Royal Orchid Hotels Expects 60% Revenue Boost From New Five-Star Property Next Fiscal

Royal Orchid Hotels Ltd.’s upcoming five-star hotel in Mumbai will give a major boost to its revenue in the financial year 2025–26, its Chief Financial Officer Amit Jaiswal has said.

The five-star hotel is expected to open at the end of the fourth quarter of the current fiscal.

In April, Royal Orchid Hotels had announced a lease agreement with MASA Hotels Pvt. for a 300-room five-star hotel that will come up near Terminal 2 of the Mumbai International Airport.

Talking to NDTV Profit about the upcoming property, Jaiswal said that it will be the key reason why the company is aiming for a 60% rise in revenue, to Rs 500 crore in FY26, significantly higher than the guidance of a 10% growth in FY25.

“That (the Mumbai hotel) will give a big boost to the overall revenues and numbers of the company and we will add around Rs 100 crore from that one hotel. That’s why we are poised to do one of the best financial year performances in FY26,” he said.

The top executive also noted a couple of other reasons behind setting such a high target for the next financial year.

Jaiswal said that a few leases are also coming up, which will continue throughout the next financial year, thus boosting the revenues of Royal Orchid Hotels.

“By the end of March, we will also open a 128-key hotel in Gurugram, which will also give us a revenue share. So these two hotels will give a good topline for the company,” he explained.

With the opening of the Mumbai hotel, the company’s average room rent is also expected to increase. Royal Orchid Hotels currently has an ARR of Rs 5,300.

“(In Mumbai), the ARR should be between Rs 8,000 and Rs 10,000. That will take the overall ARR of our company to the next league,” he said.

Talking about the company’s performance in this financial year, Jaiswal said that while Q1 was bad, the festive demand promises strong growth.

“All our leisure hotels have done very well last week. We had high ARRs and high occupancies over the last week or so. We are poised to do very well this quarter as well as the next quarter,” he said.

“Q1 was bad. In Q2, it rained heavily in July and August and all our hill station properties were affected by rains. But Q2 is better than last year. The real change will happen in Q3 and Q4,” Jaiswal noted.

Shares of Royal Orchid Hotels Ltd. closed 4.51% lower at Rs 334.20 apiece on the NSE against benchmark Nifty 50’s dip of 0.89% on Thursday.