Apeejay Surrendra Park Hotels Ltd Management Discussions

Outlook

Global economic growth is projected to moderate to 3.0% in 2025 and edge up slightly to 3.1% in 2026, according to the IMFs World Economic Outlook (July 2025). This deceleration reflects the unwinding of front-loaded trade and investment activity seen in early 2025, ongoing uncertainty around global trade policy, and the gradual impact of elevated interest rates. Key drivers supporting growth include eased global financial conditions, a weaker US dollar, and fiscal expansion in major economies such as the US and China. However, downside risks remain prominen! including the potential for renewed tariff escalations, geopolitical tensions, and supply chain disruptions, all of which could weigh on global trade and investment.

In advanced economies, growth is forecast at 1.5% in 2025 and 1.6% in 2026, as tight monetary policies and subdued external demand continue to weigh on economic activity. In contrast, emerging markets and developing economies is projected to grow by 4.1% in 2025 and 4.0% in 2026, supported by stable commodity prices, resilient domestic consumption, and public investment, particularly in Asia and parts of Africa.

Global headline inflation is expected to decline to 4.2% in 2025 and further to 3.6% in 2026, marking a gradual return to price stability. The forecast reflects the continued easing of goods and energy prices, along with the impact of tight monetary policies implemented over the past two years. While inflation in the services sector remains somewhat elevated,

improving supply conditions and anchored inflation expectations are helping to reduce overall price pressures. The easing of inflation is also expected to support real income growth and consumer spending in many economies.

Indian Economy

Indias economy maintained strong momentum in FY 2024-25, recording GDP growth of 6.5%, supported by firm domestic demand, an expanding services sector, and increased public investment. Growth was broad-based, with manufacturing, services, and agriculture all contributing meaningfully. Rural consumption improved, urban spending accelerated, and private investment gathered pace. Capacity expansion across industries was aided by stable borrowing conditions and sustained infrastructure development by the government.

The services sector has remained the steadiest contributor to Gross Value Added (GVA), with its share rising from 50.6% in FY 2013-14 to around 55% in FY 2024-25. It also accounts for nearly 30% of total employment. In addition to its direct role, the sector is central to the growing servicification of manufacturing adding value through services integrated into both production and post-production processes.

Services are projected to grow by 7.3%, driven by the Financial, Real Estate and Professional Services sector at 7.2% and the Trade, Hotels, Transport, Communication and Broadcasting-related Services sector at 6.4%, according to the National Statistical Offices Second Advance Estimates. Agriculture is estimated to expand by 4.6%, while manufacturing is expected to grow by 4.3%.

Private consumption, accounting for 56.7% of GDP, rose by 7.6% during the year, recovering from the moderation of the previous year. Gross Fixed Capital Formation, at 33.4% of GDP, increased by 6.1%, reflecting sustained public capital expenditure and a gradual pickup in private investments. Also, exports grew by 7.1%, while imports dipped by 1.1%, indicating stabilising trade conditions.

As per the Department of Economic Affairs, inflation averaged 4.7% in FY 2024-25, down from 5.4% a year earlier, while core inflation eased to a four-year low of 3.5%, supported by subdued input costs and prudent monetary policy.

Labour market conditions improved, with the unemployment rate declining to 4.9% in FY 2023-24 from 5.0% in the previous year, while labour force participation held steady at around 59.6%, according to the Periodic Labour Force Survey.

Indias external fundamentals remained strong, with foreign exchange reserves at USD 645 billion as of early March 2025. The current account deficit stayed stable at 1.1% of GDP in Q3 FY 2024-25, compared with the same quarter of the previous year, though narrowing from 1.8% in Q2 FY 2024-25.

Outlook

Looking ahead to FY 2025-26, Indias GDP growth is projected to remain steady at 6.5%, supported by an expected revival in urban consumption boosted by recent tax cuts and sustained rural demand supported by strong agricultural production following another year of normal monsoon. Lower oil prices are expected to bolster corporate margins and fiscal stability, while improving real wages and moderating food inflation are likely to lift discretionary spending, particularly in sectors such as automobiles.

The broader economic outlook remains one of stability and strength, supported by firm domestic demand, easing inflation, buoyant capital markets, and rising exports. Key indicators such as record foreign exchange reserves, a manageable current account deficit, and growing foreign investment reflect increasing global confidence in Indias long-term growth potential. Together, these factors signal an economy advancing across sectors while maintaining macroeconomic discipline.

The Reserve Bank of India (RBI) is expected to maintain its disinflationary approach through calibrated liquidity and interest rate measures aimed at keeping inflation within the target range, while also facilitating capacity utilisation and encouraging private investment. However, weak global demand may continue to dampen export performance, posing a potential downside risk.

The RBI has revised its inflation forecast for FY 2025-26 to 3.7%, down from 4%. This outlook factors in softening commodity prices and improved food output, although risks linked to weather variability and global trade dynamics persist.

Indias services sector continued its strong growth path in 2025, reaffirming its central role in driving economic activity and employment. The HSBC India Composite PMI Output Index rose marginally from 61.0 in June 2025 to 61.1 in July 2025, marking the fastest pace of expansion since April 2024 and indicating continued strength in services activity. This expansion is expected to drive business travel, conferences, and corporate events, benefiting the hospitality sector, particularly hotels and restaurants, which are likely to witness higher occupancy and increased demand for services.

Industry Overview

Global Hospitality Industry

The global hospitality sector saw strong growth in 2024, with international tourist arrivals reaching an estimated 1.4 billion, marking an 11% increase over 2023, or 140 million additional visitors, according to the UN Tourism World Tourism Barometer. This recovery was driven by continued post-pandemic demand, solid performance from major source markets, and the ongoing rebound of destinations across Asia and the Pacific.

Regionally, the Middle East led global performance, with international arrivals in 2024 rising 32% above prepandemic (2019) levels, although just 1% higher than in 2023. Europe saw arrivals exceed 2019 levels by 1% and grew 5% over 2023, while Africa recorded a 7% rise over 2019 and 12% over 2023. The Americas recovered 97% of pre-pandemic volumes, while Asia and the Pacific reached 87% of 2019 levels. Sub-regions such as North Africa (+22%) and Central America (+17%) delivered the strongest growth compared to 2019.

