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Indian Hotels Company Ltd
Earnings Call Analysis
Q3-2024 Analysis
Indian Hotels Company Ltd
The company experienced impressive earnings before interest, taxes, depreciation, and amortization (EBITDA) growth by 30% year-on-year, culminating in EBITDA margins widening by 290 basis points to 45.4%. Revenue grew by 15% year-on-year, reaching INR 2,004 crores, and the bottom line also saw an 18% year-on-year increment, resulting in a profit after tax (PAT) margin of 22.6%. This fiscal year also marked a revenue milestone of INR 5,000 crores.
The company celebrated the opening of its 200th hotel, demonstrating a robust expansion strategy with 28 new hotels signed and 16 opened within the year. An aggressive yet sustainable growth path is evident with a target to open approximately two hotels per month in the coming years. The approach remains predominantly asset-light, enhancing management fee income, which has doubled since pre-COVID levels. The company continues to innovate and diversify, as reflected in the growth of its different brands like Ginger, Qmin, and amã Stays & Trails, with Ginger projected to reach INR 600 crores in brand revenues.
The company's new and reimagine brands, which grew by 34% over the previous year, are expected to maintain this accelerated pace, contributing to a projected 30% year-on-year growth going forward. This includes the Ginger brand, anticipated to surpass INR 600 crores in revenues next year, and TajSATS, poised to cross INR 1,000 crores in revenue. These brands will amplify asset-light initiatives, support margin expansion, and reduce business cyclicality.
The company is set for a double-digit revenue growth next year, fueled by both core and new businesses. Strong macro tailwinds, supply constraints, and a competitive customer mix are expected to drive this growth. The increase in revenue per available room (RevPAR) may also witness a strong increase, although specific numbers are yet to be issued. The company notes that 55% of the business comes from areas beyond F&B and RevPAR, indicating well-rounded growth potential across different streams. Costs are anticipated to align with expectations, barring unforeseen challenges, and capital expenditures for renovations are projected to be in line with depreciation numbers, totaling around INR 750 crores to INR 800 crores for the next year.
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Ladies and gentlemen, good day, and welcome to the Indian Hotels Co. Limited Earnings Conference Call for Quarter 3 FY 2023/'24. On the call, we have with us Mr. Puneet Chhatwal, Managing Director and CEO, IHCL; and Mr. Giridhar Sanjeevi, EVP and CFO, IHCL. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Puneet Chhatwal. Thank you, and over to you, sir.
Good, everyone, and thank you for joining our global conference call for Q3 2023/'24. Indian Hotels delivers best ever quarter 3. We are pleased to share that our record performance is continuing its streak, making this the seventh consecutive quarter of best-ever performance for IHCL.
Our stand-alone revenue grew 22% year-on-year to INR [ 1,300 ] crores. EBITDA grew 30% year-on-year to INR 601 crores, yielding EBITDA margin expansion of 290 basis points to 45.4%.
Our consolidated revenue showcased a growth of 15% year-on-year to INR 2,004 crores and an EBITDA growth of 18% year-on-year to INR 772 crores. This resulted in EBITDA margin expansion of 100 basis points to 38.5%. This further translated to an 18% growth in our bottom line to INR 452 crores at a PAT margin of 22.6% in the quarter. For 9 months, 2023/'24, we achieved a milestone of INR 5,000 crores consolidated revenue.
We continue to command the premium over the industry across all operating metrics and delivered robust performance across our brands with the demonstrated RevPAR growth year-on-year in the range of 12% to 15%. We expect our double-digit revenue growth to continue in the next financial year as well. driven by 3 key dimensions of growth, namely growth in our portfolio, growth in our new brands and businesses and growth in our traditional business enabled by effective asset management.
Let me begin first with the portfolio growth. We continue to demonstrate industry-leading growth with 28 hotels signed and 16 hotels opened on a year-to-date basis. This takes our pipeline to 85 hotels in all. This year also marks the momentous occasion of our reaching the 200 operating hotel milestone, which we recently opened in Jaisalmer in the state of Rajasthan.
Our flagship Ginger Mumbai Airport is now open and had a stellar debut with an average occupancy of 80% and an average rate of over INR 6,500. The hotel has also been PBT positive from the very first month of operation.
We will maintain the space and are well placed to open at least 20 hotels in the current financial year '23/'24. We've already opened 16, so we expect to open 4 more in the months of February and March. This is in line with the guidance that we had provided.
In fact, going forward, in '24/'25, 85 hotels in pipeline, the pace of openings is only going to increase. We target to open on an average 2 hotels every month or even higher.
Our growth continues to be majorly asset-light, contributing to doubling our management fee income from pre-COVID levels to stand at [ INR 319 crores ] for the first 9 months of the fiscal. This means mathematically, we put in very close to INR 450 crores of management fee for the current financial year.
Our strong footprint across 130-plus locations makes us very well placed to capitalize on the sustained demand upcycle that the sector is witnessing.
Number two, new and reimagined businesses. We have been always communicating about new businesses that we started as well as the reemergent businesses, which were relaunched like the Ginger brand of [indiscernible]. With these businesses as well as our asset-light approach, we have embarked on a journey of the diversification of our top line.
Our new and reimagine brands, which include Ginger, Qmin, amã Stays & Trails, The Chambers, the TajSATS together showcased a growth of 34% over the previous year in the last 9 months. This stood at twice the pace of that of our traditional business, which also grew at 17% in the same period. We expect this growth to accelerate and our new businesses as well as reimagine businesses will continue to deliver 30% year-on-year growth going forward.
Ginger continues to showcase strong growth and profitability, able by its lean luxe transformation at 2/3 of its portfolio under lean luxe today. Ginger should achieve a milestone of over INR 600 crores in brand revenues in the next financial year. amã Stays & Trails has continued to grow also and is well poised to reach a portfolio of 150 bundlers, including 100 in operations by the end of the current financial year. and amã brand revenues are expected to also double in the next fiscal.
Qmin will also achieve a milestone of INR 100 crores in its GMV in the current year, supported by its expansion to 34 Ginger hotels till date. As we had mentioned in the previous call in the previous quarters, this is what we call the cumulization of Gingers that the all-day dining of all Ginger hotels will be supported by the human brand in its dining facilities.
TajSATS has continued its record performance with industry-leading revenues, industry-leading margins and market share in this segment and is well poised to cross INR 1,000 crores in revenue in the next financial year.
