1. At a Glance

Royal Orchid Hotels (ROHL) is that rare hotel chain which figured out you don’t need to own every brick to make money from it. With 112+ hotels, 6,603 keys, and presence in 75+ locations, they’re expanding faster than an airport security queue before boarding. Occupancy hovers at 70% for owned/leased/JV properties and 62% for managed ones, while ARR sits in the ₹5.5k range for premium properties. The FY26 opening act? Q1 revenue of ₹78.8 Cr, PAT up 25.5% YoY, and an expansion pipeline of 28 hotels with 2,400+ keys.

2. Introduction

Founded in 1986, ROHL has matured from a boutique hotel operator into a national player with brands across the price spectrum: fromRoyal Orchid (5-star)toRegenta Innfor budget travellers. The secret sauce? Anasset-light modelthat focuses on management contracts and “flexi leases” rather than sinking crores into concrete.

The company earns from:

• Room revenue(52.8% of total)
• F&B(37.1%) — because no one leaves without breakfast
• Other services(3.1%) — think banquets, spas, conferences
• Management fees(9.5%) — the “money for not owning the place” income

While business travel still dominates (54.7% of room revenue), leisure and “bleisure” segments are on the rise. And yes, they’re going to Nepal — proving Indian hotel brands can also cross borders without a Bollywood plot.

3. Business Model (WTF Do They Even Do?)

ROHL’s business is split into four operating types:

1. Owned– The classic “ours forever” model.
2. Leased– We run it, but someone else owns it.
3. Joint Ventures– A marriage of capital and operations.
4. Managed/Franchise– No capex, just collect management fees & royalties.

The pivot toasset-light growthmeans incremental hotels