Apeejay Surrendra Park Hotels Ltd

Check-in for Returns

1|Page (20th March 2025)

 TABLE OF CONTENTS

Summary 04

Valuation 05

Consensus vs Ventura Estimates 06

Peer Comparison & Scatter Plot 08

Financial Summary 10

SWOT Analysis 11

Company Overview & Investment Rationale 12

Annual report analysis 20

Business Quality Score 21

Key Management Personnel 22

Risk & Concerns 23

Quarterly Financials 24

Financial Statement Analysis & Projections 25

Disclaimer 26

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 Apeejay Surrendra Park Hotels Ltd

BUY @ CMP INR 152 Target: INR 204 in 24 months Upside Potential: 34.21%

Check-in for Returns

Business Model: Industry Hospitality
Apeejay Surrendra Park Hotels Ltd (ASPH) operates a diversified portfolio of upscale
hotels and resorts, offering premium lodging, dining, and leisure experiences for both Scrip Details
business and leisure travellers.
Face Value (INR) 1.0
In the rapidly evolving landscape of the Indian hospitality sector, Apeejay Surrendra Market Cap (INR Cr) 3,254
Park Hotels Ltd (ASPH) emerges as a beacon of innovation, luxury, and sustainable Price (INR) 152
growth. It is not only expanding its physical footprint but also deepening its impact No of Sh O/S (Cr) 21.3
in the realms of luxury, hospitality, and service excellence. The company is
undertaking significant capex to expand footprint from 36 properties to 61 properties 1M Avg Vol (000) 443.69
by FY30E. Flurys is a well-established business that significantly enhances overall 52W H/L (INR) 212/138
performance, driving strong margin improvements and achieving rapid top-line Dividend Yield (%) 0.00
growth. This growth trajectory and improved profitability contribute positively to the
company's stock value.
Shareholding (%) Dec 2024
From FY24 to FY27E, Revenue is forecasted to grow from INR 579 crore in FY24 to INR Promoter 68.14
831 crore in FY27E marking a CAGR of approximately 14.5%, at the subdue of:
Institution 15.31
• Hotels Business- INR 283.7 to 373.2 crores (keys increasing from 2,395 to 3,040)
• F&B Business- INR 243.2 to 321.0 crores Public 16.55
• Others- INR 52.1 to 136.5 crores (major growth due to FLURYS) TOTAL 100.0
with a significant increase in properties fueled by a capex of INR 550 crores over the
next three years. EBITDA is projected to rise from INR 192.5 crore in FY24 to INR 278.5
Price Chart
crore in FY27E, with a corresponding CAGR of about 14.1%. PAT is anticipated to
increase from INR 68.8 crore in FY24 to INR 129.8 crore in FY27E, achieving a
remarkable CAGR of 22.3%. ASPH Sensex

Historically centered around its flagship property in Kolkata, ASPH has strategically 250 100000
expanded its portfolio with new properties that replicate the distinguished 'Park' 90000
experience. This expansion has diversified its revenue sources, reducing dependency 200 80000
on a single location and enhancing financial stability. 70000
150 60000
Valuation Call: 50000
100 40000
We initiate coverage on the stock with a price target of INR 204 representing a 30000
potential upside of ~34% from the CMP of INR 152 over the next 24 months. 50 20000
Risk to our estimate: 10000
0 0
Delays in room additions, slower-than-expected revenue per available room (RevPAR)
Jun-24

Dec-24
Feb-24

Aug-24
Apr-24

Oct-24

Feb-25

growth, and underperforming Flury's operations pose risks to our financial

projections.
Key Financial Data:
Net Net EBITDA Net EPS BVPS RoE RoIC
EBITDA P/E EV/EBITDA
Revenue Profit (%) (%) (₹) (₹) (%) (%)

FY23 506.1 158.8 48.1 31.4 9.5 2.25 26.03 8.66 9.91 62.55 22.41

FY24 579.0 192.5 68.8 33.2 11.9 3.22 56.13 5.74 12.15 43.72 15.48

FY25E 626.3 203.8 100.1 32.5 16.0 4.69 60.83 7.71 10.32 30.05 14.51

FY26E 719.3 242.5 116.7 33.7 16.2 5.47 66.30 8.25 10.80 25.78 12.42

FY27E 830.7 278.5 129.8 33.5 15.6 6.09 72.38 8.41 11.31 23.17 10.81

Source: Company Reports & Ventura Research

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 ➢ Why ASPH?
Apeejay Surrendra Park Hotels Ltd (ASPH) is a distinguished leader in the upscale hospitality sector, delivering
an integrated suite of premium lodging, fine dining, and leisure experiences. Its robust operational
performance, strong brand equity, and agile responsiveness to evolving guest preferences have enabled ASPH
to secure a position of industry leader in occupancy and ARR.

