ANNUAL REPORT 2019-20

OF EXCELLENCE IN HOSPITALITY OF EXCELLENCE IN HOSPITALITY

What's Inside Corporate Overview Statutory Report Financial Statements 2 Company Profile 30 Financial Highlights Standalone Consolidated Independent 6 Performance Highlights 31 Notice 118 177 Auditor's Report Auditor's Report on Consolidated 8 Our 43 Board’s Report Balance Sheet Financial Statement 12 Milestones Management 126 75 Balance Sheet 14 From the MD’s desk Discussion and Analysis 127 Profit and Loss Statement 184 Board of Directors Statement of Changes 185 Profit and Loss Statement 16 89 Corporate Governance 128 Aspiration 2022 in Equity Statement of Changes 18 Business 186 110 in Equity Strategy Responsibility Report 129 Cash Flow Statement 20 Expansion 131 Notes to 187 Cash Flow Statement 21 Technology Financial Statements 189 Notes to Consolidated 22 Customer Experience Financial Statement 24 People 26 Social and Environmental Wellbeing 29 Shareholders Information Hospitality is about relationships. Successful hospitality is about enveloping people in a feeling of warmth, comfort and luxury. It is a belief that led us to establish Oriental Hotels Limited (OHL) in 1970 and today, 50 years on, the same belief continues to drive us towards providing excellent hospitality to our patrons.

We are in our 50th year at OHL and we look back We share our philosophy of hospitality with IHCL, on our half a century of value-accretive growth. which serves as the basis for our ever-strengthening This has been made possible through value-based relationship of 50 years. IHCL’s strategic approach relationships we forged right at the beginning of and priorities guide not only our approach towards our journey. In our growth and evolution, we have business growth and development but also our focus enjoyed constant partnership and support from on sustainability. Together, we continue to build on The Indian Hotels Company Limited (IHCL), our synergies and achieve greater agility at OHL; our which is among the biggest names in South Asia’s efforts in this direction have been appreciated by our hospitality industry. investors as well as our patrons. Under IHCL’s operation, management and strategic Looking at our 50 years of engaging with our guidance, our flagship properties, Taj Coromandel and key stakeholders, we see admirable growth and Taj Fisherman’s Cove, have attained iconic status and achievement; it powers our resolve to look at the are known as a brand unto themselves. Together we future with courage and ambition to do more and stand at the very pinnacle of excellent hospitality in perform better. We are focused on making sure that Southern . Our seven hotels continue to receive we continue to serve with a smile and that customer distinguished patronage as a result of this partnership. delight stays where it is – at centre of the table.

OHL in Numbers# 7 825 42 Hotels Rooms Suites

59% D 4,356 D 7,423 Total occupancy Rate RevPAR* Average daily rate

D 30,134.90 lakhs D 4891.69 lakhs 16.23% Revenue EBITDA EBITDA margin

#FY 2019-20 *Revenue Per Available Room Corporate Overview

COMPANY PROFILE INDIAN HOSPITALITY, WORLD-CLASS DELIVERY

Oriental Hotels Limited (OHL) was established in 1970 OHL brought luxury hospitality to the city with the objective to offer the best of Indian hospitality of in 1974 through the launch of Taj Coromandel, our flagship even through world-class hotels. The year also marked the today. It has defined premium hospitality in beginning of our association with The Indian Hotels the region and has often seen some of the Company Limited (IHCL), among the biggest names in world’s most prominent personalities and hospitality in South Asia and a global brand. During our celebrities call it home. 50 years of being together in the Southern region of India, Our Taj Fisherman's Cove Resort and Spa in we have seen our flagship hotels acquire iconic status Chennai is another prominent offering as a luxury beach resort. We operate seven hotels in hospitality. under the IHCL brands of Taj, SeleQtions, Vivanta and Gateway with an inventory of 825 rooms (including 42 suites) and employ over 1,500 people (includes permanent and contractual staff).

2 l Our Presence We have our footprint in key markets of Southern India. We are present in , Kerala and Karnataka. 1. Taj Coromandel, Chennai 2. Taj Fisherman's Cove Resort & Spa, Chennai 3. Taj Malabar Resort & Spa, Cochin 4. Gateway Coonoor-IHCL SeleQtions 5. Vivanta Coimbatore 1 7 6. The Gateway Hotel Pasumalai, Madurai 2 7. The Gateway Hotel Old Port Road, Mangalore

4 5

3

6

Taj Malabar. Cochin

Annual Report 2019-20 l 3 Corporate Overview

COMPANY PROFILE (continued)

Tata Suite, Taj Coromandel, Chennai

Our Ever-evolving Relationship with IHCL ABOUT IHCL Our 50-year association with IHCL began in 1970. Our first five-star hotel, The Indian Hotels Company Limited Taj Coromandel, was launched under the technical and operational support of (IHCL) is among South Asia’s largest IHCL. Over the years, our partnership has endured and continued to strengthen. hospitality companies by market IHCL continues to operate and maintain our hotels, strategically guiding our capitalisation. Incorporated in 1902, practices and organisational culture, governance, people practices, providing it has nurtured a rich legacy of hotels management, training and business responsibility initiatives. spanning iconic locations, living palaces, homestays, trails, exotic resorts, IHCL is guiding our strategic initiatives at OHL towards becoming a more agile, affordable luxury and scenic safaris. more futuristic organisation. A number of measures under the aegis of IHCL’s It delivers unforgettable experiences and pivotal five-year programme, Aspiration 2022, for re-structuring, re-engineering cherished memories to its patrons. and re-imagining our offerings at OHL are underway. Together, we aim to fortify our leadership in the markets where we operate. The key driver of our relationship is our belief in and respect for ‘Tajness’, which stands for IHCL’s three core values namely:

