Ladies and gentlemen, good day, and welcome to Chalet Hotels Q1 FY 2025 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Sethi, MD and CEO, Chalet Hotels Limited. Thank you, and over to you, sir. Thank you, Daryl. Ladies and gentlemen, thank you for joining us today for the earnings call, where we will reflect on the performance of Q1 FY 2025. Before I commence the quarterly update, let me share with you our announcement of this morning. A committee of our board has approved a transaction to purchase a land in Goa for the development of a five-star deluxe resort. The closure of the acquisition process will take a couple of weeks, and we will send out an update in the near future. This is in line with our long-term growth strategy to expand into the picturesque state of Goa. It is a greenfield opportunity, and I believe we will be able to bring in Chalet's strengths of design and efficiency for exceptional guest experiences. Back to Q1. In the backdrop of some unique challenges, including the longest election process in the world's largest democracy, a heatwave and a subdued quarter for MICE and leisure, we are pleased to announce that Q1 FY 2025 has been the best Q1 in the history of Chalet Hotels Limited. This achievement underscores our continued focus on executing a growth-based strategy that combines capacity expansion with operational excellence. The macroeconomics of India presents a compelling opportunity, particularly in the flourishing tourism and hospitality sector. Its growth potential is underpinned by the demographic strength of the nation. Our strategy of hard asset-led capacity addition and operational efficiency places us in a sweet spot to capitalize on favorable industrial dynamics, buoyed by favorable demand-supply arbitrage. The tailwinds of the present market conditions are expected to further bolster our operational performances and drive sustained growth in the coming quarters. During Q1 FY 2025, we have been able to demonstrate consistency across key metrics when compared to the same period last year. Consolidated revenue of the company increased by 17%, whereas total EBITDA saw a 31% rise from Q1 FY 2024. Within the hospitality segment, our revenue climbed by 15%, accompanied by an 18% increase in segment EBITDA for the same period. Our portfolio occupancy stood at 70%, up by 90 basis points, with the average room rate showing a 1% improvement over Q1 FY 2024, contributing to a year-on-year growth of RevPAR of 2%. On a same-store basis, the portfolio RevPAR has grown by 4%. We saw accretive RevPAR performances at JW Marriott Sahar, Westin complex at Powai, Marriott Bengaluru, and our two hotels in Hyderabad. The Vashi hotel saw a 7% dip in RevPAR. This was due to a significant increase in room supply in similar category hotels in Navi Mumbai micromarket over the last couple of years. The hotel had lower RevPAR on account of increased capacity of 88 rooms, which will take another quarter or two to stabilize. However, the hotel had revenue growth of 15% over the same quarter last year. Due to major renovation work underway at Dukes, we removed the limited inventory from sales from middle of May, which is about a couple of months back. We will be opening 37 new rooms and some new public areas in phase one for business before the long weekend of 15th of August. We have a robust pipeline for capacity expansion in existing hotels at the Marriott Bengaluru and the Dukes Retreat in Lonavala. This expansion will be in play by the end of the current calendar year. As most of you are aware, we are also developing two new hotels, the Taj New Delhi Airport and the Hyatt Regency at Airoli in Mumbai. These two, two hotels will add approximately 666, sorry, 660 rooms to the portfolio. Additionally, the development of Cignus Powai Tower Two, a new commercial building, will add approximately 900,000 sq ft to our existing 2,400,000 sq ft of office portfolio, which is a strategic move into alternate asset class designed to mitigate the cyclicality of the hotel industry through annuity income. Leasing activity at the new office buildings in Powai, Whitefield is steady. We continue to expect 90% of the portfolio or the office portfolio leased out by the end of the calendar year. Our residential project at Koramangala, Bengaluru, is surpassing sales expectations, achieving prices significantly higher than initially projected. We anticipate substantial cash flows from this project over the next six to seven quarters. Another pivotal focus for us is our pledge to net zero greenhouse gas emissions by 2040, aligning with the Paris Agreement goal of limiting global temperature rise to 1.5 degrees Celsius. This commitment announced on the World Environment Day on fifth June underscores our deep-seated commitment to sustainability and responsible business practice. Ladies and gentlemen, I continue to be bullish on sustained growth for the hospitality industry and the leading industry, especially in the locations that we operate in. Indian hospitality sector is likely to see strong revenue growth in the next few years, with margin expansion for companies that navigate the path diligently. I now welcome Nitin Khanna, our new CFO, into the conversation, and he will share additional financial highlights for the quarter. Nitin? Thank you, Sanjay. Good morning, ladies and gentlemen. I'm happy to take over as CFO of Chalet, and hope to interact with the members on the call in person in the near future. As discussed by Sanjay, this quarter has been marked by resilient and stable performance at the back of some challenges faced by the industry during the quarter. Following Chalet's growth trajectory, I'm happy to announce that this was the strongest Q1 performance