Summary
Ventive Hospitality Limited - Q3 FY26 Earnings Call Summary Tuesday, February 03, 2026 4:00 p.m.
Event Participants
Executives 3 Milind Wadekar (EVP Finance and IR), Paresh Bafna (CFO), Ranjit Batra (CEO)
Analysts 4 Achal Kumar (HSBC), Jay Kant Beria (IIFL Capital), Sumit Kumar (JM Financial), Yash Darak (Motilal Oswal)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Consolidated) | ₹722.00 crores | +27% YoY; includes ₹16.9 crore forex gain on USD assets. |
| Hospitality Revenue | ₹565.40 crores | +35% YoY; strong broad-based growth across India and Maldives. |
| India ADR | ₹13,000+ | +17% YoY; driven by premium positioning and yield optimization. |
| India RevPAR | ₹8,300 | +15% YoY; rate strength compensated for stable occupancy. |
| India Occupancy | 62% | Stable YoY; management cited airline disruptions as a one-off factor. |
| Maldives TRevPAR (Same-store) | ₹82,000 | +17% YoY; driven by product refurbishment and longer stays. |
| Maldives Occupancy (Portfolio) | 71% | +400 bps YoY on same-store basis; Raaya hit 84% occupancy. |
| EBITDA (Hospitality) | ₹226.10 crores | +54% YoY; margins expanded by 500 bps to 40%. |
| Annuity Revenue | ₹24.40 crores | +15% YoY; driven by new tenant acquisitions. |
| Net Debt | ₹1,667 crores | Net Debt to EBITDA stands at 1.4x; internal accruals funded recent acquisitions. |
| Cost of Funds | 6.82% | -28 bps QoQ; successfully renegotiated offshore USD debt. |
Geographic & Segment Commentary
- India Hospitality: Revenue grew 22% YoY to ₹239 crore, with India-specific EBITDA margins expanding 400 bps to 41%. Growth was primarily ADR-led, particularly in Pune (Same-store ADR +18%) and Bangalore, supported by strong GCC (Global Capability Center) office demand.
- International Hospitality (Maldives): Revenue surged 46% YoY to ₹326.4 crore as the segment entered peak season. Performance was bolstered by the stabilization of Raaya (40% EBITDA margin) and increased international arrivals following the expansion of Velana International Airport.
- Annuity Portfolio: This segment provides stable cash flow with a 90% EBITDA margin. Revenue grew 15% YoY, and management remains focused on high-quality tenant acquisitions to maintain stability.
Company-Specific & Strategic Commentary
- Asset Repositioning: The company is converting Aloft Whitefield (Bangalore) into an “AC by Marriott,” targeting a 3x EBITDA improvement through disciplined rebranding.
- Goa Expansion: Following the Hilton Goa acquisition, Ventive is adding 60-65 rooms and is in late-stage talks to upgrade the property to a higher-tier Hilton luxury brand.
- Development Pipeline: Targeting 4,000 keys over the medium term; organic projects (Varanasi, Mundra, Sri Lanka) are slated for FY27-28, while ROFO assets (Navi Mumbai) are targeted for FY30.
- F&B Differentiation: F&B remains a core yield driver, growing 16% across the portfolio. Soho House Mumbai recently received a Michelin Key, validating the company’s premium lifestyle focus.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Keys Scale-up | 4,000 keys (Medium Term) | To be achieved through direct development and ROFO assets. |
| Capex | ₹800 - ₹900 crores (Next 30 months) | Covers Sri Lanka, Varanasi, and AC Marriott; funded via internal accruals. |
| Hilton Goa EBITDA | ₹40 crores (Post-stabilization) | Expected EBITDA per key to rise from ₹17 lakh to ₹25 lakh. |
| Occupancy (Maldives) | ~70% (Stabilized) | Expected to hold steady as Raaya fully transitions from ramp-up to maturity. |
Risks & Constraints
| Risk | Context |
|---|---|
| Labor Costs | New Labor Code compliance resulted in a one-time ₹3 crore non-cash provision this quarter. |
| Occupancy Volatility | India occupancy was flat at 62% due to external airline disruptions; management is monitoring for structural shifts. |
| Geopolitical/Travel Factors | Maldives remains sensitive to international arrival trends and source market demand profiles. |
Q&A Highlights
Yield & Revenue Management
- Question: What drove the 17% ADR growth in India? (Achal Kumar)
- Answer: Growth was balanced between an 11% increase in contracted corporate rates and a 19% jump in retail rates. Management prioritized “yield over volume,” using data tools to price for compression on peak nights (Ranjit Batra).
Maldives Performance
- Question: Is there further occupancy headroom in Maldives? (Vaibhav)
- Answer: Portfolio occupancy reached 71%. While same-store is at 65%, Raaya’s 84% shows the strength of the “all-inclusive” model. Management believes 70% is a sustainable stabilized level for the region (Ranjit Batra).
Debt & Cost of Capital
- Question: How has the cost of debt improved? (Paresh Bafna)
- Answer: Weighted average cost of funds fell to 6.82%. USD debt was renegotiated down by 70 bps post-quarter, and Rupee debt is currently being renegotiated for a further 10 bps reduction (Paresh Bafna).
Strategic Philosophy
- Question: How does Ventive differentiate itself from peers? (Yash Darak)
- Answer: The company leverages the “build-and-operate” speed of the Panchshil group and the acquisition expertise of Blackstone. Focus is on fortress markets like Pune (20% of India’s GCCs) and high-barrier Maldives islands (Ranjit Batra).
Key Takeaway
Ventive Hospitality delivered a powerful Q3 FY26, characterized by a 35% jump in hospitality revenue and significant margin expansion to 40%. The performance was anchored by an aggressive 17% ADR growth in India and the successful stabilization of Raaya in the Maldives, which achieved 84% occupancy. Strategically, the company is shifting toward higher-yielding luxury assets, evidenced by the rebranding of Hilton Goa and the repositioning of Aloft Bangalore. Financially, Ventive maintains the lowest cost of capital in its peer group at 6.82% and a conservative Net Debt/EBITDA of 1.4x, providing significant headroom for its ₹800-900 crore development pipeline. Management remains confident in sustaining double-digit RevPAR growth through FY27, backed by strong corporate demand in Pune and increased international tourism in the Maldives, while closely monitoring labor cost headwinds and localized occupancy fluctuations.
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