I have 2 simple questions. So first, tomorrow after demerger, if Fleur believes that its inventory can be managed by some other operator and not Lemon Tree, how would that happen? Is it goes beyond arm's length basis, or can you please give a bit of colour on that?
But then, is not that the loss of a management fees for Lemon Tree?
First, I just want to understand now given that you have already done sort of or draw a line in terms of your structuring and all. What is your key priority for the next 1 year or until you list your Fleur? I mean, where do you want to see Lemon Tree and Fleur at the time of listing in terms of size of the busi ness, margins in ROCE? And if you could please give a bit of a colour on that?
Right. Fair enough. Then second question, I wanted to understand about your plan in terms of rebranding. You rebranded one of your Red Fox hotel this quarter. Do you have plans to rebrand more inventory? And just want to understand what kind of spending does it or is it like the same hotel, you just rebrand it, or you spend, first you upgrade the rooms quality and all and then you sort of rebrand it? How easy or how difficult it is to rebrand? So, could you please give a bit of colour on that?
I have 2. The first one is on the yield going back to your comments on the mid -teens. So I just want to understand if you could please give color in terms of how much of it is coming because of fuel surcharge and how much is the underlying increase in the fares and because of that, the yield is going. Can you please give a bit of color on that?
Right. Second question was on the cost side. And on the cost, one part of it is about the salary cost. So because we thought we are going to hire more pilots because the new FDTL norms and the salary cost could go up actually, and we can see the Q4 salary cost is actually lower than Q3. How is happening? And any plans on the fuel hedging, please?
So first of all, going back to FDTL , just wanted to understand, given that new FDTL norms and that means increased requirement of number of pilots, do you expect the growth could slow down going ahead? Or do you think, I mean, you've been expecting 1 aircraft per week and 52 aircrafts per year, and that means whatever the growth comes in, so do you think that growth will continue and you'll be able to hire the pilots with the new FDTL norms? Or do you think generally the growth would slow down because of the new FDTL norms a nd the pilot hiring is any which way a big challenge? Can you give us a bit of color, please?
So, you mean that the growth will continue as it is, as you planned?
Hi, team. Thanks for taking my question. So, I have two. First of all, could you please give a bit of a colour in terms of the increased aircraft incidents in the recent months at IndiGo? What's happening there? Is there a specific maintenance problem? What exactly is happening and what are you doing? Because just taking forward from Air India crash, of course, there is a bit of fearness and then, of course, we can see a lot of increased aircraft incidents these days. So, what's happening? My second question is about, so Indian government recently increased the number of seats by 50% under the bilateral agreement with Kuwait, which is definitely an interesting move. How do you see that? And do you think we are close to further increase the n umber of seats to other Middle East destinations? Everybody is sort of begging to Indian government to increase. And if that happens, do you see increased competition from the Middle East carriers? Thank you.
Thank you. I will come in the queue.
Hi. Thanks for taking my question. So, first of all, moving back to the Pakistan airspace closure, do you see any changes to your network plan or strategy towards your long -haul international operations? You have announced flights between Mumbai and these 2 preannounced destinations, Amsterdam and Manchester, although Delhi is the biggest international hub, and we are talking about Delhi quite a lot. So, has that decision been impacted because of Pakistan airspace closure? And how do you see that? And have you done any exercise on your brand awareness score in the international markets, because that is very important for inbound international tourism?
Okay. Perfect. Thanks Pieter. My second question is around again, the international operations. How do you see the opportunities for your ancillary revenue , given that you are planning to sell hot meals and all, so the cost will go up. But do you have plans to increase your ancillary revenue sales, cargo or any other ancillary revenue to offset that cost pressure? And obviously, when it comes to international operations, I think it is very important on the FDTL things. So, do you see any challenges there on FDTL side, please?
First of all, coming back to revenue side. So, basically, you have guided to a yield moderation. I just want to understand, apart from this yield moderation, you will have some dilution from the loyalty program. So, what kind of dilution you’re expecting 1%, 2%, 3% and would that impact your yields more than what you’re expecting? And of course, in terms of pricing strategy, do you think any difference in terms of pricing strategy because of the loyalty program?
No, exactly. I agree with your point, but just want to understand the kind of a dilution in terms of percentage, which will happen because of the loyalty program?
Hi. Thanks for the opportunity. My first question, I just want to understand, how do you see the first quarter and especially given the fact that the last year's first quarter was impacted by India- Pakistan, and we are already in mid of May, what kind of indication are you getting or you can share, in terms of trading in the first quarter, please?
