EIH Associated Hotels Ltd Management Discussions

Overview

Indias hospitality sector is entering a distinct phase of expansion, anchored in a rapidly growing affluent consumer segment base, record public investment in connectivity and infrastructure, and a gradual shift towards experience led consumption.

For EIH Associated Hotels Limited, this transition represents a fundamental realignment of the market that the Company has served for decades and that rewards the very qualities distinguishing Oberoi Hotels & Resorts and Trident Hotels brands in the global luxury hospitality landscape.

Today, EIH Associated Hotels Limited continues to strengthen its position in Indias luxury hospitality landscape through a portfolio of iconic the Oberoi Hotels & Resorts and Trident Hotels properties across key business and leisure destinations. With 784 keys in operation across seven owned hotels in India, the Company combines premium hospitality experience with operational excellence and strong brand equity. Backed by the globally acclaimed legacy of The Oberoi Group, recognised for exceptional guest satisfaction and world-class service standards, EIH Associated Hotels Limited remains well positioned to pursue sustainable growth while continuing to uphold the timeless values of luxury, elegance and personalised hospitality.

Furthermore, despite a year marked by disruptions and heightened complexity, the Company delivered strong operational and financial performance, supported by the resilience of domestic demand, a diversified portfolio, and the service excellence that continues to define its leadership in the luxury hospitality segment.

Global Economy

The global economy maintained steady momentum through Calendar Year (CY 2025), with output expanding by 3.4%, supported by robust technology-related investments and resilient labour markets. Unemployment rates in several regions held near historical lows, and nominal wage growth proved sufficient to sustain real household income, underpinning consumer demand even as the global outlook began to navigate new headwinds. (Source: IMF Outlook, April 2026)

Real GDP Growth Trend

Regional performance was differentiated. The United States remained a primary driver, though a government shutdown late in the year produced a brief deceleration to 0.5% annualised growth before conditions normalised. The Eurozone recovered meaningfully, led by Germany, which contributed to 1.5% annualised growth. Chinas economy accelerated to 6.1% driven by export volumes that more than offset its persistent domestic demand weakness, while India recorded real GDP growth of 7.6%, the highest among major economies.

The conditions of CY 2025 gave way abruptly to a more volatile landscape in early CY 2026. The escalation of the West Asia conflict in late February introduced a material counterforce to the tailwinds that had shaped the previous year, disrupting commodity markets, tightening financial conditions across energy-sensitive sectors, and forcing a broad reassessment of growth trajectories in both emerging and advanced economies.

Outlook

The IMF has issued a forecast incorporating the West Asia conflict, assuming its most acute disruptions will begin to moderate by mid-2026.

Under this baseline, global growth is projected to decelerate to 3.1% in CY 2026 before recovering modestly to 3.2% in CY 2027. The shock to energy and commodity prices has resulted in IMF adjusting global inflation expectations upward. Consumer price inflation is now forecast at 4.4% in CY 2026 before easing towards central bank targets in CY 2027.

Advanced economies are expected to expand by 1.8% in CY 2026, while Emerging Market and Developing Economies are projected to grew by 3.9% with India leading this group.

World trade volume growth is forecast to slow to 2.8% in CY 2026. A more prolonged or widened conflict in West Asia represents a material risk. Under a severe scenario, global output growth could fall below 2% resulting in a contraction in demand.

Region	CY 2025	CY 2026 (P)	CY 2027 (P)
World	3.4%	3.1%	3.2%
Advanced Economies	1.9%	1.8%	1.7%
Emerging Market and Developing Economies	4.4%	3.9%	4.2%
Middle East and North Africa	3.2%	1.1%	4.8%
Euro Area	1.4%	1.1%	1.2%

Country-wise Growth Trend

Country	CY 2025	CY 2026 (P)	CY 2027 (P)
India	7.6%	6.5%	6.5%
United States of America (USA)	2.1%	2.3%	2.1%
United Kingdom (UK)	1.3%	0.8%	1.3%
China	5.0%	4.4%	4.0%

(Source: IMF Outlook, April 2026)

Indian Economy

India consolidated its position as the worlds fastest- growing major economy in FY 2025-26, with real GDP expanding by 7.7%, a notable acceleration from 6.5% recorded in the previous year and a significant outperformance of the IMFs emerging market peer group.

Total goods and services exports reached approximately US$ 860 Billion, sustaining their growth trajectory despite a turbulent global trade environment, impacted by tariffs, currency volatility, and supply chain restructuring.

(Source: https://m.economictimes.com/news/economy/ foreign-trade/india-achieves-record-exports-of-usd-860- billion-in-2025-26-goyal/articleshow/130290039.cms )

Domestic demand remained the economys primary growth driver. Private consumption grew by 7.0%, supported by a revival of rural markets, improved financial inclusion, and rising real household incomes.

On the supply side, Gross Value Added, a measure of economic value created across sectors, expanded by 7.3%. Industry and services emerged as the principal engines, growing by 7.0% and 7.5%, respectively, while agriculture contributed a steady 3.1% despite an uneven monsoon. Financial and real estate expansion at 9.9%, reflecting deepening capital market participation and a continued acceleration in organised lending activity.

