HBG Hotels is a hospitality company built on a family business house that spent over fifty years in Goan mining - and it is now betting entirely on owning and operating hotels and resorts. Incorporated in 1993 as Phoenix Township Limited and renamed in late 2025, the company runs a small collection of properties in Goa, Kerala and Vadodara while simultaneously constructing a Marriott-branded hotel and planning branded residences, all under the Hede family’s control. The recurring pattern is visible across every move: acquire or develop real estate, attach a global brand or a distinctive food-and-beverage reputation, and manage the asset for the long term. # Business segments A single hospitality engine - owning, operating and developing hotels and resorts - with a pipeline of branded projects under construction and a land-holding subsidiary that feeds the development. ## 1. Hotels and resorts: the group’s operating hospitality engine **The company makes its money from room stays and on-site dining across owned, leased and managed properties in leisure destinations, with food and beverage quality as its sharpest competitive edge.** - **Rooms and dining are the twin revenue streams** - income comes from the number of occupied rooms multiplied by the rate guests pay, plus food and beverage sales from restaurants, banquets and events. The two key measures management watches are average room rate (ARR) and revenue per available room (RevPAR), because they capture both pricing power and occupancy in a single lens. - **A portfolio of owned, leased and managed properties** - the company does not rely on a single operating model; it owns some properties outright, leases others and manages still more, which gives it flexibility to expand without always tying up capital in land. Resort operations are organised around three pillars: the physical infrastructure and facilities, the holiday activities on offer, and the food and beverage experience. - **Food and beverage is the differentiator** - the company’s own filings describe its F&B as “best” and credit the managing director’s culinary skills for that reputation, while his “flair for beauty” shapes the hotel interiors. In Vadodara, it launched what it calls the largest banquet hall in the city alongside several other banqueting spaces, turning events into a serious revenue driver. - **Digital booking and guest feedback drive the operation** - an Online Central Reservation System captures direct bookings, and the company has deliberately shifted focus to digital channels because its addressable market is highly active online, cutting response times to queries and online mentions. Post-holiday feedback is the chief yardstick for quality, and scores improved consistently through FY24. - **The property footprint is compact but multi-location** - the portfolio includes the 128-room Park Inn by Radisson Goa in Candolim, the 24-room Castle House in Paloliem, South Goa, the recently acquired Phoenix Island Resort Kerala Poovar with 13 cottages on roughly five acres, and a hotel operation in Vadodara. All business is within India, and the company reports a single operating segment - hoteliering. ## 2. Development pipeline and brand partnerships: the next properties under construction **The company is building a Marriott-branded hotel in Kerala and planning branded residences in Goa, while handing day-to-day operations of an existing resort to the Taj group - a strategy of owning the real estate but leaning on global operators for brand and management.** - **A Marriott hotel is under development in Kerala** - the board has approved a full set of agreements with Marriott Hotels India, Starwood and other Marriott affiliates covering operations, centralised services, licensing, royalties and technical services for a hotel to be built at Kulathoor village in Thiruvananthapuram district. Marriott is also providing advisory services during design and construction, reviewing plans against brand standards so the finished property meets international specifications. - **Branded residences are being explored in Goa** - the board appointed CBRE South Asia to conduct a feasibility study for a branded residences project at the company’s Bambolim, Goa Velha property, signalling an intention to sell luxury homes attached to a hospitality brand rather than just hotel rooms. - **An existing resort is now under the Taj umbrella** - Palolem Resorts LLP, a subsidiary, signed a long-term management agreement with Rajscape Hotels (Tree of Life, part of the Taj group) for the Phoenix Castle House Resort in Palolem, Goa. The operator takes exclusive control of day-to-day operations, staffing, marketing, pricing and distribution, while the company retains ownership of the property - a classic asset-light-for-the-brand, asset-heavy-for-the-owner split. - **An earlier island-resort project remains on the books** - as of FY22, the company had given capital advances of Rs. 7.27 crores to a party for purchasing properties for a planned “Havellia Island Resort” at Poovar, Kerala, indicating a longer-running development ambition in that coastal market. # Group structure and partners **The company sits inside the Hede family ecosystem, with a land-holding subsidiary and a resort-operating LLP that both serve the hospitality strategy, while related-party land transactions and warrant issues fund the expansion.** - **Green First Estates is the land bank vehicle** - incorporated in November 2023 and acquired as a wholly owned subsidiary in December 2023, it holds a roughly 316,000 sq. metre land parcel at Thivim, Goa, of which about 50,000 sq. metres is already converted to institutional land. The parent sold the land to the subsidiary and will receive additional consideration of Rs. 50 crores, while also subscribing to optionally convertible debentures of up to Rs. 200 crores in multiple tranches - effectively a structure to fund development through the subsidiary. - **Palolem Resorts LLP runs the Taj-managed property** - the company acquired a 97.96% stake through a capital contribution of roughly Rs. 5.04 crores in March 2025, having originally put in Rs. 24.50 lakhs in December 2019. The managing director is a designated partner, making it a related-party transaction conducted at arm’s length. - **Related-party relationships are woven into the structure** - group entities include Colaba Real Estate, Hede Navigation, Star Galaxy Trades, Glacier Trades, Hede Consultancy and Rama Capfin, and Dr. P.R. Hede’s mine-owner firm is listed as an associate. Land sales at Thivim and Goa Velha during FY24 were related-party transactions, showing that property moves within the group as development needs shift. - **Warrant issues bring in equity funding** - in March 2025 the company allotted 13.66 lakh equity shares on conversion of warrants at Rs. 143 per share, with a further 24.24 lakh warrants outstanding for conversion within 18 months of allotment. By May 2026, 4.45 lakh warrants were forfeited because holders did not exercise conversion in time, and the 25% initial subscription on those was lost.