historically. Coming to the financial updates, in the hospitality segment, ADRs have been stable at an average of INR 10,446 during the quarter, which is growth of 1% versus last year same period. Occupancy is at 70.5% across the portfolio, which is 85 basis point higher than the last year. As a result, the RevPAR has been up by 2% year-on-year to INR 7,361 for Q1, FY 2025. Bengaluru, followed by Hyderabad, saw the highest growth overall, while the Mumbai metropolitan region continues to be the occupancy leader. Excluding the new assets, that is on the same-store basis, the occupancy grew by 191 BPS, and RevPAR grew by 4%. It will be pertinent to note that the total room nights sold were higher by 13.3% during the same period. Hospitality revenue for the quarter was INR 3.3 billion, a growth of 15%, led by a combination of rate growth, inventory additions, and F&B contributions. The hospitality segment during the quarter also delivered an adjusted EBITDA of INR 1.3 billion, marking a growth of 12% with a margin of 41.2%. Now, given that, number one, The Dukes Retreat is still under renovation, and for Courtyard Aravali Resort, this is the season's weakest quarter, and three, the reasons already alluded to by Sanjay, it is now safe to say that we can expect better flow-throughs and higher margins for the rest of the year. On the rental and annuity front, our leasable area stands at 2.4 million sq ft, with 1.2 million sq ft leased so far. Our revenue for the quarter was at INR 355 million, with an EBITDA of INR 264 million. With leasing for the new towers picking pace, as already explained by Sanjay, the unabsorbed costs for these new assets would average out over the course of next couple of quarters, and of course, the flow-through would improve. Coming to the updates on the residential projects, we have sold 17 new units during the quarter, commanding a rate of INR 21,548 per sq ft, which is 14% higher than the rates averaged in FY 2024. In all, 138 units have been sold since the relaunch of the projects. We expect the rate buoyancy to continue for the rest of the inventory. Consolidated revenue for the quarter was INR 3.7 billion, a growth of 17% year-on-year. Consolidated adjusted EBITDA was at INR 1.5 billion, with a growth of 14% and margin of 40.2%. Consolidated PBT for the quarter was 0.8 billion, versus 0.4 billion in the same quarter last year. Now, coming to debt. During the year, the company spent about INR 1.3 billion across capital expenses, which was majorly met out of internal accruals. The net debt as on 13th June 2024, was at INR 15 billion, marginally up from our debt post QIP in April. Majority of this debt is allocable to capital work in progress and assets not yet operationalized of about INR 15 billion. These investments are expected to generate a ROCE of 18%-20%. We closed the quarter with a significant improvement in cost of finance, standing at 8.43%, a reduction of 44 basis points from March 2024. I'm also happy to add here that, ICRA has maintained positive outlook for Chalet, with a new rating of A, an upgrade from A minus. The company continues to invest in its growth and has a CapEx plan of around INR 15 billion for the next seven quarters for the announced projects, which will be largely funded through internal accruals. The only exception on this would be the new investments in Goa, which, of course, we would apprise you in due course. The company is on a strong growth path. Our balance sheet is in a very comfortable position to support further strategic growth opportunities. With this, let me open the floor for Q&A. Thank you. We will now begin the question- and-a nswer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Archana Gude from IDBI Capital. Please go ahead. Hi, sir. Thank you for the opportunity, and congrats on the good set of numbers. I have three questions. Firstly, you know, somewhere the new CFO mentioned about the Goa market. Anything going on concrete on that front? I'm just curious to understand. Good morning, Archana. Good to have you back. Look, we've just announced this morning that we have had a committee approval to conclude a process for our acquisition of a land parcel in Goa. Those details have been put up in a notice, and I referred to them in my opening statement. Just as a very quick macro overview on this transaction, it's a 11-acre site on the beachfront, and we expect to get about 188 beds, converting to about 170-odd rooms. This acquisition opportunity comes with approvals on the plot already, so our time to have shovels in the ground post-acquisition will be very short. Sure. Uh- A very strong market. Right, sir. Absolutely. I think that is, outperforming most other markets. So secondly, on Hyderabad market, I don't have this accurate number for occupancy. But when we look at this presentation, this, double-digit growth of occupancy while ADR being negative. So is that a prudent call from the management to focus more on, occupancy part to boost the RevPAR, or that was just one-off? So, these are all tactical initiatives that are taken depending on market conditions, Archana. When we see months that are slightly stretched, we tend to, in advance, decide to go with the occupancy-led strategy to fill up the hotel. But Hyderabad had another thing at play. We added a new hotel, as a second hotel, which is 100% occupancy. So blended occupancies for Hyderabad will show higher growth than last year, so the new hotel with 100% occupancy at play over here. Yeah, right. And so lastly, on the rental markets, how is the situation in Mumbai market, sir? Do we see some momentum going ahead? Yeah. So look, we've got two, three deals which are literally on the verge of closing, but the formal closing has