We are committed to invest in our new brands and businesses across product, service and digital innovations. In addition, we are working on and expect to launch 2 brands in the next 6 months. This is also in line with the guidance we have given over the years at once we achieve critical mass of at least 100 hotel portfolio in 2 of our brands, we will consider either reimagining some of our brands that we have had in the balancing absolutely new. So Taj at 105 and Ginger almost leading to 90 hotels, we are getting there, and we will share that information as and when we are ready to do so.
Our new brands and businesses will help to support our asset-light initiatives will help to support our margin expansion and make us less volatile to the cyclicality of the business.
Moving on to the third important factor, that is effective asset management, which has been a key pillar of our strategy to continue to invest in our assets, which result in not like-for-like growth. Asset management has enabled significant growth in our big machines and reinvesting smartly in our products has helped to drive premiums and to unlock value.
In the past 6 years, we have invested close to INR 2,500 crores in capital expenditure on a cumulative basis. Our iconic Taj brand marked its 120 years legacy this quarter and Taj continues to be our backbone and the key revenue and EBITDA driver for us. The hotels which we invested in to upgrade from Vivanta to Taj are contributing positively to the brand's performance. The total contribution of these 24 hotels exceeded INR 1,200 crores in this fiscal. A clear success story of effective asset management is that of the iconic Taj Mahal Hotel New Delhi, a lot of us also know it more as Taj [indiscernible], where we have completed -- completely renovated the hotel and results are viable in our -- visible and whole financial model has become viable, and it is all visible in its financial performance.
Moving on to the other 3 factors besides these 6 factors is our strong balance sheet. Our strong balance sheet enables us further from a growth and resilience perspective. Our free cash flows continue to be healthy and gross cash reserves of INR 1,800 crores enables us to invest in ROCE-accretive opportunities and will help us to shape our future.
The second important factor there is customer loyalty and customer centricity. Our journey on the Tata new loyalty platform continues to deliver results with 24% of our enterprise revenues coming from the new members. Our loyalty base has continued to expand and stands at over 5.1 million members today. Till Tata Neu was launched, we had a base of 2.2, so we more than doubled in the last 20 months with the support of Tata Neu. This allows us not only to reach more directly engaged with them but also helps us to do tactical marketing campaigns in the shorter periods.
Our NPS scores have been on a continuous raise over the years, and our brands and hotels continue to be recognized at the global stage, most recently by Condé Nast and Traveler Reader.
Finally, Paathya, ESG initiative, we have achieved significant milestones so far and our core ethos of doing business in the responsible way, we are on track to deliver our 2030 ESG targets. We recently inaugurated this week on Monday, our 32nd skill training center in [indiscernible] located in close proximity to the famed Statute of Unity. The center will offer courses in food and beverage service and front office with on-the-job training. Post-course completion, learners will be provided assistance for employment in the sector.
In summary and in conclusion, we continue to focus on delivering robust performance on the back of healthy fundamentals and are well on try to achieve our Ahvaan 2025 plants. Thank you so much for your attention. We now open the floor for questions.
[Operator Instructions] The first question is from the line of Binay from Morgan Stanley.
Congratulations for a very good set of numbers. My first question is on the double-digit revenue guidance that we've given for next year in that we do see that the new brands in Ginger are going to grow ahead of the core business. So could you tell us a little bit about the core business, but how are you looking at that in terms of ARR versus occupancy? How much occupancy scope do you see in the double-digit?
And if you could also talk a little bit about the cost side. I believe this business has very high leverage. Is there any major cost items where you see inflationary pressures are coming up? And lastly, if you could just give a number for investment for next year in terms of -- on the hotel side that you're looking at?
I think you're right. I think we have guided an overall revenue growth of double-digit next year. This is based on both the core business and the new businesses. I think the question that you're asking is that what is likely to be the RevPAR increase actually.
I think the way we look at our increases is that, number one, I think the macro tailwinds are very strong in terms of the whole demand/supply. We have seen there is no new capacity coming in all the key markets actually. We continue to focus on mark-to-market leadership in all markets.
Secondly, if you look at our customer mix actually, 58% of our customer mix is from transactions and these are the non-negotiated customers, which is where the maximum ability charge revenues are there. So my own view is that you should wait for a specific guidance on RevPAR the next couple of months. But nevertheless, I think it will be strong, and we will make sure that between the two, we will kind of drive double-digit growth.
And the other point to note is that when you talk of RevPAR guidance, please bear in mind that, that represents only about 45% of our business actually. The rest of the business is all coming through F&B and all the new businesses. And hence, I think when you look at all of I think we have every opportunity to sort of [indiscernible] strong. I think 76% you saw in stand-alone, even the consolidated, I mean, there's also very strong occupancy growth. So with these kind of occupancies, I think we'll continue to focus on maintaining our ARR position because that goes to the level.
And then also on the cost side, if you could comment because I believe there should be a lot of operating leverage, right, in the business now at these levels.
Yes. I don't -- we don't see any significant challenges in prospects. We had a post the pandemic and some of those wage settlements have not happen. But otherwise, if you look at the cost increases, I think they are broadly in line with our expectations. We will continue to, of course, invest as part of this cost initiative on digitization on the new businesses actually. But other than that, I don't see any particular challenge in relation to cost [indiscernible]. We don't see anything, so therefore, the leverage will continue.
And lastly, just on the CapEx for next year, any number to give.
I think FX for next year, I think our guidance -- guiding principle is that as far as renovation is concerned, we will be in line with our [ depreciation ] numbers. And there will be GPs on top between the 2 -- business 2, I think it will probably be in the range of around INR 750 crores, INR 800 crores.
The next question is from the line of Sumant Kumar from Motilal Oswal.
Can you talk about the January month, how is the demand and in the key cities and for the Indian hotel, and how is the demand for trade maintain from the 4 months of March.
The demand continues to outpace supply. The January trend is very much in line with what we are seeing in Q3 in terms of top line growth. And business on the books is also strong, and the pickup that we are seeing is also equally good for the month of February, so that leaves us with March.
The booking window has now increased. There was -- the booking windows had become very short, but now we have a bit more visibility. So to answer your question, till March, we are looking good. Before, we could only give guidance on like maximum a month or 6 weeks. But at the moment, all looks good. We also have IPL in end of May, again this year. So I think all in all, the demand is very strong. Supply remains constrained, and our portfolio, as Giri just now spoke about investments spoke about, which is approximately 4%, 5% of our top line in the existing plus, that selective investments we do like we have for Ginger Santacruz keeps us always very well positioned to capitalize on all possible opportunities. So as an example, we recently invested in 4 villas in amã in Goa. So on one hand, we upgraded the assets as those buildings were there. On the other hand, we strengthened the amã brand. And we'll continue to make these initiatives, and we will continue to see the reflection of those initiatives in the results that we deliver.