This growth cycle has been further reinforced by the most ambitious public capital formation programme in Indias modern economic history. The Union Budget 2026-27 raised infrastructure expenditure (capex) to Rs. 12.22 Lac Crores, a continued commitment to transport, logistics, and digital connectivity that is compressing distances, integrating underserved regions, and creating new markets for organised commerce and premium demand.

Monetary and fiscal policies operated cohesively to sustain momentum. The RBI reduced the repo rate to 5.25% as of April 2026, a cumulative reduction of 125 basis points from the 6.50% peak of late 2024, providing meaningful relief on borrowing costs for both corporates and households.

On the fiscal side, the government introduced consumption-supportive measures like GST rate rationalisation while maintaining a disciplined deficit target of 4.3% of GDP for FY 2026-27.

India is undergoing a fundamental transformation of its growth architecture. Favourable demographics, large-scale digitisation of economic activity, increasing formalisation across sectors, and a capital-intensive infrastructure programme are collectively creating an economy where growth is less volatile, more geographically distributed, and more durable than at any prior point in its modern history.

This evolution has direct implications for Indias tourism and hospitality sector. The World Travel and Tourism

Council ranked India as the worlds 8 th largest travel and tourism economy in CY 2025 was a measure of both the scale of domestic demand and the sectors rising contribution to national economic output. The ranking also underscores the opportunity: Indias tourism share of GDP remains below its potential, creating meaningful headroom for further sector expansion as per-capita incomes rise and travel penetration deepens.

According to Goldman Sachs, recent tax data shows a sharp expansion at the top end of Indias income pyramid. The number of taxpayers reporting annual incomes between Rs. 1 Crore and Rs. 5 Crores has doubled to 2.10 lacs individuals, while the ultra-high- income segment earning between Rs. 5 Crores and Rs. 50 Crores has grown strongly from 28,000 to 50,000 individuals. This rapid increase in affluent households significantly expands the addressable market for EIH Associated Hotels Limited and its luxury hospitality portfolio. More importantly, it indicates a structural shift in consumption behavior, where luxury hospitality is evolving from an occasional, milestone-led aspiration into a recurring lifestyle preference driven by demand for ultra-premium stays, personalised comfort, exclusivity, and curated travel experiences. (Source: https://www. visa.co.in/about-visa/newsroom/press-releases/visa- reveals-a-new-premium-spending-playbook-in-affluent- india.html )

Domestic Consumption Translating into Hospitality Demand

Private consumption growth of 7.0% is the direct mechanism through which Indias rising prosperity converts into hospitality demand.

(Source: https://www.pib.gov.in/PressReleasePage. aspxRsPRID=2219907 )

Rising disposable incomes, proliferation of domestic credit, and a generational shift in consumer behaviour that values experience over possessions are collectively expanding the population of travellers is increasingly opting for premium and branded accommodation as the norm rather than the exception.

A structurally important feature of this phenomenon is the geographic decentralisation of affluence. As documented in the Visa VCA White Paper 2025-26, wealth creation is expanding meaningfully beyond the traditional metropolitan hubs of Mumbai MmR, Delhi NCR, and Bengaluru into smaller cities such as Ahmedabad, Surat, Jaipur, Lucknow, Nagpur, Vadodara, Visakhapatnam etc.

This spatial dispersion of premium demand transforms these emerging markets into powerful new feeder channels across business travel, leisure tourism, destination weddings, and MICE segments. As local purchasing power outpaces the development of regional luxury supply, these affluent centres are increasingly funneled towards EIH Associated Hotels Limiteds current and future hotels, unlocking a high-yield pipeline of discerning guests.

Integrated Mobility and Regional Connectivity

The Modified UDAN (Ude Desh ka Aam Nagrik) scheme has been extended for a further decade (CY 2026-CY 2036) with a committed outlay of Rs. 28,840 Crores.

The programme targets the operationalisation of 100 airports in unserved airstrips and the development of 200 modern helipads, improving last-mile connectivity to remote, hilly, and island destinations.

This is accompanied by the Seaplane Viability Gap Funding scheme that seeks to enhance the commercial viability of coastal and island tourism operations including destination that forms part of existing and planned portfolio.

The integration of PM Gati Shakti programme with the ongoing highway and railway expansion is systematically reducing travel friction across Indias domestic mobility network.

The expansion of premium services such as Vande Bharat Express is redefining the quality standard for intercity rail travel, offering improved speed, reliability and comfort levels that are converting segments of domestic air demand to rail on key leisure corridors.

The Union Budget 2026-27 proposed seven high-speed rail corridors covering approximately 4,000 km, with an estimated investment of Rs. 16 Lac Crores, which will improve connectivity between Indias principal tourism destinations and their source cities.

Outlook

India enters FY 2026-27 with the Reserve Bank of India projecting real GDP growth of 6.9% and the government anchoring its fiscal framework to 10% nominal GDP growth.

Future growth will be shaped by high-technology and industrial policy enablers: Semiconductor Mission 2.0, the Rare Earth Corridor initiative, and the Samarth 2.0 textile programme, alongside continued infrastructure expansion.

