Robust Hotels Limited — Credit Ratings, 03-07-2025: Credit Rating

Crisil Ratings has reaffirmed Robust Hotels Limited’s bank loan ratings at 'BBB/Stable' for the long term and 'A3+' for the short term, reflecting the company’s strong position in Chennai’s luxury hospitality segment and experienced promoters managing the Hyatt Regency brand for over 30 years. The stable outlook is supported by healthy financial metrics, including a gearing ratio below 0.5x and an interest coverage ratio above 3.2 times in FY25, driven by improved occupancy and average room rates sustaining EBITDA margins over 27%. Liquidity remains comfortable with cash accruals of Rs.26–30 Cr against medium-term debt obligations of Rs.7.5–9 Cr, supported further by fixed deposits and mutual fund investments totaling around Rs.23 Cr. Key risks include revenue concentration in Chennai and sizeable loans extended to group company Novak Hotels (~Rs.150–160 Cr). The reaffirmation supports borrowing costs and investor confidence.