EIHOTEL - EIH Ltd Share Price

During the earnings call on November 14, 2025, EIH Limited's management provided an optimistic outlook for FY26, highlighting growth prospects in domestic tourism and the corporate segment. They expect continued expansion in luxury travel driven by growth in India's upper-middle-class population and high-net-worth individuals (HNI). They discussed a pipeline of 27 new properties, aiming for operational readiness by 2030, with 2,100 keys added, split between 17 Oberoi hotels, 7 Trident hotels, 3 luxury boats, and 1 Nile cruiser.

Key numbers highlighted include:

• Revenue Growth: For H1 FY26, reported revenue growth of 14% and EBITDA growth of 12% on a like-to-like basis.
• Current Cash Reserves: The company holds cash reserves of Rs.1,050 crores to support future expansions.
• Occupancy Trends: Overall occupancy was flat at 72% in Q2, with a 7% increase in Average Room Rates (ARR) contributing to RevPAR growth.
• Forward-Looking Statements: Management anticipates strong demand in Q3, particularly from the wedding segment and foreign travel, and expects to command high rates due to lower competition.

Management noted that despite geopolitical disruptions and negative impacts from events like the Air India crash and Operation Sindoor on air travel sentiments, there are indications of recovery, especially in December and January. They expect demand to remain strong and are confident about achieving a better ARR growth trajectory in the second half of FY26.

Question 1:

"So, sir, I wanted to know that if I remember correctly, in the previous quarter, you mentioned that there won't be any exceptional items going ahead. But in the current quarter also, we have seen. So, now going ahead, would there be any exceptional losses?"

Answer: The exceptional items were mainly in Q1. What you see is the H1 number reflecting the same impact which was there in Q1. We had a few exceptional items in Q2, but the impact is not significantly high in value.

Question 2:

"Sir, I just wanted some clarity on the owned hotels that are in the pipeline. So, these hotels will come under which entity?"

Answer: Tirupati and Gandikota will come under Mumtaz. Vizag will be under EIH Associated Hotels, and in Bangalore, both hotels will be under EIH, with a significant development potential of about 1.3 million square feet, including Oberoi and Trident hotels.

Question 3:

"So, any particular hotels you see, like, are you expecting any meaningful surge in occupancies and ARRs due to the World Cup that is upcoming?"

Answer: Historically, when events occur in India, particularly in specific cities, we see an increased demand, allowing us to elevate rates. We expect a similar pattern this year due to the World Cup.

Question 4:

"Can you explain this disconnect regarding RevPAR growth in contrast to strong performance in certain markets?"

Answer: While the industry may reflect strong growth, we tend to maintain higher price points without heavy discounting, impacting our RevPAR differently. Historical trends show that our strategy protects brand positioning while maintaining steady demand in winter months.

Question 5:

"Can you give a quick overview of the expected performance for Q3 and Q4?"

Answer: While we don't provide specific guidance, we anticipate strong demand especially due to the wedding season and increased foreign travel from October to March. These factors typically drive our revenues positively during this period.

Question 6:

"Could you outline our total CapEx guidance for the owned hotels of this pipeline over the next three to five years?"

Answer: We typically don't give specific CapEx guidance. However, with expansions coming up, we anticipate an average CapEx of around Rs. 400 to 500 crores each year, particularly focusing on projects like Goa and Hebbal.

Question 7:

"Is the occupancy of 75% and Rs. 17,168 ARR standalone, or does it include hotels owned by subsidiaries?"

Answer: This occupancy and ARR represent EIH owned domestic hotels only, excluding subsidiaries and associates, reflecting our standalone performance accurately for Q2.

Question 8:

"What is the current arrangement with Wildflower Hall in terms of accounting?"

Answer: We run Wildflower Hall under an Operation & Management agreement, paying a monthly lease to the Himachal government, valid till March 2026. This arrangement does not extensively affect profitability, despite general market conditions.

Question 9:

"Can you comment on the drivers of year-over-year increase in employee benefit costs?"

Answer: Employee costs increased due to higher headcount as we prepare for openings like Rajgarh. The industry faces challenges attracting talent, leading us to improve working conditions, contributing to these cost increases, which are typically around 8-8.5%.

Question 10:

"What is your view on AI's role in improving profitability?"

Answer: AI will undoubtedly influence our industry by enhancing efficiency, allowing better guest insights, and improved market segmentation. We view it as critical to adapting to future demands.

This summary details key questions and concise responses, maintaining the integrity of the data presented.