Park Hotels Charts Ambitious Growth Profitability Ahead

Ashwin Thakker

— 2 min read
  • Sales Outlook:
    • FY26: Targeting 600 new rooms (411 asset-light, 147 leased, 31 owned).
    • Flurys: Aiming for 200 outlets by FY27, 350-400 by FY30; FY26 revenue forecast INR 85-90 crore.
    • Acquisitions: Mumbai hotel (Zillion Hotels) target INR 60-80 crore annual revenue (FY28 stabilized); Malabar House & Purity target INR 20 crore (stabilized).
    • Planned CapEx: INR 1,700 crore over 5 years, INR 300 crore in FY26.
  • Margin Outlook:
    • Hotel Segment: Expects continued EBITDA growth following Q1 FY26's 16% increase.
    • Flurys EBITDA: Aiming for 12-15% margins after 200 outlets, targeting INR 1 crore EBITDA per store by next year.
    • Owned Properties: Anticipated 40-50% EBITDA margins.
    • Leased Properties: Expected 20-30% EBITDA margins.
    • Managed Properties: Projecting 5.5-6% EBITDA margins, rising to 70% in the long term.

Apeejay Surrendra Park Hotels Limited unveiled ambitious plans for future growth in its Q1 FY26 earnings call. The company is charting a course for significant expansion and enhanced profitability across its hotel and Flurys F&B segments, backed by substantial strategic investments. This forward-looking guidance highlights a clear strategy to capitalize on market opportunities.

Aggressive Expansion Fuels Future Revenue Streams

Apeejay Surrendra Park Hotels plans significant footprint expansion for FY26, targeting 600 new rooms with a focus on asset-light and leased models. This includes a Mumbai acquisition (Zillion Hotels) projected to yield

not less than INR 80 crore

in annual revenue by FY28, enhanced by strong F&B. Two luxury resort acquisitions in Kochi are set to add INR 20 crore annually post-stabilization. The Flurys brand targets

200 stores by FY27

and up to 400 by FY30, with FY26 revenue projected at INR 85-90 crore. This strategic growth is set to boost overall revenue.

Margin Improvement Through Strategic Investments

Beyond expansion, Apeejay Park Hotels is keenly focused on margin enhancement. Management anticipates continued strong EBITDA growth in hotels, building on Q1 FY26's 16% increase. For its Flurys F&B segment, the company aims for

12% to 15%

EBITDA margins and

INR 1 crore per store

by next year, bolstered by operational efficiencies and a new Delhi commissary. Owned properties are forecast to deliver robust 40-50% EBITDA margins. Leased properties target 20-30%, and managed properties expect 5.5-6% EBITDA. A significant capital outlay of INR 1,700 crore over five years, including INR 300 crore in FY26, supports these profitability goals.

Apeejay Surrendra Park Hotels is poised for substantial growth, driven by strategic acquisitions, an aggressive Flurys expansion, and a clear focus on operational efficiencies. These forward-looking plans, supported by significant capital investment, aim to secure stronger market positioning and deliver improved financial performance in the coming years.

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