Tourism spending also surged, with international tourism receipts estimated at USD 1.6 trillion in 2024, up 3% over 2023 and 4% above 2019 in real terms. Combined revenues from tourism, including passenger transport, reached a record USD 1.9 trillion, about 3% higher than pre-pandemic levels.

The Travel & Tourism sector contributed USD 10.9 trillion to global GDP in 2024, accounting for 10% of the global economy. Domestic visitor spending reached USD 5.3 trillion, growing 5.4% YoY, while international visitor spending rose 11.6% to USD 1.9 trillion, as reported by the World Travel & Tourism Council (WTTC).

Outlook

Against a backdrop of economic uncertainty, the Global Hospitality (Travel & Tourism) sector is expected to maintain strong growth in CY 2025 and beyond. According to WTTCs 2025 Economic Impact Research (EIR), international visitor spending is forecasted to reach USD 2.1 trillion in 2025, surpassing the previous high of USD 1.9 trillion in 2019 by USD 164 billion.

The sectors total contribution to global GDP is projected at a record USD 11.7 trillion in 2025, or 10.3% of global GDP. While the US market continues its recovery, international visitor spend remains below 2019 levels. China, despite surpassing pre-pandemic spending in 2024, is expected to experience slower growth in 2025. In contrast, Saudi Arabia is rapidly expanding, with plans to invest USD 800 billion into tourism by 2030. European destinations like France and Spain continue to lead with consistent visitor inflows and strategic investments.

By 2035, the global travel and tourism sector is forecast to support 30 billion tourist visits and contribute USD 16.5 trillion, or 11.5% of global GDP, with international spending expected to reach USD 2.9 trillion and domestic spending USD 7.7 trillion, growing at annual rates of 3.4% and 3.3%, respectively.

01 CORPORATE OVERVIEW

02 STATUTORY REPORTS 03 FINANCIALS A

ANNUAL REPORT 2024-25 53

Indian Hospitality Industry

In 2024, India witnessed a strong rebound in foreign arrivals, with Foreign Tourist Arrivals (FTAs) reaching ~9.70 million, up from 9.20 million in 2023. Foreign exchange earnings for January-February 2025 amounted to INR 27,736 crores (USD 3.28 billion), reflecting a robust 19.8% YoY growth. The top source markets as of October 2024 were the USA (19.2%), UK (13.8%), Canada (7.6%), Australia (4.6%), and Malaysia (3.7%).

In 2024, domestic travel continued to be a major growth engine for Indias tourism and hospitality sector, with domestic spending reaching INR 15.5 trillion, which is 22% higher than pre-pandemic levels in 2019, according to WTTCs latest Economic Impact Research (EIR). This momentum is expected to strengthen further in 2025, with spending projected to rise to INR 16.8 trillion, fuelled by a young population, rising disposable incomes, and a growing preference for local travel experiences.

Domestic tourists contributed nearly 84% of total visitor spending in 2024, highlighting their pivotal role in sustaining the sectors recovery and long-term growth.

Events like the Maha Kumbh 2025, one of the largest religious gatherings in the world, further reflect the scale and vibrancy of domestic tourism, with 660 million visitors in just 45 days.

Horwath HTLs India Hotel Market Review 2024 reports that about 14,400 rooms across 169 hotels were added in 2024, taking the total branded hotel room supply to nearly 2,00,000. Over two-thirds of these new rooms were in emerging destinations outside the top 10 markets, reflecting increasing depth and diversification in Indias hospitality sector.

Additionally, according to DGCA data, domestic airlines carried 1.40 crores passengers in February 2025, compared to 1.26 crores in the same month of the previous year, registering an annual growth of 11.16% and a monthly growth of 11.04%. This showcases the continued demand for travel within the country.

Indias Growth Journey

The hospitality sector has rebounded strongly, with occupancy rising from 43.1% in 2021 to 63.9% in 2024, nearly matching the 2019 level of 64.5%. ADR grew from INR 4,448 to INR 7,951 over the same period, surpassing the 2019 rate of INR 5,684. As a result, RevPAR more than doubled from INR 1,917 in 2021 to INR 5,078 in 2024, well above the pre-pandemic figure of INR 3,664. These gains highlight a solid recovery in demand, stronger pricing power, and improved revenue generation, surpassing the pre-pandemic figures and making 2024 the strongest year in the period.

Outlook

The Indian hospitality sector is set for steady growth, driven by strong domestic demand and the revival of international tourism. ICRA projects revenue growth of 7-9% in FY 2024-25, easing to 6-8% in FY 2025-26. Premium hotel occupancy is expected to rise from 70-72% in FY 2023-24 and FY 2024-25 to 72-74% in FY 2025-26, supported by leisure, MICE, and business travel.

Domestic tourism will remain the key growth driver, fuelled by rising incomes, a growing middle class, and higher discretionary spending. Indias travel market is projected to grow from USD 75 billion in 2020 to USD 125 billion by 2027, with the airline segment expected to double from ~USD 20 billion and the hotel market expanding from USD 32 billion to USD 52 billion, supported by stronger demand and the growing role of travel facilitators.

Foreign Tourist Arrivals are forecast to reach 30.5 million by 2028, generating over INR 5.12 lakhs crores (USD 59 billion). International hotel chains are projected to capture nearly 50% of the market, reflecting global interest. With a projected 20% CAGR over the next two decades, supported by government policy, improved infrastructure, and rising travel appetite, India is poised to become a global tourism powerhouse.

Indian Food Service Industry

The Indian food service sector continued its upward progression in 2024, reflecting a strong recovery post-pandemic and a surge in consumer demand across urban and semi-urban areas. According to the National Restaurant Association of India (NRAI), the industry was valued at USD 68.31 billion (INR 5.69 trillion) in FY 2023-24, making it one of the most significant contributors to the nations services sector. The food service industry, encompassing both organised and unorganised players including restaurants, cafes, cloud kitchens, and street food vendors, currently contributes about 1.9% to Indias GDP and plays a vital role in employment generation, especially in urban centres.