Okay. And in PPT, we have mentioned a launch of new hotel brands for 2 Tier 3 cities, so Ginger is not sufficient or use brand is not [indiscernible] Tier 2 city?
Ginger brand is very good for every district capital of India. So we are going to accelerate the pace of growth in Ginger. But we want to maintain our brand scape as very pure, so a Ginger hotel cannot do a lot of banqueting and weddings and so on. So also in Tier 2, Tier 3 cities, you need more like a full-service brand, and Taj, with the case of Taj is more ideal for every possible market. That's why we went from Taj to a multi-brand strategy because of the heterogenous nature of Indian market. And we see now that we need a full service brand and also in other segments. As India story changes, India has embarked on such a strategic GDP growth, there will be new needs and wants that arise. Now instead of being reactive, we will be proactive and work so that we are rightly positioned to take advantage of the changes that will happen in the marketplace over the next 3, 4, 5 years.
So this is going to do in a couple of years. What is the target or how many hotels we are focusing on Tier 2 and Tier 3 cities? And what are the price points we are looking for?
So we are, Sumant, already present in a lot of Tier 2, Tier 3 tertiary markets, et cetera, depending on the brand.
Our growth is almost we are signing, as we've signed this year already 28 hotels in 9 months. Last year, we had 36 hotels for the full year that we added to the pipeline. We see no change in the speed of growth. It's only the quality of growth that also changed. From asset-heavy, we went to asset-light. 76% of our totally asset-light. And if we take the heavy part and take Ginger out of it because we consciously took the decision to do operating leases for Ginger, so only 6% of our portfolio is on the company-owned side, right? So that kind of journey will continue further.
And we -- when we launch any brand, we will look at getting to minimum 50 hotels in that brand in a very short period of time. Otherwise, with this 10, 15, 20 hotels of a brand, we will not launch. And whenever we launch a brand, starting will be a minimum of a double-digit number before we launch.
On price points?
Price points will be somewhere close to 1/3. So I think we're looking at more like INR 8,000, INR 9,000 average achieved rate position. So just below -- just a little below the 10,000. Higher than linger, but lower than Taj, somewhere in between but a full service price. See, Vivanta is upscale who we want stylish, vibrant and again, not something that caters to mass market. So we need a brand alongside Vivanta, which will help us cater to the mass market of 400 million to 500 million Indians who are also not in metro, but in Tier 2 and Tier 3 cities.
The next question is from the line of Achal Kumar from HSBC.
[indiscernible] First of all, all going back to ARRs, I mean, ARR are already very high, and you said that demand/supply is also to factor.
I'm sorry to interrupt, sir, I would request you to kindly raise your handset. Your audio is not clear.
Is it better now?
Thank you, sir.
Yes.
Yes. So first question is around the ARR. I just want to understand about the sustainability of ARR. Of course, demand-supply equation is favorable, but ARR are already very high. So I mean how do you see ARR going forward? Do you think the ARR levels are sustainable? Or do you see further growth in ARR? And if ARR stay at this level, do you think the further growth will come in the occupancy level. How do you see the overall combination of ARRs occupancy?
See, I think someone asked me this question yesterday, and I think what has happened is that the sector has seen a reset in terms of rates. Rates did not move a lot for the last 7, 8, 10 years. So if you took where that's were 15 years ago and where they are today, then it's a marginal increase only. And when you say that rates are already very high, I don't think that is in line with the STR reports and presentations. Yesterday, we saw one at an event at the Targin Vikhroli STR was presenting, even Mumbai and they are still very low compared to other cities in Asia Pacific region.
So not even at like Eddy were close, not even at 70%, 80% of what those comparable cities would be achieving. And with the Bharat Mandatum, with the Yeshurun in Delhi, with the addition of Jio with very limited supply increase in Mumbai, I do not see any reason why the ability to charge would not be even higher than what we have seen [indiscernible]. So inflation, but is rather even a 3 year.
We also feel that we are able to charge more because of our effective asset management initiatives that we have been putting in place for the last 5, 6 years, the INR 2,500 crore investment that I spoke about. So our [indiscernible] Taj Mahal [indiscernible] or Taj Mahal Delhi are more or less doubled. And, it's not just because of G20, it's because of the comprehensive brand management initiatives that we undertook, the room sizes that we increased, the number of rooms on that we brought down, the new facilities that we added, all that also leads to the premiumization of the product. The lean luxe [indiscernible] , we say 2/3 of the portfolio has become in [indiscernible], it starts showing in the ARR. So all the investment that is going in or the all-day dining getting in line with Qmin increases your ability to charge. So I think will have a long way to go, especially as demand will continue to outpace supply.
Supply growth cannot come in suddenly. It is the reality of a marketplace. It takes time to build hotels, and all that was under construction is getting completed, but not new suppliers will get added at the speed that it bought added, let's say, in 2010 to 2015 or '16.
Right, right. And then about your revenue growth guidance, you said the double-digit revenue growth. So basically, would you mind bringing this growth, please? Because I can see that room inventory itself is growing about -- growing by about 10% next year in the next financial year. So this top line growth, is it -- would it be more mainly driven from ARRs or occupancy levels? Or how do you see -- I mean if you could please help you understand that?
As Giri mentioned. So firstly, it's a very good observation that 10% may this come in the terms of inventory, but that cannot the consolidated on the top line because most of it is coming through management fee business. So only the management fees get consolidated. So it has to be driven by ARR occupancy, and as Giri mentioned, 50-plus percentage in non-rooms revenue. And how we optimize the potential through asset management on those spaces also will play a very important role. So you would see the presentation what has happened in Taj Mahal in Delhi how the top line has grown, it has been relaunched.
