### **Overview** Apeejay Surrendra Park Hotels Limited (ASPHL) is India’s **8th largest asset-owning hotel chain** and a pioneer in the luxury boutique hospitality segment. Established in 1967 with the launch of its flagship *THE PARK* brand in Kolkata, ASPHL has evolved into a design-led, experience-driven hospitality group with a pan-India presence across major urban and leisure destinations. Listed on both the BSE and NSE under **PARKHOTELS**, the company operates under a **diversified, capital-efficient business model**, combining owned, leased, and managed properties. --- ### **Portfolio & Branding** ASPHL operates **five distinct hospitality brands** across luxury, upscale, upper midscale, and economy segments: - **THE PARK**: Flagship luxury/upscale brand in key cities (Delhi, Mumbai, Bangalore, Chennai, Kolkata). - **THE PARK Collection**: Boutique heritage-luxury brand featuring palace properties (Patiala, Chettinad, Goa). - **Zone by The Park**: Upper midscale brand targeting design-conscious, price-sensitive travelers. - **Zone Connect by The Park**: Midscale brand expanding in Tier-II/III cities. - **Stop by Zone**: Economy roadside motels for budget travelers on highways. As of **November 2025**, the company operates **approximately 50 hotels** (nearing 3,000 keys or rooms), with a strategic goal to reach **50 hotels** by 2025–26. The portfolio includes 36 hotels as of late 2025, with ongoing expansion driving incremental growth. --- ### **Luxury Heritage Expansion & Global Recognition** ASPHL has elevated its reputation through **design-led heritage luxury properties**: - **Ran Baas – The Palace, Patiala** (35 suites, Relais & Châteaux member) - **The Lotus Palace Chettinad** (15 rooms) These boutique palace hotels command **premium Average Room Rates (ARR)**: - Ran Baas: **₹24,000 ARR** (Q4 FY24–25), expected to rise to ₹45,000+ - Lotus Palace: **₹14,699 ARR** Both properties have received **international acclaim**, with recognition from **Michelin** (at least one star-rated property) and **Architectural Digest**, underscoring global appeal and positioning ASPHL as a leader in the bespoke luxury segment. --- ### **Growth Strategy** ASPHL is executing a **dual-pronged growth strategy**: #### 1. **Asset-Light Expansion (Management & Lease Model)** - Aims to double managed/leased inventory from **1,101 to ~2,200 rooms** over five years. - Plans to add **~600 rooms by FY26**, with over **400 rooms from management contracts**. - Focus on **Zone**, **Zone Connect**, and managed luxury assets in high-growth leisure and urban markets. - Strong pipeline of MoUs and HMAs signed across North, South, and Himalayan destinations (Goa, Manali, Shimla, Dharamsala, Kochi). #### 2. **Owned Development via Land Bank Monetization** - Leverages **in-house legacy land banks** in prime locations (Kolkata, Pune, Vizag, Navi Mumbai, Jaipur) for capital-efficient greenfield projects. - Key upcoming owned developments: - **EM Bypass, Kolkata**: 250-room hotel + 100 serviced apartments (launch: 2028). Apartment sales expected to generate **₹100 crore/year** in cash flow. - **Pune**: 200-room hotel (launch: 2027) - **Navi Mumbai**: 250-room super luxury hotel (launch: 2027) - **Jaipur**: 150–200-room mixed-use hospitality and banquet facility These projects are projected to deliver **IRR of 30–40%**, with **no incremental debt** required due to monetization of real estate components. --- ### **Strategic Acquisitions** ASPHL is aggressively expanding its luxury footprint through targeted acquisitions: - **Zillion Hotels & Resorts, Juhu (Mumbai)**: Acquired **90% stake for ₹206 crores**. - 80-room property to be redeveloped into a **super luxury boutique hotel with rooftop bar** (target launch: H2 2026). - Located in Mumbai’s supply-constrained Juhu micro-market with **ARR of ₹20,000–25,000**, rising due to demand-supply imbalance. - **Malabar House (Fort Kochi, 17 rooms)** and **Purity Hotel (Lake Vembanad, 14 rooms)**: Acquired for ₹62 crores. - Both are **Relais & Châteaux members**, providing high-ARR, premium positioning in South India. - Together expected to generate **₹20 crore in stabilized EBITDA**. These acquisitions mark strategic entry into **Mumbai**, **Kochi**, and **Goa**, completing pan-India luxury circuit. --- ### **Food & Beverage (F&B) & Flurys: A Strategic Growth Engine** The **F&B segment contributes over 41% of total revenue**, acting as a key differentiator and growth driver. #### **Flurys – Iconic Heritage Brand** - **Founded in 1927**, Flurys is India’s most recognizable premium bakery and confectionery brand. - As of November 2025, operates **102 outlets** across formats: kiosks, cafes, tearooms, and flagship stores. - **Recent milestones**: - First **Kolkata-style tearoom** at **Gateway of India, Mumbai** (record footfalls: ~600 covers/weekend) - Kiosks in **Mumbai Airport** driving strong sales - Expansion into **Darjeeling, Gangtok, and Indore** #### **Flurys Expansion Plan** - **Target: 130 outlets by Q4 FY25–26**, accelerating toward **200 stores by 2027** (centenary year). - **30 new outlets planned for FY25–26** across: - Mumbai (6), Delhi (5), Hyderabad (2), Pune (1), Kolkata (6), Vizag (4), and other Tier-II cities. - Central **commissary in Delhi NCR** established to support cold chain and scalable northward expansion. #### **Revenue & Margins** - **Q2 revenue growth: 22% YoY** - **Target: ₹1 crore annual revenue per mature cafe** - Focus on **higher-margin cafe formats**, wellness-focused menus, and **eco-friendly packaging** to align with Gen Z and millennial consumption trends. --- ### **Digital & Operational Excellence** ASPHL leverages technology to enhance guest experience and operational efficiency: - **Central Reservation System (CRS)**: Optimizes occupancy and dynamic pricing across channels. - **Guest Management System (GMS)** and **Hospitality BI tools**: Enable data-driven marketing, loyalty tracking, and demand forecasting. - **Digital infrastructure platforms**: Oracle MICROS, Simphony, Opera PMS support contactless check-in, QR-based ordering, and AI-powered concierge services. - **Loyalty Program**: **THE Park Preferred** (190,000+ members), with **24% repeat business rate**. The company is migrating its data center to a **secure private cloud IaaS** environment for improved scalability and uptime. --- ### **Sustainability & Responsibility** ASPHL’s **Park Planet Positive** program drives ESG initiatives: - Renewable energy integration - Waste management & resource efficiency - IGBC-certified hotels - Sustainable sourcing for Flurys (eco-packaging, seasonal menus, wellness ingredients) Aligned with **long-term responsible growth philosophy**, supporting brand value and regulatory resilience.