Apeejay Surrendra Park Hotels Ltd announced Q3 & 9M FY24 results

ByTT Bureau

2024-03-06

Apeejay Surrendra Park Hotels (ASPHL) has announced its financial results for the quarter and nine months ended December 31st, 2023.

Q3 Performance Highlights: 

  • Total Income increased by 15% Y-o-Y to Rs. 1,636 million in Q3 FY24.
    • RevPAR grew 14% Y-o-Y to Rs. 6,562 million
    • Occupancy stood strong at 90% in Q3 FY24
  • EBITDA stood at Rs. 606 million, registering a 15% Y-o-Y increase. The EBITDA margin for the quarter was 37% 
  • PAT amounted to Rs. 274 million, translating into a PAT margin of 17% in Q3 FY24

9M FY24 Performance Highlights: 

  • Total Income increased by 14% Y-o-Y to Rs. 4,359 million in 9M FY24.
    • RevPAR grew 13% Y-o-Y to Rs. 5,941 million
    • Occupancy was at 92% as against 91% in 9M FY23
  • EBITDA stood at Rs. 1,515 million registering a 14% Y-o-Y increase. The EBITDA margin for 9M FY24 was 35% 
  • PAT amounted to Rs. 504 million, translating into a PAT margin of 12% in 9M FY24

Key Developments: 

  • Successful listing on NSE and BSE – achieved overwhelming subscription of ~60x
    • The IPO attracted strong interest across all investor categories 
    • ASPHL raised Rs. 920 crore through the IPO, with a fresh issue of shares worth Rs. 600 crore and an offer for sale worth Rs. 320 crore
    • Utilizing the IPO proceeds, the company repaid Rs. 550 crore in long-term debt, elevating ASPHL to a net cash positive
  • Inaugurated 5 new hotels during 9M FY24, expanding ASPHL’s total footprint to 30 hotels
    • The new hotels span across key strategic locations, enhancing the Company’s presence in high-growth markets
    • The five new hotels added to the diverse portfolio include:
  1. Zone by THE Park Gopalpur 
  2. Zone by THE Park Dimapur
  3. Zone Connect Mussoorie
  4. Zone Connect Indore
  5. Zone Connect Udaipur
  • Additionally, 2 new motels were inaugurated during 9M FY24: 
  1. Stop by Zone Nandakumar 
  2. Stop by Zone Simbulbari
Priya Paul, Chairperson, Apeejay Surrendra Park Hotels
Priya Paul, Chairperson, Apeejay Surrendra Park Hotels

Commenting on the performance Priya Paul, Chairperson, Apeejay Surrendra Park Hotels said, “We are delighted to share our maiden earnings announcement following our outstanding listing. We extend a warm welcome to all our public shareholders, and we remain committed to sustained growth and progress of our business that we believe will create value for all our stakeholders. 

The Company has concluded the quarter on a solid note, with our best-ever financial results for Q3 to date. While our Revenue, EBITDA and PAT financial performance were robust, we are equally encouraged by the operational performance, including a remarkable 14% growth in RevPAR and an industry-leading 90% Occupancy rate. This performance has been driven through a combination of our strategic and growth initiatives alongside favorable industry trends. 

The recent inauguration of six new hotels reflects our commitment to continuous expansion and growth, enhancing our hospitality presence across key markets. Committed to our strategy, we have utilized the IPO proceeds for pre-paying long-term loans, strengthening our balance sheet and transitioning Apeejay Surrendra Park Hotels (ASPHL) into a net debt-free position. We believe that this strong financial position will enable us to more actively pursue our growth plans and strengthen our operating position in the sector. 

Over the past 5 decades, we at Apeejay Surrendra Park Hotels have built exceptional brands, a reputation for innovative hospitality service, and diverse F&B offerings, which have distinguished us in the industry. Additionally, this positions us favorably given the encouraging macroeconomic trends and the demand-supply scenario in the hospitality sector. We are now progressing with confidence, strength and a more renewed commitment to leverage our strengths for growth.”

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