Now we are going to relaunch in the next few weeks. We are open but not officially launched the Wushakiran in Gwalia. We are also launching officially the Mumbai -- the Ginger Mumbai [indiscernible] cruise on 8th of February, which is less than a week from now. So all these activities and many other operating leases that we'll be opening will help support the growth. And towards the end of the year, we'll also be opening a air ball in Cochin, that is our own property. So all this will add up and not like-for-like growth and through management contracts and the normal increase in food and beverage-driven business as well as to the rate of occupancy. So it's in all metrics we expect growth. Don't expect any metric to[indiscernible]
Right. Right. On the cost side, your employee costs, I mean I just want to understand, you have shown a significant efficiency gain, I mean, in the last -- in the third last year, your employee cost was about 25.2% of your sales and which has come down to 23.9%. So almost 1.34-point gain. Do we see -- as we grow, do we see further efficiency gains in the employee costs? Or was there any something one-off in this side?
There is no one-off. I think it's you saying is that as Q3 is the strongest quarter. There -- some of the percentages look more efficient than they look in Q2, for example. Sequentially, the picture would look different, but I think we are at a very good optimized level in terms of the costs whether it's employees or it's raw material or it's other costs. And in fact, as we have guided in the last quarter, we are spending more money and also Giri mentioned just now on our new businesses newly [indiscernible]...
I'm sorry, sir, your audio is not audible. Ladies and gentlemen, the management line has been disconnected, kindly stay, while we try to reconnect them.
Ladies and gentlemen, thank you for patiently holding the management line has been connected. Over to you, sir.
Sorry, there was some technical glitch but outside the control of Indian Hotels.
No, I think the costs show an optimal level in quarter 3 being the best quarter. In quarter 2, they don't look as good. But if you take averaging through the year, I think costs at all levels have been optimized. There will always be -- depending on revenue at what level of revenue we are, there could be a further marginal decrease. But generally speaking, we've been very focused on all our cost initiatives from pre-COVID when we had announced the Aspiration 2022. So I think we are standing at a good level at a healthy level, given the kind of brands we have with Taj still being the real backbone in the luxury brand, it has a different kind of a cost structure.
Right. Finally, my last question, I'm referring to Slide #63, which is actually very interesting, where you have shown the occupancy levels and the performance versus previous year for different brands. I think in that, I just want to understand a bit that under Taj brand, occupancy levels for the overall business and leisure goes up, Palace was flat. And I assume that Palace will have a significant contribution from inbound international tourism. So how do you see the -- how formula Palace is in the context of the in its recovery inbound in terms of tourism?
And similarly, in Vivanta, you're showing 4% decline in your leisure occupancy level, do you see kind of a change in the consumer behavior where people are actually moving to Taj taking a notch up because Taj occupancy level is 5% up. So basically, I just want to understand this slide a bit, if you could please help.
It's a good observation, but don't only look at occupancy. Go and let to the right, and you see there is a 24% increase in rate, right? So it has gone to 55,000 is an average achieved rate in the third quarter. And occupancy levels obviously will improve further as the foreign tourist arrivals increase and go back to the pre-COVID level. But in [indiscernible]we have to maintain. We don't take any and every kind of business in a Palace proposition because maintenance of Palaces could be could be very expensive, right? So in order to offer that world-class experience, which nobody else in the world has the capability to offer, we cannot just look at the occupancy level. That's number one.
Number two, this chart is a proof of what I was saying that we upgraded 24 hotels for -- Vivanta branding [indiscernible]. So there, some of the leisure properties have been repositioned, and that's why it is showing a personal decline because some of the trophy assets over years have moved back up to the past positioning. And we see no change. Actually, the leisure demand is on the up. It's going to rise further.
And also when you see in SeleQtions is really [indiscernible] which the part was the convention center, which we have [indiscernible] as Horizon and the old part is rebranded as Taj heritage so moved from selections to also Taj and to better -- and Taj as the strongest brand that we have. And the owners were justified in asking for a Taj as property has been fully elevated. So we keep happening.
Important that Taj produced an average 18,000 and mid- to 75% occupancy. That is the key messaging as long as focus is very clear, and it has been always making Taj more pure and more significant and not just strong from [indiscernible].
But then, sorry, going to last, I mean, where you have shown SeleQtions. I can see that the...
Sir, I'm sorry may we request you to kindly rejoin the queue for follow-up. The next question is from the line of Prateek from Jefferies.
Sir, my first question is on your number of hotels. So we talk about like going to 300 hotels soon. So how do you see this presence theoretically in terms of number of large cities in India where you want presence number of hotels across brands? I mean, this 300 hotels can theoretically grow to number, maybe 10 years down the line?
Good question, Prateek. This number will keep growing. This is what that is 300 and it's the end of the story. That was the guidance we gave for the current business plan. When we have the next Capital Markets Day, we'll give the further guidance. We should achieve the 300 number at least 1 year in advance of [ quarter 1 '25, '26 ].
But especially the growth with the Ginger brand and other brands, we SeleQtions whatever new we launch should put us on a growth mode in perpetuity. So if we say 85 hotels are in the pipeline and even if we were opening 2 hotels a month, so next 4 years, without signing any new properties for the next 3.5 years, we could go on for opening 2-plus hotels agreement. And there'll be some conversion opportunities that will fund the other inorganic growth opportunities that will come and obviously, new signings that will come. So I think that will keep taking this portfolio further up. And we'll provide that guidance with very ambitious targets, especially with the Ginger brand and the success that we have seen with the first 2 months of the operation of Ginger [indiscernible].
And given the size of India, [indiscernible] I think the opportunities are [indiscernible]. We have gone to around and ramp. These are all virgin territories we've gone to. [indiscernible] new items are increased. All these have happened because one, the growth of India, infrastructure development and our presence everywhere. So I think given the size of India, I think the opportunities for growth cannot be constrained.
Sure. My second question is on your time line for launch in like the recently talked about popular destinations like Luxury and there, you have 2 in Luxury and 3 and [indiscernible]. So what are the time lines for launch of hotels in these locations?
We launch hotels should open in less than 12 months. It's a brownfield site where third construction is already finished. We are also looking at home-stay opportunities, large home-stay opportunities in the hotel. Vivanta engines combo hotel will take another 20 months to open. That is also well away in terms of development.
Luxury will take longer because of the nature of the development. It's not just building a hotel. It's developing 2 islands, the islands of [indiscernible]. So that would take anything between 3, 5 years, depending on when we get the planning permission, the access, the weather, all the things that are beyond our control. So depending on all that, our ambition and aspiration would be to do it in 3 years' time. But islands like this, which are remote connected could easily take longer than we think.
On your CROC, so you've given like INR 700 crores, INR 800 crores CapEx guidance. So do you expect any CapEx going into CERO also in a year, as you said, like [indiscernible].
