Juniper Hotels Ltd

Ladies and gentlemen, good day, and welcome to the Q3 and 9M FY '26 Earnings Conference Call of Juniper Hotels Limited, hosted by MUFG Intime India Private Limited. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded.

Certain statements disclosed in this presentation or that may be disclosed over this call may relate to company's growth prospects that are forward-looking statements within the meaning of applicable securities laws and regulations. These forward-looking statements are not guarantees of future performance as they are subject to known and unknown risks, which are beyond the control of the company.

We have with us today, Mr. Arun Saraf, Chairman and Managing Director; Mr. Varun Saraf, Chief Executive Officer; and Mr. Tarun Jaitly, the Chief Financial Officer. I now hand the conference over to Mr. Arun Saraf. Thank you, and over to you.

Thank you very much. Good afternoon, everyone. Thank you for joining us today. I am pleased to report a record performance of Juniper portfolio in Q3 financial year '26, with the company achieving its highest ever quarterly revenue of INR300 crores. Strong sectorial tailwinds, healthy demand momentum in our markets and rising ARRs are the key drivers during this quarter.

Portfolio ARR grew by 9% year-on-year, while a disciplined focus on higher-yielding segments and operational efficiencies has driven a 500-basis point expansion in EBITDA margin of 44%.

Our F&B revenues grew by 25% year-on-year, driven by 39% rise in events during this quarter.

Looking ahead, Juniper's strategy is centred on building a portfolio of high-quality luxury hospitality assets in markets where demand visibility, pricing power, long-term return potential are structurally strong. Our focus is not on chasing short-term cycles, but on compounding value through disciplined capital allocation, asset quality and operational excellence.

Over time, we have been deliberate in aligning our growth with 3 clear pillars: presence in key gateway cities, early entry into high-potential emerging destinations and strong bias towards luxury and upper upscale positioning. The progress we are seeing this quarter reinforces our belief that this strategy is well aligned with the structural shifts underway in India's travel and hospitality landscape.

India remains one of the fastest-growing economies with GDP growth of 8.2% in July to September period. Rising disposable incomes, improving mobility and young aspirational consumer base are steadily expanding the market for our premium experience-led travel.

Domestic tourism has demonstrated sustained strength over the past 5 years and accounted for 83.3% of the total travel and tourism expenditure in 2024.

Fiscal measures and tax rationalization over recent years have supported household purchasing power, thereby shifting consumer preferences towards differentiated luxury experiences. This structural premiumization is the core theme of highlighting our long-term outlook and it directly supports our portfolio positioning. Public policy continues to play a conducive role.

Government emphasis on connectivity, destination developments, circuit for creation of circuits, spanning heritage tourism, Buddhist circuits, eco trains, medical tourism, skill development is gradually repositioning India from a high-volume tourism market to high-value one.

Three initiatives combined with infrastructure investments are converting latent demand into sustained and more resilient travel flows. Recent trade developments, including India/EU Free Trade Agreement and the India-U.S. trade deal are further expected to support demand push for hospitality sector and support increased business travel in India's key commercial centres and metros.

Domestic air traffic for financial year '24-'25 for the first 11 months reached 155 million passengers, up 7.7% from the previous year, 12.9% higher than pre-COVID levels. This is estimated to grow further by 7% to 10% in financial year 2026, reaching 175 million to 180 million. Delhi, Mumbai, Bengaluru airports presently account for 47.5% of the air traffic share.

Juniper has established presence in close proximity to these mega airports with these 3 mega metro constituting 67% of the existing key count. The location advantage typically translates into better occupancy visibility and higher utilization of premium MICE and event spaces.

Indian hospitality market valued at approximately INR32 billion in 2023 is projected to grow at a CAGR of 9.4% by 2030. Industry demand is expected to grow at 9% to 10% CAGR, outpacing expected room supply conditions. This upcycle benefits the broader sector. The luxury segment will benefit disproportionately high. Luxury segment in the metro market is accounting for 76% of our revenues and is likely to see limited supply growth of less than 5% of CAGR up to 2030.

