EIH Limited — Investor Meet, 20-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:**

EIH Limited reported a robust performance in Q3 FY25, with standalone revenue growth of 6%. Adjusting for the impact of renovations at Oberoi Grand, the growth stands at 11%. EBITDA increased by 7%, while profit after tax (PAT) rose by 18%. On a consolidated basis, EIH saw a 21% increase in PAT, bolstered by strong international operations. The hotel segment demonstrated healthy revenue per available room (RevPAR) growth, with a 17% increase for owned hotels, driven by high occupancy rates above 70%.

**Future Outlook and Growth Drivers:**

Management expressed optimism about high demand in the premium hotel sector, attributing growth to rising tourism, corporate travel, and the MICE (Meetings, Incentives, Conferences, and Exhibitions) segment. They highlighted plans to drive average room rates (ARR) further, leveraging their premium positioning in the market. Expansion plans include adding 19 properties, with a focus on both domestic and international geographies.

**Order Book and Operational Updates:**

EIH's operational performance outpaced competition, with a sustained market position reflected in its RevPAR exceeding industry averages. The order book includes significant projects in Tirupati and Rajgarh, with ongoing renovations expected to enhance profitability.

**Analyst Q&A Insights:**

- Analysts sought clarification on the divergence between RevPAR and revenue growth, primarily attributed to the closed Grand property.

- Questions arose regarding long-term growth strategies, with management maintaining confidence in upside potential from ARR increases, even at the cost of occupancy.

- EIH's management confirmed a proactive approach to address delays and challenges, particularly in land acquisition and regulatory environments, focusing on maintaining investment return integrity.

**Market or Regulatory Updates:**

No significant regulatory changes were discussed, but the focus remains on market dynamics favorable to premium hotels, with airborne travel showing steady recovery and increased corporate demand.

**Strategic Focus Areas:**

The management emphasizes a commitment to innovation, premium service offerings, and strategic growth via management contracts and joint ventures, reflecting a balanced approach to expansion without compromising profitability.

**Investor Insight:**

Considering EIH's strong financial metrics, expansion strategy, and management's confidence in market positioning amidst dynamic demand factors, the current outlook suggests a favorable opportunity for investors. The emphasis on ARR growth and operational excellence positions EIH as an appealing prospect for potential 'buy' considerations in the retail investor space.