Mac Hotels Ltd Management Discussions

<dhhead-MANAGEMENT DISCUSSION AND ANALYSIS REPORT</dhhead-

INDUSTRY OVERVIEW:

- INTRODUCTION

The global hotel industry in 2026 is experiencing a strong resurgence, fuelled by the revival of international travel, shifting consumer behaviours, and the ongoing evolution of hospitality technologies. After facing significant disruptions in previous years due to global health crises and travel restrictions, the industry has adapted rapidly through the implementation of digital solutions, flexible booking policies, and enhanced safety protocols. Valued at approximately $850 billion, the global hotel market is expected to grow at a compound annual growth rate (CAGR) of 5.8% through 2027.

Market growth is being driven by increased demand in both established regions such as North America and Europe, and rapidly expanding markets in Asia-Pacific and the Middle East. Key segments within the industry include luxury hotels, which cater to premium travellers; midrange and budget hotels, serving price-sensitive and business clients; boutique and lifestyle hotels, which offer unique and personalized guest experiences; and extended-stay hotels, which are increasingly popular among long-term travellers and digital nomads. Emerging trends such as contactless check-in/out, AI-powered guest services, personalized marketing, and mobile app integration are redefining the guest experience and operational efficiency. At the same time, sustainability has become a major focus, with hotels adopting green practices to meet environmental regulations and appeal to eco-conscious consumers.

- MARKET SIZE

Indias tourism and hospitality sector has emerged as an important contributor to economic growth, employment and foreign exchange earnings. According to the World Travel & Tourism Council (WTTC), Travel & Tourism contributed approximately US$263.6 billion to Indias economy in 2025 and supported around 46.2 million jobs. The sector grew by approximately 7.3% during 2025, significantly exceeding global Travel & Tourism growth. WTTC expects Indias Travel & Tourism contribution to increase further in 2026, with projected economic contribution of approximately US$286.1 billion and employment of around 48.1 million.

Domestic tourism remains the principal driver of the Indian travel market. Domestic visitor spending reached approximately US$203 billion in 2025 and accounted for around 86% of total Travel & Tourism spending in the country. This reflects the increasing propensity of Indian consumers to travel for leisure, short breaks, family holidays, weddings, religious tourism, wellness and experiential purposes.

According to the Ministry of Tourisms tourism data, India recorded approximately 20.22 million international tourist arrivals in 2025, comprising around 9.15 million Foreign Tourist Arrivals and 11.07 million NRI arrivals. India also recorded approximately 4,286.9 million domestic tourist visits during 2025, highlighting the significant scale of the domestic tourism market.

Foreign exchange earnings from tourism amounted to approximately ?2.7 lakh crore, equivalent to around US$31.69 billion, during 2025. The continued expansion of international connectivity, improvement in tourism infrastructure and diversification of Indias tourism offerings are expected to support further growth in inbound tourism.

GOA TOURISM MARKET:

Goa continues to remain one of Indias leading leisure tourism destinations and represents an attractive market for hotels, resorts, restaurants and allied hospitality businesses. The State benefits from its beaches, heritage, cultural attractions, nightlife, cuisine, water sports and expanding portfolio of wellness, adventure and experiential tourism offerings.

According to the Government of Goa, the State recorded approximately 1.08 crore tourist arrivals during 2025, comprising approximately 1.03 crore domestic tourists and 5.18 lakh foreign tourists. This represented continued strength in tourist demand and reinforced Goas position as a major domestic and international leisure destination.

Tourism activity during 2025 was strong throughout the year. During January to June 2025, Goa recorded approximately 54.55 lakh tourist arrivals, including around 51.84 lakh domestic visitors and 2.71 lakh international visitors. The growth was supported by improved connectivity, promotional activities and the diversification of tourism products beyond traditional beach tourism.

As per the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) in February 2023 were 865,779 with a positive growth rate of 259.4% as compared to 240,896 in February 2022.

FTAs during the period January-February 2023 were 1,733,939 as compared to 442,442 in January-February, 2022.

The percentage share of Foreign Tourist Arrivals in India during February 2023 among the top 15 source countries was highest from Bangladesh (20.3%) followed by the USA (16.4%), UK (11.1%), Canada (5.8%), Australia (3.7%), Malaysia (3.0%), Sri Lanka (2.8%), Russian Federation (2.7%), Germany (2.5%), France (2.4%), Nepal (1.9%), Thailand (1.7%), Singapore (1.5%), Italy (1.2%) and Japan (1.2%).

- GOVERNMENT INITIATIVES

The Government of India continues to undertake various initiatives aimed at strengthening tourism infrastructure, improving connectivity, developing tourist destinations and creating employment opportunities through the tourism and hospitality sector.

Key initiatives relevant to the tourism and hospitality industry include:

• Tourism for employment-led growth: Under the Union Budget 2025-26, the Government announced the development of the top 50 tourist destinations in partnership with States through a challenge-based approach. Hotels located in these

destinations were also proposed for inclusion in the Harmonized Master List of Infrastructure, subject to the applicable framework.

• Swadesh Darshan 2.0: The scheme has been revamped with a focus on sustainable and responsible tourism destinations, including development of tourism experiences, infrastructure, capacity building and digital interventions. During FY 2025-26, the Ministry of Tourism continued sanctioning projects under Swadesh Darshan 2.0 and its associated sub-schemes.