The growth in FY 2024-25 has been driven by rising disposable incomes, rapid urbanisation, evolving food preferences, and a growing culture of dining out and ordering in. The expansion of app-based food delivery services, innovations in cloud kitchens, and increasing investments in food retail infrastructure have further boosted the sectors performance. Additionally,

Tier-II and Tier-III cities have shown a sharp rise in food service penetration, reflecting a nationwide trend toward convenience, affordability, and variety in food choices.

Outlook

Looking ahead, the Indian food service industry is poised for strong, persistent growth. The market is projected to expand to USD 93.16 billion (INR 7.76 trillion) by FY 2027-28, growing at a compound annual growth rate (CAGR) of 8.1% over the next four years. This would position India as the third-largest food service market globally, according to NRAI.

This growth will be enabled by several factors: rising urbanisation, a younger demographic with evolving consumption habits, increasing digital adoption for food ordering, and the rise of health-conscious, experiential, and premium dining segments.

The organised segment comprising quick service restaurants (QSRs), casual dining restaurants, fine dining, and cafes is expected to witness the fastest growth, fuelled by franchise expansions and increased investor interest.

Moreover, with government initiatives to formalise and upskill the workforce, along with supportive regulatory frameworks and digital payment adoption, the sector is expected to become more structured and employment intensive. Innovation, localisation of global cuisines, and deeper penetration in non-metro cities will be the key drivers shaping the future of the Indian food service market.

ASPHL delivered a strong financial result in FY 2024-25. Consolidated total income grew 10.42% Y-o-y to INR 653.35 crores, driven by robust performance across the Companys diverse portfolio of brands and hotels. EBITDA increased by 10.32% to reach INR 226.42 crores, reflecting improved operational efficiency and cost management. EBITDA margin expanded to 34.7% from 34% in the previous year, indicating the Companys ability to translate revenue growth into improved profitability.

Results of Operations for the Year Ended March 31, 2025

Consolidated Financials

The following tables set forth the Companys consolidated financial information for the year ended March 31, 2025. Note: All amounts in INR crores, unless otherwise stated

Particulars	For the year ended 31/03/2025	For the year ended 31/03/2024	Particulars	For the year ended 31/03/2025	For the year ended 31/03/2024
I Income			Depreciation and amortisation	61.77	50.54
Revenue from contracts with	631.45	578.97	expense
customers			Other expenses	206.48	195.32
Other income	21.90	12.74	Total Expenses (II)	505.25	503.05
Total Income (I)	653.35	591.71	III Profit Before Tax (I - II)	148.11	88.66
II Expenses			IV Tax Expenses
Cost of food and beverages consumed	79.45	75.93	Current tax Deferred tax charge one time	26.32 IQ 77	13.80
(Increase)/ Decrease in Inventories of finished goods	(0.23)	(0.05)		19.33
			Deferred tax charge	18.86	6.09
Employee benefits expense	141.23	115.27	Total Tax Expense (IV)	64.51	19.89
Finance costs	16.54	66.04	V Profit for the Year (III - IV)	83.60	68.77

I Income

The summary of total income is provided in the table below:

Particulars	For the year ended 31/03/2025	For the year ended 31/03/2024	% Change
Room revenue	318.76	289.71	10.03
Food and beverage (excluding liquor and wine)	188.05	162.73	15.56
Liquor and wine	78.25	88.15	(11.23)
Other ancillary and allied service income	25.77	20.80	23.89
Other operating income	20.62	17.58	17.29
Revenue from contracts with customers	631.45	578.97	9.06
Other income	21.90	12.74	71.90
Total Income	653.35	591.71	10.42

Particulars	For the year ended 31/03/2025	For the year ended 31/03/2024
Average Rate Per Room	7,624	7,056
Revenue Per Available	7,061	6,475
Room
Occupancy %	93%	92%

1. Our Total Income: Total income increased by 10.42% to INR 653.35 crores for the year ended March 31, 2025 from INR 591.71 crores for the year ended March 31, 2024, due to an increase

in revenue from contracts with customers and other income.

2. Revenue from Contracts with Customers: Our

revenue from contracts with customers increased by 9.06% to INR 631.45 crores for the year ended March 31, 2025 from INR 578.97 crores for the year ended March 31, 2024, primarily due to an increase in our room revenue to INR 318.76 crores for the year ended March 31, 2025 from INR 289.71 crores for the year ended March 31, 2024, due to increase in ARR of owned hotels. ARR rose to INR 7,624 for the year ended March 31, 2025 from INR 7,056 for the year ended March 31, 2024; an increase in the sale of food and beverages to INR 188.05 crores for the year ended March 31, 2025 from INR 162.73 crores for the year ended March 31, 2024, primarily due to higher capacity utilisation across our portfolio of hotels; an increase in management fees earned to INR 15.38 crores for the year ended March 31, 2025 from INR 12.37 crores for the year ended March 31, 2024, primarily due to increase in capacity utilisation of our hotels.

II Expenses

The summary of total expenses it provided in the table below:

Particulars	For the year ended 31/03/2025	For the year ended 31/03/2024	% Change
Cost of food and beverages consumed	79.45	75.93	4.64
(Increase)/ Decrease in Inventories of finished goods	(0.23)	(0.05)	(360.00)
Employee benefits expense	141.23	115.27	22.52
Finance costs	16.54	66.04	(74.95)
Depreciation and amortisation expense	61.77	50.54	22.22
Other expenses	206.48	195.32	5.71
Total Expenses	505.25	503.05	0.44

1. Our Total Expenses: Total expenses increased by 0.44% to INR 505.25 crores for the year ended March 31, 2025 from INR 503.05 crores for the year ended March 31, 2024, primarily due to an increase in food & beverage consumed, employee benefits expenses and other expenses, and increase in depreciation and amortisation expenses.