The structural demand-supply imbalance is expected to support and drive sustained growth for Juniper portfolio and is also an important cornerstone to our future growth strategy. While we focus on markets where infrastructure investment unlocks demand, but where asset differentiation and execution ultimately determine success.

Let me now turn to our expansion pipeline and progress we are making across the key locations.

In Bengaluru, phase I 235 keys should commence operations in first quarter of financial year '27. And phase II of 270 keys additional approvals is now being processed and construction for phase is targeted to commence in financial year '27. Upon completion of phase II, the property will comprise of 508 big box hotels. The project is being developed with high capital efficiency at an approximate cost of INR1.75 crores per key and is expected to generate strong ROCE.

Bengaluru continues to be a core demand market for us and is also one of the fastest-growing markets in India. Our phased development approach allows us to capture existing demand while scaling capacity in line with market absorption, which aligns with our capital efficiency framework. In Kaziranga, adding 111 keys remain on track. This will be the first luxury offering in that market and is being developed in an eco-sensitive manner, representing our eco-luxury

thesis, premium low-impact hospitality that integrates conservation, wildlife experience and community engagement.

In Guwahati, the process of getting approvals is underway. Construction is targeted to commence by quarter 2 of financial year '27 with 340 keys. Our planned hotel is designed to develop culturally rooted luxury, serving both business and long-stay experiential guests and vibrant event demand. This fits squarely with our strategy of establishing early leadership positions in emerging premium markets. Guwahati is steadily emerging as a gateway to Northeast, benefiting from improved air and surface connectivity.

Inauguration by Honourable Prime Minister of Terminal 2 at the existing Guwahati Airport in December 2025, with a designated capacity of 13.1 million passengers annually has been nearly doubling current throughput, thereby making Guwahati the largest aviation hub in Northeast India. Therefore, our developments in Kaziranga and Guwahati enable us to straddle the high growth potential of this market. While Guwahati will benefit as a hub, destinations such as Kaziranga will drive demand from experiential and eco-luxury space.

Beyond the projects currently underway, we continue to evaluate additional value-accretive opportunities. As previously shared, we have secured permission to add 314 keys at our existing flagship property, Grand Hyatt Mumbai. Given the relatively lower incremental cost, the property's strong average room rate performance, this expansion offers the potential to enhance return on capital. We will commence work on this latent opportunity at the right time.

We also hold 2 prime land parcels adjacent to Grand Hyatt Mumbai. We are carefully evaluating the optimal development strategy for this site to ensure effective monetization and long-term value creation in line with our disciplined approach to capital deployment. Juniper stands on a strong foundation with its core business exceptionally well positioned to capture both emerging and long-term growth opportunities in the sector.

We continue to evaluate our assets and product offerings with a clear objective that is to lead our competitive landscape. I will now hand over to Mr. Tarun Jaitly, our CFO, who will take you through the financial performance for this quarter. Thank you.

Thank you, Mr. Saraf. Good afternoon, everyone. I would like to now walk you through some of the key highlights of the quarter. As mentioned by Mr. Saraf, third quarter fiscal '26 has been indeed a record quarter for the company. We have achieved a revenue of INR300 crores, reflecting a 15% Y-o-Y growth. The key drivers, as mentioned by Mr. Saraf, remain a very healthy ARR growth and a 300-basis points improvement in room occupancy driven by Grand Hyatt.

Average portfolio ARR stood at INR12,818, while the average occupancy for the portfolio for the quarter was 78%. Our continued focus towards high-yielding customer segments, which are transient and groups have contributed to ARR growth of our portfolio, outpacing respective city segment concepts. ARR growth for Grand Hyatt has been 7% Y-o-Y, Andaz has grown by another 10% Y-o-Y consistently.

And Ahmedabad at 17% Y-o-Y growth in ARR is the star performer for the quarter. Grand Hyatt has been the key driver for occupancy during the quarter, as I said, with occupancies growing by 300 basis points on a year-on-year basis and the Grand Hyatt occupancy achieved in Q3 was 75%.

Across the portfolio, we continue to execute our focused strategy of exiting lower-yielding contracts and reallocating capacity towards higher ARR and more profitable customer segments, which are transients and groups and bridging the ARR comp set gap. We continue to invest into our strategy of offering an upgraded and fresher product experience to our customers.