not happened, so we've not been able to announce them. I know it's a little frustrating that it's going slower than we expected it to, but we are very confident that the, out of the 2.4 million sq ft of office portfolio that we have, by the end of the calendar year, we would have, you know, around 90% of the portfolio leased out for you. Bangalore is moving- Sure. Very well. Sure, sir. So thank you and all the best, sir. Thank you. Thank you. The next question is from the line of Jaiveer Shekhawat from Ambit Capital. Please go ahead. Sure. Thank you for taking the question. I mean, just thinking personally on the Hyderabad market, we've seen the other hotel companies sort of see healthy RevPAR growth there. Now, we understand that the new hotel which came in was already contracted at double-digit rate accreditation. So if you could just point out why we have seen growth decline there? Is it largely because of the election impact, or is there anything else at play there? Hello? Yes. Can you hear me? Sorry to interrupt, sir. Sorry, sorry. Apologies, Jaiveer, I was on mute. No, just to highlight here, we haven't seen a decrease in the Hyderabad market. In fact, our old hotel, which is the Mindspace, which is 427 rooms, we reported 13% RevPAR growth with an equal mix of rate and occupancy-led growth in that hotel. And then, of course, the Westin Hitec, which is a new hotel, has had 100% occupancy with the rate growing by 15% over there. So what you'll see there is because it is already 100%, it was 100% last year, you'll not see any occupancy growth, but the rate is growing by 15%. As a result, the RevPAR growth, even in the Westin Hitec, which is the second hotel, is 15%. So to summarize, Hyderabad Mindspace, 13% RevPAR growth. Hyderabad Hitec, 15% RevPAR growth. Sure. So the reason why we are seeing a decline on the ADR, the blended ADR, is because the Westin, the new one, has lower ADR. Did I understand it right? Lower, lower rate, yeah, so. Understood. And so just on the Goa plans that you have, so could you talk about the timelines as well as the branding and price point that you might be looking at? So look, from a timeline perspective first, we expect to conclude the deal in the next couple of weeks. We are required to have a board resolution authorizing the same when we go to the registrar. That's where we are right now. So we've taken that approval this morning, and we'll be submitting the documents to the registrar there. We expect to conclude it two weeks' time. As far as the market is concerned, Goa continues to be a very strong market. This is a beachfront property with a proper beach in the front, and a really good quality beach and water. From a positioning perspective, I think we've said, already said it will be a five-star deluxe hotel, which is a top category in India. There's nothing higher than that as far as classification committee, classification ratings go. And we expect to compete with the best over there. And because we're getting this hotel with approvals already in place, this particular land, with approvals already in place, time to move from, you know, acquiring it to starting construction is going to be a few months only. So it's going to be a very short period. My guess is that we are looking at maybe having shovels in the ground as soon as the monsoon ends. Right. Because usually the other hotels, luxury hotels, might take five tot six years. Do you think you will be able to do that in three, four years? Yeah, I mean, we are very confident that three years will be up and about. Also because, you know, a large part of Goa development process gets, you know, time gets used up in approvals. This particular land has come with the approval in place, so it's only construction that we have to do. Designs are already in place. Sure. Last question, I'm just trying to resolve a dilemma. Mm-hmm. So if you see the results across hotel companies over the last fourth quarter as well as this quarter, I mean, let's remove the election impact. What we have seen is moderation on the RevPAR growth front, despite the fact that a lot of supply, which has been announced, has not yet hit the market, and we have still started seeing moderation in RevPAR growth to, say, single digits. Now, what's the outlook for the rest of the year, and do you think next year it could actually accelerate and reason for the same? So Jaiveer, I actually expect it to sort of start improving from this quarter itself. And obviously, quarter three and quarter four will be very strong. And it's a little incorrect to compare Q4 to Q1 because, uh, they're, you know, not- We are seeing year-over-year growth rates. We are actually seeing year-over-year growth rates in both quarters. So Y-Y growth rate, we've got our same store growth rate at 9%, on revenue, which is despite the election impact. And election impact took us by surprise. I must admit that. I got that wrong. I thought the impact will be minimal, but somewhere during the election process, I think the mood and dynamics and the tone in general changed, which caused everyone to wait and watch. And that sort of slowed down travel for a lot of people in India. We've seen this impact across industries. Q1 has not been the best of quarters. And when our feeder industries don't do well, we tend to have a slight slowdown. So I don't think the Q1 is a trend. Q1 is an aberration, and the trend will continue down, with growth quarter-over-quarter, in the coming quarters, even on a same store basis. Sure. Wish you all the best, and thank you so much. Thank you, Jaiveer. Thank you. The next question is from the line of Vikas from Antique. Please go ahead. Yeah. Hi, good morning, sir. Thank you for the opportunity. So my first