2. Food and Beverages Consumed: Food and beverages consumed increased by 4.64% to

INR 79.45 crores for the year ended March 31, 2025 from INR 75.93 crores for the year ended March 31, 2024, in line with an increase in our sale of food and beverage. Food and beverages consumed as a percentage of total income for the year ended March 31, 2025 is 12.16%, whereas food and beverages consumed as a percentage of total income for the year ended March 31, 2024 was 12.83%.

3. Employee Benefits Expenses: Employee benefits expenses increased by 22.52% to INR 141.23 crores for the year ended March 31, 2025 from INR 115.27 crores for the year ended March 31, 2024. There was an increase in salaries, wages and bonus to INR 117.72 crores for the year ended March 31, 2025 due to increase in number of employees, salaries and annual increments, from INR 95.46 crores

for the year ended March 31, 2024; an increase in contribution to provident and other funds to INR 7.91 crores for the year ended March 31, 2025 from INR 6.55 crores for the year ended March 31, 2024; an increase in gratuity expenses to INR 3.02 crores for the year ended March 31, 2025 from INR 2.45 crores for the year ended March 31, 2024; and an increase in staff welfare expenses to INR 8.95 crores for the year ended March 31, 2025 from INR 7.76 crores for the year ended March 31, 2024; and an increase in employee stock option expenses to INR 3.64 crores for the year ended March 31, 2025 from INR 3.05 crores for the year ended March 31, 2024.

4. Finance Costs: Finance costs decreased by 74.95% from INR 66.04 crores for the year ended March 31, 2024 to INR 16.54 crores for the year ended March 31, 2025, primarily comprising an decrease in interest expenses on borrowings from banks and others to INR 6.14 crores for the year ended March 31, 2025 from INR 59.81 crores for the year ended March 31, 2024 in line with decrease in our average weighted indebtedness; an increase

in interest expenses on lease liabilities to INR 8.97 crores for the year ended March 31, 2025 from INR 5.62 crores for the year ended March 31, 2024; in line with an increase in our average weighted indebtedness relating to leases.

5. Depreciation and Amortisation Expenses:

Depreciation and amortisation expenses increased by 22.22% to INR 61.77 crores for the year ended March 31, 2025 from INR 50.54 crores for the year ended March 31, 2024, primarily comprising an increase in depreciation on right of use asset to INR 22.49 crores for the year ended March 31, 2025 from INR 13.73 crores for the year ended March 31, 2024; an increase in depreciation on property, plant and equipment to INR 37.10 crores for the year ended March 31, 2025 from INR 33.54 crores for the year ended March 31, 2024.

6. Other Expenses: Our other expenses increased by 5.71% to INR 206.48 crores for the year ended March 31, 2025 from INR 195.32 crores for the year ended March 31, 2024, primarily as a result of:

?€? An increase in power and fuel expenses by 9.40% to INR 43.51 crores for the year ended March 31, 2025 from INR 39.77 crores for the year ended

March 31, 2024 due to an increase in capacity utilisation, increase in the per unit cost of electricity and an increase in the price of fuel;

?€? An increase in outsourced contractual expenses by 21.91% to INR 19.70 crores for the year ended March 31, 2025 from INR 16.16 crores for the year ended March 31, 2024 due to increase in capacity utilisation, increase in the number of outlets in the confectionery business and opening of one of our leased hotel;

?€? An increase in commission by 4.34% to INR 31.48 crores for the year ended March 31, 2025 from INR 30.17 crores for the year ended March 31, 2024 in line with growth in businesses sourced through online channels for which the Company was required to pay commissions;

?€? An increase in security charges by 14.66% to

INR 4.85 crores for the year ended March 31, 2025 from INR 4.23 crores for the year ended March 31, 2024 due to increase in capacity utilisation.

III Profit Before Tax

Our profit before tax increased by 67.05% to INR 148.11

crores for the year ended March 31, 2025 from

INR 88.66 crores for the year ended March 31, 2024.

IV Tax Expenses

Our tax expenses increased by 224.33% to INR 64.51 crores for the year ended March 31, 2025 from INR 19.89 crores for the year ended March 31, 2024, primarily on account of an increase in current tax charge by 90.72% to INR 26.32 crores for the year ended March 31, 2025 from INR 13.80 crores for the year ended March 31, 2024 and an increase in deferred tax charge by 527.09% to INR 38.19 crores for the year ended March 31, 2025 from INR 6.09 crores for the year ended March 31, 2024.

V Profit for the Year

Our profit for the year ended March 31, 2025 was INR 83.60 crores, as compared to our profit for the year ended March 31, 2024 which was INR 68.77 crores.

(in INR crores)
Cash Flow	March 31, 2025	March 31, 2024
Net cash flows from operating activities	157.62	168.19
Net cash flows (used in) investing activities	(195.57)	(100.67)
Net cash flows from/ (used in) financing activities	4.17	(39.64)

Operating Activities

Net Cash generated form operating activities during the year was INR 157.62 crores as compared to INR 168.19 crores in the previous year. This is mainly attributable to an improvement in cash operating profit during the year after payment of taxes.

Investing Activities

During the year, Net Cash used from investing activities is INR 195.57 crores, as compared to INR 100.67 crores in the previous year. primarily as a result of the purchase of property, plant and equipment of INR 150.99 crores, and which were partially offset by interest income received of INR 3.29 crores, and proceeds from sale of property, plant and equipment of INR 0.47 crores for the period ended March 31, 2025.

Financing Activities

During the year, Net Cash used from financing activities of INR 4.17 crores, as compared to INR 39.64 crores used in the previous year, primarily as a result of the repayment of borrowings of INR 67.41 crores, payment of principal portion of lease liabilities of INR 13.93 crores and finance costs paid of INR 5.76 crores and payment of interest portion of lease liabilities of INR 8.52 crores, which were offset by proceeds from borrowings of INR 112.03 crores.

Standalone Financial Results

The following tables set forth the Companys standalone financial information for the year ended March 31, 2025.

Note: All amounts in INR crores, unless otherwise stated.