Trust Awareness Joy • Fairness with all stakeholders • Enhance awareness around • Derive joy and happiness from • Openness and transparency our plans, strategies, what we do and how we do it in what we do tactics, processes • Serve all stakeholders with joy • Free flow of information • Work together to create greater and utmost dedication enterprise value • Alignment of all stakeholders • Create and maintain an • Participative in our environment where there • Build and strengthen decision making is joy and happiness, where long-term relationships • Imbibe a sense of belonging people are respected, and across all stakeholders diversity is celebrated • Share our success with all stakeholders

4 l Inspiring Association Our Subsidiaries, We also have another associate Joint Ventures and company, Lanka Island Resorts Limited, IHCL is part of the renowned Associate Companies which owns the hotel property, Tata group, a global enterprise Taj Bentota Resort & Spa, Sri Lanka. comprising 100+ companies under We have one wholly owned subsidiary, its grand umbrella. Its time-tested OHL International (HK) Ltd., which is We also have a jointly controlled entity legacy of over 150 years, group registered in , (PRC). with IHCL Group, TAL Hotels & Resorts revenues in excess of ~US$100 billion We hold our investments in overseas Ltd., which is an investment company. and presence in 150+ countries are ventures through it. It is the majority shareholder in some of the group’s strengths. The TAL Lanka Hotels Plc that owns Our associate company, Taj Madurai Tata group’s core values of Integrity, Taj Samudra, a five-star hotel in Ltd., owns a hotel property in Madurai Responsibility, Excellence, Pioneering Colombo, Sri Lanka and in TAL called The Gateway Hotel Pasumalai, and Unity are ingrained deeply in Resorts Pte Limited that Madurai, licensed to us under a every aspect of IHCL’s business. owns Taj Exotica Resort & Spa and long-term agreement. Taj Coral Reef Resort & Spa, in the Republic of Maldives.

The Gateway Hotel Pasumalai, Madurai Annual Report 2019-20 l 5 Corporate Overview

FY 2019-20 PERFORMANCE HIGHLIGHTS FOCUSING ON OUR STRENGTHS Financial Matrix (Standalone)

Revenue (₹ lakhs) EBITDA margin (%)

30,134.90 16.23

FY 2019-20 30,134.90 FY 2019-20 16.23

FY 2018-19 35,672.01 FY 2018-19 17.33

FY 2017-18 36,887.59 FY 2017-18 18.18

FY 2016-17 34,460.39 FY 2016-17 17.04

FY 2015-16 31,626.43 FY 2015-16 11.33

Profit after Tax (₹ lakhs) Net Debt/Equity

(378.42) 0.68

FY 2019-20 (378.42) FY 2019-20 0.68

FY 2018-19 8,944.20 FY 2018-19 0.72

FY 2017-18 599.74 FY 2017-18 1.27

FY 2016-17 153.25 FY 2016-17 1.27

FY 2015-16 (1,784.74) FY 2015-16 1.28

6 l Environmental Matrix*

Water Saved through Recycling and Rainwater Harvesting CO2 Emissions Avoided by Embracing Renewable Energy (KL) (Tonnes CO2e) 1,37,176 7,553

1,00,335 1,33,562 1,70,304 1,60,174 1,37,176 7,548 9,980 9,438 7,936 7,553

FY FY FY FY FY FY FY FY FY FY 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20

Waste Diverted from Landfills (Tonnes) 290

156 194 192 189 290

FY FY FY FY FY 2015-16 2016-17 2017-18 2018-19 2019-20

*Data pertains to hotels continuing under the OHL portfolio as on March 31, 2020

Annual Report 2019-20 l 7 Corporate Overview

OUR HOTELS SHOWCASING OUR PROPERTIES

Taj Coromandel, Chennai 1974, Owned F&B Destinations • Flagship hotel and among the best-known • Anise, All Day Diner landmarks of Chennai • Prego, Italian Cuisine • Located at the centre of the city • Southern Spice, Traditional • Equipped with a modern business centre and South Indian Delicacies luxurious Grand Ballroom • Golden Dragon, • Continues to be the ‘location of first Chinese Delights choice’ by all major consulates celebrating • Chipstead, Bar their National days • The Chambers • Also offers gym, swimming pool, Jiva Spa and the exclusive Taj Club Lounge Has hosted global dignitaries, including former 212 11 US Presidents and , Rooms Suites His Royal Highness Prince Andrew of the and the Emperor and Empress of .

Taj Fisherman’s Cove Resort & Spa, Chennai 1985, Owned F&B Destinations • A luxury beach resort built on the ramparts of • Seagull, All-Day Diner an 18th century Dutch fort • Bay View, • Close to the famed Beach and Specialty Sea-Food the temple town of Mahabalipuram in Kancheepuram District • Upper Deck, Bistro European Cuisine • Equipped with every modern facility for business and leisure travellers • Hosts the award-winning Jiva Spa 149 2 In October 2019, hosted the informal summit Rooms Suites between Prime Minister Narendra Modi and Chinese President, Mr Xi Jinping

Note:: At OHL, the number of rooms is inclusive of the number of suites in the hotel.

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