question is, how should we think about, you know, rates from current levels? You know, we have seen ADR growth lowest in past three years, and understandable, because of the election and heat wave. One of your peers did, you know, talk about in the earnings call that they have seen a very strong recovery with, you know, rates moving more than 20% in the past three weeks. So what kind of an outlook? Are we seeing a very similar kind of a bounce back, or is it more gradual for us? Look, we don't give numbers that we've not disclosed, but I can tell you July is looking very strong. Okay. Okay, sure. Thank you. And secondly, you know, if I talk about our medium-term growth, right? So obviously, rates are going to land somewhere in the mid-single digits, once you know, maybe from next year onwards. So on organic basis, is it a right understanding that we should also grow in a very similar range, and new addition could take us, our revenue to be at, to be in the double-digit growth? So, I just want to highlight again to you, Vikas, that even in the quarter that was affected by elections, heat and, you know, no wedding dates in this quarter, we managed to give, give on a same store basis, 9% growth. And I'm pretty confident that in the subsequent quarters, we will get the double-digit growth that we are targeting. Okay. Okay. And finally, on this Goa addition. So, especially I know, you know, last year we did talk about adding more rooms in this leisure market. But, you know, last year Goa was looking very attractive. Now with the other Asian markets easing up visa restriction, and I think Goa took the biggest hit in Q1. So do you think that this path, adding more properties in these leisure markets is still the right way to go? This is my last question. Thanks a lot. So, because, while Goa has seen some softening in rates, the waterfront or seafront properties continue to get a premium, and they continue to do very well. And when you say that the rates there have softened, they softened from a very high number. I think, you know, the range that is taking a little bit of a hit is that INR 25,000-INR 40,000 rupee price point range. There's no resistance to the INR 15,000-INR 20,000 rupee price point range. So we believe that this will continue to do well, and the scarcity of seafront, beachfront assets is what is going to drive business for the acquisition opportunities that we have. So there's a scarcity of assets on that category of what I have been going. A lot of them are moving into a landward side because beachfront properties are not available. This is in south or north? Which area we are talking about? It's in south Goa. All right. Okay. Thanks a lot. Thank you. Thank you. The next question is from the line of Jinesh Joshi from Prabhudas Lilladher Private Limited. Please go ahead. Yeah, thanks for the opportunity. Sorry, I have a question on Goa again. So sir, if I heard you right, you mentioned that we'll open about 170 odd rooms in Goa, and within three years, the hotel should be complete. Can you share what can be the debut ARR and what is the total CapEx outline for this? Hello, am I audible? Sorry to interrupt, sir. The management line has disconnected. Please reconnect the management line again. We will connect the management line. Ladies and gentlemen, we have the management line reconnected. Jinesh, Jinesh, are you there, sir? Yes, sir. So should I repeat my question or you got it? I heard your question. I was going to start off on giving you the answer. See, Jinesh, what we have right now in Goa is, what we can share is that it is a very nice seafront land parcel, which comes with approval, 11 acres in size. The current design has about 185, 188-odd rooms drawn up, but those are based, when you convert and add some suites, et cetera, it might reduce to about 170, 175 rooms. The market is very strong for the location that we are speaking about. It's a premium location, and the product will clearly be at the high end. Sir, by any chance, will you be able to share the CapEx number? Because land costs you have already shared. Any rough indication you would want to give? No, at this point of time, we'd not, not like to share those numbers. We will come back to you, with final numbers, with a little more diligence put in place. Sure, sir. My second question is on our annuity business. So if I compare our leased area versus last quarter, I think there has been an increase of about 0.1 million sq ft. However, our annuity revenue on a sequential basis is flat at about INR 35 odd crores. If you can just explain the reason behind this. And also our EBITDA margin has declined to about 74% in this quarter, which is a bit low when I compare it with our earlier quarters. So any comment on that as well? Yeah, I will have Nitin come in on this. On the EBITDA margin, we always, because we have, unoccupied, inventory, we have to carry the costs of that and they are not charged off to CAM, and therefore, that's showing that margin, impact. But Nitin will come in on the details. Sir. Hi, Jinesh. Thanks for the question. The annuity business, if you see Q1, FY 2024- FY 2025, it has actually increased by 25%. And the reason is the extra inventory, which, you know, got leased out. And the reason for cost increase was purely that, there is an unabsorbed common area maintenance and property tax. Sorry, get charged into CAM of a tenant, and our margins will then further settle down and improve. Sure. I got that, but my question was more on the sequential revenue front, because sequentially, if I'm referring to your PPT, whereby we see that the leased area has increased from about 1.1 million sq ft to about 1.2 million sq ft. But our revenue, if I look at Q2 and Q1, they are