Particulars	For the year ended 31/03/2025	For the year ended 31/03/2024
I Income
Revenue from contracts with customers	605.33	555.29
Other income	25.34	13.00
Total Income (I)	630.67	568.29
II Expenses
Cost of food and beverages consumed	77.44	74.14
(Increase)/ Decrease in Inventories of finished goods	(0.23)	(0.05)
Employee benefits expense	137.78	112.65
Finance costs	15.11	65.41
Depreciation and amortisation expense	58.64	48.34
Other expenses	193.68	183.24
Total Expenses (II)	482.42	483.73
III Profit Before Tax (I - II)	148.25	84.56
IV Tax Expenses
Current tax	25.02	12.64
Deferred tax charge one time	19.33	-
Deferred tax charge	18.97	6.14
Total Tax Expense (IV)	63.32	18.78
V Profit for the Year (III - IV)	84.93	65.78

I Income

The summary of total income is provided in the table below:

Particulars	For the year ended 31/03/2025	For the year ended 31/03/2024	% Change
Room revenue	299.72	272.75	10
Food and beverage (excluding liquor and wine)	182.48	158.86	15
Liquor and wine	76.77	86.68	(11)
Other ancillary and allied service income	25.74	19.42	33
Other operating income	20.62	17.58	17
Revenue from contracts with customers	605.33	555.29	9
Other income	25.34	13.00	95
Total Income	630.67	568.29	11

1. Our Total Income: Total income increased by 11% to INR 630.67 crores for the year ended March 31, 2025 from INR 568.29 crores for the year ended March 31, 2024, due to an increase in revenue from contracts with customers and other income.

2. Revenue from Contracts with Customers: Our

revenue from contracts with customers increased by 9% to INR 605.33 crores for the year ended March 31, 2025 from INR 555.29 crores for the year ended March 31, 2024, primarily due to an increase in our room revenue to INR 299.72 crores for the year ended March 31, 2025 from INR 272.75 crores for the year ended March 31, 2024, due to increase in ARR of owned hotels. ARR rose to INR 7,624 for the year ended March 31, 2025 from INR 7,056 for the year ended March 31, 2024; an increase in the sale of food and beverages to INR 182.48 crores for the year ended March 31, 2025 from INR 158.86 crores for the year ended March 31, 2024, primarily due to higher capacity utilisation across our portfolio of hotels; an increase in management fees earned to INR 15.38 crores for the year ended March 31, 2025 from INR 12.37 crores for the year ended March 31, 2024, primarily due to increase in capacity utilisation of our hotels.

II Expenses

The summary of total expenses is provided in the table below:

	For the	For the
Particulars	year ended 31/03/2025	year ended 31/03/2024	% Change
Cost of food and beverages consumed	77.44	74.14	(4.45)
(Increase)/ Decrease in Inventories of finished goods	(0.23)	(0.05)	(360.00)
Employee benefits expense	137.78	112.65	(22.31)
Finance costs	15.11	65.41	76.90
Depreciation and amortisation expense	58.64	48.34	(21.31)
Other expenses	193.68	183.24	(5.70)
Total Expenses	482.42	483.73	0.27

1. Our Total Expenses: Total expenses decreased by 0.27% from INR 483.73 crores for the year ended March 31, 2024 to INR 482.42 crores for the year ended March 31, 2025, primarily due to an decrease in finance costs expenses.

2. Food and Beverages Consumed: Food and beverages consumed increased by 4.45% to

INR 77.44 crores for the year ended March 31, 2025 from INR 74.14 crores for the year ended March 31, 2024, in line with an increase in our sale of food and beverage from our hotels. Food and beverages consumed as a percentage of total income for the year ended March 31, 2025 is 12.28%, whereas food and beverages consumed as a percentage of total income for the year ended March 31, 2024 was 13.05%.

3. Employee Benefits Expenses: Employee benefits expenses increased by 22.31% to INR 137.78 crores for the year ended March 31, 2025 from INR 112.65 crores for the year ended March 31, 2024.

There was an increase in salaries, wages and bonus to INR 114.83 crores for the year ended March 31, 2025 due to increase in number of employees, salaries and annual increments, from INR 93.12 crores for the year ended March 31, 2024; an increase in contribution to provident and other funds to INR 7.65 crores for the year ended March 31, 2025 from INR 6.34 crores for the year ended March 31, 2024; an increase in gratuity expenses to INR 2.92 crores for the year ended March 31, 2025 from INR 2.40 crores for the year ended March 31, 2024; and an increase in staff welfare expenses to INR 8.75 crores for the year ended March 31, 2025 from INR 7.74 crores for the year ended March 31, 2024; and an increase in Employee stock option expenses to INR 3.64 crores for the year ended March 31, 2025 from INR 3.05 for the year ended March 31, 2024.

4. Finance Cost: Finance costs decreased by 76.90% from INR 65.41 for the year ended March 31, 2024 to INR 15.11 crores for the year ended March 31, 2025, primarily comprising an decrease in interest expenses on borrowings from banks and others from INR 59.69 crores for the year ended

March 31, 2024 to INR 5.22 crores for the year ended March 31, 2024 in line with decrease in our average weighted indebtedness; an increase in interest expenses on lease liabilities to INR 8.45 crores for the year ended March 31, 2025 from INR 5.11 crores for the year ended March 31,

2024; line with increase in our average weighted indebtedness relating to leases.

5. Depreciation and Amortisation Expenses:

Depreciation and amortisation expenses increased by 21.31% to INR 58.64 crores for the year ended March 31, 2025 from INR 48.34 crores for the year ended March 31, 2024, primarily comprising an increase in depreciation on right of use asset to INR 21.35 crores for the year ended March 31, 2025 from INR 12.84 crores for the year ended March 31, 2024.

