EIH Associated Hotels Ltd Management Discussions

ECONOMIC OVERVIEW

Global Economic Overview – 2024

In 2024, the global economy exhibited resilience amid a challenging environment. Inflation rates eased toward central bank targets, supported by steady growth in major economies. Although labour markets showed signs of slight softening, unemployment rates remained near historic lows, underscoring the overall strength of economic activity. Real household incomes improved due to nominal wage growth and declining inflation.

Geopolitical tensions and uncertainty surrounding the U.S. presidential election contributed to intermittent volatility in financial markets. With a GDP growth of 3.2% for the year, the world economy reflected a spirit of cautious optimism, steadily advancing amid evolving macroeconomic conditions and persistent structural headwinds. Within the advanced economies, the U.S. reported a robust growth of 2.8%, while the Eurozone grew by 0.9%, with Germany reporting negative growth for the second consecutive year. Chinas economy had a moderate 5% growth owing to weak consumer demand and the slowing property sector. India, on the other hand, emerged as one of the fastest-growing economies in the world. Global inflation eased from 6.8% in 2023 to an estimated 5.9% in 2024, driven by softening labor markets and easing prices for food, energy, and commodity. Advanced economies neared central bank targets, enabling room for monetary easing.

Outlook

The International Monetary Fund (IMF) has revised its global growth forecasts downward due to escalating trade tensions, notably due to the United States implementation of sweeping tariffs. These measures have prompted retaliatory actions from key trade partners, leading to heightened global trade tensions and a shift toward economic realignment.

Global Growth is forecasted at 2.8% in 2025 and 3.0% in 2026, reflecting a deceleration from previous estimates (Reuters). Advanced Economies are expected to grow at 1.4% in 2025 and 1.5% in 2026, with the United States projected to grow at 1.8% and the Eurozone at 0.8% in 2025. Emerging Markets and Developing Economies, however, are anticipated to expand by 3.7% in 2025 and 3.9% in 2026, with India leading at 6.5% growth in both years (Business Today). Global inflation is projected to ease more gradually than previously anticipated in 2025 to 4.3% and 3.6% in 2026

(IMF)

In summary, the global economic landscape is transitioning to a phase of slower growth, influenced by protectionist policies and geopolitical uncertainties. While advanced economies face subdued expansion, emerging markets, particularly India, continue to exhibit resilience. Inflation is on a downward trajectory, though challenges remain in aligning with central bank targets across regions.

Real GDP growth*
Regions	2024	2025 (P)	2026 (P)
World Output	3.3%	2.8%	3%
Advanced Economies	1.8%	1.4%	1.5%
Asia and	4.5%	3.9%	4%
Middle East	1.8%	2%	3.1%
Europe	1.7%	1.3%	1.5%
(P) - Projected
Countries	2024	2025 (P)	2026 (P)
India	6.5%	6.2%	6.3%
United States of America (US)	2.8%	1.8%	1.7%
United Kingdom (UK)	1.1%	1.1%	1.4%
China	5%	4%	4%

(P) Projected *IMF Datamapper

The Indian Economy Outlook

India remains the worlds fastest-growing large economy, with real GDP growth projected at 6.5% in FY 2024 25, in line with its ten-year average. Exports of goods and services crossed US$ 820 billion, marking a 6% year-on-year increase despite global challenges. On the demand side, private consumption is expected to grow by 7.3%, driven by a revival in rural spending. Supply-side growth is supported by a projected 6.4% rise in gross value added (GVA), with agriculture expected to grow by 3.8%, industry by 6.2%, and services by 7.2%. The services sector continues to be the main growth driver, supported by strong performances in finance, real estate, and public services.

Infrastructure development has progressed significantly, particularly in transport. Key achievements include the expansion of the railway network, modernisation efforts under the PM GatiShakti involving 434 projects worth H 11.17 lakh crore, improved port efficiency, and the national highway network growing to 1.46 lakh kilometres. In aviation, H91,000 crore has been allocated for ongoing capital expenditure, and 619 regional routes have been made operational under UDAN.

