Annual Report
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ANNUAL REPORT 2019 2020 www.royalorchidhotels.com Dear Shareholders, The year 2019 marks the end of a decade. Over the past 10 years our economy grew from strength to strength and helped increase consumer purchasing power, which in turn fuelled record growth in the hospitality industry. On the back drop of this healthy growth, Royal Orchid Hotels Ltd. (ROHL) continued to post positive growth in revenue and profitability through the years. Our consolidate revenue in the financial year 2019 – 20 was ₹ 205 Cr, while the same was ₹ 203.83 in 2019. The EBIDTA for 2019 - 20 is ₹ 45.32 Cr, the same was ₹ 48.82 Cr in 2018 -19. Relating to this the profit after tax (PAT) stands at ₹ 5.08 Cr in 2019 - 20 vs. ₹ 13.11 Cr in 2018 - 19. The earnings per share (EPS) in 2019 -20 is ₹ 2.04, Vs ₹ 4.83 in 2018 - 19. As the year and the decade came to a close, COVID-19 struck and the pandemic caught us all of us off guard, and so far it has had an overwhelming impact on all countries and economies around the world. Though the pandemic has not yet ended it continues to affect economic activities and people’s lives. I would like to extend my deepest sympathy not only to our employees and their families but also to all people who have been affected by it. FY 2020 has been a challenging year for us as the entire country witnessed a sharp deceleration in growth with Hospitality being amongst the worst-hit industries. We have faced unprecedented demand slowdown and revenue challenges due to the strategies adopted to flatten the COVID-19 curve such as country and city lockdowns, social distancing, stay-at-home orders, travel and mobility restrictions. In view of these developments, we had taken substantial steps to preserve liquidity and mitigate the impact of extremely low levels of demand. In addition to reducing our operating expenses dramatically, we revised our organisation strategy to become more agile. We also started several initiatives such as the management development & multi skilling program through which we succeeded at rationalising costs, improving efficiency & customer experience, and to help upskill managers for our forthcoming properties. Our priority during the lockdown was also to implement safety SOP’s at the hotels to minimise the impact of the COVID – 19 viruses. The influx of international arrivals is traditionally the globally accepted barometer of any tourism economy’s success. In India, foreign tourists represent less than 1% of tourism activity. The lion’s share of tourism activity being domestic, India’s travel and tourism sector will largely be insulated from the immediate aftermath of the pandemic. The silver lining here is that domestic tourism is expected to steadily rise again over the year as domestic flights have resumed and interstate travel restrictions have been rolled back. A KPMG India tourism report on Indian domestic travel and tourism estimates that tourism activity will touch 2.8 billion by 2022. The drivers of growth could be two-fold. First, Peoples pent up need to travel after coming out of a long and painful lockdown. Second, 40 million Indians who would have otherwise planned to vacation overseas are largely restricted to domestic travel. With 60 + hotels totalling 4000+ keys across 38 cities in India, Royal Orchid Hotels is poised to seize these opportunities and grow. We have always endeavoured to offer an exceptional experience to guests, strengthen our market position and achieve transformative growth, and we have made significant inroads in meeting these objectives. In line with our goals to remain asset-light, we have been adding management contracts to our portfolio aggressively. As of August 2020, The Royal Orchid Hotels’ network has been diversified among 11 owned/leased hotels and 49 managed and franchise hotels. Through this strategy, we continue to create value by operating a best-in-class portfolio of hotels across India. As an organisation rooted in Indian values, our priority during the lockdown was also to help our fellow citizens in any way we could. We offered free meals to migrant workers through the lockdown. Some of our hotels were even converted to quarantine centres. These activities undertaken are over and above the existing CSR initiatives. In the year 2019-20, the company has contributed to 23.99 Lacs towards CSR expenditure including skill development program which has enabled the youth to get jobs across the industry. 