Inflation is projected to average at 4.6%, with the primary risk arising from a forecast of a below-normal monsoon (92% of long-period average) and residual El Nino dynamics that may exert upward pressure on food prices. Supply side policy vigilance will be required to manage this risk without constraining the monetary support that currently underpins domestic demand.

Global Tourism and Hospitality Industry

The global tourism and hospitality sector has completed its transition from post-pandemic recovery to demand- led growth in CY 2025. International tourist arrivals reached approximately 1.52 Billion, an increase of over 4% from CY 2024, crossing pre-pandemic levels for the first time since 2019.

(Source: https://www.hvs.com/article/10451-hvs-anarock- i ndi a-hospital ity-i ndustry-overview-2025 )

This milestone reflects renewed global confidence in mobility, driven by sustained leisure demand, the deepening of intra-regional travel within Asia and the Middle East, and the growth of experiential travel demand among higher-income consumer segments.

Regional performance was characterised by divergence. Europe retained its position as the single largest tourism market, recording approximately 793 Million arrivals, 6% above CY 2019 levels.

The Middle East and Africa continued to outperform the global growth average, with arrivals at 39% and 17% above pre-pandemic levels, respectively, reflecting sustained destination investment and strong positioning across leisure and transit segments.

The Americas recovered to pre-pandemic levels at approximately 219 Million arrivals. Whereas, Asia Pacific, has lagged behind, with approximately 331 Million arrivals and is still approximately 9% below CY 2019 levels.

Across these markets, consumer preferences have evolved in ways that are favourable to premium and luxury operators.

Travellers are increasingly allocating discretionary budget towards fewer, longer, and more immersive trips, raising average spend per journey and supporting room rate growth even where occupancy remains below peak.

Luxury travel, particularly in Asia, is shifting from conventional amenity-based propositions towards bespoke, culturally embedded experiences, a repositioning that rewards operators with genuine local depth and service heritage.

Tourism exports reached approximately US$ 2.2 Trillion in CY 2025, representing 8.3% year-on-year growth and an increase of over 25.6% over 2019 levels (UNWTO Tourism Export Barometer), underscoring the sectors expanding economic significance.

(Source: https://www.hvs. com/article/10451-hvs-anarock- i ndi a-hospi tal ity-i ndustry-overview-2025 )

West Asia Conflict and Aviation Impact

The momentum established through CY 2025 was disrupted in early CY 2026.

The escalation of the West Asia conflict forced a fundamental restructuring of trans-continental aviation routes, as aircraft were compelled to avoid restricted airspace over Iran, Israel and surrounding Gulf corridors. The rerouting added up to four hours to Europe-Asia flight times, generating a substantial increases in the fuel costs and are compelling airlines to introduce elevated surcharges.

Dubai and Doha, Major transit hubs has absorbed disproportionate disruption. By May 2026, over 23,000 flights had been cancelled across the affected region (OAG Flight Status data, May 2026), reducing global seat capacity by approximately 2% and effectively doubling airfares on key Europe-Asia routes.

For India, the impact on inbound international tourism was pronounced: foreign tourist arrivals declined approximately by 20% in the months following the conflicts escalation (Ministry of Tourism provisional data).

That said, this headline figure requires contextualisation. Indias domestic travel base, which accounts for the preponderance of hotel demand in all but a handful of gateway city properties, has demonstrated a degree of insulation from the aviation disruption.

The inbound decline has been most acutely felt in markets such as Agra, Jaipur, and Kerala, which carry high international visitor concentrations in relation to total demand mix.

Outlook

The long-term outlook for global tourism remains intact. This narrative is underpinned by an expanding middle- class population, rising travel penetration in Asia, and the continuing formalisation of experiential spending.

Near-term performance, however, will remain sensitive to the trajectory of the West Asia conflict and its aviation consequences.

A short-lived disruption would produce a temporary softening in travel flows followed by a swift recovery, as pent-up demand reactivates. Conversely, a prolonged period of airspace fragmentation will fundamentally rebalance global travel patterns. As geopolitical disruptions compromise traditional, hub-dependent transit corridors, international airlines are increasingly optimising their networks away from the volatile stopover hubs in favour of direct, point-to-point route development. Because the Asia-Pacific region, and India in particular, offers both a stable destination and an immense domestic market, it is uniquely positioned to capture an enlarged share of this structural shift, turning direct-route connectivity into a resilient pipeline for premium tourism demand.

Indian Tourism and Hospitality Industry

Indias tourism and hospitality sector sustained strong growth momentum through 2025, drawing on the same strong foundations that distinguish the broader economy, domestic consumption depth, favourable demographics, and sustained infrastructure investment.

Indias ranking as the worlds 8 th largest travel and tourism economy (WTTC, 2025) reflects both the immense scale of its domestic travel base and the sectors advancing contribution to national economic activity. Population exceeding to 1.4 Billion and the rapidly the growing affluent consumer segment, India presents significant long term demand opportunity for hospitality operators.

Aviation activity provides the most immediate measure of travel volume. Total air passenger traffic reached approximately 420 Million in CY 2025, up by 5% year- on-year, despite global aviation headwinds. Indias large domestic aviation base continued to act as a buffer, supporting occupancy across leisure, business, and event-driven travel segments.

