Advani Hotels reported highest-ever Q4 and FY24 revenues

Advani Hotels & Resorts (India) Limited approved the unaudited standalone financial results for the quarter and full year ending March 31, 2024.

Financial Table:

Key performance indicators for the quarter ending March 2024 are below:

• Revenue improved on a YoY basis by 8%. This is despite a decrease in tourists to Goa due to domestic tourists travelling overseas for holidays and a reduction in foreign tourists. Caravela organised 45 weddings in FY24, an all-time high in the hotel’s wedding business. Additionally, improvements in MICE further boosted revenue. This was achieved without adding any rooms or F&B facilities.

• In FY24, in comparison to the previous year, the EBITDA margin declined to 34% due to investments in the 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’s facilities for the renewal of its five-star deluxe hotel classification.  

• 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 in FY24 to INR 18,798 vs INR 17,556 last year, increasing the revenue by 8%.

• The company is debt-free, and the liquid fund reserves (including fixed deposits) are at INR 4,488 lakhs as of March 31, 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 payout for any financial year in the history of the company.

• The company continues to reward its shareholders with a dividend payout of 67% of the net profit, which is one of the highest dividend payout percentages.

Commenting on the results, Sunder G. Advani, Chairman and Managing Director of Advani Hotels & Resorts (India) Limited, said, “We are excited to report that the revenue for Q4 and 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 sustaining 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 a five-star deluxe classification by the Ministry of Tourism, Government of India, for the next five years up to December 10, 2028.”

From a qualitative perspective, the company and management received the below-mentioned awards during FY24:

Awards received and ESG initiatives:

• For the seventh consecutive year, the Caravela Beach Resort, Goa, has won the prestigious Booking.com’s ‘Travellers Review Award’ for the year 2024, based on verified customer satisfaction scores and reviews from guests.

• The Caravela Beach Resort, Goa, was awarded the ‘TripAdvisor Travellers’ Choice Award for 2023’. This recognition is a testament to the hotel’s dedication, hard work, and commitment to excellence in the hospitality industry. Being among the top 10% of properties globally is an outstanding achievement, and it reflects the exceptional experiences and positive reviews shared by our guests.

• The resort has been awarded the five-star deluxe classification by the Ministry of Tourism, Government of India, for five years up to December 10, 2028.

• It was also awarded the highest level ‘Level 3 Travel Sustainable Badge’ by Booking.com. This is a recognition of the investments and significant efforts made by the company to implement sustainability and eco-friendly practices. 

• The Caravela Beach Resort was recognised as the ‘Best Luxury Beachfront Wedding Resort India’ for the year 2023 by the Hotel of the Year.

• At the prestigious Economic Times – ET Hospitality Awards Goa 2023, the Caravela was honoured with an ‘Excellence in Luxury’ award.

• Prahlad S Advani, CEO of Advani Hotels, was felicitated by the Economic Times – ET Hospitality with an ‘Excellence in Business’ award.

• Sunder G Advani, Chairman and Managing Director of Advani Hotels, was conferred by the Economic Times – ET Hospitality with a ‘Lifetime Achievement Award’.

• The Beach Hut restaurant at Caravela Beach Resort, Goa, was awarded the ‘Times Food Award 2024’.

• Under the various environmental, social, and governance (ESG) initiatives undertaken by the company during the year, a water bottling plant ‘Caravela Aqua’ has been successfully commissioned at the hotel in Goa. This will not only save the cost of packaged bottles but will also reduce the consumption of single-use plastic bottles.

Outlook on operational efficiencies within the hospitality industry:

• Due to an increase in India’s disposable income, there has been a rise in discretionary spending. As per the GDP data published by the Government of India, 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 the number of foreign tourists due to global disturbances and the opening 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 revenue growth.

• 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.