Key Challenges faced by ASPH:

o Evolving Guest Expectations: Continuous shifts in consumer behavior require ongoing innovation and
customization of services to deliver exceptional, personalized experiences.

o Capital Investment for Modernization: Upgrading facilities with advanced technologies and upscale amenities
necessitates significant capital expenditure, presenting short-term financial challenges.

o Intense Competitive Landscape: ASPH faces pressure from global hotel chains and boutique establishments,
compelling the company to differentiate through superior service, pricing strategies, and brand positioning.

o Sustainability and Regulatory Pressures: Increasing environmental standards and regulatory demands
necessitate robust investments in sustainable practices and compliance measures across all operations.

Measures taken to address these challenges:

o Diversification & Revenue Enhancement: Expanding its revenue portfolio, ASPH has introduced bespoke local
experiences, luxury wellness retreats, and specialized event management services. This diversification strategy
reduces reliance on traditional room occupancy and drives resilient revenue streams.

o Strategic Collaborations & Loyalty Programs: By forging robust partnerships with leading travel agencies, online
booking platforms, and global loyalty networks, ASPH has expanded its market reach and reinforced customer
retention, thereby solidifying its competitive advantage.

o Operational and Cost Optimization: The ongoing initiatives in supply chain optimization, enhanced workforce
training, and rigorous cost-control measures. These operational improvements have contributed to higher margins
and greater cost efficiency across properties.

o Flurry Business Initiatives: The emphasis on ASPH’s agile “FLURYS” model is designed to capitalize on transient
high-demand periods. By implementing dynamic pricing, rapid-response event services, and flexible booking
solutions, the company has successfully boosted short-term revenue during peak periods.

These targeted initiatives, derived from the comprehensive insights in the annual report, not only address
ASPH’s immediate challenges but also position the company for sustained leadership and growth in the
hospitality sector.

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 DCF valuation methodology

We value ASPH at INR 204 (23.17X FY27E) per share based on our DCF methodology,
representing an upside of 34% from the CMP of INR 152 over the next 24 months.

Our Bull and Bear Case Scenarios

We have prepared likely Bull and Bear case scenarios for the FY27 price, based on revenue
growth and increased profitability in future.

• Bull Case: We have assumed revenue of INR 1000+ cr by FY27 and EBITDA margin of
37%, which will result in a “Bull case” price target of INR 244 per share (an upside of
74.29% from CMP).

• Bear Case: We have assumed revenue of ~ INR 750 Cr by FY27 and EBITDA margin of
28% which is 4-5% lower than average margin of past few years which will result in a
“Bear case” price target of INR 172 (an upside of 22.86%)

Bull & Bear Case Scenario

Revenue of INR 1000+cr in FY27E Bull Case Price

with an EBITDA Margin of 37%
INR 244 per share

Revenue of INR 831 cr in FY27E with Target Price

an EBITDA Margin of 33% INR 204 per share

Bear Case Price

Revenue of ~ INR 750 cr in FY27E with INR 172 per share
an EBITDA Margin of 28%

Current Price
INR 152 per share

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 Consensus vs Ventura Estimates

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 Valuation and comparable metrics of domestic and global companies

8|Page (20th March 2025)

 Revenue growth and margin expansion deserves re-rating in valuation

60

50
Flight Centre

40
FY27 ROIC (%)

Lemontree
30
SSP Group
Royal Orchids Indian Hotels Co. Ltd
20 EIH
Chalet
Samhi Hotel
BTG Hotel Melco
10
Juniper Apeejay Surrendra Park
Hotels
0
0 1 2 3 4 5 6 7 8 9 10 11
PEG

50

40
Royal Orchids
FY24-27 Revenue CAGR (%)

30

Samhi Hotel
20 Chalet
Apeejay Surrendra Park
Lemontree
Hotels
10 Indian Hotels Co. Ltd BTG Hotel EIH
Melco Juniper
Flight Centre
0
0 6 12 18 24 30 36 42 48 54 60

