SAMHI Hotels Ltd.** | RevPAR (Same-store, ₹)| ₹5,026 | +11.2% | - | - | | | Occupancy (Same-store, %)| 75% (Upper Upscale) | - | - | - | | | ARR (Same-store, ₹) | ₹10,578 (Upper Upscale)| - | - | - | | **Brigade Hotel Ventures** | RevPAR (Consol, ₹) | INR 5,374 | +13% | INR 5,209 | +11% | | | Occupancy (Consol, %)| 75.6% | -0.4 pp | 75.1% | +0.4 pp | | | ARR (Consol, ₹) | INR 7,106 | +14% | INR 6,936 | +10% | | **EIH Associated Hotels** | RevPAR (₹) | ₹6,402 | +9% | ₹6,415 | +18.2% | | | Occupancy (%) | 65% | 0 pp | 65% | +1 pp | | | ARR (₹) | ₹9,820 | +8.4% | ₹9,869 | +10.6% | | **Viceroy Hotels Ltd.** | Combined RevPAR (₹) | INR 3,794 | - | INR 3,803 | - | | | Combined Occupancy (%)| 56.9% | - | 56% | - | | | Marriott ADR (₹) | INR 6,620 | +9% | INR 6,807 | +11% | | **Grand Continent Hotels** | RevPAR (₹) | - | - | ₹2,189 | -10.6% | | | Occupancy (%) | - | - | 60% | -1 pp | | | ARR (₹) | - | - | ₹3,648 | +6.9% | | **Vikram Kamats Hospitality**| System wide Occ (%) | - | - | 61% | - | | | System wide ARR (₹) | - | - | ₹3,085 | - |

**Table 3: Select Balance Sheet and Debt Metrics (as of Sep 30, 2025)**

| Company | Metric | Value (Unit) | YoY Change / Trend | | :--------------------------- | :------------------- | :------------------- | :----------------- | | **Ventive Hospitality Ltd.** | Cumulative Debt (Cr) | ₹2,129 | - | | | Net Debt (Cr) | ₹1,646 | - | | | Cash Balances (Cr) | ₹484 | - | | **Leela Palaces H&R Ltd.** | Net debt to EBITDA (x)| 0.5x | Improving | | | Net debt to equity (x)| 0.2x | Improving | | | Cash (Cr) | >INR 1,000 | - | | **Mahindra Holidays & RIL** | Cash & equivalents (Cr)| ₹1,532 (Standalone) | +6% | | | Net Debt (Consol, Cr)| -₹110.9 | Debt-free | | | Net Debt/Equity (Consol, x)| -0.1x | Improving | | **SAMHI Hotels Ltd.** | Net Debt (Mn) | ₹13,700 | Reducing | | | Net Debt : EBITDA (x)| 2.9x | Improving | | | Interest Rate (%) | 8.5% | Reducing | | | Cash & equivalents (Mn)| ₹2,460 | - | | **Brigade Hotel Ventures** | Net Cash (Cr) | INR 111 | Net cash positive | | | Total Equity (Cr) | INR 936 | Significant increase| | **EIH Associated Hotels** | Cash Position (Cr) | INR 247 | Healthy | | **Grand Continent Hotels** | Debt/Equity (x) | 0.2x | - | | | Cash & equivalents (Cr)| ₹7 | - | | **Vikram Kamats Hospitality**| Capital work-in-progress (Mn)| ₹260.52 | Increasing | | | Cash & equivalents (Mn)| ₹106.23 | Increasing |

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