Hotel sector performance reflected this demand resilience. According to the Horwath HTL India Hotel Market Review 2025, nationwide industry occupancy reached 64%, representing a steady 1.1 percentage point improvement year-on-year, while the nationwide average

daily rate (ADR) rose by 8.6% to Rs. 8,624. Consequently, nationwide revenue per available room (RevPAR) grew by 10.8% to Rs. 5,522. This performance was substantially amplified in the luxury hospitality segment. This premium tier recorded a superior occupancy level of 68.1%, while its ADR climbed to 8.7% to Rs. 13,379, yielding a commanding RevPAR of Rs. 9,110. While the luxury and upper-upscale segments account for 34% of total domestic branded supply, they generated a disproportionate 56% of total rooms revenue and 36% of total demand. This distinct divergence highlights a market that has moved well beyond volume-driven recovery to establish genuine consumer acceptance of premium pricing. Such structural dynamics fundamentally favour luxury operators with deep brand equity capable of sustaining high rate premiums through evolving demand cycles.

(Source: https://www.hotelierindia. com/operations/indias- hospitality-industry-moves-from-recovery-to-structural- growth-in-2025-horwath-htl#: :text=Horwath%20HTL%20 noted%20that%20the.Demand%20and%20Supply%20 Grow%20Together)

RevPAR Rs. 9,110

for the Luxury Hospitality

Segment in CY 2025

Rising income levels, broadening entrepreneurial activity, and an increased equity market participation are collectively generating a larger, more durable cohort of consumers with both the capacity and the inclination to spend on premium travel experiences.

As affluence deepens, the nature of premium consumption is also evolving. Discretionary spending is migrating from functional upgrades that are intrinsically valuable and difficult to replicate considering extended stays at destination properties, wellness immersions, curated wildlife encounters, and multi-generational celebration travel. This shift directly expands the addressable market for both premium and luxury hotel operators.

Policy Tailwinds

Fiscal Support Driving Travel Demand

Targeted fiscal interventions continue to recalibrate the operational landscape for branded accommodation. The reduction of GST on hotel rooms priced up to Rs. 7,500 from 12% to 5% serves to broaden the accessible market for mid-scale and budget lodging, supporting the overall formalisation of domestic hospitality demand. Concurrently, broader structural policy alignments are paving the way for strategic geographic expansion. The governments planned development of major tourism hubs across the Purvodaya (eastern) states-specifically

encompassing Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh-directly aligns with regions where EIH Associated Hotels Limited holds strategic development interests, offering a long-term catalyst for organised premium footprint expansion in underserved markets.

Institutional Human Capital Reforms

To address the acute, structural talent deficit in luxury service delivery, the government has authorised the structural upgrade of the National Council for Hotel Management and Catering Technology (NCHMCT) into a full-fledged National Institute of Hospitality (NIH). Envisioned as a premier Tier-1 academic and research body, the NIH is designed to function as an institutional bridge between academia, government, and luxury hospitality operators to standardize globally benchmarked curricula.

This institutional overhaul, paired with the pilot programme to upskill 10,000 professional tourist guides across 20 major destinations, directly targets the hospitality sectors core constraint: the premium workforce supply chain.

Sustainable and Thematic Tourism Frameworks

The regulatory environment is shifting towards, structured and experiential travel ecosystems through the formal establishment of dedicated thematic corridors (including Ecological Mountain Trails in Uttarakhand and Jammu & Kashmir, and Nature/Eco Trails in the Eastern and Western Ghats).

Importantly, the introduction of a standardised Tourism-Ready Destination Certification establishes a unified federal baseline for security, hygiene, and environmental compliance across competing states. This framework, alongside incoming state-level incentives for green-certified hospitality assets, supports premium operators whose ESG architectures are already aligned with global compliance standards, giving them a distinct competitive edge in bidding for and executing key destination projects.

Promotion of Medical Value Tourism (MVT)

The fiscal commitment to support states in establishing five dedicated Regional Medical Hubs-integrating advanced tertiary care, AYUSH centres, and specialised post-operative care infrastructure-represents a highly resilient demand driver. By formalising and grouping medical value tourism, these hubs create an immediate requirement for premium, compliant hospitality assets capable of handling long-stay, high-yield international patients and their families, providing an alternative demand pipeline independent of standard leisure cycles.

Industry Trends

The Stay as Destination: Experience-led

Accommodation

Accommodation is no longer a logistical support to travel; it has become a primary motivation for it.

Nearly 90% of Indian travellers now consider accommodation as a central element of their holiday decision, with a growing proportion allocating additional time within the property itself (Thomas Cook/SOTC India Travel Trends Report 2025).

84% of respondents planned to increase travel expenditure by 20-50% over the year, and 60% actively

sought unique or experiential holidays over conventional itineraries.

Current consumer trends indicate travellers are trading up, staying longer and expecting more from the properties they choose. This preference shift supports the operating model of properties that invest deeply in on-site experience design: immersive dining concepts, integrated wellness programming, naturalist-led activities, and curated cultural engagements.