SSP Group
(10) FY27 EBITDA margin (%)

Bubble size represents the size of the companies’ revenue

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 ASPH’s Financial Summary

Source: ACE Equity, Company Reports & Ventura Research

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 ASPH SWOT Analysis in a nutshell

ASPH Ltd

Investment
Growth Drivers Key Challenges New Trends
Themes

It operates a wide range of With a focus on asset-light Projected revenue growth of

The hotel industry is highly
hotels across different market strategies and management 12-13% and improved profit
competitive, with numerous
segments, from luxury to contracts, ASPH can expand margins are anticipated to
domestic and international
economy, catering to various into new regional markets boost operating cash flows and
players vying for market share.
customer needs. without substantial capital FCFF.
expenditure.

With historic brands like Flurys Operating in the luxury The margin increases to 35% by
and established luxury segment involves high Investing in technology for FY27E, reflecting early gains
offerings, ASPH has a strong maintenance and service costs, personalized guest experiences from operational efficiencies
foothold in the hospitality which can impact overall and operational efficiency and cost management
industry. profitability. could enhance ASPH's strategies.
competitive edge.

High occupancy rates and a Keeping properties up-to-date

Flurys Segment to reach an
robust operational strategy and in top condition is essential
EBITDA of ~20% till FY27E with
ensure efficient hotel without disrupting guest
a steady Revenue CAGR growth
management and high experiences, especially in high-
of 30%.
customer satisfaction. occupancy periods

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 Apeejay Surrendra Park Hotels Ltd

The company operates a diversified portfolio of upscale hotels and resorts, offering
premium lodging, dining, and leisure experiences for both business and leisure travellers.

ASPH’s business structure

ASPH
FY24 revenue
INR 579 cr

Room Management Food & Flury

Revenue Fees Beverages Revenue
FY24 revenue FY24 revenue FY24 revenue FY24 revenue
INR 283.7 cr INR 11.6 cr INR 243.2 cr INR 39.6 cr

Earnings from Income from the

Income from hotel-based historic bakery
Revenue from
room sales in restaurants and and
operational
owned, leased, bars, enriched confectionery
agreements for
and managed by distinct brand, "FLURYS"
managing hotels
properties dining through its
experiences outlets

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 ➢ Significant Growth Drivers:

• Brand Recognition: ASPHL has reinforced its position as a leading hospitality player with a consistent focus on
quality service, unique experiences, and innovative offerings that attract a diverse clientele, including business
and leisure travelers.

• Premium Offerings: The company is strengthening its brand through initiatives such as bespoke services,
curated luxury experiences, and high-end amenities, making it a preferred choice for its target audience.

• Network Expansion: ASPHL has continued to broaden its portfolio with the addition of new properties and the
expansion of existing ones. They are focused on tapping into key markets both domestically and internationally,
enhancing their brand presence.

• Sustainability Initiatives: ASPHL has made significant strides in aligning its operations with sustainability
practices. The company is committed to reducing its carbon footprint through energy efficiency measures, water
conservation, and waste management initiatives.

• Digital Transformation: ASPHL is investing in digital solutions to enhance operational efficiency and customer
satisfaction. This includes upgrading property management systems, implementing AI-driven solutions, and
improving digital booking platforms.

• Guest Experience Enhancement: The company is increasingly incorporating technology to offer personalized
services and enhance guest experiences, such as through mobile apps, automated check-ins, and customized
offers based on guest preferences.

These growth drivers highlight ASPHL’s focus on operational excellence, market expansion, sustainability, and
technological innovation, ensuring continued success in the dynamic hospitality industry.

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 The company has charted a course of substantial
revenue growth through focused strategic
advancements and enhancements in service
quality spanning from FY24 to FY27E which
highlights the company's adept approach in
scaling operations and refining guest experiences
Consolidated Revenue Performance across all key segments:
Room rent Food & Beverages
• Room Rent:
Flurys Management fees The room rent segment demonstrates a promising
YoY Growth (%) escalation, with revenues expected to increase from
₹284 Cr in FY24 to ₹403 Cr in FY27E driven by rooms
1000 150 increasing from 2,395 to 3,040, achieving India's highest
occupancy rate of 91%, which highlights its dominant
800 100
position in premium hospitality
600 50
• Food & Beverages:
400 - Revenue in the Food & Beverages segment is projected
to climb from ₹243 Cr in FY24 to ₹346 Cr in FY27E. This
200 (50)
growth trajectory is fueled by the diversification of
0 (100) culinary offerings and a focus on elevating the dining
FY21 FY22 FY23 FY24 FY25E FY26E FY27E experience, which continues to position the brand at
the forefront of gastronomic excellence.