Food and beverage revenues grew sharply by 25% year-on-year to INR94 crores in quarter 3, accounting for 32% of the revenue compared to 30% in Q3 fiscal '25. This aligns with our continued focus on increasing F&B mix given Hyatt's global strength is in F&B. Events segment, a 64% share of F&B in quarter 3 was a key contributor with a 39% Y-o-Y growth. the driver for event growth has been Grand Hyatt during the quarter.

Our standard annuity assets also performed consistently, contributing approximately INR42 crores during the quarter, equivalent to nearly 1.9x our finance cost for the quarter itself. This significantly derisks our future business plans and growth. Robust ARR growth and improving cost efficiencies have resulted in a healthy 31% year-on-growth in EBITDA to INR132 crores.

The margin for the quarter is 44%, which is a sharp 500 basis point improvement over the corresponding quarter. Importantly, for the 9-month period, Juniper has achieved an EBITDA of INR306 crores and EBITDA margin of 40%, something which we have been targeting to achieve and mentioned even in the last quarter call. On the cost front, we continue to benefit from higher flowthroughs of ARR, cluster-led cost efficiencies, which have reduced our consumables.

And led to increase in F&B departmental profits during the quarter, higher share of renewable energy in Andaz and Mumbai. And going forward, we are also looking at implementing that in Lucknow and Ahmedabad. And that will continue to support the HLP costs contraction for the company as we go forward as a percentage of revenue.

Finally, lower R&M costs during the quarter also supported operating margins. Profit before tax for the quarter increased to INR83.5 crores, which is a 92% year-on-year growth during the quarter. And we have prudently provided for the impact of Labor Code 2025 and its resultant impact on gratuity provision of INR6 crores during the quarter on a consolidated basis. The company continues to assess that, and we will see basis on the recommendation what is the final position that we take, but we have done a prudent provision in the current quarter.

The profit after tax for the quarter is INR65 crores, represents a 101% growth year-on-year. And the tax at INR18.1 crores is being set off against brought forward losses, and therefore, there is no cash flow impact of the same. For 9 months, Juniper achieved a PAT of INR91.2 crores, which is a 459% Y-o-Y growth. So, this has indeed been a very, very landmark quarter for the company.

On the balance sheet front, Juniper remains well capitalized. Net bank debt-to-EBITDA is 1.3 and the net bank debt stood at INR569 crores. Our average cost of borrowing stands at 8.3%.

And over the 9-month period, we have repaid INR30 crores of term loans and also repaid down INR88 crores of high-cost ECBs. Our cash position remains very healthy. We had, as of December 31, INR237 crores in cash & Deposits.

And on the growth front, which Mr. Saraf has already detailed earlier, we expect Bengaluru phase 1 opening in Q1 fiscal '27; Kaziranga project is on track, and we expect capex for that to start to accrue from fourth quarter of this fiscal year itself. Bengaluru phase 2 and Guwahati works are expected to commence by the first half of fiscal '27 with a potential 613 key additions by these 2 projects. Thank you. I now request the moderator to open the floor for question and answers.

We have the first question from the line of Prashant Biyani from Elara Capital.

Sir, how is fourth quarter turning out? And how has it been till date? And based on business on books, how do you see the entire quarter?

So, we continue to see firmness in the market. And we believe that the targets that we set out for the year for ourselves, I think we are pretty much on track to achieving them. So, we don't see any significant slowdown in any market that we at least operate in.

Sure. Sir, is there any opportunity for further expansion in Hyatt Regency Ahmedabad?

So of course, I think Q4, as you know, is the strongest quarter for the sector. And we believe that there are certain operational efficiencies which are there. And Ahmedabad has only performed as per the optimal performance that it is expected to in this current quarter. And going forward, not only Ahmedabad, we anticipate all the other assets and the larger flagships also to continue to maintain the optimal performance. No, I meant capacity expansion?

So, undercurrent in Ahmedabad market continues to be very, very strong, and it has been so for the past few quarters. We do not see any sign of any weakness in that. A few quarters ago, there were times when Ahmedabad had 98% occupancy despite the expanded rooms. In this current quarter, Ahmedabad is at 85% occupancy.