90% of Indian travellers consider accommodation central to their holiday experience

Domestic Travel: The Structural Growth Pillar

Domestic travel is now the principal growth driver of Indias hospitality sector, not merely a fallback during periods of international disruption, but structurally strong demand engine driven by income growth, connectivity expansion and evolving consumer preference.

India records 3-4 Billion domestic tourist visits annually, a volume that provides the sector with a base of demand depth that few markets globally can match. In CY 2026, as inbound international arrivals have faced headwinds from the West Asia conflict, domestic travel has provided exactly the buffer that its scale implies, sustaining occupancies and supporting rate growth at properties less dependent on overseas sourcing.

3-4 Billion domestic tourist visits annually, India-the worlds most active domestic travel market

(Source: https://rn.economictimes.com/industry/services/ travel/india-tourism-iran-war-effect-flight-disruptions- tourist-spots-hotel-bookings-oil-prices-pm-modi-appeal- staycation-travel-hotel-prices-middle-east-conflict/ articleshow/131190329.cms )

Leisure Travel: Geographic Expansion and Format Diversification

Leisure tourism serves as the primary anchor for domestic hospitality growth, and is undergoing a profound structural shift that plays directly to the strengths of premium operators. A combination of persistent geopolitical friction across traditional outbound corridors and a structural depreciation of the Indian Rupee has fundamentally altered the economics of luxury travel, prompting affluent domestic travelers to actively substitute international vacations with premium domestic alternatives. This high-net-worth segment is increasingly demanding that domestic properties match international benchmarks-an expectation that heavily favors operators capable of delivering world-class culinary excellence, bespoke wellness architectures, and high-end experience design without outbound transit friction.

This behavioural pivot is further evidenced by a decisive shift in institutional capital toward premium

asset development; according to industry research, the Upper-Upscale, Upscale, and Luxury segments accounted for nearly 60% of all new hotel openings, with total institutional hotel investment scaling to an unprecedented US$ 567 Million, representing a massive 67% increase year-on-year.

Concurrently, demand has moved beyond standard seasonal vacations into high-yield, celebration-led leisure, wildlife tourism, and dedicated wellness retreats, allowing micro-markets and emerging destinations- including Rishikesh, Bandhavgarh, Coorg, and Lakshadweep-to transition into high-velocity demand hubs. Supported by fast-tracked regional connectivity and expanded highway infrastructure, these markets allow premium brands with established equity to capture a highly disproportionate share of wallet by delivering structured, reliable luxury where independent or unbranded supply cannot scale.

60% of new luxury hotel openings in CY 2025 were in leisure destinations

The Institutionalisation of Religious Tourism

Faith-based travel in India has graduated from a segment to a significant economic force.

The Mahakumbh 2025 in Prayagraj attracted over 663 Million visitors within a span of 45 days, a logistical and organisational feat with an estimated economic impact of Rs. 2 trillion across hospitality, transport and local commerce (Ministry of Tourism/UP Tourism).

Events of this scale, supported by improving infrastructure and better-organised curated offerings, are converting religious tourism from an informal, low- yield segment into one capable of generating premium demand at appropriately positioned properties in proximate markets.

Rs. 2 trillion+ estimated economic impact from Mahakumbh 2025, Prayagraj

MICE: Geographic and Institutional Expansion

Indias Meetings, Incentives, Conferences, and Exhibitions (MICE) segment is undergoing a structural evolution, driven by the commissioning of international- quality, mega-scale convention facilities in primary metropolitan hubs. The operationalisation of world- class venues-specifically Bharat Mandapam and Yashobhoomi (IICC) in Delhi NCR, alongside the Jio World Convention Centre in Mumbai has strengthened Indias ability to host large-scale global conventions that historically defaulted to established regional hubs like Singapore, Dubai, and Bangkok. This influx of high-yield

international corporate and association event traffic represents a direct, premium revenue catalyst for EIH Associated Hotels Limited. By leveraging our established luxury and upscale inventory adjacent to these high- capacity infrastructure nodes, the Company is uniquely positioned to capture a disproportionate share of high-margin rooms, banqueting, and catering demand generated by these global-scale events.

35+ cities now hosting large-format MICE events across India

Event-Led Travel Demand

Live events have emerged as a significant driver of hospitality demand and out-of-station travel.

In CY 2025, 5.6 lac Indians travelled specifically to attend concerts-a figure that would have been negligible five years prior. Coldplays Ahmedabad concerts alone attracted 2,22,000 attendees from over 500 cities, generating Rs. 641 Crores in economic impact, of which Rs. 392 Crores was captured in local spending.

India recorded 34,000+ live events in CY 2025, an increase of 17% year-on-year, creating a recurring demand engine for hotels in event-proximate markets.

56 lac Indian travelled to attend concerts in 2025

(Source: https://www.hvs.com/article/10451-hvs-anarock- india-hospitality-industry-overview-2025 )

Wedding-Driven Hospitality

Indias wedding industry, encompassing 8-10 Million weddings annually, has become one of the most reliable and high-yield demand drivers for premium hospitality.

