Viceroy Hotels Limited (Formerly known as Palace Heights Hotels Limited) was founded in 1965, with its name later changing to Viceroy Hotels Limited in December 2001. Initially, the company operated a stately hotel, 'Hotel Viceroy,' at Gandhi Nagar in Hyderabad. The company is headquartered at Plot 20 Sector-1 Survey No-64, 4th Flr Huda Techno Madhapur, Hyderabad, Telangana-500081.
Viceroy Hotels Limited operates its hospitality assets under the Marriott brand through a management agreement. It owns and operates hotels that offer rooms, restaurants, and banquet services under the Marriott and Courtyard Marriott brands. The primary property spans 4.5 acres and includes 407 rooms, a 10,000 sq. ft. convention centre, and six food & beverage outlets, offering comprehensive amenities for both business and leisure guests.
The company has evolved from a single hotel operation to a diversified hospitality business with multiple revenue streams. In 2010, the Company opened the Business Hotel Courtyard in Hyderabad, adjacent to the Marriott Hotel Hyderabad. This strategic expansion has positioned Viceroy Hotels as a significant player in the premium hospitality segment in South India.
Viceroy Hotels operates through various subsidiaries to diversify its hospitality portfolio. The Company's subsidiaries include Cafe D Lake Private Limited, Crustum Products Private Limited, Viceroy Chennai Hotels & Resorts Private Limited, Minerva Hospitalities Private Limited, and Banjara Hospitalities Private Limited.
The Company's subsidiary, Cafe D Lake Private Limited, owns Fine Dine Restaurants in the name of Minerva Coffee Shop and Fine Dine Bars in the name of Bluefox. It owns Fine Dine Restaurants and Bars in Hyderabad and Vijayawada. Its Minerva Coffee Shop provides Fine Dine Vegetarian Restaurants at Himayat Nagar, Ameerpet, Madhapur in Hyderabad, Telangana, and at Governorpet in Vijayawada, Andhra Pradesh.
The company has also made strategic divestments to focus on its core operations. The Company hived off its Bangalore Project Division to Viceroy Bangalore Hotels Private Limited on July 27, 2011. JPMorgan India Property Mauritius Company II strategically invested Rs. 90 Crores, consequent to which Viceroy Bangalore Hotels Private Limited ceased to be a Subsidiary of the Company with effect from July 28, 2011.
The company's financial performance demonstrates a strong recovery and growth trajectory.
- Q4 FY2024-25 Performance: Reported a profit of ₹9.96 crore on a total income of ₹36.61 crore. Net profit jumped 311.57% compared to the same period last year.
- Annual Performance FY2023-24: Posted a profit of ₹2.39 crore on a total income of ₹138.18 crore (Revenue: ₹137 Cr, Profit: ₹78.0 Cr).
- Q2 FY2024-25 (Sept 2024 Quarter) Performance:
- Sales rose 18.01% to ₹32.31 crore against ₹27.38 crore in Q2 FY2023-24.
- Net profit surged 3675.95% to ₹59.66 crore against ₹1.58 crore in Q2 FY2023-24.
- Market Capitalization: ₹811 Crore (as of April 21, 2025). Classified as a Small Cap company.
- P/E Ratio: 11.51 times (as of April 21, 2025), representing a 74% discount to its peers' median range of 44.01 times.
- P/B Ratio: 3.43 times (as of April 21, 2025), a 4% discount to its peers' median range of 3.57 times.
- Revenue Growth: Healthy sales growth in recent quarters.
- Profit Growth: Delivered good profit growth of 45.8% CAGR over the last 5 years.
- Debt Management: Company has successfully reduced its debt.
- Shareholder Returns: Provided a return of 215.91% in the last 3 years.
The promoter of Viceroy Hotels Ltd is LOKO HOSPITALITY PRIVATE LIMITED, which owns 84.11% of the total equity as of March 2025. Promoter holding has slightly decreased from 90.00% in July 2024 to 84.11% in March 2025. Importantly, there is no promoter pledging in Viceroy Hotels Ltd.
The chairman of the company is Gorinka Jaganmohan Rao, and the managing director is Ravinder Reddy. The company maintains transparent governance practices with regular investor communications and earnings calls.
Viceroy Hotels presents a compelling investment opportunity in the premium hospitality segment. The company's strategic partnership with Marriott International provides access to global hospitality standards and reservation systems, strengthening its brand and operational efficiency. The diversified revenue streams through restaurants and banquet services provide stability during market fluctuations. The company's focus on debt reduction and operational efficiency has resulted in strong profit margins and consistent growth.
The hospitality sector's recovery post-pandemic has been particularly beneficial for premium hotel chains like Viceroy Hotels. The company's strategic location in Hyderabad, a major IT and business hub, positions it well to capitalize on business travel recovery and growing leisure tourism in South India. Its strong financial performance, valuation discount to peers, and commitment to governance make it an attractive proposition in the Indian hospitality market.