Sir, my question was, can we expand rooms further within Hyatt Regency Ahmedabad? Is there a room for that?

Sorry, I think we misunderstood your question. There is no further room for expansion or addition of rooms in Ahmedabad in the current context.

Okay. Sir, we will continue with Marriott for the Bangalore asset? Or what is the way forward?

See Bangalore, Marriott, we are in very detailed discussion with Marriott, and we will have something more to share in the future.

Okay. And sir, lastly, how much would be the hotel-wise occupancy for last year Q3? For this year, you have shared in the PPT for last year, if you can share, it would be great.

I mean we don't share the hotel-wise numbers, Prashant. But we do share the luxury and upper upscale segments, which is there in the presentation as well. If there are specific questions that you have, I'll be happy to answer that for you separately.

We have the next question from the line of Vaibhav M from Haitong Securities.

Congratulations on a very strong set of numbers. My first question was on our F&B performance.

We have delivered a very strong growth of 25% year-on-year. Can you share more color on this, how we have achieved a strong F&B growth, which has outpaced the overall room revenue growth as well for the quarter? That's my first question.

Right. So, as I said in my introduction comments, right, F&B has been a good performance in the current quarter, it's been driven by Grand Hyatt, where the F&B in Grand Hyatt has grown by roughly around 23-plus percent. So Grand Hyatt is a large contributor followed by Ahmedabad on the F&B side.

Just to add to that, this is the first full season that you're seeing the showroom being operational.

Last year, it was there. The market was understanding that. And this is something that we built about 18 months ago. And this Q3 and Q4 is where the real impact of the showroom will be visible, and that's what you're seeing the initial signs of.

Yes. And again, just to come back to your question, F&B is a traditional strength for Hyatt, and we've put that as a focus area for us in the last few quarters. And we are happy to see that is now playing out. And F&B as a percentage of revenue should normally trend to around 33%, 34%.

We are in the last quarter at around 31%. So, there is still room for growth there.

So, you think the growth is sustainable going forward in FY '27 for F&B? Yes, certainly.

All right, sir. My next question was on our Bangalore project. I think we have delayed the opening by 1 quarter. And earlier, we were targeting Q4 FY '26 opening. Now we have shifted it to Q1. Just wanted to understand why there has been a bit of delay over past quarters in operationalization of this asset. And secondly, what kind of EBITDA contribution do you expect from this asset in FY '27 and '28? And what would be the expected timeline for this asset to scale up to an optimum level?

So, there is no actual delay in the opening. Where we are today - hotel is undergoing the final phases. There will be a soft opening. The approvals need to come in place. The brand needs to

be finalized. And in Q1 of FY '27, the hotel will start generating revenues. And in terms of overall first year revenue, I will let Tarun sort of add on that.

Yes. Thank you, Varun. So just to add to what Varun said, if you remember, we've been sharing this with you that we want to optimize that important asset for us. It's a 500 key asset, and it's a big one. And we acquired it in a partly developed stage and the configuration of that asset is luxury plus segment, which is more fitting with our overall strategy, and we have been engaged with Marriott to give us a higher luxury flag than what it is right now.

And those discussions are the only reason where this little bit of time is taken, and we believe it is worth 1 or 2 months movement given that we are able to get a better flag for that asset. That's the only reason. Otherwise, from a readiness for completion of the project, there is no delay.

And yes, the approval is the only reason. Otherwise, there is really no delay in construction of that asset. So, we're just doing justice to what that asset deserves.

As far as the second bit of your question, again, I would refrain from really giving you specific projections, but I would say that in FY '27, we are looking at this asset contributing positively to EBITDA upwards of INR25-plus crores.

And for FY '28, sir, what would be the range?

In FY '28 on a stabilized basis, this asset should give you above INR50 crores, INR55 crores.

We have the next question from the line of Samarth Goel from Choice Institutional Equities.

