Release Date: November 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- EIH Ltd (BOM:500840, Financial) reported its best-ever Q2 performance with the highest revenue, EBITDA, and PAT in the last 15 years.
- The company announced a significant expansion plan with 20 new properties expected by 2029, including both domestic and international locations.
- RevPAR growth was strong across various segments, with leisure showing an 87% increase and Trident hotels a 22% increase year-on-year.
- The company maintains a strong financial position with INR 592 crores retained for future growth and expansion.
- EIH Ltd (BOM:500840) has a strategic investment in a luxury hotel in London, which is expected to enhance brand presence in a key international market.
Negative Points
- The performance in the MENA region was muted due to geopolitical conflicts, affecting overall results.
- Oberoi Grand is temporarily closed for renovation, which may impact short-term revenue from that property.
- The lease for the Mumbai airport business lounge is uncertain beyond Q3, potentially affecting future revenue.
- There are ongoing legal matters related to certain properties, which could pose risks to business operations.
- The company faces challenges in expanding its managed hotel portfolio, with a relatively low share of managed contracts in its growth strategy.
Q & A Highlights
Q: What is the consolidated CapEx for EIH Ltd's expansion until FY29?
A: Vikram Oberoi, CEO, mentioned that all disclosures regarding CapEx for various hotels owned by EIH or its associate companies have been made to the stock exchange. He suggested referring to these disclosures for detailed information.
Q: Can you provide more details about the GBP69 million investment in EIS London?
A: Vikram Oberoi, CEO, explained that the investment is for a luxury hotel in Mayfair, London, with 21 keys. The total investment is GBP69 million, typically structured with 50% debt and 50% equity. EIH aims to have a 49% partnership, reducing its exposure to under GBP18 million.
Q: What is the status of the Mumbai airport business lounge lease?
A: Vikram Oberoi, CEO, stated that the lease has been extended until the end of Q3, with no confirmation yet on a longer-term extension.
Q: How does EIH Ltd plan to enhance customer loyalty, particularly in the luxury and corporate segments?
A: Vikram Oberoi, CEO, emphasized that the company's strength lies in providing world-class service and care to guests, driven by committed staff who prioritize guest needs.
Q: What is EIH Ltd's strategy for expanding managed hotels versus owned properties?
A: Vikram Oberoi, CEO, expressed satisfaction with the current projects and stated that EIH is keen to expand its footprint through both owned and managed hotels, with a vision to open 50 hotels by 2030.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