6. Other Expenses: Our other expenses increased by 5.70% to INR 193.68 crores for the year ended March 31, 2025 from INR 183.24 crores for the year ended March 31, 2024, primarily as a result of:

?€? An increase in power and fuel expenses by 9.34% to INR 40.29 crores for the year ended March 31, 2025 from INR 36.85 crores for the year ended March 31, 2024 due to an increase in capacity utilisation, increase in the per unit cost of electricity and an increase in the price of fuel;

?€? An increase in outsourced contractual expenses by 23.18% to INR 19.61 crores for the year ended March 31, 2025 from INR 15.92 crores for the year ended March 31, 2024 due to increase in capacity utilisation, increase in the number of outlets in the confectionery business and opening of one of our leased hotel;

?€? An increase in commission by 4.65% to INR 29.24 crores for the year ended March 31, 2025 from INR 27.94 crores for the year ended March 31, 2024 in line with growth in businesses sourced through online channels for which the Company was required to pay commissions;

?€? An increase in security charges by 10.20% to

INR 4.32 crores for the year ended March 31, 2025 from INR 3.92 crores for the year ended March 31, 2024 due to increase in capacity utilisation.

III Profit Before Tax

Our profit before tax increased by 75.32% to INR 148.25 crores for the year ended March 31, 2025 from INR 84.56 crores for the year ended March 31, 2024.

IV Tax Expenses

Our tax expenses increased by 237.17% to INR 63.32 crores for the year ended March 31, 2025 from INR 18.78 crores for the year ended March 31, 2024, primarily on account of an increase in current tax charge by 97.94% to INR 25.02 crores for the year ended March 31, 2025 from INR 12.64 crores for the year ended March 31, 2024 and an increase in deferred tax charge by 523.78% to INR 38.30 crores for the year ended March 31, 2025 from INR 6.14 crores for the year ended March 31, 2024.

V Profit for the Year

Our profit for the year ended March 31, 2025 was INR 84.93 crores, as compared to our profit for the year ended March 31, 2024 which was INR 65.78 crores.

(in INR crores)

Cash Flow	March 31, 2025	March 31, 2024
Net cash flows from operating activities	151.81	161.92
Net cash flows (used in) investing activities	(184.87)	(102.65)
Net cash flows from/(used in) financing activities	5.78	(36.26)

Operating Activities

Net Cash generated from operating activities during the year was INR 151.81 crores as compared to INR 161.92 crores in the previous year. This is mainly attributable to an improvement in cash operating profit during the year after payment of taxes.

Investing Activities

During the year, Net Cash used in investing activities was INR 184.87 crores, as compared to INR 102.65 crores in the previous year, primarily as a result of the purchase of property, plant and equipment of INR 98.76 crores, loan granted to wholly owned subsidiary of INR 43.47 crores, investments in mutual funds of INR 52.55 crores and which were partially offset by interest income received of INR 3.29 crores, and proceeds from sale of property, plant and equipment of INR 0.47 crores for the period ended March 31, 2025.

Financing Activities

During the year, Net Cash from financing activities of INR 5.78 crores, as compared to INR 36.26 crores used in the previous year, primarily as a result of the repayment of borrowings of INR 66.08 crores, payment of principal portion of lease liabilities of INR 14.04 crores and finance costs paid of INR 4.95 crores and payment of interest portion of lease

liabilities of INR 8.45 crores, which were offset by proceeds from borrowings of INR 111.54 crores for the period ended March 31, 2024.

Key Financials Ratios for Standalone Financials

Particulars	For the year ended 31/03/2025	For the year ended 31/03/2024
Current ratio (in times)	1.42	0.95
Debt- Equity Ratio (in times)	0.06	0.03
Debt Service Coverage ratio (in times)	2.03	0.31
Net Capital Turnover Ratio (in times)	11.10	(12.65)
Trade Receivable Turnover Ratio (in days)	20	19
Inventory Turnover ratio*	NA	NA
Net Profit ratio (%)	13.47%	11.58%
Return on Capital Employed (%)	11.69%	12.09%
Return on Equity ratio (%)	6.99%	7.70%

*The Company has not presented inventory turnover ratio since it holds inventory for consumptions in the service of food and beverages and the proportion of such inventory is insignificant to total assets.

The definitions of ratios are given in Note 49 of the Notes to Standalone Financial Statements

Financial Highlights				(in INR crores)
Particulars	Standalone		Consolidated
	FY 2024-25	FY 2023-24	FY 2024-25	FY 2023-24
Total Income	630.67	568.29	653.35	591.71
Profit Before Tax	148.25	84.56	148.11	88.66
Profit After Tax, Non-Controlling Interest	84.93	65.78	83.60	68.77
Total Assets	1,642.47	1,454.29	1,671.43	1,476.80
Equity Share Capital	21.34	21.34	21.34	21.34
Other Equity	1,259.31	1,171.75	1,262.78	1,176.65
Non-Controlling Interest	-	-	(0.23)	(0.24)
Total Equity	1,280.65	1,193.09	1,283.89	1,197.75
Borrowings	72.14	30.71	73.20	32.33
Net Debt/Net Cash	(52.14)	23.16	(51.77)	29.45
Book Value per Share of H1/- each (in INR)	60.01	55.91	60.16	56.13
Earning Per Share-Basic and Diluted (in INR)	3.98	3.65	3.92	3.82

Business Review

FY 2024-25 was a standout year for ASPHL, marked by growth, progress and success across our hospitality and F&B businesses. We closed the year with 35 operational hotels and a total of 2,394 keys, of which 194 keys were launched during the year, under our five distinct hospitality brands: The Park, The Park Collection, Zone by The Park, Zone Connect and Stop by Zone.

We added two new hotels during the year - The Lotus Palace, Chettinad and Ran Baas - The Palace, Patiala - both under The Park Collection brand. These launches marked our entry into the heritage luxury segment.

The Lotus Palace recorded an ARR of INR 14,699, while Ran Baas achieved an ARR of INR 24,000 with 42% occupancy in Q4 FY 2024-25.

Across our hotel portfolio, we retained our leadership in occupancy at 93% (Indias highest), ARR of INR 7,624 and RevPAR of INR 7,061. Flagship properties in Kolkata recorded 100% occupancy, while Navi Mumbai and Chennai achieved 95% and 93%, respectively. Hotels in New Delhi, Hyderabad, and Bangalore also reported a strong occupancy of around 91%. Overall, ARR and RevPAR increased by 8% and 9% YoY, respectively.

