Oriental Hotels Ltd

Unleashing Potential :

Rebounding with Remarkable Results

Dear Shareholders,

We are delighted to present our annual report for the fiscal year 2022-23, highlighting the exceptional performance and significant milestones achieved by our organization. This year has been marked by a remarkable resurgence after a prolonged slump caused by the global pandemic. The services sector, including the travel and tourism business, has gradually returned to prepandemic levels. As we reflect on our accomplishments, we also remain committed to embrace the lessons learned during the challenging period.

The Company experienced a rebound in its business, supported by the resurgence of leisure travel and a gradual pickup in business travel. Domestic and international travel restrictions were eased in a phased manner, creating a renewed eagerness among people to explore new destinations.

The pandemic has brought sustainability and responsible tourism practices to the forefront. Travelers are now more conscious of their environmental impact and seek destinations, accommodations, and activities that prioritise sustainability. In line with this, our company has adopted IHCL's sustainability and social impact framework, "Paathya." Through Paathya, we have integrated sustainability into our decision-making processes, operations, and risk management, further solidifying our commitment to a sustainable future. 70% of our electricity consumption is from renewable sources. We are proud to have completed one year of our Paathya journey alongside IHCL.

Our industry has adapted to the post-pandemic landscape by prioritizing health and safety, embracing sustainability, leveraging technology, and catering to changing traveller preferences. These adaptations signify a new era in the tourism and hotel industry, emphasizing resilience and our commitment to providing safe and enjoyable experiences for our guests.

The adaptability in the digital realm has yielded remarkable results. We continue with the use of Zero-Touch Service Transformation (I Zest). This suite of digital solutions, including zero-touch check-ins and check-outs, digital invoicing, online payment options and digital menus, ensures seamless and secure services while maintaining social distancing.

Furthermore, Digital marketing and virtual promotions have played a vital role in reaching potential customers. Tata Neu, a coalition loyalty programme of multiple Tata Partners has further expanded our reach to Customers. The rise of "digital nomadism" has resulted in an increased demand for extended stays in destinations, which we have been able to cater to successfully.

During the FY 2022-23, the Company delivered exceptional performance, achieving a revenue of Rs 408 Crores, an EBITDA Margin of 30.9% and PAT of Rs 58 Crores. Furthermore our outstanding performance has also resulted in a substantial reduction in our debt, solidifying our financial position.

This remarkable turnaround can be attributed to the increase in market demand due to recovery of the economy post COVID and diligent implementation of IHCL's business strategy, "AHVAAN 2025." This strategy focused on portfolio restructuring, margin re-engineering, and reimagining our brandscape.

Our employees' unwavering dedication, exceptional skills and professionalism have played a crucial role in driving our success. They have continuously adapted to changing circumstances, embraced new technologies and embodied our core values of collaboration, creativity and continuous improvement.

Looking ahead, the future of the travel and tourism industry appears promising. According to the World Travel and Tourism Council (WTTC), the sector's contribution to the global economy is expected to grow at an average annual rate of 5.8% over the next decade, surpassing the average annual growth rate estimated for the global economy. India's efforts to position itself as a MICE destination, coinciding with its G20

Presidency, and strengthened campaigns like "Incredible India" and "Dekho Apna Desh" aim to boost domestic and international tourism.

In conclusion, I would like to express my sincere appreciation to each and every employee for their unwavering dedication and remarkable achievements. Our triumphs, particularly in the wake of the Covid-19 pandemic, can be attributed not only to our resilience but also to the resurgent economy and the increased market demand. As we navigate this new phase, we must remain vigilant and agile, leveraging our strengths to capitalise on the emerging opportunities. Together, we will continue to deliver exceptional value to our customers, surpass expectations and sustain our upward trajectory. Thank you all for your continued support and dedication.