I think as we have guided, we will try to get a strategic partner and everybody is knocking at our door, whether we that from within the group or outside, we will not be -- we'll keep the majority, but we have no intention of spending further INR 800 crores of our own -- from our own cash reserves. Currently, we want to make this as the icon of India as the second gateway after the gate in [indiscernible].
On pricing on Ginger Airport Hotel, you talked about 650. It seems lower than what we anticipated, like 7,000 chains.
It's the first 2 months since it opened. [indiscernible] took 7,500 also. So it's -- give it 100 days. The first 100 days, we cannot have full hotel, fully occupied and the rate also at the full this would be share credit carefully get the base right and then get the stabilized rate that we aspire.
And lastly on a manpower per room, that number seems to be creeping up every quarter like probably near pre-COVID levels across. So while the as very high revenue, the percentage basis, it is looking better, but the manpower per room seems to have like normalized now. Is that right, we are reading?
See, I think, Prateek, I believe that's to step out for interview, but I think I love to note is that the increase in prices has to be justified with the asset management initiatives on CapEx as well as the service quality levels actually. All of these have to come together and be sure it's a combined proposition. Yes, the [indiscernible] balance, instance, has come near to the [indiscernible] floor as an example, but I think we will continue to watch this. I think we will -- overall efficiency look at the increase in revenue is 43% increase in revenues and yes, demand per ratios are just above the slightly lower than the pre-pandemic level. So and I think that's more than fair to [indiscernible].
And we continue to invest in digitization and other initiatives, which are really ongoing. So I think -- so that will continue.
The next question is from the line of Karan Khanna from Ambit Capital.
Just a couple of questions. Firstly, given the swift pickup in occupancy at Ginger Mumbai from first month itself, do you have plans of adding more rooms are coming up in another [ 10-year ]? And as a follow-up of your new businesses continue to do exceedingly well, so what would your expectation of revenue and EBITDA share for these businesses, do you say in FY '26?
Yes. So I think as far as Ginger Mumbai is concerned, yes, the opportunities have gone up. But as -- but the full inventory is not yet up -- it's it open up for the next 30 days actually. It goes up to [ 370 ] [indiscernible], I think, as opposed to think about [ 206 ] years at this point of time.
I think in terms of a fantastic proposition, great value, new edge banquets and all of those are working. And the beauty of this launch is that it has come without any cannibalization from our neighboring properties whether it is that approve or whether it's [indiscernible] Ginger actually. It just shows the power of a good launch as well as the strength of the catchment actually.
I think [indiscernible] at this point in time, nothing else actually. But really speaking, I think airport properties seems to be a very strong value proposition. So therefore, our plans in terms of [indiscernible] and Bombay and other places continue.
As far as the new business is concerned, it is growing at 30% plus, but that's what we have guided at. So Ginger, for instance, we have set next year to [indiscernible]. I think amã and Qmin, what is happening with amã and Qmin is that the Qmin is getting integrated into the brand top line itself. And amã are building. Up now at this point of time, we only collect except for the 4 amã [indiscernible] that we have [indiscernible]. And that is expected to go up to 15 or so.
In terms of other new businesses, Taj will do well. I think next year, we have guided to about INR 1,000 crores plus. So that should do well actually.
So I think it will -- if you see this is what has happened in terms of the revenue share contribution and the EBITDA contribution of the new businesses, that's already significantly. I think it's -- I think the EBITDA share has gone up to some 24%, I think, from 16% in 2020. And the revenue share has gone up from 10% to 17%, actually.
I think these are very significant numbers, and this will go up actually. This will go up [indiscernible] as we continue to do this and we launched new brand as well.
Sure. So my second question and something that I spoke with Puneet yesterday at the [indiscernible] this event as well. So given the continued record performance that we're seeing across most hotel India. This is likely to induce more supply and competition in the industry as pertain capital cycle. So how do you see the performance of the industry 3 to 5 years out but FY '25 cannot be disputed but, say, '26 to '28 and more slides are kicking in.
And just a follow-up to that, if you look at the domestic air passenger traffic data, that's already crossed pre-COVID numbers. Now my hotel occupancy are still not moving in tandem with this. And now if you look at the [indiscernible] data that we shared yesterday, the supply is expected to grow at 8% CAGR in the next 4 years. And if I look at the air passenger traffic also projected at 10% over the next 5 to 7 years. How should one thing got hoteliers ability continue driving double-digit growth rates over, say, FY '26 to '28, '29?
Yes. I think you should look at it a little differently. I think number one, in India, hospitality is a very underpenetrated market action, which means that the number of branded rooms are 160 to 1,000 expected to go to some 220,000 say you have got any of these bigger cities in the world actually.
And there is a new supply coming also. You should see key mark-to-market new supply is very minimal [indiscernible]actually, and that you can see reports like [indiscernible] report, which kind of actually analyzed the key [indiscernible] kind of growth actually. So where is the supply coming up is actually in the -- beyond the key metros, which is great because these are -- there is a certain density of branded rooms in the key metros. It's even lower in the non-metro markets actually. And that is playing to the growth of the economy, the infrastructure development, the new [indiscernible] destinations, the new smart city and all of that is playing to actually. So from that perspective, if you look at it, the macro picture is really driving this. And hence, I think the industry will grow in line with that actually. I think industry on in line with that.
And even the government has now realized the importance of the tourism industry. Earlier, it was seen as a luxury thing. And today, they are talking about employment and GST and all of those are recognized even yesterday with the budget announcement had strong statement in terms of doing industry, loans to states to build in tourism infrastructure and all of that. So I think the way we should look at it is that while supply is coming back, it is good because ultimately, I think in India, bear in mind, supply is not driven by institutional ownership. It is still run by [indiscernible] ownership actually, then from the real estate players who have mixed-use development and finally, the institutional players like [indiscernible] demand was there actually.
I think given it's grown -- given grown by individual or family ownership of properties. I think it's great that new supply is coming. And so I think there should be no problem. The whole hospitality industry should benefit as a result of this actually.
Sure. And lastly, on your international portfolio, we continue to see united overseas that has continued to lag over the last 3 quarters. I have [indiscernible] London has seen significant improvement. So what are your expectations from the 2 businesses in terms of growth and margins?