The luxury celebration market is increasingly becoming destination-focused. Approximately 60% of weddings with budgets exceeding Rs. 1 Crore are now hosted as destination events. Additionally, average pre-wedding spending has reached around Rs. 58 Lacs, reflecting a growing preference for elaborate and immersive celebration experiences.

/8-10 Million weddings annually in India

34,000+ lacs live events in India in CY 2025 (up 17% y-o-y)

60% of events above Rs. 1 Crore,

Destination weddings now account

Government initiatives, including Wed in India and state-level destination wedding programmes are adding institutional support to a trend that was already gaining momentum organically.

For Company, weddings represent a demand segment that rewards precisely its property attributes: heritage settings, personalised service, culinary excellence and event management capability.

( Source: https://www.hvs.com/article/10451-hvs-anarock- india-hospitality-industry-overview-2025 )

Wellness-led Hospitality: From Amenity to Core Proposition

Wellness has moved from the margins of luxury hospitality to one of its defining value propositions. The contemporary luxury traveller increasingly makes accommodation decisions based on the quality and depth of wellness programming as the primary reason for choosing a property. This shift is generating a new category of offering: integrated wellness resorts that combine the service and design standards of luxury accommodation with comprehensive health and lifestyle programming. Immersive formats built around personalised health diagnostics, wellness protocols, guided mindfulness, yoga and movement practices, hydrotherapy, sleep optimisation, and nature-integrated healing are commanding significant premiums and driving longer average stay durations. The convergence of wellness, luxury, and experiential travel is creating a high-margin, high-retention segment that rewards operators with genuine program depth.

For EIH Associated Hotels Limited, this behavioural pivot represents an immediate strategic opportunity to maximize yield and boost length of stay across our portfolio. The timely launch of our signature wellness framework, ASMI by Oberoi , is meticulously designed to capture this demand. Rooted in the ancient Indian philosophy of Pancha Kosha and backed by rigorous scientific practice, ASMI transforms wellness from an isolated spa amenity into a comprehensive, integrated ecosystem structured around five core pillars: movement, nutrition, bodywork, breathwork, and mindfulness. By scaling ASMI across our key leisure and urban properties, EIH Associated Hotels Limited is uniquely positioned to monetise this high-margin trend, utilising bespoke wellness architectures-such as targeted ASMI dietary menus, diagnostic-led therapy tracks, and restorative environments-to solidify brand loyalty and command dominant rate premiums from discerning global travelers.

AI-Enabled Travel Planning

Technology is fundamentally reshaping how travel is discovered, planned, and booked. Industry data indicates that 83% of Indian travelers believe AI simplifies the planning process, with 80% already actively using AI-powered tools for itinerary planning, destination discovery, and booking decisions. Driven by this shift toward hyper-personalised, data-driven travel experiences, Indias AI tourism market is projected to grow at a 32.6% CAGR to reach US$ 595 Million by CY 2030. For premium hospitality operators, this evolution elevates the strategic importance of digital real estate, advanced predictive data architectures, and frictionless direct-booking capabilities.

To capitalise on this technological shift, EIH Associated Hotels Limited has mobilised its comprehensive ITNext transformation roadmap, embedding advanced Artificial Intelligence across both guest-facing systems and back-of-house operations. Rather than replacing human touchpoints, the ITNext framework leverages predictive AI models and unified guest profiles to equip our frontline teams with actionable, real-time insights, allowing them to personalise and customise the guest experience through data driven insights. Simultaneously, these intelligent systems optimise complex internal workflows, dynamically managing inventory, predicting supply chain requirements, and refining operational efficiencies. By integrating AI-driven intelligence with the legendary service standards of The Oberoi and Trident brands, EIH Associated Hotels Limited ensures that technological innovation directly translates into enhanced organizational productivity and sustained yield maximization.

US$ 595 Million projected size of Indias AI in tourism market by CY 2030 (32.6% CAGR)

(Source: https://www.hvs. com/article/10451-hvs-anarock- india-hospitality-industry-overview-2025 )

Outlook

Indias hospitality sector enters FY 2026-27 characterised by robust operational fundamentals, defined by a structural demand-supply imbalance where premium demand growth continues to significantly outpace new room inventory execution. This baseline is fortified by a highly targeted policy ecosystem unveiled in the Union Budget 2026-27. Rather than distributing generic development funds, fiscal priority has shifted to institutional upgrades-such as transforming legacy frameworks into the National Institute of Hospitality to solve the luxury talent deficit-and the formal creation of dedicated thematic corridors and regional Medical Value Tourism hubs.

Concurrently, metropolitan business markets are experiencing sustained depth; record absorption of Grade A office space and the continuous expansion of the Global Capability Centre (GCC) ecosystem are securing predictable, high-yield corporate travel flows. When coupled with international-grade convention spaces driving a new era of global MICE traffic and the permanent premiumisation of domestic leisure substitution, the sectors pricing power remains exceptionally resilient. While near-term risks persist via volatile airspaces and geopolitical disruptions in West Asia, the robust domestic purchasing base and evolving point-to-point flight networks act as an effective buffer, ensuring a stable, highly profitable trajectory for premium operators throughout the fiscal year.

