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.
ASPHL operates across five hotel brands: The Park (luxury 5-star), The Park Collection (heritage/boutique), Zone by The Park (upper mid-scale), Zone Connect, and Stop By Zone. They also operate Flurys, a food & beverage retail brand born in 2019 that was supposed to be the next Barista. Spoiler: it’s not.
The company runs hotels across three models: owned (44% of keys), managed (43%), and leased (13%). This mix gives them capital flexibility but also exposure risk — when a state government decides not to pay its hotel bill because budgets are tight, guess who doesn’t get paid? You, the shareholder.
Room revenue is about 50% of total revenue. F&B is 43% (and growing, thanks to the bar and restaurant culture, especially in Kolkata). Flurys contributes another chunk, but it’s been a drag on profitability. The concall revealed that management is now talking about “profitability over growth” for Flurys — a phrase that usually means “this thing is bleeding money and we need to stop.”
Room Revenue49.5%of 9M FY26
F&B Revenue43.5%of 9M FY26
Portfolio Occupancy92%Q1 FY26
Flurys Outlets104as of latest
The Kolkata Secret: Park Kolkata is operating at 100% occupancy (management called it a “world benchmark”). It’s because the hotel has weaponized F&B — bars, nightclubs, DJs, fashion shows. They’ve literally turned the hotel into an entertainment destination where rooms are almost secondary. RevPAR is ₹7,061 in Kolkata vs market average of ₹6,000+. This is how you compete: don’t just offer rooms, offer an experience your competitors can’t replicate. (And hire better DJs.)
04 — Financials Overview: When Your Best Quarter Looks Weak
Q3 FY26: Revenue Crosses ₹200 Cr. Profit Says: “Eh, Not Great.”
Result type: Quarterly Results | Q3 FY26 EPS: ₹1.16 | Annualised EPS (Q3 × 4): ₹4.64 | TTM EPS: ₹3.97
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 188 | 172 | 159 | +9.30% | +18.2% |
| Operating Profit | 67 | 62 | 47 | +8.06% | +42.6% |
| Operating Margin % | 36% | 36% | 30% | Flat | +600 bps |
| PAT | 25.0 | 32.0 | 16.0 | -21.88% | +56.3% |
| EPS (₹) | 1.16 | 1.50 | 0.73 | -22.67% | +58.9% |
Translation in Hindi: Revenu badhya, parantu profit ghatla (Revenue increased, but profit fell). YoY, PAT declined 22%. Let’s call it what it is — the best quarter isn’t looking so great when your competition (Indian Hotels) grew PAT 20% in the same quarter. The problem? Tax rate jumped to 42%. Management claimed it was a “one-time impact,” but that’s what everyone says. Also, according to the concall, expenses have crept up due to acquisitions and greenfield projects. The operating margin held steady at 36%, which is respectable. But net margin is eroding. That’s a red flag.
💬 ASPHL’s Q3 revenue crossed ₹200 crore, occupancy is 93%, but PAT fell 22% YoY. Does management have a credible plan to improve profitability, or is this the beginning of margin compression as they chase growth? What do you think?
05 — Valuation: Are We Paying For Dreams Or Reality?
The Fair Value Math When Your ROE Is 6.87%