Congratulations for the amazing results. So, my question was around the ROFO agreement. So, the ROFO agreements, what I understood are part of Saraf Group's promoter assets only. One is Hyatt Regency Chennai, which is in Robust Hotel, and one is Hyatt Regency Mumbai, which is in Asian East. So, despite this promoter linkage, what are the specific factors causing delay in the -- stretching the timelines on ROFO acquisition and consolidation of these assets in Juniper?

So, Samarth, the ROFO mechanism is a broad mechanism, not really linked to any specific assets, but I'll come to the specifics that you asked. We have already gotten in the past year, 2 companies, which is Chartered - it was sitting outside of Juniper, and then we also got in Kaziranga into Juniper to make Juniper as the flagship.

So that's point number one. With the name specific assets that you've spoken about, which are right now sitting outside of Juniper, these are all individually sitting in their own listed companies and they have their own compliances and other issues. As and when we have something tangible in that mechanism to share with investors, we would, in the most transparent manner, share the same with you at that time.

Okay. Any timeline or any next milestones which are a hurdle right now?

Yes, I would not wish to speculate on it, but I will as and when there is some credible development that happens, we will share that in a most transparent manner with the investors.

There is another question related to your participation in the CIRP of Gstaad Hotels, then JW Marriott in Bangalore. Could you share any current status of the resolution process? And is the bid Juniper's favor or is it dead?

So, we are one of the resolution applicants for the Gstaad resolution process, which is currently underway. It is being driven by the resolution professional managing that. We are in live discussions and engaged with the RP and COC. And I would not like to again speculate beyond that, but it is an asset that we are keenly looking at.

Okay. One last question - what is the ROCE you expect from the Bangalore assets when it is stabilized?

So, Samarth, that's a speculation. What I can say is that start today, again, from what I understand it, and I'm bound by confidentiality. So, on a public platform, I would refrain from giving any specific numbers on it. But from a publicly available information that is there with us, it's a INR100-plus crores EBITDA asset currently.

What it can do or what ROCE it will have is again a function of what value it comes in, if it at all comes in into Juniper, if we were to win the resolution process. So, there are a lot of steps between now and when the final decision of the RP is going to be done. When that happens, we will again share that with the investors.

Sorry, I mean the Bangalore asset we are currently coming up Marriott one

Okay, understood. So, for our Bangalore asset in phase I and phase II, the Phase I has got the cost of land also built in. But if you were to look at it on a holistic manner of 508 keys and all- in cost for development, this would generate 15% plus ROCE, so it will definitely be ROCE accretive for the balance sheet of Juniper.

There is one more question at this time. So, there are land parcels adjacent to Grand Hyatt Mumbai. And previously, we were creating a new Hyatt there, and then there were some talks of commercial leasing. And what is the final -- like is there any definite or final plan we see on those land parcels?

See, these 2 assets next to Grand Hyatt our priced possession, which do not get counted or reflected in our performance. But I can assure you that at this moment, we have engaged top- class consultants to advise us of how to exploit these opportunities, either in hospitality or otherwise. So, we still do not have a very clear decision we have not taken, but these are being actively pursued as we talk. We will share with you more information on them once we finalize the usage of them and the project cost entailing on that.

We have the next question from the line of Raghav Malik from Jefferies.

Congrats on a robust set of results. So firstly, just on the guidance that you gave of 9% to 10% sort of demand growth for the industry, where could we expect maybe the Mumbai market to be in that? How much lower or in line with that range would that be expected for us? Because for the industry actually because for us, I would say that Grand Hyatt and the super transformation

you've done has brought about that big jump in occupancy. But in general, for like demand growth for Mumbai, are you seeing it track where in that range, maybe, if you could elaborate?

So, the Bombay market remains extremely strong. With Fairmont opening up last year, the absorption has been very strong. We have not seen any occupancy dip. Occupancies remained steady, if not grown. Rates have grown further. So, we do not see any kind of weakness in the Bombay market. I think this is only going to continue. Again, supply is still limited. There's nothing that is being planned to come in.

Over the last 3 years, as I mentioned, one was the Fairmont, one was Aurika, all of them came.

Aurika wasn't even in the luxury segment. And as a growing city, I think the demand will continue to outstrip the supply, and we are well positioned to take advantage of that. Sorry, go head.