flat at about INR 35 crores, despite increasing area by 0.1 million sq ft. So that was the question. So our revenue has actually increased by 25%. That's what Nitin shared earlier. We were INR 285 million quarter one FY 2024, it has increased to INR 355 million now, which is a 25% increase. I take this offline, sir. I take this offline. One last question from my side, that is with respect to our occupancy in Pune, which is down by about 16%-17%, and we mentioned that this is primarily due to the capacity addition. But sir, if I remember right, we had inaugurated these rooms in October 2023, and about eight to nine months have already elapsed since this new inventory is operational. So I believe it did get some time to stabilize. Just wanted to check if there is something more to read into this occupancy number, which has fallen in double digits. Sorry, the occupancy has fallen only on the capacity addition. The actual occupancy of the whole inventory is grown. So on a room, daily basis, the rooms occupied per day have increased substantially. To your question of when it will stabilize, my view is that the quarter October to December, which will be the complete post the completion of one year of that new inventory, we will see normalization in that hotel. We are already seeing a very strong move in July this year. Sure, sir. Thank you so much, and all the best. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Prashant Biyani from Elara Securities. Please go ahead. Yeah, thanks for the opportunity. So on the hotel business, if you look at our number or for the industry, it has been the case that locations where we have seen occupancy increase, rates have reduced, and where ARR has been higher, occupancy has reduced. So it looks like there is demand, but it is waiting to come at a particular rate. What would be your view on the dynamics which is playing out right now on in this backdrop? Prashant, thank you for your question. So look, revenue management is a key initiative that drives, drives efficiencies into the hotel industry business. Seeing that the quarter is looking a little slower, our strategy in some of the hotels became a occupancy-led strategy as against, rate-based strategy for this quarter, and especially for this quarter, because we had an impact of the election, for almost one and a half months out of the three months that we had. And I think that's worked favorably for us. And again, I want to repeat, at 9% growth over same quarter last year on a same-store basis, in a quarter that was challenged, I think it's quite a strong performance. On an overall basis, we've grown by 15%, that- that's because of capacity addition. And you've got to remember that one of the hotels, Dukes Retreat, has been completely out of action for almost 43 days out of the 90 or 91 odd days in the quarter. The reason we shut down that inventory was, I was on site in second week of May, and I felt the guest experiences getting compromised on account of the large construction activity going around. And as a result, because we were starting phase two, which involved some breaking of structures, old structure, I just took a call on not to allow guests to have that experience. We shut down the inventory. We are now opening before the 15th August long weekend, with 37 new rooms and the new public areas that are ready for guests' use. It'll of course be not a full hotel in play. The full hotel in play will only come in during the December month with all its frills and guest experiences. But for now, we're opening 37 rooms with a new restaurant, a new bar, a new cafe, a new reception block, and some new suites. It would be opening at around INR 15,000 ARR? Yes, it's public knowledge. You can go to the website, and see what rate we have. We have opened the hotel out at post in the previous year. Sure. And sir, on the Goa property, while you have shared all the details that you want to, but the kind of property that we want to make there, similar property would be charging what sort of an ARR in that location currently? So the beachfront properties in the five-star deluxe category are hovering around the INR 17,000-INR 25,000 price point. That's the range I think, when it opens three months, three years from now, with an adjusted for inflation for the three years, we should be able to open it. Would the designs be, we would be about to design it, or we have the designs available already? Basic approval to start construction designs are already done. All municipal, environmental, and other approvals are coming as a part of the deal. And we will do the registration. Right now, we are, you know, working on the closure of the deal. Okay. Okay, sir. That's it from my end. Thanks. Thank you. Thank you. The next question is from Sriram Srinivasan, an individual investor. Please go ahead. Many thanks for the opportunity. My hearty congratulations to the management with respect to successful completion of a CIP and reduction of debt and upgrade addition in the credit checking and developments at Goa. Very many congratulations, first of all, sir. My question is more on the balance sheet side as well as on the occupancy, as we have been expanding our portfolio in the next three to four years, kind of time period. If I look at from the balance sheet perspective, we have been likely to invest about additional INR 201.33 crore, including the Goa asset, which we are planning to acquire as per today. It's likely to happen in about next three to three and a half years, kind of time period. So, what is the kind of debt to EBITDA or is internal accruals we have been planning for this 2,001-term investment? I will let Nitin come in and give you. Yeah, thanks for your question. Look, CapEx for