Viceroy Hotels Limited (**VHL**) is a Hyderabad-based hospitality enterprise that has recently undergone a comprehensive structural and financial rebirth. Following a **Corporate Insolvency Resolution Process (CIRP)** concluded in **October 2023**, the company transitioned to the ownership of **Loko Hospitality Private Limited** (an SPV of **Anirudh Agro Farms Limited**). Today, VHL is a deleveraged, growth-oriented entity focused on the premium and luxury segments of the Indian hospitality market. --- ### **Core Asset Portfolio & Strategic Location** VHL’s operations are anchored in a prime **5.0-acre** land parcel within the **Central Business District (CBD)** of Hyderabad. The company utilizes a brand-partnership model with **Marriott International** to capture luxury, business, and long-stay demand. | Property | Brand | Keys | Key Features | | :--- | :--- | :--- | :--- | | **Marriott Hyderabad** | Marriott | **295** | **5** F&B outlets; **303** restaurant seats; flagship luxury asset. | | **Courtyard by Marriott** | Courtyard | **168** | **2** F&B outlets; focused on business travelers. | | **Marriott Executive Apartments** | Marriott | **75** | Located in **Gachibowli**; focused on high-margin long-stay services. | | **Total Portfolio** | | **538** | **7** F&B Outlets; **10,000 sq. ft.** Convention Centre. | --- ### **Post-Insolvency Financial Recovery & Solvency** The implementation of the **NCLAT-approved Resolution Plan** on **October 10, 2023**, has fundamentally repaired the company’s balance sheet. VHL has successfully settled legacy financial creditor dues and returned to operational profitability. * **Debt Settlement:** The company settled **₹89.23 Cr** of financial creditor debt with an upfront payment of **₹67.95 Cr**, resulting in a **₹21.28 Cr** gain transferred to reserves. * **Credit Profile:** In **April 2026**, **CARE Ratings** assigned a **BBB; Stable** (Long Term) and **A3+** (Short Term) rating for bank facilities totaling **₹230.33 Cr**. * **Deleveraging:** The adjusted net debt-to-equity ratio improved significantly to **0.19** as of March 31, 2025, down from **0.38** the previous year. * **Tax Assets:** VHL carries **₹416.98 Cr** in accumulated losses and **₹95.07 Cr** in unabsorbed depreciation. A **Deferred Tax Asset** of **₹50.35 Cr** has been recognized, providing a significant tax shield against future profits. --- ### **Operational Performance Metrics (FY 2024-26)** The company has seen a robust recovery driven by the resurgence of **MICE** (Meetings, Incentives, Conferences, and Exhibitions) and corporate travel in Hyderabad’s IT corridor. **Standalone Financial Performance:** | Metric | Q3 FY26 | Q3 FY25 | YoY Change | 9M FY26 | | :--- | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **₹38.33 Cr** | **₹37.76 Cr** | **+1.5%** | **₹94.50 Cr** | | **EBITDA** | **₹12.09 Cr** | **₹11.35 Cr** | **+6.5%** | **₹23.50 Cr** | | **EBITDA Margin** | **31.5%** | **30.1%** | **+140 bps** | **24.9%** | | **Profit After Tax (PAT)** | **₹10.93 Cr** | **₹7.29 Cr** | **+50.0%** | **₹12.30 Cr** | **Property-Level Metrics (FY 2024-25):** * **Combined Occupancy:** **70.3%** * **Marriott ADR (Q3 FY26):** **₹8,135** (up **10.3%** YoY) * **Courtyard ADR (Q3 FY26):** **₹8,386** (up **11.3%** YoY) * **Combined RevPAR:** **₹5,235** --- ### **The "1,000 Keys by 2030" Growth Strategy** Under new management, VHL is executing an aggressive expansion and modernization roadmap funded by internal accruals and a successful **₹49.52 Cr Rights Issue** (December 2024). **1. Phased Asset Modernization (₹120 Cr Investment):** * **Phase I (Completed Q4 FY26):** Added **56 new rooms** to Courtyard by Marriott, plus a new **Spa, Gym, and Rooftop Bar**. This drove ADRs from **₹6,000** to **₹6,800**. * **Phase II (Target Dec 2026):** Upgrading **168 rooms** at Marriott Hyderabad and doubling the **Convention Centre** to **20,000 sq. ft.** * **Phase III (In Progress):** Upgrading **127 rooms** and converting F&B outlets into a premium **Pan-Asian Restobar**. **2. Strategic Acquisitions & Greenfield Projects:** * **SLN Terminus Acquisition:** In **December 2025**, VHL acquired **100% equity** in SLN Terminus Hotels & Resorts for **₹206-215 Cr**. This added the **Marriott Executive Apartments** (Gachibowli), which is expected to generate **₹48 Cr** in annual turnover and **₹21 Cr** in EBITDA. * **Madhapur Greenfield:** A proposed **200-room Courtyard by Marriott** on a **7,000 sq. yard** plot in Hyderabad’s IT hub, currently in the design stage. --- ### **Governance, Capital Structure & Compliance** * **Promoter Holding:** Following the Rights Issue to meet **Minimum Public Shareholding (MPS)** requirements, promoter holding stands at **84.11%** as of January 2025. * **Capital Base:** Paid-up capital is **₹67.58 Cr** (6.75 Cr shares at ₹10 par). * **Subsidiary Rationalization:** In **July 2024**, VHL sold five non-core/inoperative subsidiaries (including **Viceroy Chennai**) to streamline operations and focus on the Hyderabad core. * **Borrowing Power:** Shareholders have authorized an increase in borrowing limits to **₹1,500 Cr** to support the 2030 expansion targets. --- ### **Risk Factors & Mitigation Framework** Despite the successful turnaround, VHL manages several legacy and operational risks: * **Legal & PMLA Matters:** The **Enforcement Directorate (ED)** issued a Provisional Attachment Order in 2019. While the Resolution Plan mandates de-attachment under **Section 32(a) of the IBC**, the matter is sub-judice with the next hearing in **March 2026**. * **Related Party Transactions:** The acquisition of SLN Terminus involved a Director with beneficial interest and exceeded **10%** of annual consolidated turnover, requiring stringent governance oversight. * **Regulatory Shifts:** The company is monitoring the impact of the **four new Labour Codes** (effective **Nov 2025**). While currently deemed "not material," full state-level notification is pending. * **Operational Headwinds:** Ongoing renovations at the Courtyard property have caused temporary dips in occupancy and RevPAR, though these are expected to rebound at **25-30%** higher price points post-completion. * **Legacy Audit Issues:** Management is remediating historical weaknesses, including the lack of a **Fixed Asset Register** and disputes regarding **₹134.65 Cr** in forfeited advances from 2013-14.