Viceroy Hotels cuts F&B revenue target, delays convention center by three months
Q4 revenue grew 35% but management revised its food-and-beverage outlook down and pushed back its convention center timeline to FY27.
— 3 earlier stories on Viceroy Hotels Ltd. →What's new
- Revenue rose 35.3% YoY to ₹49.5 cr in Q4, driven by the Marriott Executive Apartments acquisition and Courtyard Hyderabad renovations.
- F&B revenue contribution target cut to 35-40% from 45-48%.
- Convention center expansion delayed by three months to end-FY27.
Why this matters
The F&B target cut is the real news. A 10-13 percentage-point reduction in a high-margin revenue stream suggests either a strategic rethink or a softer demand outlook that wasn't flagged in prior updates. The convention center delay compounds this, pushing another growth catalyst further out.
What we're watching
- Whether the ADR guidance of ₹9,000-9,500 holds as renovations continue.
- How the lower F&B mix affects blended margins.
- Execution on the convention center timeline now set for end-FY27.
The full read
Viceroy Hotels posted 35.3% revenue growth to ₹49.5 cr in Q4, but the concall was defined by two revisions that cut against the top-line story. The F&B revenue contribution target dropped to 35-40% from 45-48%, a meaningful pullback that management did not fully explain. Separately, the convention center expansion slipped by three months to end-FY27, from September 2026. ADR guidance pointed toward ₹9,000-9,500 as renovations roll out, with a longer-term target of ₹10,000. The full-year EBITDA margin hit 29.8%, up 353 bps. The numbers are solid. The revised targets are the story.
Questions answered
- Why did Viceroy Hotels lower its F&B revenue target?
- Management didn't provide a specific reason on the call, but cut the target to 35-40% from 45-48%. The move could reflect a strategic shift toward room revenue or softer-than-expected F&B demand post-renovations.
- What drove the Q4 revenue growth?
- Revenue rose 35.3% to ₹49.5 cr, driven by the acquisition of Marriott Executive Apartments and the completion of Phase 1 renovations at Courtyard Hyderabad.
- How much did margins improve?
- Full-year EBITDA margin expanded 353 basis points to 29.8%. Q4-specific margin data wasn't disclosed on the call.
- What is the ADR outlook?
- Management guided for average daily rates to progress from ₹7,000 toward ₹9,000-9,500 as renovations continue, with a long-term target of ₹10,000.
Viceroy Hotels Ltd.
Latest quarter · Mar 2026
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All notes on VHLTD →- 25 May 2026 · 4:16 PM IST Viceroy Hotels cuts F&B revenue target, delays convention center by three months
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