• Management Fees:
Consolidated Revenue Share Management fees are anticipated to increase from ₹12
Cr in FY24 to ₹20 Cr in FY27E, reflecting the company's
Room rent Management fees Food & Beverages Flurys
enhanced capabilities in managing a growing portfolio
of properties. The strategic timing of new offerings,
FY27E such as ‘Zone Connect by The Park’ in Prayagraj, aligned
FY26E with the Maha Kumbh 2025, has helped boost the
revenue from management fees, reinforcing the
FY25E
company’s expertise in upscale hospitality
FY24 management.
FY23
FY22 • Flurys:
Flurys has experienced significant growth, with revenue
FY21 projected to increase from ₹40 Cr in FY24 to ₹119 Cr in
0% 20% 40% 60% 80% 100% FY27E. This expansion is highlighted by the opening of
its 100 outlets with the launch of 23 new outlets across
various cities, signaling a robust growth trajectory,
offering scalability and resilience in its operations,
thereby increasing its contribution to the company's
overall profitability.
The strategic initiatives undertaken by Apeejay
Surrendra Park Hotels to boost its room rentals, dining
options, management services, and retail offerings
underline a well-rounded approach to achieving
sustained profitability and growth in the coming years.

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 • An overview of the portfolio of the Hotels Business:

Particulars Owned Managed Leased Total

Existing Hotels 7 23 6 36
Existing Keys 1,101 1,110 284 2,495
Upcoming Hotels 5 19 1 25
Upcoming Keys 830 1,666 57 2,553
Total Keys 1,943 2,818 348

Zone
The Park Zone by
Particulars The Park Connect by Total
Collection The Park
The Park
Existing Hotels 8 5 12 11 36
Existing Keys 1,221 104 689 481 2,495
Upcoming Hotels 6 0 11 8 25
Upcoming Keys 905 0 950 698 2,553
Total 2,140 109 1,662 1,198

Existing Keys
284
11%

1,101
Total 44%
2495
1,110
45%

Upcoming Keys
57
2%
830
33%
Total
2553
1,666
65%

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 Owned rooms Managed rooms
Leased rooms Room Rent (INR cr) Analyzing room portfolio and room revenue
3,500 500
trends:
3,000 • Between FY24 and FY27E, there is significant growth
400
2,500 across all room categories, with owned rooms
300 increasing from 1,101 to 1,181, while leased and
2,000
managed rooms growing from 244 to 504 and 1,050 to
1,500 200 1,355 respectively.
1,000
100 • Concurrently, revenue from room rents is projected to
500 rise from INR 284 crores in FY24 to INR 403 crores in
0 0 FY27E, indicating effective revenue management and
FY21 FY22 FY23 FY24 FY25E FY26E FY27E the potential impact of increased room capacity on
overall financial performance.

ARR (INR) RevPar Occupancy (in %)

Steady growth and strong demand: Analyzing
hospitality performance metrics from FY24 to 8,000 100
FY27E: 7,000
80
6,000
• Between FY24 and FY27E, the data highlights a positive
trajectory in both ARR and RevPar from INR 6,429 to 5,000 60
INR 7,162 and INR 5,921 to INR 6,492 respectively, 4,000
reflecting successful revenue management and an 3,000 40
ability to attract and retain guests.
2,000
20
• The stable, high occupancy rates of ~90% further 1,000
support strong market presence and operational 0 0
efficiency in meeting consumer demand. FY21 FY22 FY23 FY24 FY25E FY26E FY27E

F&B Revenue F&B Consumed Consumed

F&B as % of room revenue Material Cost to F&B revenue
Robust growth in F&B operations: A close
400 35
look at revenue and cost dynamics:
350 34
300 33 • From FY24 to FY27E, there is a notable growth in both
F&B revenue and associated costs, maintaining a
250 32 consistent material cost ratio which underscores
200 31 efficient cost control measures.
150 30
• The stable proportion of F&B revenue as a percentage
100 29 of room revenue during this period emphasizes the F&B
50 28 operations' strong integration and contribution to the
overall financial health of the business.
0 27
FY21 FY22 FY23 FY24 FY25E FY26E FY27E