No. I think as far as the U.K. is concerned, doing very, very well. First of all, I think at the total international level, I think the hotels which matter to us in terms of consolidation are U.S., U.K. and South Africa. And then beyond it, is a asset-light growth. And of course, Frankfurt will be the least, which will open sometime in '25 or so. I think at the total international level, our portfolio is certainly profitable. That's number one.
Number two is that U.K. and South Africa are all very profitable, extremely -- except U.K. -- exceptionally strong market actually.
As far as U.S. is concerned, currently, there is a challenge. I think here, we have focused a lot in terms of controlling the costs. And I think this year, the New York market has been challenged. And there are, of course, specific challenges with the property itself, and therefore, there is -- so what happens with the U.S. is that our efforts in terms of improving the peers will hopefully present an opportunity to go back to lower losses. If you see the itself I think the losses were higher. We brought it down. I think because of the recoveries from pandemic, it has not happened, the [indiscernible] have increased, and there have been some specific challenges, but these are opportunities that we are working on.
[indiscernible], I think you see more as a temporary problem, which is driven by the city of San Francisco actually, and it small property as well actually. [indiscernible] should come back, we feel in the next 12 to 18 months actually.
So I think -- and U.S. is a very important market for us. And you find -- it's the biggest lodging market actually. I think in any multi-store portfolio, Karan, I think there'll always be some property, which kind of has a small drag actually. I think as long as that is manageable, I think you'll find with our presence -- the presence in U.S. is giving us strong marketing and what do you say, macro network benefits actually. So that's the way to look at it.
The next question is from the line of Nihal Mahesh Jham from Nuvama.
Congratulations on the strong performance. My first question was while we compare our RevPAR performance versus industry, if I look at the stand-alone RevPAR performance versus the domestic network, and I know domestic network would have some element of mix change, there is still a significant difference that we are seeing over the last few quarters. So is it that the marquee properties that we own in our stand-alone is managing to experience much higher pricing power? And what is the reasons according to you beyond, say, the renovations that we have taken over the last 12 to 18 months?
No, I think that's a great question, Nihal, because I think one of the points that we always emphasize is that there are performance of properties is also driven by where we manage our properties actually. Asset management initiatives in a place that [indiscernible] is a great story actually. There have been days when, say, occupancy in [indiscernible] has been 95%, the comparable micro market occupancies maybe have been 65% actually. And that is fundamentally a factor of the -- what we are doing at the hotel level actually. So hence, I think the -- especially in standalone. In the report for stand-alone, which are where the big boxes are, the amount of effort that we are putting in terms of making sure that continuously upgraded, make sure that we do the investment is very, very strong. So hence, I think, from that perspective, the stand-alone will continue to do well. And enterprise of course is a bunch of new properties also, actually.
And I think to the earlier question also, [indiscernible], 6,000 what happens. I think these all will build up, to be honest, actually. But the important point to note is that our asset management initiatives are exceptionally strong, actually. And that [indiscernible] you do better bank with [indiscernible] you get revenue. And I think as an example, you had other propositions like these [indiscernible], the club lounges, the revamp chambers. The offering just improves dramatically. Weekend occupancies and lounges have dramatically improved our [indiscernible] that the hotel has taken in terms of creating like an urban resort actually. So I think these are great ways in which the attractiveness of the property goes up actually. And that's a big differentiating factor.
Sure. That was clear. Second was just a clarification that for the SMB revenue growth again slightly long revenue, while this was a robust leading season. So this any specific aspect there?
No. Overall, we do see, F&B an aggregate level is still very strong. F&B be 2 parts, as you can see. Number one is the restaurant revenues and the second, of course, the banquet revenues. I think banquet revenues are in 2 parts. One is the very thing which are specific to the [indiscernible] based which are there. And beyond winning this all the profit mine and all of that actually.
I think we are doing well. I think we manage it well across the different properties actually. But overall, you're right that when's we look at our overall portfolio and say that the room revenue growth is 27% and 22%, I think, in the quarter. If I'm not mistaken, 20% to 23%, and the F&B growth is less than that, I think we do see longer-term opportunities in driving F&B even further effects. So we F&B a increasing opportunity growing forward actually.
And we're doing some very interesting things. Example, we cater to the IPL, [indiscernible]. We have catered to the big event in the [indiscernible] around 11,000 people. We're catering -- so some of these very, very interesting -- those getting opportunities and emerging that we are demonstrating increasing ability. So you will find that [indiscernible] an area where significant growth for [indiscernible].
The next question is from the line of Rajiv Bharati from DAM Capital.
So with regard to Tata, I mean you reported close to 40-plus percent Y-o-Y growth in this. Is this largely due to Air India or some capacity which is getting utilized because next year, you're shooting for some 20%, 15% growth?
Yes. No, I think -- see, Taj has been evolving very strongly. I think number one is the first that we've taken within Tata itself in terms of, what do you say, the growth opportunities, one is that a noninstitutional catering perspective, whether it be Starbucks and others, we are growing very strongly.
Air India is still not yet a very big factor. In terms -- we have added the international airlines to our catering actually. So that helps as well actually. So I think it's the combination of international catering, domestic airline, capacities and domestic airlines servicing and the third, of course, is institutional catering. And the beauty of this growth in [indiscernible] is that we're doing it without any significant CapEx, just remodeling [indiscernible] capacity, as an example, capacity has gone up 3x with CapEx actually. So I think it's very efficient way they're managing that business.
And as longer-term opportunities are very significant with the doubling in the number of airports from 75 to 150 and the overall growth in terms of airline passenger traffic.
I think all the [indiscernible] is well actually. All the [indiscernible] is well. In fact, I think the supply lines to India is still kind of muted. In fact, people are saying that the supply of planes to India will take time to grow. So hence, I think that set is on very strong [indiscernible] at this point of time.
Sure. And then, sir, with regard to Goa specifically, do you have any asset which is under renovation this quarter because this is the ARR growth number is muted.
No, I think there is no particular property, which is under renovation. We have -- we continue to do the resonation I think there's nothing which is specific in this quarter.
Leisure market, I think what we saw was you saw the performance where -- exactly. I think one is a very high base. Goa is already on a very high base. And it's now becoming around the market actually not necessarily seasonal. And we have continued to kind of balance between occupancy and where [indiscernible]. So that's you see. That is what you see.
So why I'm asking if you look at I mean last year's presentation, same quarter, the number which we have reported is setting 21,000 plus, which we have revised it to 18,000 now. So one thing because it's a like-for-like comparison. Something is missing here, and that's why the number has come down.
