Best Eastern Hotels Ltd Management Discussions

Industry Structure, Developments and Outlook

The hospitality and tourism industry continued its strong growth trajectory in FY 2025 26, building on the post pandemic recovery. Rising domestic and international travel demand, coupled with sustained government initiatives in infrastructure development, visa relaxations, and tourism promotion campaigns, have further strengthened the sector.

Luxury and premium hotel chains reported double digit revenue growth, with occupancy rates consistently exceeding pre pandemic levels. Budget and mid scale hotels continued to see higher demand, particularly in tier 2 and tier 3 cities, fueled by affordable travel options, digital booking platforms, and the rise of experiential tourism.

Sustainable tourism and eco friendly hospitality gained further traction, with leading companies investing in renewable energy, water conservation, and carbon neutral operations. Wellness tourism and health focused retreats also emerged as key growth drivers.

Economic Overview

Global Economy The global economy remained resilient, with moderate growth supported by easing inflationary pressures and gradual reduction in interest rates across major economies.

Emerging markets, particularly India and Southeast Asia, continued to see strong expansion, supported by manufacturing, services, and tourism. Geopolitical tensions and supply chain disruptions posed challenges, but resilient demand in hospitality and travel helped mitigate risks.

India remained one of the fastest growing economies, with GDP growth projected at 6.8% for FY 2025 26. Key factors influencing the hospitality sector included:

> Rising disposable income and urbanization boosting domestic travel.

> Government policies such as GST rationalization, tourism incentives, and infrastructure upgrades supporting industry expansion.

> Foreign tourist arrivals rebounded strongly, with business, leisure, and MICE travel driving demand.

Hospitality and Tourism Sector Performance

The hospitality sector continued to deliver record breaking performance, with major hotel chains reporting strong revenue growth.

Key trends:

> Luxury hotels expanded their footprint, with new openings and acquisitions.

> Budget hotels leveraged technology driven solutions to enhance customer experience.

> MICE tourism saw significant growth, with corporate events, weddings, and destination conferences driving occupancy rates.

> Digital transformation accelerated, with AI driven booking systems, personalized guest experiences, and smart property management solutions becoming mainstream.

Outlook for the Matheran Hotel

Our Matheran hotel continues to remain strongly positioned for sustained success, benefiting from Matherans rising popularity as a premier holiday destination.

Passenger traffic on the toy train in 2025 26 exceeded 2.4 lakh, with additional inflows through e rickshaws and improved road connectivity. Government initiatives like ‘Swadesh Darshan and ‘PRASHAD further enhanced tourism infrastructure, creating a favorable environment for growth.

Our investments in upgraded amenities, digital booking integration, and eco friendly practices (including solar energy adoption and waste management systems) further strengthened our competitive positioning. In addition, wellness focused offerings, sustainable tourism packages, and partnerships with local eco tourism operators have been introduced to align with evolving guest preferences.

Future Prospects Based on Market Research

Looking ahead, future prospects remain highly positive. Government led initiatives such as improved infrastructure projects, electronic visa systems, and enhanced connectivity are expected to boost tourism significantly.

As international and domestic travel continues to expand, our hotels modern offerings align with industry trends towards technological integration, wellness, and enhanced guest safety. The rise of weekend tourism, corporate retreats, and eco conscious travel is expected to further drive demand.

Indias hospitality sector remains poised for robust growth, supported by resurgence in international travel, major events, and government support. Trends include a focus on wellness, sustainability, technological integration, and branded accommodations.

Financial and Operating Performance

The Company has achieved total revenue of Rs. 568.63 lakhs, as compared to total revenue of Rs. 637.60 lakhs recorded in the previous year. The Company registered a loss of Rs. 59.16 lakhs as compared to a profit of Rs. 1.03 lakh in the previous year, mainly due to higher input cost. The Company continues to be largely engaged in hospitality and related businesses. The Company remains primarily engaged in hospitality and related businesses. The financial statements are in compliance with provisions of the Companies Act, 2013 and applicable accounting standards.

Internal Control Mechanism and Adequacy

The Company maintains robust internal control systems to safeguard assets and ensure accurate authorization, recording, and reporting of transactions. Periodic reviews by management and the Audit Committee continued to strengthen compliance and operational efficiency.

Internal Financial Controls (IFC)

The Directors continued to maintain a framework for Internal Financial Controls conforming to Section 134(5)(e) of the Companies Act, 2013. Independent Directors satisfied themselves on the integrity of financial information and robustness of risk management systems. Audit Committee remains empowered to periodically review and confirm effectiveness.

Human Resources Development / Industrial Relations

The Company continued to recognize the need for continuous growth and development of employees. Industrial relations remained harmonious across all units. Safety, welfare, and development measures continued to receive top priority. New training initiatives in digital hospitality tools and sustainability practices were introduced during the year.

Cautionary Statement

Statements in this report are forward looking within the meaning of applicable securities laws. Actual results may differ materially due to subsequent developments.