Zone by The Park and Zone Connect continued to expand our reach in the upper midscale and midscale segments. These brands contributed meaningfully to portfolio growth and brand visibility. Stop by Zone, our smart stay concept, remains a strategic addition, expanding our presence along transit routes and highways.

Operational Hotels
Brands	Hotels	Keys
THE Park Hotels	8	1,221
THE Park Collection	5	114
Zone by The Park	10	539
Zone Connect by The Park	12	520
Total	35	2,394
Ownership	Hotels	Keys
Owned	7	1,101
Managed	22	999
Leased	6	294
Total	35	2,394
Under Development Hotels
Brands	Hotels	Keys
THE Park Hotels	7	1,130
THE Park Collection	3	105
Zone by The Park	14	1,136
Zone Connect by The Park	7	638
Total	31	3,009
Ownership	Hotels	Keys
Owned	7	850
Managed	23	1,989
Leased	1	9
Total	31	3,009

We also made significant progress in the food and beverage space. Our F&B vertical, led by Flurys, now

contributes 41% of total revenue, recording INR 266 crores during the year. Flurys crossed the 100-outlet milestone, ending the year with 103 stores across cities like Mumbai, Kolkata, Hyderabad, Indore, Bhubaneswar, and Siliguri. We added 25 new outlets during the year. The brand continues to perform well across cafe, kiosk, and retail formats.

State	Operational Outlets (restaurant, cafe, kiosk)
West Bengal	77
New Delhi & NCR	1
Telangana (Hyderabad)	2
Maharashtra	16
Odisha	2
Madhya Pradesh	2
Total	100
Formats	Presence
Cafe	39
Restaurant	10
Kiosk	51
Total	100

In addition to Flurys, our signature restaurants and bars across hotel properties recorded healthy footfalls and strong guest engagement. We relaunched four F&B venues during the year and undertook targeted renovations across nearly 100 rooms to improve guest satisfaction and drive ARR uplift.

FY 2024-25 reflected strong execution, differentiated offerings, and sustained brand strength across segments. Our diversified portfolio, operational rigour, and service quality enabled consistent performance across markets.

Strategy

We are pursuing a focused growth strategy that capitalises on opportunities in Indias expanding hospitality sector. A key pillar of this strategy is the development of our existing land bank to build new hotels and serviced apartments. By leveraging our early investments in land and cost-effective construction, we aim to boost revenue and occupancy while maintaining profitability.

We are also scaling up through an asset-light model by increasing managed and leased hotel partnerships, particularly in the upper midscale space. This ensures capital-efficient growth.

Brand development is another core priority.

We are continuously investing in renovating existing properties, creating new offerings across categories, and elevating our dining experiences with distinctive bar and restaurant concepts.

Operationally, we are driving efficiencies through technology upgrades, cost optimisation, and strong supplier partnerships. We are also expanding our iconic Flurys brand across retail and digital channels, tapping into new regions and formats to strengthen our presence in the F&B space.

Digital and Marketing

We have built a strong digital and technology backbone to support operations and deliver seamless guest experiences. From international platforms like Oracle MICROS, Simphony, and Opera PMS to a centralised reservation and guest management system, our IT infrastructure is designed for efficiency and security.

We continue to evolve with innovations such as contactless check-in/out, QR-based ordering and payments, and Al-enabled concierge services. Our move to a private cloud environment is set to further enhance scalability and performance.

Our marketing is driven by an integrated sales and digital strategy, backed by active engagement on platforms like Facebook and Instagram. We create high-impact campaigns tailored to audience preferences and supported by data-led insights. Influencer tie-ups, design-led collaborations, and targeted offers help us connect meaningfully with our guests. Our loyalty programme, THE Park Preferred, encourages strong guest relationships and drives repeat visits, with a significant portion of our guests choosing to return across our portfolio.

Social and People Initiatives

We are deeply engaged with the communities around us, shaping our outreach through a blend of compassion, creativity, and sustainability.

We supported youth mentoring programmes, worked with underprivileged children and senior citizens, and conducted awareness drives around health, safety, and disaster preparedness. Blood donation camps, training sessions for the National Disaster Response Force, and community safety initiatives reinforced our social commitment.

Our focus on gender equity found expression through POSH awareness sessions, breast cancer talks, and inclusive celebrations that recognised the role of women across our ecosystem. Creativity and culture were nurtured through diversity-themed art competitions and environmental poster-making drives.

Sustainability continued to guide our actions, from rainwater harvesting and waste management to EV adoption and clean-up efforts under Swachh Bharat and Earth Day campaigns. Through learning initiatives, including leadership development and industry-led knowledge sessions, we invested in our people, building capabilities for a brighter, more inclusive future.

Corporate Governance

ASPHL has a well-structured Board of Directors consisting of six members: two Executive Directors, one Non-executive Director, and three Independent Directors, including one woman Independent Director. This composition provides a balanced blend of expertise and independence. To ensure effective oversight and regulatory compliance, the Company has constituted four key Board committees: the Audit and Risk Management Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Corporate Social Responsibility Committee. These committees focus on critical areas such as financial governance, executive remuneration, shareholder engagement, and social responsibility.

Logistics

Logistics are crucial to our operations, particularly in managing the supply chain for key ingredients in our F&B offerings. We depend on a steady supply of high-quality ingredients, sourced daily or weekly from suppliers. Our logistics face challenges such as shortages, price fluctuations driven by climate, seasonality, exchange rates, and import tariffs, along with the need to maintain strict quality standards. Efficient logistics ensure timely delivery and proper handling of perishables, as delays or mishandling can affect food quality, reputation, and customer satisfaction. We also work with delivery aggregators who manage technology integration and logistics for our off-premise dining, further highlighting the importance of a well-managed logistics system.

Risk Management

ASPHL has put in place a comprehensive risk management framework to identify, evaluate, and mitigate operational, strategic, and external risks that could impact its core business objectives.