Looking ahead, India is expected to maintain its growth momentum. The IMF forecasts GDP growth of 6.2% in 2025 and 6.3% in 2026, while the RBI projects 6.5% for FY 2025 26 and 6.7% for FY 2026 27. Key growth enablers include strong agricultural output, early signs of manufacturing revival, and resilience in the services sector. Inflation is expected to be moderate to 4.0%, though global and weather-related risks remain.

To boost growth further, the government has allocated H 11.21 lakh crore for capital expenditure in FY 2025 26 and plans to revitalise 50 major tourist destinations. Additionally, the RBI has cut the repo rate to 6.0% to support borrowing and demand, and income tax reductions are expected to spur consumption. With solid fundamentals and policy support, India is well-positioned to sustain high growth in the coming years.

INDUSTRY REVIEW

Global travel and hospitality industry overview

The global tourism and hospitality sector is undergoing a profound transformation, driven by shifting source markets, rising demand for experiential and luxury travel and a wave of innovative business strategies. Four key themes are emerging. Firstly, while international travel may capture the headlines, domestic and intra-regional tourism continues to dominate spending. Secondly, travellers now demand experiences on their own terms, prompting the need for greater personalisation. Thirdly, the face of luxury travel is evolving, especially in Asia, where preferences based on age, nationality and affluence are redefining segment. Lastly, as tourist numbers grow, destinations must proactively plan for sustainability by investing in

*UN tourism infrastructure, managing capacity, and protecting cultural and natural assets.

According to the World Travel and Tourism Councils latest annual findings, the Travel and Tourism sector contributed US$ 10.9 trillion to global GDP in 2024, or 10% of the worlds economic output. The industry also played a critical role in employment, supporting 357 million jobs worldwide equating to roughly one in every ten jobs. Domestic tourism remained a key driver of growth, with spending rising by 5.4% over the previous year to reach US$ 5.3 trillion. Meanwhile, international visitor expenditure saw a significant annual increase of 11.6%, climbing to US$ 1.9 trillion.

As per the latest World Tourism Barometer by UN Tourism, international tourist arrivals surged to an estimated 1.4 billion in 2024, a recovery to 99% of pre-pandemic levels. This is an 11% increase over 2023 or 140 million additional travellers. The rebound was fuelled by strong post-pandemic demand and a steady revival across destinations in Asia and the Pacific.*

Outlook

International tourist arrivals are projected to rise by 3% to 5% in 2025 over 2024, according to early estimates. This optimistic trend is echoed in the UN Tourism Confidence Index, which stands at a promising 130 for 2025 (on a 0 200 scale, with 100 indicating stable performance). Notably, around 64% of the UN Tourism Panel of Experts foresee ‘better or ‘much better prospects for the sector in the coming year.^*

Indian hospitality and tourism sector

The Indian hospitality sector sustained strong growth in

2024, underpinned by a buoyant domestic market and a revival in international travel. Total air traffic surged to 400.8 million passengers, registering 8% annual growth, while international traffic saw a sharper rise of 13%. Foreign tourist arrivals increased to 9.65 million. Hotel performance remained positive, with national occupancy rising to 65%, a slight improvement over 2023, though still shy of pre-pandemic levels. Average Room Rates (ARR) rose by 9% to H 8,000, while RevPAR grew 12% to reach H 5,200, driven primarily by ARR gains.^*

Outlook

The industry is set for strong growth in 2025, riding the wave of strong domestic tourism and a steady revival in inbound arrivals. Infrastructure upgrades are further boosting the sectors performance. In a significant push, the FY 2025-26 Union Budget earmarked H 2,541 crore for tourism, with plans to develop 50 new destinations. Parallelly, the commercial office space market is fuelling hospitality growth, with 2024 gross leasing hitting 89 million sq. ft. and net absorption at 50 million sq. ft. across key cities. A 16% uptick is expected in 2025, driven by Global

Capability Centres (GCCs), IT/ITeS and tech startups. This commercial momentum is sparking business and MICE travel demand, paving the way for mixed-use developments of offices, hotels and retail. While global trade shifts could impact cross-border travel, continued public-private collaboration will be vital in cementing Indias rise as a premier global hospitality hub.^#