Financial and Operating Performance

In yet another remarkable year, our unwavering focus on quality, premium positioning, and meticulous attention to detail continued to distinguish us in the luxury hospitality landscape, enabling us to deliver exceptional experiences to our esteemed guests. The sustained

revival in global travel and hospitality created favourable momentum for the sector, which the Company was well positioned to capitalise on. In FY 2025-26, your Company delivered financial performance. Revenue was Rs. 4,031.96 Million as against Rs. 4,269.36 the previous year. EBITDA stood at Rs. 1,383.34 Million, while profit

Financial Performance Highlights

Risk management

Our Companys Risk Management Committee (RMC), comprises Board members and senior management, plays a pivotal role in overseeing enterprise risks, strategic priorities, and key early warning indicators. In close coordination with management, the Committee defines the Companys risk appetite and formulates mitigation strategies through robust policies, controls, and governance frameworks. Our risk management approach is designed to identify, assess, monitor, and

before tax deceased to Rs. 1,170.71 Million. Net profit after tax was Rs. 871.74 Million . This robust performance reflects our strategic agility, operational excellence, and continued ability to create value across every dimension of our business.

respond effectively to a broad spectrum of risks spanning business, financial, operational, environmental, reputational, legal, and cyber domains.

Mr. Manish Singh serves as the Chief Risk Officer and works closely with the Committee to strengthen the Companys risk oversight mechanisms. The Committee regularly reviews identified risks, evaluates mitigation measures, and reports its observations to the Board, ensuring a proactive, resilient, and comprehensive approach to risk management across the organisation.

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.

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 organization 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 and sustained effectiveness. As mandated under Section 149(8) and Schedule IV of the Act, 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 organizations 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.

Business consolidation and expansion

We continue to expand our presence across:

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. 125 Keys Trident Hotel is under construction in Vishakhapatnam (near Bhogapuram airport) and is expected to be operational by 2028. It shall be managed by EIH Limited.

Human resource development

At EIH Associated Hotels Limited, our enduring commitment to our guests and our people continues to be deeply inspired by the values and philosophy of Mohan Singh Oberoi, our Founder Chairman. Anchored in The Oberoi Dharma, our people practices are guided by the principles of ethical conduct, compassion, mutual respect, personal accountability, and an unwavering pursuit of excellence.

Aligned with this philosophy, our Human Resources function plays a vital role in building high-performing teams through progressive people practices that foster continuous learning, meaningful engagement, inclusivity, and holistic employee well-being.

During FY 2025-26, the Company continued to strengthen its human capital capabilities through several focused initiatives aimed at enhancing talent development, employee experience, leadership capabilities, and organisational effectiveness, as outlined below.

Human Resource Management System (HRMS) - OberoiConnect by Darwinbox

During the year, we successfully implemented OberoiConnect, a cloud-based Human Resource Management System powered by Darwinbox, across all Oberoi and Trident hotels in India.

The platform delivers a seamless, end-to-end employee experience spanning recruitment, onboarding, attendance and leave management, while also providing employees and executives an easy access to policies, benefits, and essential HR services. The system also integrates rewards and recognition processes, enabling timely, consistent, and meaningful appreciation of employee contributions across all properties and functions.

Talent Acquisition and Retention

Attracting and retaining high-quality talent remains fundamental to sustaining our culture of excellence and long-term success. During the year, we continued to strengthen our talent pipeline through focused talent acquisition, employee engagement, and retention initiatives aimed at building a skilled, motivated, and future-ready workforce.

RISE (Refine and Invest in Skill Enhancement): RISE is a structured programme designed to expand our talent pool through diverse hiring channels, promote inclusion, and align workforce capabilities with the Companys long-term growth strategy. Supported by

Rs. 4,031.96 Million	Rs. 1,383.34 Million EBITDA	Rs. 1,170.71 Million Profit	Rs. 871.74 Million Net profit
Revenue	-4.6% y-o-y	before tax	-4.7% y-o-y
-5.6% y-o-y		-5.0% y-o-y

Key financial ratios

Particulars	Year ended 31 st March 2026	Year ended 31 st March 2025	Remarks
Debtor turnover ratio (in times)	17.34	15.93	The increase is primarily due to decrease in average trade receivables as compared to the previous year.
Debt - Equity ratio (in times)	0.01	0.01
Debt service coverage ratio (in times)	98.92	124.43
Interest Service Coverage Ratio (in times)	205.60	246.18
Current ratio (in times)	3.49	4.58	The decrease is due to decrease in current assets and increase in current liabilities as at the current year end as compared to the previous year end
Net capital turnover ratio (in times)	2.07	1.63	The increase is due to decrease in working capital in the current year as compared to previous year
Trade receivables turnover ratio (in days)	21.05	22.92
Inventory turnover ratio	7.49	7.4
Operating profit margin (in %)	30.98%	30.96%
Net profit margin (in %)	21.62%	21.51%
Return on capital employed (in %)	18.18%	21.39%
Return on equity (in %)	15.31%	18.38%

focused training interventions, the programme has strengthened our collaborations with skilling institutes to train and integrate non-hospitality talent across our properties, enhancing workforce readiness and operational resilience.