Right. And in terms of full year FY27, what sort of inorganic growth you think you could achieve? And do you see any risk from the political changes in West Bengal in case the Kolkata Airport goes to Adani? What kind of risk do you see from there?
So first of all, just going back to your comments about the domestic travel holding up. And I guess, as Ankur rightly said, that must have been replaced by international because international people are not able to travel. So, do you see that sort of has replaced the international completely in terms of volume as well as the pricing? Of course, I believe that international tourism is sort of a high-end of the hotels -- but they stay at the high-end of the hotels. So how do you see the replacement? And now especially after today's comments from our honourable Prime Minister not to take foreign travel, do you think domestic could actually hold up well and replace the international demand pretty well. Can you please give a bit of a color on that, your thoughts around that?
And especially since Mr. Modi asked for more work from home, going back to the COVID times, do you think that if there is more work from home could increase the length of the stay at your hotels? I mean is there any sort of color from your experience previously?
Thanks for taking my questions. So, basically, first of all, sorry, I joined a bit late. So, kindly excuse me if you already answered the question. First question, I want to understand what happened to your management fee. I mean, in the 3 rd Quarter management fee, actually, the growth was slowed and what you reported in 1st Quarter and 2nd Quarter, what's happening there? And secondly, just to ask one-by-one, how do you see your wellness entrance now? And are you sort of intent to grow there? How do you see the wellness overall in the country doing? Thanks.
And on the wellness side, please?
First of all, I just want to understand a bit on the balance sheet. And that's in the context, like when you mentioned that Ginger Kolkata group is entering. And then you mentioned that you need to spend a lot of money on other things. So just want to understand, are you, so far, for example, Taj Bandstand, are you still looking for some investor or somebody who could search investors or anything like that? And second, I mean -- and given that interest rates are low, are you thinking about raising some debt? Because anyway you are generating very high ROIC, ROE. And so we think it's a good time to raise some debt or you are just pretty well satisfied with what you have in the balance sheet?
About the raising debt. Or are you pretty well satisfied, what...
Hi. Thanks for taking my question. So my first question was about your FY '30 target, which you gave when you're expecting revenue to double by FY '30. So on that, I just want to understand how much of the growth you think will come from the room addition and how much from the other KPIs, other sectors, including RevPAR and all? And do you think most of the growth will be the front loaded? You already reported 23% growth in revenue this year, while the overall growth is like 11.5% CAGR. So do you think most of the growth will be front-loaded?
Agree on that. A gree on that part. My second question was about the rising competition. Obviously, in any industry, if the demand is strong and capacity is tight, new players join in. And recently, IndiGo announced to open additional 30,000 rooms by 2030, along with Accor. On the other side, if you see the GIC is taking a bit active part, they bought 35% stake in Samhi in 5 hotels, and they are spending almost INR 1,000 crores there. So how do you see the competition rising? Do you think the industry is still expecting this demand versus supply growth or the gap between demand and supply to continue for 4, 5 years? Or do you think things could change? So how do you see the industry structure actually?
Congratulations on a very strong set of numbers. A couple of questions. First of all, very quickly on the Q4, while you guide on the revenue side, any color on how do we see the RevPAR growth and occupancy levels year-on-year?
Right, right. Perfect. Otherwise -- I mean, of course, we've been talking about the tight capacity and that is driving the RevPAR growth. So -- I mean, if you look at, of course, we all have started economics, there is a term called price sensitivity or demand elasticity. Now of course, -- how do you see the pricing today? I mean the pricing are already very high. Do you still share the same thoughts? Or do you think the price -- there is still a scope for the prices to go up despite the fact that the capacity is very tight, how do -- do you think the price will continue to go up? Or do you think we have very close to the peak in terms of pricing now, of course, the scope to play with occupancy levels?
Yes Hi. Thanks for taking my question and congratulations on the great set of numbers. I have three questions, if I may, please. First of all, going back to the RevPAR number for the quarter, so I just want to understand, and as Puneet mentions a very interesting point that you had a higher sale at luxury hotels or high end of the hotel; so is there -- I mean so do you see a bit of a switch in the consumers' behavior like they are opting more for the higher end of the hotels? Or do you see the addition to the public in that category, that brand? And on underline basis, if you remove that impact of the better mix, on the underline like-for-like basis, how should we look at ARR growth? And in line with this, going forward, how do you see -- do you see any squeeze in the ARR numbers between the quarters? So quarter-to-quarter, you have different variations, right? In one quarter, you have very high ARR when you have a lot of FTAs, foreign tourist arrivals, and all. But -- so now do you see a bit of a difference -- I mean, the lower variation between the quarters in ARR? So that is my first question. Secondly...
