Conference Call Details
• Date: May 30, 2024
• Purpose: Discuss audited financial results for Q4 and FY24
• Compliance: Announced in accordance with SEBI regulations
• Transcript Availability: Accessible on the company's website
• Signed by: Shalini Keshan on June 6, 2024
Financial Highlights
• Growth Metrics:
• 10.4% year-over-year growth in Average Room Rate (ARR)
• 92% occupancy rate
• 11% increase in Revenue Per Available Room (RevPAR)
• Q4 Financials:
• Total income: Rs. 156 crore (8% increase)
• Net profit: Rs. 18 crore (73% increase)
• IPO Success: Oversubscribed IPO led to loan repayments and net cash-positive status
Expansion Plans
• Hotel Inventory: Expanded by 374 keys; plans to double to 4,780 keys in five years
• Flurys Outlets: Targeting 100 by September and 120-125 by fiscal year-end; plans for 40-50 new outlets annually
• Market Strategy: Focus on asset-light model and strategic expansions in new cities
Future Projections
• Capex Plan: Approximately Rs. 600 crore for new hotels and refurbishments
• ARR Expectations:
• New hotels in Chettinad: Rs. 12,000-15,000
• New hotels in Patiala: Rs. 20,000-25,000
• Projected ARR growth of 12%-14% in FY25
Revenue Breakdown
• Sources:
• Room revenue: 49%
• F&B revenue: 42.2%
• Other income: 8%
• F&B Segment: Flurys contributes significantly; targeting a margin increase to 20%
Management Insights
• Occupancy Rates: Vary by location; some hotels achieving up to 100%
• Corporate Business: Increased to 47% of total occupancy; signed 120 RFPs with corporate clients
• Commitment: Focus on innovation, differentiation, and superior corporate governance for sustainable growth
Conclusion
• Market Position: Park Hotels maintains a leading position in occupancy and revenue metrics within the upper-upscale segment, with a strong focus on growth and expansion.

Company Overview
• Management Present: Chairman Priya Paul and Managing Director Vijay Dewan.
• IPO Success: Oversubscribed by over 62 times; Rs. 550 crore allocated for loan pre-payment.
• Net Worth: Approximately Rs. 1,200 crore.
Financial Performance
• Q3 Highlights:
• Record consolidated net income: Rs. 164 crore (15% YoY growth).
• EBITDA: Rs. 61 crore (15% increase), margin at 37%.
• Occupancy Rate: 90%.
• Nine-Month Results:
• Total revenues: Rs. 436 crore.
• PAT: Rs. 50 crore (12% YoY growth).
• Debt Status: Rs. 550 crore debt eliminated; now net cash positive.
Growth and Expansion Plans
• Inventory Goals: Doubling from 2,298 to 4,405 keys in five years via an asset-light model.
• Upcoming Openings: Hotels in Digha, Patiala, and Chettinad.
• 'Flurys' Expansion: Growing from 75 to 83 outlets by March; plans to double presence next year.
Market Insights
• Revenue Sources: 90% from upper-upscale hotels, 7% from 'Flurys', 3% from managed properties.
• Domestic vs. International Tourists: 91% of hotel business from domestic tourists; international numbers recovering post-COVID.
• Operational Costs: Increase in payroll expenses due to ESOPs; overall margins remain strong.
Strategic Focus
• Development Costs: Approximately Rs. 1 crore per key for upper-upscale segment.
• Revenue Growth: Plans to add three lease properties and upgrade existing inventory to enhance ARR.
• Pricing Strategy: Leadership in occupancy and RevPAR despite slower rate increases compared to competitors.
Future Outlook
• Market Conditions: Limited supply in key markets expected to drive ARR increases.
• Property Upgrades: Plans to renovate 10% of inventory to enhance pricing power and profitability.
• Management Optimism: Positive outlook on hospitality industry's upcycle and ASPHL's market leadership.