Development Programmes: Learning and Development continues to be a strategic driver in building a future- ready organisation. In an environment marked by rapid change and increasing complexity, our focus remains on strengthening leadership capabilities, critical skills, and a culture of continuous learning aligned with evolving business priorities.

Comprehensive Upskilling for Success and Progression (CUSP)

We launched Comprehensive Upskilling for Success and Progression (CUSP), a multi-layered talent development framework designed to support employee growth from induction through Supervisory and Executive leadership levels. These programmes provide fair, transparent, and consistent career pathways, enabling purposeful development while nurturing a motivated and high- performing workforce.

Engagement with our Learning Management System (LMS) increased by 398% over the previous year following the introduction of customised learning pathways that encourage self-directed and continuous learning.

FY 2025-26 learning metrics:

- Number of unique employees covered: 978

- Average training mandays per employee: 23

Oberoi Centre of Learning and Development (OCLD)

At OCLD, we continued to drive excellence in learning by enriching training content, expanding outreach, and strengthening alignment with strategic objectives.

Two new modules-Health and Wellness and Events Management - were introduced under the Management Training Programmes. Additionally, the pastry curriculum within the Kitchen Management Programme was redesigned to further enhance culinary expertise and to address evolving guest dietary preferences.

A total of 180 Management Trainees were enrolled across the batches in 2024-26 and 2025-27.

At the end of the year, 85 STEP trainees were enrolled across the batches in 2023-26, 2024-27, and 2025-28.

Employee Engagement

Employee engagement remain central towards delivering exceptional guest experiences. In FY2025-26, the Company achieved an employee engagement score of 90%, aligned with global benchmarks, reflecting the supportive and purpose-driven culture we continue to nurture across the organisation. We remain committed to sustaining high levels of employees engagement through focused action plans shaped by employee feedback and responsive to evolving workforce expectations.

Gender Diversity

We remain committed towards fostering an inclusive and diverse workplace that enables equal opportunities for growth and advancement. Currently, women comprises of 25% of our permanent workforce, and we have set a clear objective to increase this representation to 30% in the year ahead.

To support women employees in balancing personal and professional aspirations, we continue to provide flexible work arrangements, enhanced maternity benefits, dedicated facilities for new mothers, and role transition opportunities aligned with evolving life stages and career aspirations.

Compensation Benchmarking

The Company remains committed to offering compensation positioned above the 75 th percentile of relevant market benchmarks, ensuring competitiveness in attracting and retaining high-quality talent. This approach enables informed, data-driven compensation decisions across all levels of the organisation while reinforcing fairness, performance orientation, and employee value creation.

By remaining responsive to evolving market trends and compensation movements, we continue to strengthen our position as an employer of choice. This holistic approach to people development reflects our commitment to fostering a culture of high performance, purpose, inclusivity, and long-term sustainability.

Awards and Recognitions

The Oberoi Centre of Learning and Development received multiple prestigious recognitions during the year for delivering highimpact, futurefocused learning solutions:

- Brandon Hall Excellence Awards 2025 - Gold Award for Best Upselling Programme

- Global CCU Awards - Bronze Award for Best Corporate University for Branding and Durability

- BW People Awards 2026 - Gold Award for Best Leadership Development Programme

- BW People Awards 2026 - Winner, Best Corporate Learning and Development Team of the Year

Internal audit mechanism and review system

The Internal Audit Department has a highly skilled team with varied qualifications such as Chartered Accountants, MBAs, and those having certification in Anti Money Laundering, and Forensic Accounting. This team has specialised knowledge across key functional areas, including finance, operations, statutory compliance, project management, and process audits. The department works in collaboration with reputed cosourced firms to conduct audits and handle specialised assignments, ensuring independent and objective evaluation of the internal control environment in line with the 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, the year reflected our continued commitment to excellence across every aspect of our business. We delivered strong financial and operational performance, strengthened resilience across our operations, and continued to embrace innovation to enhance efficiency and guest experiences. Our ongoing expansion initiatives have further reinforced the

foundation for long-term growth, while the recognitions and accolades received during the year reaffirm our commitment to delivering world-class hospitality.

At the heart of these achievements is our people-first philosophy. The dedication, passion, and professionalism of our colleagues continue to be the driving force behind our success, and we remain committed to fostering their growth and well-being. At the same time, our robust governance and internal control frameworks continue to support operational integrity, accountability, and sustainable value creation. Looking ahead, we remain confident in our ability to create enduring value for all stakeholders while strengthening our position in the global luxury hospitality landscape.

We extend our sincere gratitude to our guests, shareholders, members of the Board, and our colleagues for their continued trust, guidance, and support. To our guests, we thank you for your loyalty and confidence in our brands. To the Board, we remain grateful for your strategic direction and stewardship. And to our colleagues, we deeply value your relentless commitment and pursuit of excellence, which continue to shape our success every day. Together, we look forward to building an even stronger future.

	For and on behalf of the Board of Directors
Place: New Delhi	Arjun Singh Oberoi
Date: 22 nd May 2026	Chairman
	DIN:00052106