Advani Hotels and Resorts reports record revenue in FY24

Advani Hotels & Resorts announced record financial results for Q4 and FY24, showcasing significant revenue growth and high occupancy rates.

MUMBAI, INDIA – Advani Hotels and Resorts (India) Limited, approved the unaudited standalone financial results, for the quarter and full year ended 31st March 2024.

Financial Table:
Particulars (INR In Lakhs) Q4 FY24 Q4 FY23 FY24 FY23
Total Income 3,353 3,098 10,844 10,063
Operating Expenses 1,825 1,583 7,152 5,948
EBITDA 1,528 1,514 3,692 4,115
EBITDA Margin (%) 45.6% 48.9% 34.0% 40.9%
Profit Before Tax 1,438 1,440 3,349 3,836
Income Tax (including Deferred Tax) 379 347 854 976
Profit After Tax 1,059 1,093 2,496 2,860
Total Room Nights Sold (Numbers) 15,471 16,618 57,685 57,320
Occupancy (%) (on available rooms for sale) 87.6% 95.4% 83.9% 82.5%
Total Revenue per occupied room per night (TRevPOR) (INR) after subtracting taxes 21,675 18,641 18,798 17,556
Liquid Fund Reserves (including Fixed Deposits) 4,488 3,321 4,488 3,321
Key performance indicators of the quarter ended March 2024 are below:
  • During the year, the revenue has improved on a YoY basis by 8%. This is despite a decrease in demand for the overall destination of Goa, due to domestic tourists travelling overseas for holidays and due to a reduction in foreign tourists into Goa. Caravela organised 45 weddings in FY24, representing the hotel’s all-time high wedding business. Additionally, improvements in MICE further boosted revenue. This is achieved without adding any rooms or F&B facilities and the Company’s fixed assets have remained same over a period of time.
  • In FY24, in comparison to the previous year, the EBITDA margin declined to 34% due to investments in workforce, including hiring new talent and rewarding existing talent pool with increments to encourage and retain valuable employees. Other expenses include additional expenses incurred to upgrade the hotel facilities as the 5-Star DELUXE classification of the hotel was due for renewal.
  • During the year, the hotel recorded an average occupancy of 83.9% vs 82.5% last year. Total Revenue Per Occupied Room per night (TRevPOR) also increased during FY24 to INR 18,798 vs INR 17,556 last year. Due to which, our revenue grew by 8% in FY24.
  • The Company is debt-free and the Liquid Fund Reserves (including Fixed Deposits) are at INR 4,488 lakhs as on 31st March , 2024.
  • The Company has declared their second interim dividend of 40% i.e. INR 0.80 per share, which will result in a pay-out of INR 739.51 lakhs on the enhanced Paid-up Capital post the 1:1 Bonus issue in FY24.
  • Taking into account the first interim dividend of 100% declared earlier and the 40% dividend declared now on the enhanced capital post bonus issue, this is the highest dividend pay-out for any financial year in the history of our Company.
  • The Company continues to reward its shareholders with a dividend pay-out of 67% of the net profit, which is one of the highest dividend pay-out percentages.

Commenting on the results Mr. Sunder G. Advani, Chairman & Managing Director of Advani Hotels & Resorts (India) Limited said;

We are excited to report that the revenue for Q4 & FY24 has set a new record as the highest ever quarterly and full year revenue in the history of the Company. This achievement reflects consistent revenue growth, given the highest number of weddings we have done this year. With a significant contribution to our exceptional occupancy rate, we are dedicated to sustain this momentum in FY25 with continued growth driven by MICE and leisure travel. As we move ahead, we are optimistic about our future and remain committed to investing in our business to enhance our value proposition for our guests. Caravela Beach Resort has been awarded 5-Star DELUXE classification by the Ministry of Tourism, Government of India for next 5 years upto December 10, 2028.”

To provide a broader perspective (beyond financial measures), from a qualitative perspective, the Company and Management received the below awards during FY24:

Outlook on operational efficiencies within the hospitality industry:
  • Due to the increase in the India’s disposable income there has been a rise in discretionary spending. As per the GDP data published by Government of India, the per capita disposable income grew by 8% in FY24. We expect that the rising number of people with higher disposable income will create a higher demand for luxury and premium products and leisure travel.
  • Goa’s infrastructure development has witnessed a transformative journey. With new projects worth INR 15,000 crore announced, Goa is poised for a remarkable infrastructural renaissance. One such marvel is the Atal Setu, a cable-stayed bridge connecting Panaji and Porvorim, and the New Zuari Bridge, linking North and South Goa. Goa’s infrastructure development extends beyond bridges, with the Manohar Parrikar Canacona bypass, opened in 2019, connecting Char Rasta with Polem and reducing travel distance from 21 km to just 7 km. The Central Government has announced new projects in Goa worth INR 1,200 crore for the Kalamboli Junction and Pagode Junction Chowk to Greenfield Highway, as well as the INR 13,000 crore Morbe-Karanjade highway connecting Delhi via JNPA. These initiatives are set to start soon, further bolstering Goa’s infrastructure prowess.
  • South Goa experienced a decline in foreign tourist numbers due to global disturbances and opening up of alternative destinations with easily available visas. However, domestic tourism helped salvage the season. Despite low demand, we delivered our highest-ever revenue.
  • Advani Hotels increased its occupancy to 83.9% in FY24, surpassing the industry average of 70%. Going forward, strong leisure and growing MICE business will continue to accelerate growth in revenues.
  • During this quarter, festivities such as Holi and Easter make for the most sought-after destinations, with leisure spots experiencing a notable increase in ARRs, ranging from 10-20% higher than the usual rates. This surge in ARRs directly mirrors the heightened demand for accommodation in Advani hotels.

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