Brigade Hotel Ventures: Q2 FY26 Shines with Robust Growth and Strategic Expansion

Brigade Hotel Ventures Limited has reported a stellar performance for the second quarter of Fiscal Year 2026, showcasing significant growth across its key financial metrics. The company's total income surged by an impressive 20% year-on-year, reaching INR 130 crore. This robust top-line expansion translated into a substantial 58% year-on-year increase in Profit After Tax (PAT), which stood at INR 11 crore for the quarter. The management attributes this strong showing to a combination of robust operational performance and disciplined financial management, including lower finance costs.

The company's revenue streams demonstrated healthy contributions across its offerings. Room revenue accounted for the largest share, bringing in INR 79 crore, representing approximately 60.77% of the total income. Food and Beverage (F&B) services contributed INR 42 crore, or about 32.31%, while other income streams made up the remaining INR 8 crore, or 6.15%. This diversified revenue base underscores the company's ability to capitalize on various aspects of the hospitality sector. The continued focus on enhancing Average Room Rate (ARR) and driving higher Revenue Per Available Room (RevPAR) has yielded strong results, with ARR up 14% year-on-year to INR 7,106 and RevPAR up 13% year-on-year to INR 5,374, supported by a healthy occupancy of 75.6%.

Strategic Vision: Doubling Down on Growth

Brigade Hotel Ventures is not just resting on its laurels; it is actively pursuing an ambitious expansion strategy. The company has outlined plans for a total investment of approximately INR 3,600 crore to add 9 new hotels, which will contribute around 1,700 keys to its portfolio. This strategic move aims to double the company's total portfolio to 18 hotels and approximately 3,300 keys by FY30. The development pipeline is a healthy mix of luxury deluxe properties and upscale properties, catering to both leisure and business segments.

Key upcoming projects include the Courtyard by Marriott in Chennai, two Fairfield by Marriott hotels in Bangalore, the Grand Hyatt Chennai on ECR, and the Intercontinental Hotel in Hyderabad. The company is also developing a Ritz-Carlton Wellness Resort in Vaikom, Kerala, and JW Marriott in Chennai. This expansion is strategically aligned to strengthen the company's footprint in high-potential geographies and leverage robust brand partnerships.

Operational Excellence and Sustainability Initiatives

Beyond expansion, Brigade Hotel Ventures is deeply committed to operational excellence and sustainability. The company's efforts in cost control and productivity have yielded positive results, with utilities as a percentage of operating revenues standing at just 5.6% for Q2 FY26, a notable improvement from 7% in previous quarters. This efficiency, coupled with reduced interest costs following debt repayment from IPO proceeds, has positively impacted net profitability.

Sustainability is a core focus, with the company actively advancing the adoption of renewable energy, which currently accounts for close to 60% of its consumption. Eight out of nine operational hotels feature EV charging stations, and 20% of the transport fleet comprises EVs. Initiatives like green building certifications, waste water management, and rainwater harvesting underscore the company's commitment to environmental responsibility. These efforts contribute to a Net Promoter Score of 80%, reflecting high guest satisfaction.

Outlook and Future Trajectory

Looking ahead, Brigade Hotel Ventures anticipates the growth momentum to sustain in H2 FY26, driven by robust corporate demand, festival travel, longer leisure stays, and the wedding season. The management expects ARR growth in Bangalore hotels to remain in the mid-to-high teens and RevPAR to stay in the mid-teens for the upcoming quarters. The company's strategic clarity, sustained growth, and disciplined execution, backed by a strong pipeline and operational efficiencies, position it favorably for continued success in the dynamic Indian hospitality market.