next two years, what we are planning is around INR 15 billion. Around INR 650 crores is basically for the new commercial towers. Around INR 600 crores is for the hotels, which includes the Dukes, our Bengaluru addition as well. And Goa. And INR 250, and then INR 250 crore, out of which INR 100 crore is our normal repair. So basically, the CapEx funding, if you see, basically coming from our internal accrual, sir. The entire INR 1,500, what we planned is more from an internal accruals, correct, sir? Yeah. We have been using this from here at this level. Yeah. The peak debt will remain at the same level. We don't expect more leverage, on this. Maybe around, a little bit, but yes, more or less, the peak debt will remain at the same level. Yeah. Sriram, from a cash flow perspective, there might be some increase, mild increase, because you got to match the cash flow cycles of internal tools to projects. But it is- Yeah going to be very much under control and a very, very balanced approach to the treasury and the debt equity management. Understood, sir. Understood, sir. So, Understood, sir. So, Understood, sir. So, the other question is that, what is the, at the INR 1,500 crore of debt that you are carrying, what is the long and short, long-term and short-term, proportion, sir? INR 1,500, are you talking about how, how many years we spend this out over, right? No, no, no. At the balance sheet level, what is the long-term borrowing and short-term borrowing, sir, out of INR 1,500? Long-term and short-term borrowing. It's all long-term. Yeah, majorly long-term borrowings. Okay, so significant debt has been released in the short-term borrowings, if my understanding is correct? Yeah, you're right. Understood, sir. Understood, sir. And, more on the, I mean, from the occupancy model, sir. So as we have been looking towards in, I look like more than, more than, 800 rooms of additions in the next three to 3.5 years of time period. So what is the kind of an occupancy that we can able to get there? We can able to manage it 72%-75% next three years? So, I think now with today's announcement, you can add another 170 rooms to the 800-odd rooms that you were, 850-odd rooms that we're talking about. So roughly, our pipeline is now 1,000 rooms, over the next, three years or so. In terms of occupancy, look, currently, we are, I think last year we closed at 72%-73% occupancies. We expect that to, to grow by 200- 300 bps more going forward. But there will always be cycles when we open a hotel, it starts off with lower occupancy and over a four more period, it builds up. So those, Yeah. You know, individual hotel impacts will be there on the portfolio level. But on a same store basis, seeing mid-70% occupancies or maybe even higher in some of the hotels is pretty easy to deliver. Understood, sir. Understood. Understood. And the last question is that on the sustainability of the margins at upward of 40%, I think, I think that the business is in a very good scale, I mean, in shape and very good scale. So I hope that we can able to sustain at more than 40%, 41% kind of margins, sir. We are confident on growing those margins. Thank you, Sriram. Thank you. Thank you, sir. Thank you. A reminder to all the participants, please restrict yourselves to two questions. The next question is from the line of Raghav Malik from Jefferies. Please go ahead. Yeah, hi, sir. Thank you for the opportunity. Sorry if I missed this, sir. Could you just share some color, if possible, on RevPAR across cities, like how it's been trending post Q1 in July? So, Raghav, thank you for your question, but you know, we don't give forward-looking details out. What we typically do is if the earnings call is happening post a month of the subsequent quarter, we tend to disclose that on our earnings presentation. But since this is not the end of the month, we have not given that as a part of the presentation. And I'll not be able to share the details, but let me assure you that July is looking very strong, both on occupancy and rate track. Okay, thank you, sir. I think I'll go through the presentation. I didn't actually see it, so on BSC, so I'll just go check. Could you also just share the current inventory in terms of hotels and rooms that we have total? So currently, we have 10 hotels with roughly 3,052 rooms. We have now about 1,000 rooms in the pipeline, and you'll find the details on the presentation. What you may not see on the presentation, because the presentation got sent out last evening, is the addition of Goa in the pipeline. But 10 operating hotels, two hotels which are getting capacity addition within these 10, two hotels being added as new inventory, and today we've announced Goa, so that becomes the 13th hotel. Okay. Thank you. Thank you, sir. Thank you for that. Thank you. The next question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Yeah. Good morning. Thank you for the opportunity. The first question is, you alluded to the, actually around 90% leasing in our Powai and Bengaluru, rental assets by March. So getting into 2026, what would be the, broadly the exit, rental income, for 2026, rental and EBITDA, once, this 90% leasing is achieved? That is the first question. So, you know, once we've got the current 2.4 million sq ft leased out, we expect roughly EBITDA of INR 280 odd crores from these assets on an annual basis. Okay, EBITDA of 20. Into that 100% occupancy or you are referring to, right? 90%. 90%, 95% occupancy. 