• Hospitality revenue impact: Q4 hospitality revenue growth moderated to 3% after West Asia geopolitical tensions and Dubai transit constraints lowered foreign tourist arrivals, reducing quarterly growth by 7% to 10%.
• ARR and occupancy: Average room rates rose 7.7% year-on-year in Q4, but occupancy declined by 770 basis points due to commercial construction at an MMR property and lower international travel into southern hubs like Bengaluru.
• Demand and supply: Management dismissed supply glut concerns in the upper-upscale and luxury segments, projecting the war-related impact to be a temporary 2-to-3-month blip bolstered by GCC business travel and domestic destination weddings.
• Capex and leverage: Expansion plans remain on track to exceed 5,000 keys by FY26 exit, with the company executing ₹1,500 crore in capex over the past two years while holding net borrowings stable at ₹1,900 crore.
• Rental and annuity: Revenue from the commercial and annuity portfolio grew 37% with margins reaching 83.6%, supported by one fully leased commercial asset and another that is roughly 60% complete.