Will Deliver Double-Digit Growth In FY26: Apeejay Surrendra Park Hotels | CNBC TV18

CNBC-TV18
27 May 202509:12

Summary

TLDRAPJ Surindra Park Hotel has reported impressive fourth-quarter results, with a 45% year-on-year profit growth and an optimistic outlook for the future. The company achieved a 92% occupancy rate, and both revenue per available room (RevPAR) and average room rate (ARR) saw a 13% increase. Looking ahead, the hotel plans to expand its portfolio, adding 250 keys and acquiring Zillion Hotels in Mumbai. The company also expects a double-digit growth in revenue and is confident about maintaining high occupancy rates. Additionally, the growth of Flurries outlets, including plans to open 40-50 outlets annually, remains a key focus.

Takeaways

  • 😀 APJ Surindra Park Hotel reported a 45% year-on-year profit growth, driven by lower finance costs and a debt-free status.
  • 😀 The company’s fourth-quarter performance exceeded expectations with a 16% increase in top-line growth and a 13% rise in both RevPAR (Revenue per Available Room) and average room rates (ARR).
  • 😀 APJ Surindra Park Hotel maintains market leadership in occupancy with a 92% rate, continuing to outperform the hospitality industry.
  • 😀 The company has made significant strides in the 2024-2025 fiscal year, including the announcement of its first-ever 50% dividend, marking a milestone in its history.
  • 😀 APJ Surindra Park Hotel plans to add 250 keys to its portfolio in FY26, contributing to its expansion strategy.
  • 😀 The company has signed a binding MOU to acquire Zillion Hotels & Resorts in Mumbai, converting it into a boutique hotel with 80 rooms and a rooftop bar, expected to open by July next year.
  • 😀 The growth outlook for the hotel chain is highly optimistic, with the management forecasting double-digit growth for the upcoming year, supported by strong airline growth and a shortage of hotel rooms in the country.
  • 😀 Despite challenges such as geopolitical tensions, APJ Surindra Park Hotel remains confident of achieving high single-digit or low double-digit revenue growth in FY26.
  • 😀 Flurries, the cafe chain, has shown impressive growth with a 37% year-on-year increase in sales, and the company plans to expand the brand with 40 to 50 new outlets annually.
  • 😀 APJ Surindra Park Hotel’s revenue growth projections for the upcoming year are in the high teens, primarily driven by consistent occupancy levels and higher ARR performance.
  • 😀 The company is focused on expanding both its hotel and F&B operations, with further growth expected from new hotels, restaurants, and cafes like Flurries.

Q & A

  • What was the key driver behind Surindra Park Hotel's profit growth in the fourth quarter?

    -The key driver behind the profit growth was a nearly 45% increase in profits, aided by lower finance costs after the company became debt-free.

  • How did Surindra Park Hotel perform in terms of occupancy, RevPAR, and ARR in the fourth quarter?

    -Surindra Park Hotel maintained a 92% occupancy rate, which is a market leadership position. Both Revenue per Available Room (RevPAR) and Average Room Rate (ARR) grew by 13%, exceeding expectations.

  • What is Surindra Park Hotel’s outlook for the upcoming year, especially in terms of growth?

    -Surindra Park Hotel is optimistic about the future, expecting to deliver double-digit growth in the year ahead, with a continued positive outlook driven by strong industry factors.

  • How many rooms does Surindra Park plan to add in FY26, and what are some significant expansion plans?

    -Surindra Park Hotel plans to add about 250 new keys in FY26, including a major acquisition of Zillian Hotels and Resorts in Mumbai, which will be transformed into a boutique hotel with 80 rooms.

  • What factors are driving Surindra Park's confidence in delivering double-digit growth for FY26?

    -The company is confident in delivering double-digit growth due to positive factors like expected 10% growth in airline passenger traffic and a shortage of hotel rooms in India, which should drive demand.

  • How does Surindra Park Hotel expect its margins to change, and what is the reason for this?

    -Surindra Park expects its margins to improve by 100-200 basis points, mainly due to higher ARR, especially with the opening of its new luxury palace hotels.

  • What is the expected revenue growth for Surindra Park Hotel in the upcoming year?

    -Surindra Park Hotel expects a revenue growth in the high teens, despite some geopolitical disruptions in May, maintaining strong performance throughout the first quarter.

  • How is Flurries Café performing, and what are the company’s plans for its expansion?

    -Flurries Café has seen remarkable growth, with a 37% year-over-year increase in top-line revenue. Surindra Park plans to open 40-50 new Flurries outlets annually, with new outlets opening in Delhi and Mumbai.

  • What are the key investments Surindra Park Hotel is making in its business?

    -Surindra Park Hotel is making significant investments in opening new hotels, restaurants, and bars, with a strong focus on both luxury hotels and expanding casual dining options like Flurries.

  • What makes the opening of the Zillian Hotels and Resorts acquisition particularly significant for Surindra Park Hotel?

    -The acquisition of Zillian Hotels and Resorts is particularly significant because it will allow Surindra Park to convert the property into a glamorous boutique hotel, adding a new revenue stream, including a rooftop bar, to its portfolio.

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Étiquettes Connexes
Hospitality GrowthHotel IndustryRevenue GrowthQ4 ResultsSurindra ParkFlurries ExpansionARR GrowthHotel AcquisitionMumbai HotelsFlurries BrandFuture Outlook
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