01 — At a Glance
The Hotel Chain That Wanted To Rule India. Is Still Trying.
- 52-Week High / Low₹173 / ₹105
- Q3 FY26 Revenue₹188 Cr
- Q3 FY26 PAT₹25.0 Cr
- TTM EPS₹3.97
- Annualised EPS (Q3 × 4)₹4.64
- Book Value / Share₹61.2
- Price to Book1.77x
- 3-Year Revenue CAGR+35.5%
- Operating Margin (TTM)33%
- Hotel Portfolio~39 Hotels
Flash Summary: ASPHL just crossed ₹200 crore consolidated quarterly revenue for the first time ever. P/E at 27.2x is nearly double the hotel industry median of 27.7x — but wait, that’s actually higher. Occupancy at 93%, ARR growing at 11-14%, but ROE at a paltry 6.87%. The stock is down 30% in the last year. Flurys is bleeding money. Projects are delayed. But somehow, some investors still believe. Read on to find out if they’re genius or delusional.
02 — Introduction
When A Luxury Hotel Chain Decides To Become A Multiverse
Apeejay Surrendra Park Hotels Limited is a company that doesn’t know how to focus. Which isn’t necessarily bad if you’re actually good at everything. But when you’re operating 5-star hotels in Kolkata with world-beating occupancy, launching Flurys cafes in malls (that are losing money), acquiring heritage palaces in Punjab (also losing money), and planning greenfield mega-projects that cost more than some state budgets — well, let’s just say things get complicated.
The company was founded in 1987. It’s now 2026. In 39 years, ASPHL has built a portfolio of around 39 hotels with roughly 2,537 rooms. That’s an average of 1 hotel per year. But according to the Feb 2026 concall, they’re planning to add 20 more hotels with 1,000+ keys in the next 14 months. Either they’ve suddenly become incredibly efficient, or this is a case of “we promise everything and deliver half.” (Spoiler: it’s the second thing.)
The Q3 story is a mixed bag wrapped in luxury linens. Revenue crossed ₹200 crore for the first time. Occupancy is at 93%, which is genuinely impressive. ARR grew 11% YoY to about ₹8,070. But profit growth is decelerating, ROE is abysmal at 6.87%, and the company is burning cash on acquisitions while trying to pretend Flurys is a growth engine.
ICRA Rating Note (Sept 2025): [ICRA]A+ with Positive outlook, up from Stable. ICRA sees “favourable demand-supply situation” and the company’s “focus on capacity building and premiumisation.” Translation: the rating agency is optimistic, but they’re also saying leverage metrics need to stay tight. No margin for error here.
03 — Business Model: Running Hotels Badly, But With Style
Five Brands. Forty Locations. One Spreadsheet With A Lot Of Red Numbers.
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