Grand Continent Hotels Ltd(GCHOTELS)

NSE: GCHOTELS

₹ 100-1.77%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 249 crUpdated: 24 Oct 2026

About

Grand Continent Hotels runs business, spiritual and leisure hotels, mostly under an asset-light lease model. It says this lease model is the core of its competitive advantage. The annual report puts the portfolio at about 1,725 keys across 30 properties in 15 cities in two countries. FY26 revenue was Rs 140.54 Cr. The company is listed on the NSE Emerge SME platform.^[1][2]

Business mix

The company reports a single segment, hospitality, for FY26.^[1]
Segment mix per the FY26 annual report: business travel about 70%, leisure 15% and spiritual destinations 15%.^[1]
Revenue mix in FY25 was business 72.81%, leisure 14.30% and spiritual 12.89%.^[3]
Target portfolio mix by FY28 is business 60-65%, spiritual 20-25% and leisure about 10%.^[4]
Advisory and franchisee fees from Grand Continent Hotel Management LLC were Rs 126.31 lakhs in FY26, against nil in FY25.^[1]

Brands and operating model

The company has franchise alliances with Regenta, Golden Tulip, Holiday Inn, Comfort Suites and Ramada (FY26).^[1]
From about its 14th-15th hotel onward, the company has opened properties under its own Grand Continent brand (stated in FY25).^[3]
The Udaipur property, its 25th, opened on November 3, 2025. It has 103 keys and is the company's first luxury collection hotel.^[5][1]
In FY25, 19 of 21 properties were leased on 10-year terms, with investment of Rs 7-8 lakhs per key.^[3]
The company says it can open a new property within six months of signing a Letter of Intent.^[1]

Hotel portfolio and locations

The portfolio stood at 31 properties and 1,855 keys as of May 2026, up from 20 properties and 956 keys in FY25.^[4]
Operational keys in Q2 FY27 were 1366 in India and 367 in the USA.^[6]
Business hotels: 10 in Bengaluru, two in Chennai, four in Hyderabad and one in Gurugram (FY26).^[1]
Spiritual hotels are in Dwarka, Tirupati and Rameswaram. Leisure hotels: two in Goa and one each in Udaipur, Mysore and Mahabalipuram (FY26).^[1]
In the US, three leased properties (Holiday Inn, Comfort Suites and Ramada) add 367 keys, at under 6 lakh per key.^[4]

Key operating numbers

India occupancy was 68% in FY26, up from 61% in FY25.^[4]
India ARR was Rs 3,968 in FY26, against Rs 3,830 in FY25.^[4]
Occupancy in Q2 FY27 (July-September 2026) was 68% in India and 51% in the USA.^[6]
Mature business hotels (703 keys) ran at 73% occupancy and an ARR of Rs 3,568 in FY26, with a 28.1% unit EBITDA margin.^[4]
Spiritual hotels ran at 82% occupancy in FY26.^[4]
RevPAR was Rs 2,189 in H1 FY26, against Rs 2,447 in FY25.^[5]
Lease rental was 30-31% of revenue in FY26, up from about 27% before the GST change.^[4]

Sales and distribution

The India sales team grew from 6-7 people to 16-17 people, led by the new head of sales India, Ankit Upreti (FY26).^[4]
Regional sales offices are open in Ahmedabad, Delhi and Mumbai, with Bangalore, Chennai and Hyderabad being added (FY26).^[4]
A loyalty and membership card programme is planned for around July-August 2026.^[4]

Expansion pipeline

Target of 3,000-3,500 keys and 50 hotels by FY28.^[4]
About 600 signed keys are due to open in FY27, for roughly 2,450 keys by March 2027.^[4]
FY27 openings planned: Somnath, Varanasi, Ayodhya, two in Bangalore, Gurgaon Sec-15, Jaipur, Vellore and Chennai ECR.^[4]
Target pre-opening capex is Rs 7-7.5 lakh per key; it is currently running at Rs 7-8 lakh because of cost inflation.^[4]
India will be the only expansion focus for the next two years; the US is capped at 3 hotels until FY27 results are reviewed.^[4]
The company is exploring revenue-share and management contracts as an alternative to leases; none had been signed as of the Q4 FY26 call.^[4]

Recent developments

October 2026: signed three new hotels with 197 keys, including a 56-room Vellore property due to open in October 2026.^[6]
September 2025: the GST change cut room-charge GST to 5% without input credit, while lease rentals still carry 18%. Impact on PAT was about Rs 5.88 Cr.^[4]
March 2026: a 122-room MOU with Reya Creek Hotels was cancelled. The company may exit its Dubai franchise if conditions do not improve.^[4]
FY26: invested Rs 469.88 lakhs in its US and Dubai subsidiaries and lent Rs 1,226.55 lakhs to the US subsidiary.^[1]
IPO proceeds were fully used by FY26: Rs 3,372.27 lakhs on debt repayment and Rs 1,679.24 lakhs as growth capital.^[1]

Market Cap

₹249 Cr

High / Low

₹218 / 77

Stock P/E

23.1

Price / Book

2.8

Book Value

₹48

EPS

₹5.0

No. of Shares

2.49 Cr

ROCE

11.9%

ROE

10.3%

OPM

12.0%

Debt / Equity

0.31

Sales

₹141 Cr

Net Profit

₹12 Cr

Promoter holding

54.9%

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