I was just saying that adding one more point, we have grown better than the comp set like we have for the past year in Mumbai. We've grown better than the comp set in ARRs. And going forward, we are embarking on those 2 strategies, right? We are pivoting to focusing on more on the high-paying segment. And plus, we are also bridging the gap on the ARR vis-a-vis the number 1 in the comp set. So, there is expectation that we will continue to do better from the comp set in Mumbai going forward as well.

Sure, sure. Understood. And just in terms of the occupancies, like a follow-up in terms of occupancies for Grand Hyatt now, would it be like at the normalized level? Or is there still scope to increase it with the rooms coming back to market to you guys?

Sorry, are you talking about Grand Hyatt Bombay?

Yes, Grand Hyatt Mumbai. So, you guys have renovated a bunch of rooms. So, is it now that everything is back to the market, like from the perspective of the rooms coming back, is there still scope to grow occupancy? Or will it now just be more in line with the market?

It's a 547-room asset, right? Occupancy does stabilize at 80% to 82%. So from that point of view, yes, there is some room for growth, but that's where it is. More if you're actually looking for upside, I think you have to look more from the rate point of view. I think the rates are still subdued.

If you're going to go see the overall city rate, I think it's still much higher than ours. So, I think that's where the top line and the EBITDA will come through. For any incremental increase in rate, at this level, I think almost 80% will go down to the bottom line. So, from that point, that's what you should be seeing.

We have the next question from the line of Abhay Khaitan from Axis Capital.

So, my question is on the EBITDA side. So, you've seen very strong growth and very sharp expansion in margins this year. We saw that in the previous quarter as well. While some of it can be attributed to the fact that there was renovation in the base year. But if you can help us in

breaking down that that how much of the renovation cost in the base and how much was because of other expense?

And within that also, in terms of employee cost also, we see that the total number of manpower has increased on a Y-o-Y basis. However, employee cost as a percentage of revenue has actually fallen. So, can you also explain that?

So, I'll take the second one first. I think we've added the manpower primarily to augment the project team because we have large projects that are currently underway, and that will contribute to growth.

Coming to your specific question, I think, of course, the rate of revenue growth is much higher than the rate of growth of the wages. And hence, there's a reduction on the percentage of revenue on the wage bill, and that is what is positive that despite the growth in headcount, we are still maintaining the overall wage cost as a percentage of revenue.

On the question on the expansion of margins, we've always said that for a company like ours, normative margins have to be in the region of 40%. And I think this quarter has enabled us to get back to that 40% normative performance. So, it is not something which is like a one-off. It is something which we needed to trend to a normative performance level, which we've done so.

As far as last corresponding quarter of the last year, there was element of one-time, which was roughly around INR3 crores of R&M. So, if you have to do that math, I mean, you can add that INR3 crores of R&M last quarter corresponding, which is not there in this particular quarter.

Okay. Got it. Very helpful. My second question is on the ARR growth that we have seen in this quarter for the luxury and the upper-upscale segment. So, on the luxury side, I understand Grand Hyatt has done slightly ahead of what the comps set has done. But again, is that something -- how much of that was driven by the fact that we had also renovations and, therefore, there will be some natural uplift from that? So how much did that contribute to the growth?

And secondly, even on the upper-upscale segment, 13% growth is a very strong number. So, can you highlight which cities are mostly correspond, which particular assets are contributing more towards this high growth?

Sure. So, for Grand Hyatt, that is something which also I mentioned in my comment that we are investing into assets to give a better product experience to the consumers. And it's not just limited to Grand Hyatt. Since you mentioned about Grand Hyatt, yes, I mean, the investment that we did in Grand Hyatt is enabling us to capture and focus more on the transient.

And the high-paying group segment and reduce our overall contract business, which is now in Grand Hyatt down to less than 6%. So that is one major contributor to the ARR improvement.

And I think, as Varun said, there is still a significant catch-up with respect to the comp set that is required and the room headroom is still there in Mumbai. Going to the second question on the upper upscale, the key contributor there is Ahmedabad, which has seen, as I said, 17% plus growth in ARR.

We have the next question from the line of Hitesh Arora from Abakkus.