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 • Flurys Business-
Flury's strategic expansion into the Indian confectionery market is underscored by its aggressive outlet
deployment plan, targeting the establishment of 120 outlets by the end of the fiscal year from the current count
of 100 outlets. This expansion is not only a testament to Flury's robust operational framework but also aligns
with its financial strategy, aiming for a rapid payback period of 2-3 years per outlet. The financial model is
designed to achieve breakeven within 6-8 months post-launch for each store, demonstrating a highly efficient
capital deployment that leverages Flury's brand equity and operational acumen to optimize market penetration
and profitability.

In line with this expansion strategy, Flury's plans to add approximately 50 stores annually, bolstering its presence
across major metropolitan areas. This growth initiative is supported by an asset-light business model that
enhances scalability and operational flexibility, allowing Flury's to adapt swiftly to regional market dynamics and
consumer preferences.

Flury's strategic shift toward prioritizing larger tea rooms and cafes over kiosks underscores a keen focus on
leveraging operational advantages inherent in bigger store formats. This decision is rooted in the realization
that larger venues not only promise higher volume transactions but also offer substantial operational leverage.
The expansive environments of tea rooms and cafes facilitate a more extensive menu and diversified service
offerings, which enhance customer dwell time and spending. By capitalizing on economies of scale, these larger
formats optimize overheads and resource allocation, resulting in improved profit margins and operational
efficiency. This strategic pivot not only aligns with Flury’s growth ambitions but also ensures that each outlet
maximizes its revenue potential while reinforcing the brand’s presence in premium market segments.

Existing Expected (in

Particulars
(FY 24) next 5 years)

Number of stores 100 300

Revenue (INR crores) 40 206
Revenue share 7-8% 12-13%
EBITDA Margins (in %) 18 21
New stores per year 15-20 45-50

Type of Stores
Particulars
Kiosks Tea Rooms Cafés
Capex per store (in INR) 20 Lakhs 40-50 Lakhs 1 crores
Current Revenue per store 45-50 Lakhs 2-3 crores 1-2
p.a (in INR) crores
Current stores 51% 10% 39%
Future new stores 20% 45% 35%

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 Conslidated Profitability
A glimpse into the future: Anticipated robust financial
growth and sustained profitability from FY24 to FY27E: EBITDA Net Profit
EBITDA Margin (%) Net Margin (%)
• The company's EBITDA is projected to grow from INR
193 Cr in FY24 to INR 297 Cr by FY27E (CAGR 15.5%), 400 40
with EBITDA margins remaining steady at 33% over the
period. 300 20

200 0
• Net profit is expected to rise from INR 69 Cr in FY24 to
INR 143 Cr by FY27E, achieving a strong CAGR of 27%, 100 (20)
driven by revenue growth, improving margins, and
0 (40)
better cost management.
FY21 FY22 FY23 FY24 FY25E FY26E FY27E
(100) (60)

Cost breakup analysis:

From FY24 to FY27E, despite substantial sales growth, the company effectively managed raw material and employee costs,
enhancing EBITDA margins. This strategic cost control in FY27E demonstrates improved operational efficiency, balancing
increased raw material expenses against significant cuts in other expenses.

FY24 FY27E
Increase Decrease Total Increase Decrease Total

700 1,000
900
600 (102)
(76) 800
500 700 (171)
(115)
400 600
500
300 579 (195) 889 (322)
400
200 300
200
100 193 294
100
0 0
Raw Material Cost Other Expenses Raw Material Other Expenses
Sales Employee Cost EBITDA Sales Cost Employee Cost EBITDA

Working Capital Working capital management trends FY24-FY27E

strategic insights into payables, receivables, and
Payable Days Inventory Days Receivable Days
inventory efficiency:
120
• Working capital efficiency remains stable from FY24
100 to FY27, with payable days holding at 31, inventory
days at 10, and receivable days at 21. This indicates
80
sustained cash flow management and strong
60 supplier relationships.
• Net working capital to sales is expected to remain at
40 flat from FY24 to FY27, reflecting a well-optimized
working capital cycle, ensuring efficient
20 management of payables, receivables, and inventory
to support operations smoothly.
0
FY21 FY22 FY23 FY24 FY25E FY26E FY27E

