Brigade Hotel Ventures (BHVL), the hospitality arm of Brigade Enterprises, delivered a strong performance for the second quarter and first half of FY26, driven by improved room rates, higher profitability, and reduced finance costs following its recent IPO.
Brigade Hotel Q2 FY26: Financial Performance
Brigade Hotel Q2 FY26 reported that the company’s total income rose 20% YoY to INR 130 crore, while EBITDA grew 9% to INR 41 crore. PAT surged 58% YoY to INR 11 crore, supported by lower finance costs and healthy operating leverage.
For Brigade Hotel H1 FY26, total income was INR 255 crore (up 21%), EBITDA INR 83 crore (up 16%), and PAT INR 18 crore, marking an 18-fold jump over H1 FY25.
| Particulars | H1 FY25 | H1 FY26 | YoY Growth |
|---|---|---|---|
| Total Income | 211 | 255 | +21% |
| EBITDA | 72 | 83 | +16% |
| PAT | 1 | 18 | 18x |
| EBITDA Margin (%) | 34.0% | 32.6% | -140 bps |
| PAT Margin (%) | 0.4% | 7.0% | +660 bps |
🏨 Brigade Hotel Q2 FY26: Operational Metrics
The company maintained strong occupancy levels while driving price growth across its properties.
| Metric | Q2 FY25 | Q2 FY26 | YoY Growth |
|---|---|---|---|
| Average Room Rate (ARR) | 6,247 | 7,106 | +14% |
| RevPAR (Revenue per Available Room) | 4,745 | 5,374 | +13% |
| Occupancy (%) | 76.0 | 75.6 | Flat |
Same-store growth (excluding Ibis Styles Mysuru) showed an even stronger trend, with ARR up 16% YoY and RevPAR up 14% YoY.
🌆 Geographic Performance
| Region | Q2 FY25 ARR | Q2 FY26 ARR | YoY % | Q2 FY25 RevPAR | Q2 FY26 RevPAR | YoY % |
|---|---|---|---|---|---|---|
| Bengaluru | 7,316 | 8,738 | +19 | 5,959 | 6,807 | +14 |
| Others | 5,052 | 5,558 | +10 | 3,569 | 4,090 | +15 |
| Combined | 6,247 | 7,106 | +14 | 4,745 | 5,374 | +13 |
🚀 IPO and Capital Allocation
Brigade Hotel IPO in July 2025 was oversubscribed 3.1x, raising INR 886 crore (including INR 126 crore via pre-IPO placement to 360-One Alternates).
Proceeds are being deployed as follows:
| Purpose | Amount (INR Cr) | Deployment Status (as of Sep 2025) |
|---|---|---|
| Debt Repayment | 468.1 | Fully utilized |
| Purchase of UDS from Promoter | 107.5 | Completed |
| Future Acquisitions | 90.0 | Planned FY27 |
| General Corporate Purposes | 220.0 | INR 17.2 Cr utilized |
| Total | 885.6 | INR 591.9 Cr utilized |
🏗 Expansion Pipeline: Doubling Keys by FY30
BHVL plans to invest INR 3,600 crore to add 1,700 new keys by FY30, expanding its total inventory to ~3,300 keys across 18 hotels.
| Project | Location | Segment | Keys | Completion |
|---|---|---|---|---|
| Courtyard by Marriott WTC | Chennai | Upscale | 45 | FY27 |
| Fairfield by Marriott | Bengaluru Airport | Upper Midscale | 224 | FY28 |
| Grand Hyatt | Chennai ECR | Luxury | 211 | FY28 |
| InterContinental | Hyderabad | Luxury | 300 | FY29 |
| Ritz-Carlton | Vaikom Island, Kerala | Luxury | 70 | FY29 |
| JW Marriott | Chennai OMR | Luxury | 250 | Planning |
| Thiruvananthapuram Marriott | Technopark | Upper Upscale | 200 | Planning |
| Tumkur Road Hotel | Bengaluru | Upscale | — | FY30 |
| Total (Approx.) | — | — | 1,700 | — |
💬 Leadership Commentary
“Our strong Q2 FY26 results reflect the success of our operational excellence and strategic positioning in high-growth markets. We’re focused on driving ARR and RevPAR through premium brand partnerships while expanding responsibly,” said Nirupa Shankar, Managing Director, Brigade Hotel Ventures.
📊 Historical Performance Snapshot
| Financials | FY23 | FY24 | FY25 |
|---|---|---|---|
| Total Income | 356 | 405 | 471 |
| EBITDA | 103 | 145 | 167 |
| PAT | (3) | 31 | 24 |
| EBITDA Margin (%) | 28.9 | 35.7 | 35.5 |
| PAT Margin (%) | (0.9) | 7.7 | 5.0 |
Building a Scalable Hospitality Platform
Brigade Hotel Q2 FY26 results reinforce its position as a rising star in India’s listed hospitality sector. With zero net debt, strong occupancy, and premium brand tie-ups (Marriott, Accor, IHG), the company is strategically poised to capture India’s expanding travel and tourism demand.
As the hospitality cycle accelerates, Brigade Hotel Ventures emerges as a credible, growth-oriented mid-cap play in the real estate-hospitality ecosystem.
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