Industry trends# Spiritual tourism soars	Growing concert tourism	Weddings redefined in India	Rise in business travel
Faith-based tourism in	Live events became a	Wedding tourism thrived	Indias corporate travel
India is experiencing an	powerful tourism catalyst	in India in 2024, fuelled	sector soared in 2024, with
extraordinary upswing, led by	in 2024 with concert-	by cultural richness and	spending hitting US$ 38.2
the monumental inauguration	related travel soaring by	rising affluence. Destination	billion, a 18.3% rise over
of the Ram Mandir in	44%, significantly boosting	weddings rose ~25%	2023. Now the ninth-largest
Ayodhya, which drew 135.5	hotel occupancy and local	annually with average	globally and fourth in APAC,
million visitors, overtaking	economies. Star performers	spends reaching H 51.1	Indias growth was propelled
the Taj Mahal as Uttar	from Bryan Adams, Cold Play	lakh. Locations like Goa,	by infrastructure upgrades,
Pradeshs most visited site.	and Dua Lipa to Diljit Dosanjh	Kerala and Rajasthan were	Make in India and SME-led
This spiritual resurgence is	and Arijit Singh drew large	top choices. The growing	momentum,. Hybrid work and
echoed nationwide: Varanasi	crowds across Indian cities,	preference for personalised,	blended travel shaped new
saw 62 million domestic	igniting demand. Annual	immersive experiences is	trends, while MICE flourished
and 184,000 international	spending on concerts and	reshaping social norms	on the G20 legacy and ‘Meet
visitors, Mathura welcomed	live entertainment reached	and driving growth across	in India campaign. Innovation,
68 million, Prayagrajs Kumbh	~H 2,000 crore, with nearly	hospitality, fashion and	sustainability, and renewed
Mela attracted 660 million	25% funnelled into hotels	tourism, helped further by	face-to-face engagement are
in just 45 days and Tirupati	and transport, directly	initiatives like "Wed in India".	redefining businesstravelin
drew over 25 million devotees	strengthening the tourism		India.
throughout the year.	and hospitality sector.
135.5 million	~H 2,000 crore	~25 %	US$ 38.2 billion
Visitors in Ram	Annual spending on	Annual increase	Spending in Indias
Mandir in Ayodhya	concerts and live	in destination	corporate travel
	entertainment	weddings	sector in 2024

Financial and operating performance

In yet another remarkable year, our focus on quality, premium positioning and attention to detail continued to set us apart, delivering unparalleled experiences to its esteemed guests. The revival of global travel brought renewed momentum to the hospitality sector, which we were well-positioned to harness. In FY 2024-25, our Company reported stellar financial performance, with revenue soaring to H 4,269.36 million, marking a 7.3% growth over the previous year. EBITDA stood at H 1,450.84 million, reflecting an impressive 14.8% increase, while profit before tax surged to H 1,232.85 million from H1,087.38 million. Net profit rose significantly to H 918.47 million, up from H 810.25 million. This strong financial performance is enabled by our strategic agility, operational excellence and delivering value through every facet of our business.

Key financial ratios

S no.	Particulars	Year ended March 31, 2025	Year ended March 31, 2024	Remarks
1.	Debtor turnover ratio	15.93	18.98	The decrease is due to increase in average trade
	(in times)			receivables as compared to the previous year.
2.	Debt Equity ratio (in times)	0.01	0.01
3.	Debt service coverage ratio	124.43	52.26	The increase is due to increase in the earnings
	(in times)			available for debt service and decrease in debt service
				in the current year as compared to the previous year.
4.	Interest Service Coverage	246.18	122.31	The increase is due to increase in the earnings
	Ratio (in times)			available for debt service and decrease in debt service
				in the current year as compared to the previous year.
5.	Current ratio (in times)	4.58	3.92	The increase is due to increase in current assets and
				decrease in current liabilities as at the current year
				end as compared to the previous year end
6.	Net capital turnover ratio (in	1.63	2.17	The decrease in net capital turnover ratio is majorly
	times)			due to increase working capital in the current year as
				compared to the previous year.
7.	Trade receivables turnover	22.92	19.23	The decrease is due to increase in average trade
	ratio (in days)			receivables as compared to the previous year.
8.	Inventory turnover ratio	7.4	6.38	Increase is due to increase in consumption and
				decrease in average inventory on account of
				improvement in business.
9.	Operatingprofit %) margin(in	30.96%	29.44%	Increase is mainly due to increase in operating profit
				in the current year on account of improved business
				conditions as compared to the previous year.
10.	Net profit margin(in%)	21.51%	20.36%	The increase is mainly due to increase in net profit
				after taxes in the current year as compared to the
				previous year on account of improved business
				conditions.
11.	Return on capital employed	21.39%	21.85%	The decrease is mainly due to increase in capital
	(in %)			employed during the current year as compared to
				the previous year.
12.	Return on equity (in %)	18.38%	18.86%	Decrease is due to increase in average
				shareholders equity

