Royale Manor Hotels and Industries Limited is a pioneer in the Gujarat hospitality landscape, having established the first five-star hotel in Ahmedabad. The company operates as a premium hospitality provider, primarily through its flagship property, **The Ummed Ahmedabad**. RMHIL is positioned as a strategic player in the Indian luxury segment, leveraging a **24-year promoter track record** and a prime location to serve high-profile corporate, government, and international clientele. --- ### **Core Asset Profile: The Ummed Ahmedabad** The company’s primary value driver is **The Ummed Ahmedabad**, a luxury **low-rise** hotel designed as an urban oasis. Unlike traditional high-rise urban developments, the property emphasizes open space and regional aesthetics. * **Strategic Location:** Situated just **1 km** from the International Airport Circle, providing a significant competitive advantage for transit travelers and international business delegations. * **Property Specifications:** * **Land Area:** **4 acres** of manicured, landscaped gardens. * **Inventory:** **91 rooms and suites** featuring custom-made **teak furniture** and classic Indian art. * **Views:** Guest units offer views of either the gardens or the **turquoise poolside**. * **Facilities & Amenities:** * The city’s largest **open-air swimming pool**. * A **24-hour coffee shop** and a fine-dining restaurant. * Extensive landscaped lawns designed for large-scale corporate events and weddings. * Comprehensive spa and wellness facilities. --- ### **Operational Performance & Revenue Metrics** RMHIL has demonstrated a consistent ability to increase room rates and maintain high occupancy levels, successfully exceeding pre-pandemic benchmarks. | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Average Occupancy** | **79%** | **81%** | **77%** | | **Average Room Rate (ARR)** | **Rs. 5,682** | **Rs. 5,522** | **Rs. 5,207** | | **Total Turnover** | *Pending Final* | **Rs. 2,512.45 Lacs** | **Rs. 2,321.32 Lacs** | | **Profit Before Tax (PBT)** | *Pending Final* | **Rs. 560.74 Lacs** | **Rs. 491.58 Lacs** | **Key Performance Trends:** * **Yield Management:** The company has successfully implemented a strategy of increasing the **ARR** year-on-year, even during minor fluctuations in occupancy. * **Seasonality:** Operations are subject to **seasonal fluctuations**, meaning quarterly performance may not be a linear indicator of annual results. * **Segment Focus:** The company operates in a **single business segment** (Hotels and Restaurants) and a **single geographical segment** (India). --- ### **Strategic Growth Pillars & Capital Allocation** RMHIL is currently executing a modernization and expansion strategy to capitalize on India’s tourism sector, which is projected to reach **US$ 125 billion by FY27**. **1. Capital Infusion for Modernization** In **January 2024**, the company secured funding through a preferential allotment to its promoter, **Shree Bala Finvest Private Limited**: * **Instrument:** **9,50,000 Convertible Equity Warrants** * **Price:** **₹ 22.31 per unit** (Totaling **₹ 2.12 Crore**) * **Utilization:** Dedicated to **Hotel Renovation & Expansion**, working capital, and general corporate purposes to maintain five-star standards. **2. Alignment with Macro Drivers** The company is positioned to benefit from several state and national initiatives: * **Vibrant Gujarat:** A major driver for corporate room demand and international conferences. * **UNESCO Heritage Status:** Leveraging Ahmedabad’s status as a World Heritage City to attract cultural tourists. * **Government Schemes:** Active alignment with **Swadesh Darshan 2.0**, **PRASHAD** (Spiritual Tourism), and **Incredible India 2.0**. * **Infrastructure Tailwinds:** Benefits from the **UDAN Regional Connectivity Scheme** and Ministry of Tourism efforts to improve road connectivity to 50 major destinations. --- ### **Financial Health & Capital Structure** The company maintains a conservative financial profile with a focus on liquidity and debt servicing. **Comparative Financial Ratios:** | Financial Ratios | FY 2024-25 | FY 2023-24 | Variance Analysis | | :--- | :---: | :---: | :--- | | **Current Ratio** | **3.57** | **2.06** | **73.3% increase** due to lower current liabilities. | | **Debt Equity Ratio** | **0.09** | **0.08** | Highly conservative leverage profile. | | **Interest Coverage Ratio** | **10.5** | **10.41** | Strong capacity to service debt obligations. | | **Operating Profit Margin** | **12.66%** | **20.11%** | **37% decrease** due to lower operating profits. | | **Net Profit Margin** | **13.31%** | **18.02%** | **26% decrease** following net profit reduction. | | **Inventory Turnover** | **13.06** | **11.45** | Improved stock movement efficiency. | **Debt Management:** * **Secured Loans:** Term loans are secured by the **mortgage of hotel property** with repayment periods of **48 to 84 months**. * **Moratoriums:** Specific facilities include **12 to 24-month** moratorium periods. * **Dividend Policy:** The company has **not declared any dividend** since incorporation, prioritizing capital reinvestment and debt servicing. --- ### **Risk Management & Regulatory Compliance** RMHIL operates under a structured risk framework overseen by the Board and Audit Committee. **Operational & Market Risks:** * **Economic Sensitivity:** High correlation with **GDP growth** and **Foreign Currency** fluctuations. * **Commodity Risk:** Exposure to raw material price volatility is managed through **Forward Booking** and **Vendor Development**. * **Human Capital:** Mitigation of high hospitality attrition through a **Strategic Talent Management System**. **Regulatory & Compliance Status:** * **Promoter Dematerialization:** A noted non-compliance with **Regulation 31(2) of SEBI (LODR) Regulations, 2015** exists, as **100% of Promoter holdings** are not yet in **Demat form**. The company has formally requested promoters to rectify this. * **Legal Standing:** There are **no pending proceedings** under the **Insolvency and Bankruptcy Code (IBC)**, and no material orders have been passed by regulators challenging the company's **Going Concern** status. * **Safety Standards:** Implementation of the **SAATHI framework** (Quality Council of India) for safety and risk mitigation. * **Taxation:** Operations are governed by the **Food Safety and Security Act** and the **Gujarat Tax on Luxuries Act**. The company benefits from the **5% GST rate** on restaurant services where room tariffs remain below **Rs. 7,500**.