95% occupancy. Okay. Okay, fine. Fine. That is clear. And so just I don't know if you covered it for the, for our NCR hotel, right? Any developments over there you'd like to share in terms of what we are doing there? Are we to improve, upgrade the hotel, or what is the plan over there for the rest of the year? Yeah. As we shared last time, we're doing two things over there, two big, big initiatives there. One, we are repositioning the Courtyard by Marriott and upgrading it to a Marriott. It requires some amount of minimal CapEx, about INR 8-INR 10 crore. And then we've got the six acre land parcel. What we're doing now is developing a master plan for this property for going forward, and we will phase in additional inventory, and depending on the occupancy pace up and the demand pace up. So for now, we're developing a master plan, how ultimately this resort can look like, but we will phase additional capacity depending on demand. From a positioning perspective, we expect to have the next six acres that we will develop, actually reposition the assets even further upwards from where it is right now. Okay. And just one more question, if I may. Sir, on our Delhi hotel, right, that is a large one. Could you just tell us the broad construction status on that? Where are we on the structure, and when do we start the hotel interiors over there? Just ask. Yeah, quick update on that. This hotel, as you know, is in a shell lease from Delhi International Airport Limited. The shell is being developed by them, and their rentals start post a certain period after they complete the shell. So it is in their interest to speed up the shell development because their financials are aligned, you know, with us. Where we stand right now, the work is going on the substructure work, because this is three substructure floors, and that's what will take time. Once you get to typical development, which is, and the hotel is on the ground plus seven stories, it'll move very rapidly. As of now, we expect our team to get into the site by January to start lower floor work on the MEP side. And then, as they keep handing over every floor to us, we'll continue improving. Our current target continues to be last quarter of FY 2026. Okay. Understand, right, the majority of CapEx is scheduled for next year, or next financial year? Yeah, because- Yeah. Yeah. Yeah. is being done by Yeah. Delhi International Airport Limited. Sure, sure, sure, sure. Okay, sir, that was very helpful. Thank you, and all the best. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Achal Kumar from HSBC. Please go ahead. Yeah, hi. Thanks for giving an opportunity. I had two, if I may please. First of all, now, given that we see a possibility of interest rate going down, I mean, do you think that could have some impact or some positive impact rather on the more greenfield projects? Or do you think that's, that, that may not be the case, given that NHs capital cost remains high? And in terms of inventory overall, do you have any sort of kind of color in terms of, you know, how much growth do you think coming from greenfield, brownfield, and how much from the conversion? That is my first question. Secondly, in terms of demand, so, in the last few months, in the last piece, at least in the last four to five months, I think, the airline demand has significantly softened to 4%-5%. Do you think, do you think that is because of the high fares, or do you think that's a underlying weakness in demand? And if that is the case, how do you see the demand for the hotels? Thank you. Great question, Achal. So, firstly, on the interest, I mean, we don't have any indication of a interest rate drop, but if it does happen, it will affect us positively because we are capital-intensive business. We have a very healthy rate even now. And we obviously, when the market drops rates, we will get the benefit, additional benefit of that. And going forward, we do expect that our cost of capital will continue to move downwards. Also, you must remember that our rating is improving. It's already improved in the last quarter. We expect further changes on this going forward. So we expect CapEx costs to be well under control, and if interest rates come down, obviously it'll help our IBC, and therefore, help the balance sheet. On the inventory addition, as I mentioned earlier, we were 2,352 rooms. Now, we've got roughly 1,000 rooms in the pipeline now with three additional hotels, potentially. And so we are in on target for a 4,000-room sort of inventory in the near future of existing operating hotels as well as pipeline. And we expect to add to the pipeline going forward further. So therefore, we continue, we expect to be in the growing growth mode, mode for some time to come. On the airline demand softening up and the impact on hotels, look, yes, there is a direct correlation to some extent. The problem is that, not the problem, the opportunity is that the difference between demand and supply of hotel rooms in key cities in India continues to be favoring the market and the industry. So therefore, that will continue to get growth from. Airport or airline seats do sometimes choke up demand, and we see that happening or playing a role in Mumbai. And the addition of a new airport in Mumbai, which is expected sometime next year, is clearly going to be a big positive for this city, and it should help the hotel industry in this city immensely. Given that almost 60% of our portfolio at Chalet today is in Mumbai, we expect that that will help us significantly. Okay. Thank you. Wish you good luck. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Rajiv Bharati from Nuvama. Please go ahead. Yeah, good morning, sir. Thanks for the opportunity. Sir, this 9% number, same store, that is for the hospitality or for the entire business? Hospitality. So, your ARR is of 4%, right? On the same store basis. So the remaining is- That's right. F&B, MICE. I thought it'd be, and occupancy those. Yeah. So, I think, especially on the MICE bit, have we seen traction here or that has been slow this quarter? So MICE had been slow, given that the elections were on and there were no auspicious dates for weddings. So the wedding dates pushed into quarter two. They were. In fact, you, if you go through any of the industries that rely heavily on weddings, you'll find that their, their performance last quarter has not been great. Quarter two is where they see a lot of movement, and we are seeing the impact of that in our Courtyard by Marriott Aravali, where weddings have started this month, and we've seen very positive traction. So from a MICE perspective, we'll expect, as always, that H2 will see a serious scale up. That's always, always the best half for the hotel industry in any case. So we expect occupancies and rates to grow quite sharply starting October. Sure. And so on, on this Four Points asset, I, I thought you planned to renovate that sometime near future, right? So, any update on that? Yeah. So we've almost completed the mock-up room, which is the step one to starting renovation of the room part of the hotel. And as soon as that's finished and approved by us, we will get into renovating the hotel. We will probably take two or three floors at a time, and we should complete the project in around 10 months' time. Including this asset, renovation plus, let's say, the Goa thing, did you mention the peak debt in between the call? I missed that number. So right now the debt is around INR 1,500 crore. This may go up by marginally, over some period of time, very little, but that will probably be the peak. And going with our pipeline right now, I don't think see us going too much over that point. In fact, start scaling down in about a year from now. Sure. And lastly, on this Bengaluru ARR improvement, we used to be at a premium to, let's say, your competitor, and now the premium is restoring. How much juice is left in this? In the sense, do you think we can go another 30%-40% on this asset? So I think Bengaluru's ADR has been a very positive story, and I think occupancy is probably the upside there. Bengaluru is again driven by H2 performance, which is the primary half for the hotel, and we expect occupancies to move sharply upwards, going forward for Bengaluru, and we'll continue to improve on rates also. Sure. That, that's all from me. Thanks a lot. Another addition, update, Rajiv, is that the 130 rooms will also get added to Bangalore in December. Yes. Maybe even slightly earlier than that actually. Yeah. Thanks. Thanks. Thanks. Thank you. The next question is from the line of Saurabh Jain from HDFC Life Insurance. Please go ahead. Yeah. Hi, sir. So just a follow-up from the previous participant question. So you said that Q1 was weak in terms of MICE demand because of the elections and the heat waves. But when I see the F&B growth, that is higher than the room revenue growth. So can you just explain on that? Why is that? So look, F&B, we have been unlocking opportunities of F&B in our hotels over the last couple of years. We have stretched the assets by, as you know, identifying more non-revenue earning areas and developing them into revenue earning areas, largely on the office side. For example, in Powai, we squeezed out four more rooms, but then I think the big initiative there was opening the two Japanese outlets, the Japanese tapas bar and a Japanese restaurant. Both have been received very well. The Indian restaurant also got renovated. Then in Q1, we also had the benefit of the outdoor poolside Indian restaurant that we've opened at Sahar. That's been helpful. And banquets, we've managed to do well. This, all this combination combined together has given us the F&B growth in our hotel. So look, when, when-... Room demand gets challenged, we play F&B strategies, we play occupancy-led strategies, and this is the outcome where we've been able to deliver what we've been able to deliver. And this, I'm sure, is not the reference quarter for a trend. The trend will be established in the subsequent quarters. Okay. Thank you. That's it from my side. Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of question- and- answer session. I would now like to hand the conference over to Mr. Sanjay Sethi for the closing comments. Thank you, Daryl. Ladies and gentlemen, the closing comments continue to be on a positive note. The tailwinds for the industry continue to be very strong. The demand-supply arbitrage is favorable. Chalet has a very strong growth pipeline, which is asset-led growth, and clearly will add significant, you know, numbers to our PNL balance sheet. With 4,000-odd rooms now on the cards, our BD team will continue to work on additional capacity opportunities in line with our strategic destinations. I want to repeat those strategic destinations or our strategy for growth. We'll continue to focus on the traditional Chalet strategy of big box, big city hotels, wherever and when we get opportunity. In addition to that, our leisure play is centered around drivable distances from the big cities of Delhi, Mumbai, Bengaluru, and Hyderabad, and also the beach markets of Goa, and maybe Rajasthan, if we get an opportunity there. I do want to add that one of the hotels in the pipeline that we haven't spoken too much about is the one in Kerala, where you have 42 odd acres on the outskirts of Trivandrum, with a beautiful lakefront, where we'll, in phase one, develop 150 rooms with a convention center, and then slowly add capacity of cottages or villas going forward. With that, I conclude this quarter's call. Thank you very much for your support, and feel free to reach out to me and my team for any further information you may need. Thank you. On behalf of Chalet Hotels Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.