No. I think Goa. Yes. No, I think he's saying -- what is -- is the ARRs are coming down and Goa? No, it's not coming down in Goa.
Nothing is coming down. Everything is only going up and expect it to go up further. I think we need to get used to seeing strong average rate numbers because we are coming from such a low base. We understand that there is a feeling that -- but given our engagement with other fellow [indiscernible] and companies, et cetera, we expect that as long as demand continues to outpace supply, as long as there is more and more travel happening as 50 new airports -- so many new aircraft ordered by India is going to propel a kind of a growth in travel that we have not seen, so -- and government's focus, this is second year in a row that to what I mentioned in the budget presentation have [indiscernible]. And also, we have got industry status in several states in India now. So that makes it a little bit more cost efficient.
But all this drive in using or leveraging tourism as an opportunity to contribute to GDP growth as well as create direct and indirect jobs is ultimately going to make the base or the foundation of occupancy and rates pretty solid in the short and medium term.
Sure. Just one, I missed out the CapEx number. Did you call out, because you've already done 470 this year. For this year remaining and for the, let's say, for the next year, what is the number we're shooting for?
Above INR 600 crores.
About INR 600 crores, but it is also quite possible that this is only showing the spend. We decided to invest in certain properties, but it is not yet showing any exit. At some point, we will go for a sale and leaseback, if needed. So let's say we are building the 2 hotels in [indiscernible], the Vivanta and the Ginger Stature of Unity, it's not a big expense, but definitely, we don't plan to own it for perpetuity. So at some point, this CapEx will get adjusted. Today, we are using it because we are generating enough internal cash flows to be able to support this growth without taking on any debt. So we are doing that, but at some point of time, we will not want to keep owning assets.
Sure. And does this...
In nonmetro in markets where the pricing of the asset is not expected to go to the roof.
Sure. This INR 100 crore target is for FY '26, is it reasonable?
[indiscernible] FY '25.
Yes.
2025. Sure.
The next question is from the line of Kaustubh Pawaskar from Sherkan by PNB Paribas.
Congrats on a good set of numbers. Sir, I just have one question. In the initial comment, you mentioned that more than 50% of your revenue is coming from non-room part of the business. And this particular business is expected to grow because your emerging business, our new business are going to grow in the upwards of 30%. You have strong focus on [indiscernible]. So in that context, where can we see margin accretion in the coming years? Which part of business will add substantially to the margins?
We have always said that the new businesses will do margins about 35% plus. So that's what we've been saying, and I think we are on track with that actually.
And I know this question keeps coming in terms of the 33% margin guidance go up. I think the way to look at it is that [indiscernible] the margin percentage now is an outcome rather than necessarily a target actually. And I think the way we will continue to grow, as Puneet said, and if we can we grow double-digit top line with a strong leverage, maybe 17%, 18% growth on EBITDA and maybe 20% plus in terms of PAT, I think that's the way to look at it rather than get fixated on that is the margin percentage itself will be 33% or 34%. I think we get it in terms of the overall growth in business actually.
Also, I would add because this is very important to what Giri said, we have -- our base is becoming every year larger, so keep growing 15%, 18%, 20%, 25% on different metrics is a strong hurdle but we feel confident of continuing that kind of pace that we have had because of what we have in the pipeline and because of the investments in our new and reimagine business without losing sight of our backbone that is [indiscernible].
The next question is from the line of Jayesh Shah from Ohm Portfolio Equi Research.
Congratulations for the great results. I have some broad questions. Number one is international business still seems to be a blip when you look at overall consolidated profit. I understand the importance of the international business. When do you think it will have a meaningful contribution that each deserve?
I'm not asking for any target guidance, but let's say within 3 years, 5 business, will this part of, say, about 30 where at least in international business [indiscernible] profits.
It should. Actually, it's the way accounting is done. The international business, the management fees are accounted in our shared directory so I think we can do is offline we can share with you the expectation. If we were to add those fees back, then the international business looks very different. That's one.
Second, you very rightly said, it's not looking as good as it should look for two reasons. One is U.S. U.S. market is underperforming, and what has happened in San Francisco, nobody knows better than the invertor community. But San Francisco was now beginning to stabilize, and we think that by the end of this calendar year, it will start going back to where it used to be, but the last 2 years have been very tough for that city and a lot of hotels even shut down there. And also, New York is still not come back to pre-COVID level. So that's an opportunity.
At some point, both these cities will come back, and both of them are very important for us as we either have a leasehold interest or we own fully the San Francisco property.
The other opportunity is U.K. U.K., we are doing very well. We make profits. It's not -- but we can make much more. But London also for a lot of reasons, as you all know and have been reading, has not been as strong, let's say, as Paris. The 3 top lodging markets of the world is New York, London, Paris. See, where Paris stands today also even London business. Now that will also change in some time, and we have been continuously investing in our London asset. We opened The Chamber [indiscernible] making renovate the [indiscernible] 70 manage from most of the other destinations like Dubai, et cetera, they don't reflect in the way we present the financials based on the accounting policy.
Right. That's helpful. My second question is as an investor I'm very surprised because the ARR, room rates all have exceeded our expectation for occupancy. But as a consumer, I do realize that travel and hotels are getting costly and it is having an impact on the overall travel budget. Now even if you consider capital market segment as kind of price insensitive and we can continue to travel, but at some stage, there will be an affordability issue, which becomes the cap for the average hotel stay like the hotel -- or even the restaurant [indiscernible] size getting [indiscernible] for most of the consumers. In this context, where do you need this at the straight, while I do you keep comparing starting with the APAC countries and the other cities?
As we mentioned at the start of the call, actually, we are still operating at 60% of the foreign tourism [indiscernible]. And if you convert the [indiscernible] brand achieving in Q3, which is the best quarter, [ 17,700 ] is less than $200. I think there is still some room to grow. This is the way the rate structures have changed globally. It's not something only in India that has changed, where the rates are today in all important lodging markets of the world, we are still at a very, very low end. And if India keeps the way it is, the GDP, the per capita income, we do believe that the rates and the rate increase is sustainable.
Just building on it, Jayesh, business continues to be about 70%, 75% of the business total top line actually. So that is [indiscernible].
So I think around the business side, I think the right comparison is what is the cost in India, where is cost in Asia is still opportunity. Because as the business traveler who comes to India, people will still say the rates are far cheaper than what they were in Singapore or other places. And people don't say I go to Singapore because cost in India like I'm going to India for business actually.