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 Strong cash flow to fuel growth and balance sheet health: Cash Flow Analysis
• Sustained Free Cash Flow Generation: Despite fluctuations,
CFO FCFF
FCFF is projected to recover from INR 51 Cr in FY24 to INR 66
Cr by FY27E, indicating improving capital efficiency and CFO to EBITDA (%) FCFF to Net Profit (%)
controlled investments.
300 500
• FCFF to Net Profit ratio stabilize at 46% by FY27E, reflecting 250 400
enhanced cash flow efficiency, while CFO to EBITDA remains 300
healthy at 90%, ensuring strong operating cash generation to 200 200
support strategic initiatives. 150 100
0
• Robust Operating Cashflow: CFO is forecasted to grow from 100
INR 168 Cr in FY24 to INR 266 Cr in FY27E, reinforcing the (100)
50 (200)
company’s financial flexibility for future growth, debt
management, and reinvestment in high-return opportunities. 0 (300)
FY21 FY22 FY23 FY24 FY25E FY26E FY27E

Net Debt Position Debt reduction strategy and improved cash flow
management
Total Debt Net Debt
• The company has maintained a flat deleveraged position from
Net Debt to Equity (X) Net Debt to EBITDA (X)
FY24 to FY27, with total debt stabilizing at INR 29 Cr and net
800 60.00 debt shifting from INR 29 Cr in FY24 to INR 26 Cr by FY27E.
The drastic fall is due to the debts being paid off from IPO
50.00
600 proceeds
40.00
400 • Financial leverage remains under control, with net debt-to-
30.00
equity improving from -0.02x in FY24 to 0.02x in FY27E,
200 20.00 ensuring a highly liquid and resilient balance sheet.
10.00
0 • Net debt-to-EBITDA remains minimal, improving from -0.15x
0.00 in FY24 to 0.09x in FY27E, reinforcing the company’s financial
FY21 FY22 FY23 FY24 FY25E FY26E FY27E
(200) (10.00) stability and efficient capital structure.

Return ratios – Strong revenue and improving profit

margins to enhance return ratios

• Strong revenue growth, improving profit margins, and lower

working capital requirements are expected to drive better Return Ratios
return ratios, enhancing overall efficiency.
Net Worth Invested Capital RoE (%) RoIC (%)
• With reduced debt and improved liquidity, reliance on
external capital (both debt and equity) is expected to decline, 2,000 15
ensuring a more self-sustained financial structure. 10
• Key profitability metrics are expected to remain stable, with 1,500 5
RoE improving from 6% in FY24 to 9% by FY27E, supported by 0
steady earnings growth and efficient capital allocation. RoIC is 1,000
projected to hold at 12% from FY24 to FY27, reflecting (5)
consistent capital efficiency and a sustained return on invested 500 (10)
capital. (15)
• The company's growing net worth, increasing from INR 1,198 0 (20)
Cr in FY24 to INR 1,574 Cr by FY27E, highlights its FY21 FY22 FY23 FY24 FY25E FY26E FY27E
strengthening financial position and long-term value creation.

Source: ACE Equity, Company Reports & Ventura Research

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 We analysed the FY24 annual report of Apeejay Surendra Park Hotels Ltd and our key
observations are as follows:

Key takeaways
• ASPHL maintained an industry-leading occupancy rate of 92%, demonstrating
strong demand for its hotel properties.
• The company operationalized 374 new rooms and inaugurated 8 new hotels,
expanding its presence and capacity across key markets.
• The Flurys brand continued to be a significant contributor, enhancing the group's
offerings in the F&B segment with high EBITDA margins and expanding its reach
with new outlets.
• Achieved a 14% reduction in electricity consumption as part of its commitment to
sustainable operations and responsible environmental practices.
• ASPHL operates a diversified business model with a mix of owned, leased, and
managed hotels, totaling 56 hotels and 4,780 keys planned for future
development.
• The company emphasizes its boutique luxury and upscale brands, maintaining
high standards of amenities and services that appeal to both business and leisure
travelers.
• ASPHL is set to expand significantly, planning to double its inventory and unveil
56 new hotels, enhancing its geographical footprint and market penetration.
• The company is integrating advanced technologies to enhance guest experiences,
including digital check-ins and AI-powered services, ensuring a competitive edge
in the hospitality industry.
• Actively involved in community service and social responsibility initiatives,
focusing on environmental sustainability and community welfare programs.
• Maintains stringent corporate governance standards and ethical practices,
ensuring transparency and accountability in all aspects of operations.

