Park Hotels, a leading name in India’s luxury boutique hotel sector owned by the Apeejay Surrendra Group, is aggressively expanding its footprint and revenue prospects in the upcoming fiscal year FY26. The Kolkata-based chain, known for its contemporary five-star boutique hotels, is targeting high-teens revenue growth driven by strategic capacity additions and acquisitions.

Expansion and Capacity Addition
The company plans to add approximately 250 new keys during FY26. A significant part of this expansion includes the recent acquisition of a 90% stake in Zillion Hotels and Resorts located in Juhu, Mumbai, for ₹209 crore. This property will be transformed into a glamorous boutique hotel featuring 80 rooms and a rooftop bar, with an expected launch by July next year. This Mumbai hotel alone is anticipated to contribute around ₹20–25 crore to EBITDA in FY27, reflecting its importance in the company’s growth blueprint.

The addition of these new keys builds on a strong track record in FY25, when Park Hotels added 194 keys, including the opening of two palace hotels — Ran Baas Palace in Patiala and a 15-room Lotus Palace Hotel in Chettinad, as well as a hotel in Prayagraj. Overall, the group now manages 35 hotels with approximately 2,500 keys across India.

Strong Financial and Operational Performance
In the January–March quarter of 2025 (Q4FY25), Park Hotels delivered impressive operational results. The company achieved revenues of ₹177 crore, a margin of 34.5%, and a net profit of ₹26 crore. Most notably, the group maintained a market-leading occupancy rate of 92%, the highest in India’s luxury hotel segment. Both Revenue per Available Room (RevPAR) and Average Room Rates (ARRs) increased by 13%, surpassing market expectations.

This robust performance reflects Park Hotels’ ability to maintain high occupancy levels and pricing power, even as market conditions evolve. Over the last decade, excluding the COVID-19 pandemic years, the company has consistently recorded occupancy rates above 90%, a trend it aims to sustain.

Optimistic Outlook for FY26
Looking ahead, Park Hotels is optimistic about sustaining its growth momentum. The company expects to benefit from favourable industry conditions that support double-digit ARR growth. This growth, combined with expansion efforts and margin improvement, is projected to deliver a 100 to 200 basis points increase in margins during FY26. The primary drivers of margin improvement will be higher ARRs, especially at the luxury palace hotels, and operational efficiencies gained from new property openings.

Despite a decline in the stock price over the last year (down 12%), Park Hotels’ market capitalisation stands at ₹3,377 crore, with shares trading at ₹157.63 as of the latest NSE data. The strong fundamentals and clear expansion strategy underpin the company’s confident outlook for the coming year.

Strategic Importance of Mumbai Acquisition
The acquisition of the Juhu property aligns with Park Hotels’ strategy to enhance its presence in key metropolitan markets. The transformation of this hotel into a trendy boutique property with a rooftop bar is expected to attract premium clientele and bolster profitability. The Mumbai market is a crucial segment for luxury hospitality, and this move will position Park Hotels strongly in one of India’s most competitive and lucrative markets.

Industry Position and Market Leadership
Park Hotels’ leadership in occupancy and revenue metrics underscores its brand strength and operational excellence. By consistently outperforming competitors in occupancy and ARR growth, the company has cemented its position as a preferred luxury hotel operator in India. The management’s focus on maintaining and growing these metrics through targeted expansion and asset enhancement is expected to sustain investor confidence and market share gains.

In summary, Park Hotels is poised for a significant growth phase in FY26, driven by strategic acquisitions, capacity additions, and strong operational performance. The focus on key metropolitan markets, including Mumbai, combined with an ongoing commitment to premium service and asset quality, positions the company for sustainable double-digit revenue and margin growth in the near term.

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