We ensure compliance with legal requirements through regular reviews of operations, with a strong focus on workplace safety. The Board has established an Audit and Risk Management Committee to oversee key risks and guide mitigation efforts. Both the Board and the Committee regularly review and update the risk management framework to ensure its effectiveness.

Audit and Risk Management Committee

The Audit and Risk Management Committee is vital in upholding corporate governance by overseeing financial reporting, risk management, and internal controls. It is authorised to investigate matters within its purview, seek information from associates, obtain external professional advice, and involve relevant experts as needed. Its key responsibilities include reviewing and evaluating the Companys risk management system, formulating and implementing risk management policies, and assessing potential risks associated with new business ventures.

Risk Mitigation

Risk Categories	Risks	Risk Descriptions	Mitigation Strategies
Business Risks	Construction Delays	Delays in new hotel construction or expansion of existing properties can have an impact on our business, financial performance, and cash flows. These delays can lead to increased construction costs, extended timelines, and reduced revenue streams, ultimately impacting our ability to achieve growth and profitability.	\u2022 Comprehensive project planning and scheduling \u2022 Regular progress monitoring \u2022 Engage experienced professionals \u2022 Regular communication and collaboration \u2022 Robust contract management
Risk Categories	Risks	Risk Descriptions	Mitigation Strategies
Business Risks	Seasonality	The hospitality industry is inherently seasonal, with fluctuations in revenue, profit margins, and earnings largely driven by changes in demand during different periods of the year. Our business is heavily reliant on peak travel seasons, which can result in variations in cash flow and profitability. During slower periods, we may need to rely on alternative revenue streams or adjust our operations to maintain profitability, which can be challenging.	\u2022 Diversified revenue stream \u2022 Dynamic pricing \u2022 Loyalty programme \u2022 Effective marketing programme
	Changes in Travel Preferences	The shift towards remote work and virtual meetings may lead to a decline in demand for traditional hotel rooms, as companies reduce their travel expenditures and associates opt for virtual conferencing alternatives. Additionally, changes in corporate travel policies or increased use of budget-friendly accommodations could further erode demand for our premium hotel offerings.	\u2022 Personalised guest experiences \u2022 Partnership and collaboration \u2022 Regular market research and trend analysis \u2022 Revenue management and loyalty programmes \u2022 Diversified market segments
	Brand and Marketing	Inadequate brand promotion and marketing efforts can lead to a decline in customer loyalty and market share. If we fail to effectively promote our brands and implement targeted marketing strategies, we may struggle to attract new customers and retain existing ones. This could result in reduced occupancy rates, lower average daily rates, and decreased revenue.	\u2022 Consistent brand messaging \u2022 Reputation management \u2022 Market diversification
Risk Categories	Risks	Risk Descriptions	Mitigation Strategies
Regulatory Risks	Intellectual Property (IP) Protection	Our brand is our most valuable asset, and any unauthorised use or misappropriation of our intellectual property could lead to reputational damage, loss of market share, and even legal action. Moreover, the loss of unique selling points or distinctive features of our brand can result in a loss of competitive advantage and reduced customer loyalty.	\u2022 Monitor and enforce IP rights \u2022 Legal protection \u2022 Strategic partnership and licensing
Operational	Quality	Quality control issues can arise	\u2022 Regular staff training
Risks	Control Issues	from various factors, including inadequate staff training, inefficient processes, or poor maintenance of facilities. If left unchecked, these issues can spread quickly and have a significant impact on our business performance.	\u2022 Standard operating procedures \u2022 Implement robust guest feedback systems
	Safety and	Various threats, including natural	\u2022 Staff training on
	Security	disasters such as hurricanes or earthquakes, accidents such as fires or slips and falls, or even criminal activity such as theft or violence, may impact the guest experience and lead to reputational damage. In addition, the rise of cybercrime and data breaches also poses a risk to our operations.	emergency protocols \u2022 Adequate surveillance systems \u2022 Guest verification procedures \u2022 Collaboration with local authorities
	Third-party Service provider risk	Our reliance on third-party service providers may lead to quality control issues, reputational damage, and even legal action, if they fail to meet required standards. These providers may include contractors for maintenance, cleaning services, or food and beverage suppliers.	\u2022 Thorough vendor vetting \u2022 Clear contractual agreements \u2022 Strong communication channels
Risk Categories	Risks	Risk Descriptions	Mitigation Strategies
External risks	Market	New entrants, existing	\u2022 Differentiation
	Competition	competitors, or changes in	through unique
		consumer preferences may erode our market share, pricing power, and brand reputation. As the hospitality industry is highly competitive, there is a constant risk that other hotels, resorts, or vacation rental platforms may offer similar or better services at competitive prices, leading to a loss of customer loyalty and revenue.	offerings \u2022 Enhanced customer experience \u2022 Dynamic pricing strategies \u2022 Invest in technology
	Economic Conditions	The uncertainty surrounding global economic trends, trade policies, and financial market fluctuations can impact our business performance. Macroeconomic factors such as recession, inflation, currency fluctuations, and changes in consumer spending habits can affect demand for travel and leisure activities, leading to reduced occupancy rates, lower average daily rates, and decreased revenue.	\u2022 Awareness and scanning of the environment \u2022 Diversification of top-line and building a resilient balance sheet

Internal Control Systems and their Adequacy

ASPHLs internal systems and controls play a crucial role in ensuring operational efficiency, financial accuracy, and regulatory compliance. These systems encompass a wide range of processes, including financial reporting, risk management, data security, and operational procedures. The adequacy of these internal systems is regularly assessed through internal audits and management reviews to identify any weaknesses or areas for improvement. A robust internal control framework helps safeguard assets, detect and prevent fraud, and ensure the reliability of financial and operational information. The Board of Directors, particularly through the Audit and Risk Management Committee, oversees the adequacy and effectiveness of these internal systems, ensuring they evolve with the changing business environment and regulatory landscape. Maintaining strong and adequate internal systems is essential for sustainable business growth, stakeholder confidence, and corporate governance.