I just wanted to get a sense of what is the capex we are looking to do in FY '27 and FY '28? Some estimate would be helpful, please.

Yes. So just give me a second, I'll give you the exact numbers. So, as I said, Kaziranga is the one which is getting under construction, and then we have Bengaluru itself, which will come in phase II. So, from FY '27, the capex that we are projected to do is roughly around INR274 crores.

And in FY '28, roughly INR525 crores. This covers the projects that we have disclosed, which is essentially Bengaluru phase 2, Kaziranga and also Guwahati.

And this capex, we should think we fund by via debt? Or do you think we need to raise more quickly?

Yes. From a source’s perspective, right, Hitesh, we are sitting on roughly INR200-plus crores of cash, and we are generating a gross cash of roughly around INR300 crores every year as we go forward. So, I think most of this will get funded through robust cash flows. And then on top of it, we also have significant headroom for debt if we were to take that decision because we are right now on net bank debt to EBITDA, we are just at 1.3.

We have the next question from the line of Lokesh Manik from Vallum Capital.

My compliments to the team for the execution of the strategies outlined in the past few quarters.

My first question was actually broader and more from a 3- to 5-year perspective. Arun, sir, where does Hyderabad sit in your entire strategy? That's the missing piece in the puzzle, do you think so? And any outlook on that would be great if you're planning any properties out there?

See, I will tell you, Hyderabad is definitely on our radar and it's on our priority list. And we did engage on certain assets, which I won’t be able to share with you on an open platform. And we will continue to look for ready build asset if there is any coming into the market or even greenfield or brownfield opportunity in Hyderabad. This is definitely on our radar screen number 1.

And any development on the properties towards Navi Mumbai side, the second new airport that's coming?

See, we continue to look at the new airport of Navi Mumbai, which is in the medium term really a good opportunity, and we are at this moment actively looking for opportunity in that vicinity.

Hope to hear some good news on those 2 fronts, sir, going ahead.

Absolutely, sir. If you have anything in your portfolio that somebody is trying to sell, please do approach us. Will do sir.

We have the next question from the line of Sourabh Gilda from JM Financial.

Congrats on a good set of numbers. Just wanted to get a sense on how January has panned out and what sort of visibility do we have for Feb, March for Q4.

So, as I said, we are seeing the basic variables continue to remain firm, and we are on track of achieving our guidance that we had set out for ourselves for the full FY '26. So, all the variables remain positive over the next 3 months. We will continue to show healthy growth Y-o-Y even in this quarter.

We have the next question from the line of Juhi from Arihant Capital.

Congratulations for the numbers. My question is that it was noted that the company has utilized brought forward losses, which acted as tax shield against the current profit. So how many more quarters do you expect this tax benefit to support your bottom line?

Yes. So, Juhi, we have today more than INR1,000 crores of tax shield. And given our growth trajectory and very high-performance levels that we anticipate the company to achieve over the next few years, it should hold good for zero tax status for at least the next 3 years.

We have the next question from the line of Varun from Samarth Capital.

In the last con call, you had mentioned that -- and given an update on the Hyatt Regency Mumbai that the construction is on track. Can you also update the status on the same?

Sorry, could you repeat that? I just lost you. I couldn't hear you clearly.

Yes. I was saying in the previous con call, sir, you had given an update that the Hyatt Regency Mumbai asset acquisition and construction is on track, and you would expect there's no change in the timelines as far as the operationalization of that asset is concerned. Can you share an update on the same? And also, from a ROFO asset perspective, we do understand that you have to clarify the timeline constraints around it, but is it broadly in line with the original timelines?

Well, as I said, Varun, I mean, from the perspective of Juniper today, when we have a credible update to share, we will be the first ones to share that on a very transparent basis. But you have to appreciate these are individually listed companies, and that is one of the key factors that I would want to defer the discussion to the time that we have something credible to share on those.

Got it. And overall, for the market as a whole, especially in Mumbai, how do you see the ARR trends over the next 3 to 4 years? How do you see the demand and supply trends shaping up?

And what do you expect that to result in, in terms of ARR growth?

