**(Formerly Phoenix Township Limited)** HBG Hotels Limited is a premium hospitality-focused enterprise and the property-holding arm of the **Hede Business Group**, a prominent business house based in Goa. Listed on the **BSE (Scrip Code: 503675 / PHOENIXTN)**, the company is currently undergoing a strategic transformation, pivoting from a diversified township developer to a pure-play hospitality entity. This transition is marked by aggressive asset monetization, capital restructuring, and the expansion of its resort portfolio across key Indian leisure destinations. --- ### **Strategic Rebranding and Corporate Identity** In September 2025, the Board of Directors approved the name change from **Phoenix Township Limited** to **HBG Hotels Limited**. This rebranding serves two primary purposes: * **Sector Alignment:** Reflecting that **100%** of sales are now derived from the hotels and resorts segment. * **Brand Synergy:** Aligning the corporate identity with the **"Hede Business Group"** brand to leverage group-level prestige and operational history. --- ### **Core Operational Assets and Portfolio** The company’s revenue is generated through two primary streams: **Room Sales** and **Food & Beverages (F&B)**. Operations are concentrated exclusively in the **Hotel Industry** within **India**. | Property Name | Location | Details & Capacity | | :--- | :--- | :--- | | **Park Inn by Radisson** | Candolim, **Goa** | A **128-room** premium resort located at Sequeira Vado, a prime tourist hub. | | **Phoenix Island Resort** | Poovar, **Kerala** | A recently acquired resort property in Thiruvananthapuram, currently undergoing expansion. | | **Vadodara Facility** | Vadodara, **Gujarat** | Features the **"Ball Room,"** currently the largest banquet hall in the city, emphasizing the group's F&B and MICE (Meetings, Incentives, Conferences, and Exhibitions) focus. | --- ### **Financial Performance and Growth Trajectory** The company has demonstrated a robust recovery and growth phase over the last three fiscal years, characterized by expanding margins and a significantly strengthened balance sheet. #### **Comparative Financial Summary** | Metric (₹ in Lacs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Turnover** | **3,511.67** | **2,954.40** | **2,623.35** | | **Profit Before Tax (PBT)** | **682.30** | **249.00** | **99.25** | | **Profit After Tax (PAT)** | **540.90*** | **174.64*** | **76.13** | | **Net Worth** | **35,007.14** | **22,084.64** | **2,441.80** | *\*Excluding Exceptional Items.* #### **Revenue Stream Breakdown** | Nature of Service | FY 2024-25 (₹ in Lacs) | FY 2023-24 (₹ in Lacs) | | :--- | :--- | :--- | | **Room Sales** | **2,614.65** | **2,504.92** | | **Food & Beverages** | **244.46** | **242.15** | | **Total Revenue** | **2,859.11** | **2,747.07** | #### **Key Efficiency Ratios (FY 2024-25)** * **Operating Profit Margin:** **24%** * **Net Profit Margin:** **15.33%** * **Debt-Equity Ratio:** **0.04 times** (a significant reduction from **0.63** in FY23). * **Interest Coverage Ratio:** Improved by **91.88%** Year-on-Year. * **Inventory Turnover:** Increased by **34.30%**. --- ### **Capital Restructuring and Asset Monetization** HBG Hotels has aggressively restructured its capital base to fund its expansion into the premium hospitality segment. * **Non-Core Asset Sale:** The company is disposing of **3,16,600 Sq. Mtrs** of land in **Thivim, Goa**. * **50,000 Sq. Mtr** (Institutional) valued at **₹7,900/Sq. Mtr**. * **2,66,600 Sq. Mtr** valued at **₹6,000/Sq. Mtr**. * **Subsidiary Transactions:** Through its wholly-owned subsidiary, **Green First Estate Private Limited**, the company modified a sale deed in September 2025 to receive an additional **₹50 Crores** in consideration. * **Equity Infusion:** * Allotted **8,10,000 shares** at **₹143/each** (October 2024). * Issued **61,70,000 convertible warrants** at **₹143/each**. * As of **July 2025**, promoters converted warrants into **1,409,380 equity shares** to strengthen the capital base. * **Authorized Capital:** Increased to **₹29 Crore** to accommodate future growth. --- ### **Expansion Strategy and Market Positioning** The company is leveraging the "premiumisation" trend in Indian domestic travel and the recovery of international tourism. * **Strategic Partnerships:** * Signed a **Memorandum of Understanding (MoU)** with the **Marriott Group of Hotels** for a new development in **Kerala**. * Collaborating with the **Accor Group of Hotels** for property upgrades and brand development. * **Acquisitions:** Secured a **97.96% stake** in **Palolem Resorts LLP** in March 2025, expanding its footprint in South Goa. * **Digital Transformation:** Implementing a **"Digital-First"** marketing strategy and an **Online Central Reservation System** to reduce lead response times and enhance direct bookings. * **Service Quality:** Institutionalizing **"Post-Holiday Feedback"** as the primary operational metric and activating a **Strong Guest Relations Management (GRM)** initiative. --- ### **Risk Management Framework** The Board oversees a structured framework to mitigate financial and operational volatility. * **Interest Rate Risk:** Managed by monitoring **₹656.63 Lacs** in variable-rate borrowings. * **Liquidity Risk:** The Treasury Department utilizes rolling cash flow forecasts. Surplus funds are maintained in **liquid mutual fund schemes** and fixed deposits to ensure immediate obligation fulfillment. * **Credit Risk:** Concentration is **low** due to a diverse customer base. The company maintains a **negligible provision** for bad debts. * **Market Risks:** The company identifies cyclical demand, regulatory changes in tax regimes, and the inability to rapidly increase room inventory as primary external threats. --- ### **Investment Outlook** HBG Hotels Limited is positioned to benefit from the **"Amrit Kaal"** of Indian tourism, supported by a **₹2,541 crore** Union Budget allocation for the sector. With a **Debt-Equity ratio of 0.04**, a massive increase in **Net Worth (₹35,007 Lacs)**, and strategic alliances with global brands like **Marriott** and **Radisson**, the company is transitioning from a small-cap developer into a focused, high-margin hospitality player. Management remains focused on high-yield **Room Revenue** and establishing **F&B** as a core competitive advantage.