Board members
Name FY21 FY22 FY23 FY24
Chairperson & Whole- Chairperson & Whole- Chairperson & Whole- Chairperson & Whole-
Priya Paul
Time Director Time Director Time Director Time Director

Vijay Dewan Managing Director Managing Director Managing Director Managing Director

Chief Financial Officer Chief Financial Officer Chief Financial Officer Senior VP - Finance &
Atul Khosla
(CFO) (CFO) (CFO) CFO

CS & Compliance CS & Compliance CS & Compliance CS & Director,

Shalini Keshan
Officer Officer Officer Compliances

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 Ventura Business Quality Score
Key Criteria Score Risk Comments
Management &
Leadership
ASPHL is led by a forward-thinking leadership team that prioritizes
Management Quality 8 Low innovation, strategic differentiation, and service excellence to drive
growth.
Out of the 68.14% promoters holding no promoter shares are
Promoters Holding pledged, reflecting a stable commitment to the company's future
7 Low
Pledge while indicating some risk due to financial leverage.
The management team is highly seasoned, demonstrating a proven
Board of Directors Profile 8 Low ability to drive operational excellence and strategic growth
initiatives effectively.
Industry Consideration
The company is well-positioned to benefit from the robust
Industry Growth 8 Low expansion in global travel and tourism, particularly in luxury and
boutique hotel segments.
The company operates with minimal regulatory constraints,
Regulatory Environment offering flexibility and freedom to drive business continuity and
7 Low
or Risk growth in the hospitality sector.

Although the market for luxury hotels is highly competitive,

Entry Barriers / Apeejay Surrendra Park maintains a competitive edge through its
7 Medium
Competition distinctive brand and service excellence.
Business Prospects
Initiatives to explore new business partnerships and expand into
New Business / Client emerging markets like Southeast Asia show promise for enlarging
8 Low
Potential the client base.
The company's efforts to diversify into wellness retreats and event
Business Diversification 8 Low
hosting services aim to complement its core hotel business.
Possesses a strong presence in strategic urban locales, with
Market Share Potential 8 Low opportunities to increase market share by capitalizing on brand
loyalty and unique customer experiences.
Margin enhancement strategies focus on operational efficiency,
Margin Expansion premium service offerings, and leveraging technology for cost
7 Medium
Potential management.
Anticipated to show steady earnings growth through strategic
Earnings Growth 7 Low investments and careful market positioning despite some market
volatility.
Valuation and Risk
Robust balance sheet with significant assets, providing a solid
Balance Sheet Strength 8 Low foundation for future investments and resilience against economic
fluctuations.
The company’s strategic financial management has resulted in low
Debt Profile 9 Low debt levels without jeopardizing financial stability.
The hotel chain generates reliable free cash flow, underpinning its
FCF Generation 7 Low capacity for reinvestment and sustained business growth.
The company has no dividend payout as it prioritizes reinvesting
Dividend Policy 6 Medium profits into growth and new projects to strengthen its business.

Total Score 113 The overall risk profile of the company indicates financial stablity
Low company with a strong future in the hospitality industry, making it a
Ventura Score (%) 75.3 safe and promising investment.
Source: Company Reports & Ventura Research

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 Management Team

Source: Company Reports

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 Key Risks & Concerns
• Economic volatility, including fluctuations in GDP, inflation, and travel demand, can
significantly impact occupancy rates and profitability, while intensifying competition
from global brands, alternative accommodations, and aggressive pricing strategies puts
pressure on margins.

• Additionally, regulatory risks arising from evolving compliance requirements, licensing

complexities, and governance standards add to operational challenges, while supply
chain disruptions, staff shortages, and external shocks like pandemics further threaten
business continuity.

• Lastly, cybersecurity threats, outdated digital infrastructure, and negative online reviews
pose risks to brand reputation and customer trust, making technological advancements
and data protection crucial for long-term success.
• Increased competition from both global hotel brands and alternative accommodations
like Airbnb.
• Maintaining customer loyalty necessitates ongoing investment in service quality and
brand differentiation due to the high importance of these factors in the hospitality
industry.

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 ASPH’s quarterly and annual performance

Source: ACE Equity, Company Reports & Ventura Research

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 ASPH’s consolidated financials & projections

Source: ACE Equity, Company Reports & Ventura Research

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