So, the market will continue to remain very strong in Bombay in the next 3 to 5 years. As of now, if you go back in the market into the supply side is still going to be limited with 1, maybe 2 assets coming in the next 3 to 5 years. We believe the luxury segment will continue to perform well. And in terms of rate, I think there is probably still further upside on the rates as well.

If you see the luxury segment is anywhere about 15,000-odd as per the numbers, I think this 15,000 still has upside. If you see in dollar terms, it's probably still $150 comparing it to other

large cities in the region. So, there is still upside there. And I believe the demand will remain very, very strong, and there is good upside on the average rates as well going forward.

Got it. And one last question. You mentioned that you're also evaluating acquisitions and you've shared about Gstaad in Bangalore. From an acquisition perspective, is there multiples that we are okay with in terms of premium to replacement cost or we're looking for discount to replacement cost? Are there benchmarks that you have in mind for ROCE or multiples that you anchor yourself on as you think through acquisition and greenfield strategy?

Each asset has to be reviewed on its own merit. I will not be able to share what our thresholds are. But each and every opportunity will be evaluated. If it is value accretive for Juniper, we will acquire that. And our prudence and capital allocation strategy remains intact.

We have the next question from the line of Raghav Malik from Jefferies.

So, I just wanted to ask you about the Delhi property. So, for Andaz, given that there's this big AI Summit happening right now, is there like a very sharp jump that we can expect in ARRs?

And what kind of occupancy would it be tracking at currently, maybe for the next week or this week?

So, this is ongoing in Delhi, right, whether it's a large investor conference driven by Yashobhoomi or the AI or a foreign regulatory coming in, Delhi supply is also very limited if you actually want to look at it. Aerocity is what sitting at 85%, 88% occupancy around. There is leisure business coming into Delhi. So, Delhi remains extremely strong.

And it will continue to see global events happening on a regular basis. With the 2 large convention centres run by the government, the Bharat Mandapam and the Yashobhoomi, that will continue to drive. So, you will find this month-on-month an event happening, and there will be spikes and there will be a good trajectory. Sorry, go ahead.

Yes. And this is one of the reasons we are scouting for more properties in Delhi, both greenfield, brownfield, and we are actively looking at adding more properties in that micro market, as mentioned earlier, Navi Mumbai, Mumbai, Bangalore and Hyderabad.

Sure, sir. And for the Bangalore property, just on a maybe normalized peer set basis, like what is the average ARR that we can expect when normalized?

So given the market there and there are also current benchmarks for Marriott in that particular micro market, we believe this asset starting ARR could be north of INR14,000.

North of INR14,000. Okay. And sorry, if I can just squeeze one last question in. So, for prima facie, but for FY '29, there seems to be a very sharp increase in keys. So, is that a very fixed timeline even for those 500 unnamed keys so far in terms of the kind of jump in keys that we'll be seeing?

Yes. Sorry, Raghav, I'm just cutting you. We are aggressively working on the brownfield and greenfield acquisitions. We are not looking at adding a bunch of 50 key assets, right? I mean our

ethos is to focus on big box assets. That is what really makes sense for us. And I think even one asset potentially can fulfil that obligation.

And would it be right to assume that there could be like a debt increase in that particular year then, a sharp increase just to make up for that?

If we do decide and again, there are a lot of variables, as I said, our operating cash flows remain very strong. So, it is also a function of what other things we are doing. But let's say, hypothetically, if we keep the operating cash flow aside and if we were to leverage at that point in time, there would be a short spike in the leverage, but we would also even then make sure that we don't breach the prudent gearing EBITDA to debt ratio of 2.5x.

Ladies and gentlemen, in the interest of time, that was the last question for the day. I would now like to hand the conference over to the management for closing comments.

Thank you very much. I want to extend my sincere gratitude to all our stakeholders, all people who are present on this call, our shareholders, partners, our employees and, most importantly, our guests for their continued trust and support in Juniper Hotels. Together, we are navigating one of the most exciting phases of India's hospitality journey. Our vision remains clear to redefine luxury hospitality in India while creating enduring value for all our stakeholders. Thank you very much.

Thank you. On behalf of Juniper Hotels Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.