• Budgetary support for destination development: The Budget Estimates for Swadesh Darshan and its sub-schemes for FY 2025-26 were approximately ? 1,900 crore. The framework included development of destinations, project interventions, maintenance arrangements and employment generation.

• Improved connectivity: The Government has continued to invest in roads, airports, railways and regional connectivity. The Union Budget 2025-26 also provided for expansion of the UDAN regional connectivity programme, with the objective of connecting additional destinations and supporting passenger movement.

• Sustainable and inclusive tourism: The Ministry of Tourism has placed increasing emphasis on sustainable, responsible and inclusive tourism, including development of lesser-known destinations, eco-tourism and community-linked tourism activities.

- ROAD AHEAD

• The outlook for the Indian hospitality industry remains positive. Continued growth in domestic travel, increasing international connectivity, rising disposable incomes, improving infrastructure and changing consumer preferences are expected to create sustained demand for accommodation and allied hospitality services.

• The industry is moving beyond conventional accommodation towards experience-led hospitality. Travelers increasingly seek unique experiences, local cuisine, wellness programmers, adventure activities, cultural immersion and personalized services.

• This trend provides opportunities for hotels and resorts to differentiate themselves through service quality, location and curated guest experiences.

• Staycations and short leisure breaks continue to remain relevant, particularly among urban consumers seeking convenient and experience-oriented holidays. Destination weddings, MICE events, wellness tourism and premium leisure travel are also expected to contribute to hotel demand.

• Technology will continue to play an important role in improving hotel operations. Digital reservations, online distribution, customer relationship management, artificial intelligence, automated communication, digital payments and data analytics can improve operational efficiency while enabling hotels to offer more personalized guest experiences.

• Sustainability is expected to become an increasingly important competitive factor. Hotels and resorts that adopt efficient energy and water usage, waste reduction, responsible sourcing and environmentally sensitive operating practices are likely to be better positioned to meet changing customer expectations and regulatory requirements.

• Overall, Indias tourism and hospitality sector is well positioned for continued long-term expansion. The combination of a large domestic travel market, increasing international

tourism, infrastructure development, government support and evolving traveller preferences provides a favorable environment for the growth of hotels and resorts.

• For Goa in particular, continued tourist inflows, improved air connectivity through two operational airports, diversification into year-round tourism and the State Governments focus on sustainable and regenerative tourism are expected to support the long-term prospects of the hospitality sector.

- BUSINESS OVERVIEW

Our Company was originally incorporated as "Mac Hotels Private Limited" at Panaji, Goa as a Private Limited Company under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated December 20, 1990 issued by Registrar of Companies, Goa. Subsequently, our Company was converted into Public Company and the name of our Company was changed to "Mac Hotels Limited" in the year August 10, 2017. The Corporate Identification Number of our Company is L55101GA1990PLC001100.

We are primarily engaged in the business of owning, operating and managing hotels, restaurants and resorts in Goa since last 25 years. Our Company has been incorporated with the main object to carry on the business of hotels, restaurant, cafe, caravan site, apartment house-keeper etc and related services. Our Hotels and Resorts are tourist destinations for domestic as well as international tourists and are one of the frequented hotels in Goa.

The registered office of our Company is located at First Floor, Beach Plaza (Annexee), Nomxin, Caranzalem, Ilhas, Panaji - 403 001, Goa, India. At present, we operate and manage one resort under the name "Resort Park Avenue" in Goa which is located at Umta Waddo, Near Infantaria Bakery, Baga Road, Calangute, Bardez, Goa -403 516.

Our Promoters i.e. Edwin E R Cotta and Edgar Maximiano Do Rosario Cotta are having experience of 28 years in the Hospitality Industry especially Hotels and Restaurants Segment. Our promoters have been instrumental in determining the vision and growth strategies for our Company. Our Corporate Promoter Hotel Miramar Comfort Private Limited is also engaged in Hospitality Business.

We value our customers and aim to exceed customer expectations by fulfilling valuable commitments. Our customer-oriented approach and cordial relations with them are the key strengths of our company. We continuously aspire for great heights which not only showcase our signature of success in the present but also leave a mark for future.

- INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has in place adequate system of internal control. It has documented procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls, monitoring of operations, protecting assets from unauthorized use or losses, compliances with regulations and for ensuring reliability of financial reporting. The Company has continued its efforts to align all its processes and controls with global best practices in these areas as well.

- HUMAN RESOURCES & INDUSTRIAL RELATIONS:

We believe that our employees are key contributors to our business success. We focus on attracting and retaining the best possible talent. Our Company looks for specific skill-sets, interests and background that would be an asset for our business. As on date of this Prospectus, we have 3 employees in the registered office in addition to our management. These employees look after administration, legal, marketing and accounting functions. Further, we have casual employees at the Resort Park Avenue. Our manpower is a prudent mix of the experienced and youth which gives us the dual advantage of stability and growth. Our work progress and skilled/ semi-skilled/ unskilled resources together with our strong management team have enabled us to successfully implement our growth plans.

- SWOT ANALYSIS