2020 might have started on a challenging note, but I continue to remain bullish on the future of the industry, the economy and our group as we possess all the underlying drivers required to grow and achieve all our milestones. I am thankful to our guests and shareholder for the support they have extended and the confidence they have placed in us. We are on a mission to build the best-in-class portfolio of hotels and I’m optimistic about the prospects the future holds for us. Chander K Baljee Chairman & Managing Director Royal Orchid & Regenta Hotels Board of Directors Chander K. Baljee Chairman & Managing Director Lilian Jessie Paul Vivek Mansingh Naveen Jain Independent Director Independent Director Independent Director Sunil Sikka Keshav Baljee Non-Executive Director Non-Executive Director Management Team Amit Jaiswal Prashant Mehrotra Chief Financial Officer Chief Operating Officer E: [email protected] E: [email protected] Vikas Passi Perkin Rocha Vice President – Operations (West) Vice President – Operations (North) E: [email protected] E: [email protected] Shiwam Verma Umesh Tiwary AVP – Operations VP – Operations (Gujarat) E: [email protected] E: [email protected] Moumita Mukherjee Rajiv Achuthan VP - Sales & Operations AVP – Sales (South) E: [email protected] E: [email protected] As ma Begum Syed Anzar Ahmed Director – Franchise Hotels & Head - Revenue Management Customer Service E: [email protected] E: [email protected] Selvaraj Ranabir Sanyal Company Secretary Assistant Vice President & Compliance Officer Engineering E: [email protected] E: [email protected] Milestones 2019-202019-20 RegentaRegenta Inn, Ranip,Ranip, AhmedabadAhmedabad 22019019 RegentaRegenta Inn, Kullu ManaliManali RegentaRegenta Central, VapiVapi RegRegentaenta PPlacelace ManMandrem,drem, GGoaoa RegRegentaenta Central, NagpuNagpurr RegRegentaenta Place, Mahabaleshwar RegRegentaenta ResorResort,t, BBharatpurharatpur RegRegentaenta Inn, RishikesRishikeshh RegRegentaenta CCentral,entral, ChChandigarhandigarh RegRegentaenta Place, PenPenchch RegRegentaenta Central RS, ChennaChennaii RegRegentaenta Inn, IndiranaIndiranagar,gar, BanBangaloregalore RegRegentaenta Central, North Goa RegRegentaenta Resort, BeBelagavilaggavi 22017017 RegentaRegenta Central,Central, MysoreMysore RegentaRegenta Inn, VadodaraVadodara 20182018 RegRegentaenta Central, AhmedabAhmedabadad RegRegentaenta Resort, PushkaPushkarr RegRegentaenta Resort, RanthamborRanthamboree RegRegentaenta ResorResort,t, NasNashikhik RegRegentaenta Resort, Jim CorbCorbettett RegRegentaenta Central, SrinaSrinagargar RegRegentaenta Central, LudhianLudhianaa RegRegentaenta ResorResort,t, BBharatpurharatpur RegRegentaenta Inn, KolkaKolkatata RegRegentaenta Central, Dahej RegRegentaenta Central, IndorIndoree RegRegentaenta Central, KanpKanpurur 20162016 RegentaRegReR enta Inn, BangaloreBangalore 20162016 RegentaRegR enta Resort, Varca Beach, GoaGoa RRegRegentaenta Central Jhotwara, JaipuJaipurr RegentaRegenta Central, Amritsar RegRegentaenta Central, ChennaChennaii 20122012 RoyalRoyR al Orchid Central, ShimogaShimoga RoyRoyalal Orchid Fort Resort, Mussoorie 20122012 HotHotelel RoRoyalyal Orchid, JaiJaipurpur RoyRoyalal Orchid Central, Navi MumbaMumbaii RoyRoyalal Orchid Central, HamHampipi 20082008 RoyRoyalal Orchid Golden Suites, Pune 20072007 RoyRoyalal Orchid Central, JaiJaipurpur CorCorporateporate HQ RoyRoyalal Orchid Brindavan Garden, MMysoreysore RoyRoyalal Orchid Central, PuPunene NatNationwideionwide Sales OffiOfficesces RoyRoyalal Orchid Beach Resort, Goa RoyRoyalal Orchid Suites, BanBangaloregalore 20042004 RoyRRoyalal OOrchidrchid MeMetropolettropole 20022002 MysMysoreore PresidencyPresidency CollegeCollege of HotHotelel ManaManagementgement BanBangaloregalore 22003003 RoyRoyalal OrcOOrchidrchidhiid CentrCentralal BanBangaloregaloreorre 20012001 HotHotelel RoRoyalyal OrchiOrchidd BanBangaloregalore * Hotels Opened FY 19 Srinagar Amritsar Chandigarh Ludhiana Kullu Manali Rishikesh Dehradun Haridwar Jim Corbett Bharatpur Jaipur Kanpur Ajmer Ranthambore Pushkar Bhuj Indore Kolkata Ahmedabad Pench National Park Rajkot Vadodara Dahej Nagpur Bharuch Nashik Vapi Navi Mumbai Pune Mahabaleshwar Goa Belgaum Explore Hampi Shimoga our portfolio of Bengaluru + Mysuru Chennai 60 Hotels across India www.royalorchidhotels.com Regenta Central Antarim, Ahmedabad A much sought-after destination among travelers and entrepreneurs, Ahmedabad attracts people for both luxury and business. Regenta Central Antarim is strategically located along the city’s CG Road, Navarangapura, in the vicinity of major industrial centers. With four categories, the hotel offers comfortable living spaces with a mix of contemporary interiors and traditional wall art. There are three dining outlets at the hotel specializing in oriental cuisine, world cuisine and fresh offerings from the bakery. It also has numerous banqueting options to host MICE events, weddings and other social gatherings. 72 Rooms | 03 F&B Outlets Regenta Inn Ranip, Ahmedabad