RISK MANAGEMENT

Our Companys Risk Management Committee (RMC), comprising Board members and senior executives, plays a critical role in overseeing key risks, business strategies and early warning indicators. In collaboration with management, the RMC defines risk appetite and crafts strategies to mitigate risks through well-established policies and processes. Our risk management framework is designed to assess, monitor and respond to a spectrum of risks. Thirteen key risks have been identified ranging from business and financial vulnerabilities to operational, environmental, reputational, legal and cyber threats.

Mr. Samidh Das, Chief Financial Officer is the Chief Risk Officer. This committee diligently monitors the identified risks and regularly reports its findings to the Board, ensuring a proactive and comprehensive approach to risk management within the Company.

The Oberoi: Centre of Excellence

Our Company has strengthened its operational backbone through high-efficiency systems and smart processes under The Oberoi Centre of Excellence (TOCE). TOCE brings together critical functions with the aim of transforming

Finance and allied areas through automation and streamlined workflows.

Business consolidation and expansion

We continue to expand our presence.

Visakhapatnam Project

The Land Lease Agreement with favorable terms has been signed with the Andhra Pradesh Tourism Development Corporation (Wholly owned Corporation of Government of Andhra Pradesh) for setting up of Trident Hotel. The Hotel will consist of 125 Rooms. Planning of this hotel underway and it is likely to open in year 2027.

AWARDS

HOTEL	AWARD	AWARDED BY
The Oberoi Rajvilas,	Best Hotel in the World ( Ranked 1st )	Travel + Leisure, USA Worlds Best Awards, 2024
Jaipur
	The Top 15 Resort Hotels in Asia	Travel + Leisure, USA Worlds Best Awards, 2024
	(Ranked 1st)
	Top 20 Hotels in India (Ranked 1st)	Conde Nast Traveller, UK, Readers Choice Awards, 2024
	Ranked among the 50 Greatest Luxury	Robb Report, USA, 2023
	Hotels on Earth
	Top 20 Hotels in India (Ranked 5th)	Conde Nast Traveller Readers Choice Awards, US & UK, 2023
The Oberoi Cecil,	Top 25 Luxury Hotels in India	TripAdvisor Travellers Choice Awards, 2021
Shimla	(Ranked 1st)

HUMAN RESOURCE DEVELOPMENT AT THE OBEROI GROUP

At EIH Associated Hotels Limited, our unwavering commitment to guests and colleagues remains core to

Rai Bahadur MS Oberoi, our Founder Chairmans principles. Anchored in The Oberoi Dharma, our approach fosters ethical conduct, kindness, respect for others, accountability, and a culture of excellence. In alignment with this ethos, our Human Resources function plays a vital role in nurturing high-performance teams through policies that prioritise learning and development, employee engagement, humility, and overall well-being.

During FY 2024 25, we launched several key initiatives to strengthen its human resources capability and processes.

These initiatives are outlined below:

1) Human Resource Management System (HRMS) - OberoiConnect by DarwinBox

We successfully implemented OberoiConnect, a cloud-based Human Resource Management System by DarwinBox, to streamline HR processes and enhance employee experience across all Oberoi and Trident

Hotels in India.