Right. Sorry, Puneet, I think that was not very clear. What I was trying to understand is that for IHCL itself, what I'm trying to understand is that if the ARR difference between the Q2 and Q3 was, say, 25% historically, is that 25% num ber squeezing? I mean do you think -- or is that number maintained, right? I mean now also, we expect Q3 to be like 20% higher than Q2 or whatever. So I'm just trying to understand within the quarter for IHCL itself, do you see that the variation is narrowing? That's what I wanted to understand. Sorry, I was not clear.
So my first question is about your guidance in terms of you're guiding 10% increase in revenue despite the fact that in the mid of the year, you will start consolidating case. So I mean, it would be helpful if you could please give us a bit of a color as in how you think -- I mean, what is it that making 10% growth looks quite significantly low. But -- and then especially given that TajSATS will be...
Right. And then I mean I know it's difficult, but is it possible for you to give a bit of a color when you say 10% growth? I mean you must have taken some assumptions, of course which you have your own calculations, b ut what is it that is going to come from the room addition? What is going to come from the cuminization or Ginger whatever it is? And then what is it that you're expecting to come from higher occupancy and ARR? So I mean a bit of a color or a bit of a breakup of that 10% would really helpful if you can, please?
So first of all, Puneet, just wanted to understand about MICE business. So I mean, do you think the MICE business has normalized and back to pre-COVID levels? Or you think there have been a few st ructural changes, i.e., bigger conferences, fat marriages. I mean, and -- which are significantly positive. And do you see a sustainability there? So if you could please give us a bit of a color in terms of MICE business, especially in the pre-COVID versus now?
Right. Fair enough, it was very clear. Other thing I wanted to understand, you just spoke about the Gateway hotels, and you mentioned that you will have 15 hotels and probably end up by 100 hotels by 2030, if I understood correctly. So what is the logic, I mean, why you want to have additional -- another brand? And where -- how you think you want to position it within your existing Taj, Taj SeleQtions and Vivanta and all. So where exactly you see this Gateway hotels to be placed? And what is the logic? I mean, what kind of benefits do you see? What synergy do you see? I mean...
First of all, on your balance sheet, basically just wanted to understand about where are you in terms of comfort level? So, now you said Jaisalmer, it looks like it's going to be on the management contract. Had there been an option, would you have preferred to buy it? And in just extending that what kind of growth we can see in terms of own ed properties? Are you still comfortable if you are getting an opportunity would you prefer to buy it? Would your balance sheet allow you to do that? If you could give a bit of a color on that, please.
Just to confirm, I guess you confirmed previously that you are looking at some of the markets like Goa and all. Are you still looking at it? Are you still looking to buy some properties out there?
I had three very quick questions. So, first of all, you mentioned that over this quarter operating leverage helped you significantly. So, 70% of flow-through to EBITDA. Just want to understand what was the source of this operating leverage, how big was it, and how much further operating leverage do you see still available to you guys in the system? My second question was about how do you see Bengaluru market, which is definitely one of the key market for you and recently with pressure in IT sector, any thoughts on that? And finally, I think to continue the previous question, one of the previous question, just want to understand when you say you are targeting INR 20 billion of EBITDA in FY '30, could you give a bit more color in terms of how sort of did you arrive that number? I mean, what kind of room inventory, what kind of RevPAR growth are you building in, and then how that would increase your debt levels or the CAPEX? Something on that sort would be helpful.
Yes. Hi. Thanks for taking my question. I have -- so, first of all, I just want to understand about your BKC construction. So basically, I think most of the hotel operators and owners have been talking about sort of expensive land and high cost of capital as one of the biggest hurdles, especially in greenfield capacity addition and the cities like Mumbai, payback period is very high. So, what are your thoughts on that? I mean, is it like, because they are so high that it is still feasible to have a hotel construction BKC or is there anything else? So just want to understand how you see the economics, especially in places like BKC where la nd must be very, very expensive?
Right. Okay. Fine. So, you mean that because of high ARRs and the sort of under penetration, this makes the project quite feasible? That's how we should look at it, right?
I have 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 either on the more Greenfield projects or do you think that may not be the case given that any -which ways capital cost remains high. And in terms of inventory overall, do you have any sort of kind of colour in terms of how much growth do you think coming from greenfield, brownfield and how much from the conversion? That is my first question. And secondly, in terms of demand. So in the last 4, 5 months, I think the airline demand has significantly softened to 4% - 5%. Do you think tha t is because of the high fares or do you think that's an underlying weakness in demand? And if that is the case how do you see the demand for the hotels?
Okay. Thank you. Wish you good luck.