Apeejay Surrendra Park Hotels (ASPHL) announced its best-ever Q3 performance for FY ’26, with consolidated revenues crossing ₹200 crore for the first time, achieving an EBITDA margin of 35.3% (EBITDA at ₹71 crore). The quarter saw 90% occupancy, with strong growth in ARR and RevPAR. Management also detailed significant inorganic growth, including the acquisition of a 76% stake in the Juhu, Mumbai property and the entry into Kerala via Malabar House and Purity.
Strong Q3 FY ’26 Performance Highlights
The third quarter of FY ’26 was characterized by steady operating momentum, culminating in the company’s best-ever Q3 performance. Consolidated revenues surpassed INR 200 crore for the first time. The consolidated EBITDA stood at INR 71 crore, resulting in an EBITDA margin of 35.3%.
Operating metrics showed healthy growth: occupancy remained industry-leading at 90%, while Average Room Rate (ARR) and Revenue Per Available Room (RevPAR) improved year-on-year by 11% and 9%, respectively. Flagship properties like The Park Kolkata maintained 100% occupancy, with Chennai at 96% and Bangalore/Navi Mumbai over 90%.
Nine-Month Financial Summary
For the nine months ending FY ’26, consolidated net revenue grew by 15.3% to INR 524 crore (up from INR 454 crore in the previous period). EBITDA reached INR 165 crore, an increase of 12.8%, with Profit After Tax standing at INR 54 crore.
Strategic Expansion and Inorganic Growth
ASPHL marked a significant step in its inorganic growth map by completing the acquisition of a 76% stake in the Juhu, Mumbai property, which is expected to reach 90% ownership by ’26-’27 and open by end-March 2027. The company also entered Kerala by acquiring Malabar House (Fort Kochi) and Purity (Vembanad Lake), totaling an acquisition cost of INR 64 crore.
The company is expanding its pipeline, planning to add 6 hotels totaling 234 keys in Q4, and a total of 17 hotels totaling 672 keys over the next 14 months, bringing the total room count to 3,219 keys across 56 hotels by ’26-’27.
The Park Unizen Launch
A new chapter commenced with the launch of The Park Unizen, a serviced residences project in Kolkata in partnership with Ambuja Neotia. The sale of these residences over the next three years is projected to contribute INR 300 crore to INR 350 crore in cash flow.
Flurys Growth Trajectory
The F&B arm, Flurys, showed healthy performance, recording a top-line growth of 19% during the quarter. The brand recorded a record single-day sale of INR 1 crore on December 24th. The company plans to add 14 new stores in Q4 FY ’26 and expects to reach the 200-store mark by 2028, maintaining a focus on revenue growth and high profitability, with a target revenue of INR 500 crore over the next 3 to 4 years.
Renovation Impact and Capital Allocation
Renovations are underway across key properties. Delhi is focusing on F&B improvements, expecting at least a 10% revenue improvement at the Delhi hotel (a 100-plus crore revenue hotel). Chennai saw an incremental revenue uplift of 8% to 10%, with year-to-date ARR growth of 15% due to renovations.
Total estimated capex for development and acquisitions is approximately INR 1,570 crore. Management reiterated a commitment to maintaining a low debt profile, with a current net debt-to-equity ratio of 0.11, targeting a ratio between 0.1 to 0.2.
Source: BSE