2) Talent Acquisition and Retention

We recongnize that attracting and retaining the best talent is crucial to our success. To support this, we has introduced several initiatives:

• RISE (Refine and Invest in Skill Enhancement): designed to streamline our hiring efforts, create a more inclusive environment, and align with the Companys growth and long-term objectives. Key objectives include expand the talent pool through diverse channels and offering structured training to nurture and retain talent. We have additionally, strengthened collaborations with skill institutes to train non-hospitality talent, subsequently employing them across our hotels.

• Development Programmes:

Ongoing Executive and Supervisory Development Programmes ensure career growth opportunities for all employees, fostering a strong and motivated workforce.

3) Employee Engagement

Engaged Employees Drive Exceptional Guest Experiences. In FY 2024-25, we achieved an employee engagement score of 84%, reflecting alignment with global best practices. This milestone underscores our commitment to fostering a supportive, motivated workplace. We will continue building on this success through targeted action plans shaped by employee feedback.

4) Gender Diversity

We are committed to fostering a more inclusive and diverse workplace. Currently, 24% of our permanent workforce comprises ladies. We aim to increase this to 28% in the coming year. These initiatives reflect our belief that a diverse and empowered workforce drives innovation and success.

To support our lady employees in balancing personal and professional aspirations, we offer flexible work timings, extended maternity leave, facilities for mothers with infants, and opportunities for role changes tailored to their evolving needs.

5) Performance Management

Our Performance Management System is built to align individual goals with our strategy. By leveraging Balanced Scorecards and a robust competency framework, our ensure that the appraisal process is objective, comprehensive and transparent.

6) Compensation Benchmarking

We are committed to offering compensation packages above the 75th percentile of the market benchmark. This approach ensures we remain competitive in attracting and retaining top talent, while enabling informed, data-driven decisions across all levels of the organisation.

By staying ahead of market trends, we reinforces our position as an employer of choice. This comprehensive approach to HR development underscores our dedication to fostering a high-performance culture.

It ensures that The Company continues to attract, retain, and engage the best talent in the hospitality industry, driving excellence at every level.

LEARNING AND DEVELOPMENT ACTIVITIES – 2024-25

At The Oberoi Centre of Learning and Development (OCLD), we continue to drive excellence by enhancing training content, increasing outreach, and aligning learning with its strategic goals. Our holistic approach focused on developing future leaders, deepening operational excellence, and fostering a culture of continuous improvement.

In the FY 2024-25, OCLD continued to facilitate the professional growth and development for all levels of employees.

1) Systematic Training and Education Programme

As part of the STEP program, Trainees were at OCLD for a focused two-week training session. To ensure a well-rounded learning experience, OCLD conducted workshops in various hotels which focussed on assessing individual growth.

A total of 228 STEP Trainees are enrolled across the batches of 2022-25, 2023-26 and 2024-27.

2) Scholarship

The DARE TO DREAM and BE THE BEST scholarships aim to honor the legacy of Rai Bahadur Mohan Singh Oberoi and Mr. Prithvi Raj Singh Oberoi by recognising and nurturing exceptional talent in the hotel industry.

These scholarships are designed to empower and support two exceptional individuals who demonstrate outstanding potential and dedication to being world class hoteliers.

3) Strategic Learning Initiatives for Hotels

• Best Practice Tour: A group of senior executives comprising of General Managers and Functional Heads had an opportunity to experience international hotels. This initiative provide exposure to international best practices.

• Culture Training for International Hotels: With an objective to standardise our operations in international hotels, a boot camp was organised for L&D executives through a workshops at OCLD.

• Glitch Management Process: Was initiated to enable team members to analyse guest concerns and align them to the organisational philosophy of "doing it right the first time." Participants were encouraged to analyse glitches through root cause analysis and recommend long term solutions to issues.

Overall Impact

• 6,376 unique employees trained

• Average of 20 training hours per employee

• Continued execution of Individual Development Plans (IDPs) for high-potential employees

• Focus on innovation, inclusion, and leadership as pillars of learning

INTERNAL CONTROL MECHANISM AND ADEQUACY

The Company places significant emphasis on maintaining a strong internal control system, guided by The Oberoi Dharma. All members of the organisation are committed to upholding the highest standards of ethics, intellect, financial prudence, and moral conduct.