On the leisure side, I think it is the leisure is growing. I think people are taking shorter holidays. Shorter holidays, which means people take 2-, 3-holiday, there is no frequent holidays.
And if we look at short-term holidays of 2, 3 days, which is going up, then I think the absolute cost of the travel is not significant, actually.
Thirdly, if you look at the Goldman Sachs [indiscernible] support, the base of [indiscernible] after also going up, which means that when you combine all that, I think -- I don't think the current rate should cause any huge concern actually. Of course, there'll be people who kind of go up. Like for instance, the outbound Indian category to us what happens is people go [indiscernible] said, which was not happening. Now outbound travel from India has reached the [indiscernible] 99% which is very [indiscernible] yet you see Palaces, the ability to spend is still very, very strong is what I would say. I don't think the rate itself should be a dampener at any critical level, actually.
I could attempt to fit a upside in ARR next year will not surprise you. I just kind of your thought process. I'm not asking you to commit on the ARR growth. That's it.
No, it should not surprise us. I do believe that India remains a very strong destination with all the events that are planned and to change an infrastructure. You have 50 new airports coming. You have centers like Bharat Mandapam, isoboomi, the Jio Mumbai. It's just beginning to change the ability to have an event for 2,000, 3,000 people never existed. So if you get only 1 event every quarter, entire city of Delhi is sold out. We get 1 event every month in geo 5-kilometer radius around geo is all sold out. So sold or we can also charge more.
So I think there is a massive change in infrastructure and the kind of roads and highways. I was on Monday evening or Tuesday morning, I was in Delhi on the new hire, which is connecting Gurugram and the Mumbai. People have stopped using the other ones with the [indiscernible] now using this 1 because it's like 2-hour journey.
So somehow all these places have also become more accessible. And that makes it what Giri was saying going for a little longer weekend can, driving yourself. Things like this was there, but with a very limited percentage of population or that base is increasing, every day. And that is helping. And there is only like 10 million more people traveling on an extended weekend or 5 nights a year, then it is 50 million room nights, but the number of rooms are not increasing at the same pace. So I think there is a fundamental shift out there.
And the point is also our own way our portfolios. Our portfolio is across every price point, actually. When you look at us that also helps, actually. That also helps because when you are present at every price point, you have an opportunity to service the customer at whatever price on actually. So that also helps.
Yes. So Ginger, we want the ARR can actually export, perhaps not so much at the top level. But maybe that's where I'm coming from.
Happily satisfied or as investors, we said as a consumer, you're not. All your but dissatisfied, you're concerned, right?
Correct. Correct. The way I would put it is, we are definitely very surprised at the investors very happily surprising, not at all anxious at all. But as number years, I'm looking at a share of wallet. That's it. There is an x amount that was spent on a travel budget and higher proportion goes for international, international travel. And then we train keeps getting expensive as the airlines and everything keep getting expensive. So at some stage, does it really a [indiscernible] issue? Basically, Indians are value for money.
Yes. But equally, Jayesh, you look at the demographics, and this year, we have discussed [indiscernible] it's not just the youngsters or spend, we're heading who are taking the share of wallet. It's also the baby boomer are spending. I think what is not sellers [indiscernible] actually.
I think people are recognizing more they spend health care and all that, but the baby boomers ability to spend is very significant, actually.
One last question is how many hotels 1 could expect over the next 5 years? Or is this something that you would reveal at say, [ 2030 ]. And saying you have a Taj mindset, you have Bombay, you have [indiscernible] and maybe go up, but would you have iconic hotels like, so coming up in your 5-year plan?
Anything between 7 to 10 is realistic. We have very nice hotels and pipelines. So even the latest renovation of [indiscernible] and Palace in is world class and really worth visiting because we are used to only going to [indiscernible] like Palace. We are building a very iconic hotel with a partner in Chennai. We have just opened a very iconic hotel in [indiscernible] following the success of [indiscernible], which is being a runaway success.
So there are lots of such properties that are coming the Taj [indiscernible] very nice property also. So I think all in all, you can expect every year, let's say, 1.5 to 2 real iconic Taj assets getting added as have been in the past. Taj Rishikes as an example is also very iconic and same was when we did the whole development of 500-plus rooms in the convention center in Goa. So unfortunately, [indiscernible] the time of COVID, but the largest convention center of Goa and the largest capacity of 500-plus rooms is with the Taj brand. So I think this will keep happening.
Ladies and gentlemen, this will be the last question for today from the line of Saurabh Patwa, from Qwest Investment Advisors Private Limited.
I think the question is related to F&B and Taj and also linked with the new brand which we are trying to open which you plan to open in Tier 2, Tier 3 city. I think in past, you answered this question but wanted more clarity on when you also highlighted that one of the reasons why we put for a mass kind of a hotel in the smaller city is also the banqueting opportunity there. So what's your thought process, sir, that how much you expect -- what kind of strategy you upgrade around [indiscernible] which that we achieve key pillar of that.
No TajSATS. TajSATS obviously has a different strategy on non-aviation business. We try to get to 15% of total TajSATS revenue to come from non-aviation driven businesses. Having said that, the new brand will be a full-service upscale brand, and we are in the process of finalizing all the details, but it will be something that serves the needs of mass market, but higher than Ginger positioning. So Ginger is 20- to 22-square-meter room, this will have 26-, 27-, 28-square-meter room. It will have a couple of restaurants that will have large banqueting spaces, which can accommodate weddings of and at an affordable price. It will not be in the same pricing segment as a Taj brand would be. So somewhere in between, between Ginger and Taj. I would say upward mid-scale, upscale, that is the positioning we are aiming at because the target market size, as I mentioned earlier, is around 500 million.
And F&B, how important can you leave in the standard protest?
F&B, the second and Tier 3 market is going up because of the weddings. A lot of weddings in fact. I think that is why we're saying that the format of some of these cities will be a little different, but maybe increase F&B spaces prices and all of that.
Thank you, sir. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Puneet Chhatwal for close losing comments. Over to you, sir.
Thank you, everyone. Thank you for joining the call, and thank you for all your questions. We really look forward to the full year results in April with you and hope to deliver -- continue to deliver on our promise. Thank you very much. Have a wonder day and a great weekend ahead.
Thank you, members of the management. Ladies and gentlemen, on behalf of The Indian Hotels Company Limited, that concludes this conference. We thank you for joining us. You may now disconnect your lines. Thank you.