To ensure the orderly and efficient conduct of operations, protection of assets, prevention and detection of fraud and errors, accuracy of accounting records, timely financial reporting, and compliance with applicable laws and regulations, the Company has established comprehensive internal controls at both the process and entity levels. These mechanisms are designed to strike a balance between robust governance and operational efficiency, incorporating appropriate checks and balances to support effective decision-making and accountability.

INTERNAL FINANCIAL CONTROLS (IFC)

The Board of Directors has instituted a sound framework for internal financial controls, ensuring their adequacy sustained effectiveness. As mandated under Section 149(8) and Schedule IV of the Companies Act, 2013, Independent Directors have evaluated the integrity of financial information and the effectiveness of the Companys financial controls and risk management systems. The internal control framework is aligned with global best practices for organisations of similar scale and complexity. It includes structured risk assessments through

Standard Operating Procedures (SOPs), Risk and Control Matrices (RACMs), IT policies, and ERP-based systems incorporating Management Information Systems (MIS) and automated controls.

Entity-level policies, including the Code of Conduct, Whistle Blower Policy, Insider Trading Policy, Delegation of Authority

(DOA), HR Policy, and IT Security Policy, further reinforce the internal control environment. These policies are reviewed periodically by Senior Management to ensure continued relevance and effectiveness.

The Company conducts annual internal audits covering each operational unit and major corporate functions. The Audit Committee monitors the adequacy of the internal control system through regular reviews of audit findings and the resolution status of key issues.

During FY 2024 25, the Company engaged an external expert to assess the adequacy and operational effectiveness of its internal financial controls, in line with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. The findings of this independent assessment were presented to and reviewed by the Audit Committee.

Internal audit mechanism and review system

The Internal Audit Department, consists of a highly skilled team with varied qualifications such as Chartered Accountants, MBAs, L.L.Bs, and those having certification in Information System Audits, and Forensic Accounting. This team has specialised knowledge across key functional areas, including finance, operations, legal, statutory compliance, project management, and process audits. The department works in collaboration with reputed co-sourced firms to conduct audits and handle specialised assignments, ensuring independent and objective evaluation of the internal control environment in line with industry best practices.

Audits are prioritised based on a structured risk assessment methodology and are conducted in accordance with an annual internal audit plan approved by the Audit Committee.

A dedicated team of senior executives meets periodically to review and resolve outstanding audit issues. The Internal Audit Department also recommends robust monitoring systems and procedures to proactively detect and prevent process gaps or failures. These observations, along with proposed corrective actions and target timelines, are periodically reviewed by the Audit Committee, which provides strategic direction and oversight. The Audit

Committee has expressed its satisfaction with the effectiveness of the Companys internal control framework, audit processes and the performance of the Internal Audit Department.

Conclusion

In conclusion, this year has demonstrated our unwavering commitment to excellence in all aspects of our business. We have achieved strong financial growth, effectively managed risks, and embraced innovation to optimise our operations.

Our expansion plans have laid a solid foundation for future prosperity, while our numerous accolades reinforce our commitment to delivering unparalleled service.

The driving force behind our accomplishments remains our exceptional workforce, whose growth and well-being are paramount. We have implemented robust internal control mechanisms to ensure the integrity and efficiency of our operations. Looking ahead, we are confident in our ability to continue delivering exceptional value to our stakeholders, guests, and employees, while maintaining our position as a leader in the global hospitality industry.

We would like to extend our heartfelt gratitude to our guests, shareholders, the Board of Directors, and our dedicated colleagues. Your unwavering support, guidance, and hard work have been instrumental in our success. To our guests, thank you for your continued trust and loyalty.

To the Board, your strategic vision and leadership have been invaluable. And to our colleagues, your commitment and passion, drives our achievements every day. Together, we look forward to a successful future

	For and on behalf of the Board
	Arjun Singh Oberoi
Place: New Delhi	Chairperson
Dated: May 16, 2025	DIN: 00052106