Advani Hotels posts record-breaking Q3 FY25 profit, driven by Caravela Beach Resort’s stellar performance

Advani Hotels & Resorts (India) Limited has reported its highest-ever quarterly revenue and net profit for the third quarter of fiscal year 2025, reflecting the company’s strong growth trajectory in India’s hospitality sector. The company, which owns and operates the Caravela Beach Resort Goa, recorded a net profit of INR 1,192 lakhs, marking a 28% year-on-year increase, while total income rose 9.2% to INR 3,607.4 lakhs. This robust financial performance was primarily fueled by strong demand in the leisure, wedding, and MICE (Meetings, Incentives, Conferences, and Exhibitions) segments, positioning Advani Hotels for sustained growth.

What drove Advani Hotels’ impressive Q3 FY25 profit growth?

The key driver behind Advani Hotels’ remarkable financial performance in Q3 FY25 was the outstanding contribution of Caravela Beach Resort Goa. Located on the pristine Varca Beach in South Goa, this 5-star deluxe beachfront property has consistently attracted high-value guests, particularly in the wedding and MICE segments.

Despite not adding new rooms or expanding its food and beverage facilities, the resort achieved record revenue figures. The growth was not volume-driven, as the average occupancy rate slightly declined to 84.9% from 85.4% in the same quarter last year. Instead, revenue growth was fuelled by a significant rise in Total Revenue per Occupied Room per Night (TRevPOR), which increased by 10.5% year-on-year to INR 24,065. This reflects a strategic shift towards attracting higher-spending guests and capitalising on premium services.

Seasonal events also contributed to the resort’s stellar performance. On New Year’s Eve, Caravela Beach Resort achieved an average net revenue per occupied room of INR 48,203 at an impressive 94.4% occupancy rate, while Christmas Eve saw a revenue of INR 33,905 per room with 83.1% occupancy. These figures highlight the resort’s ability to maximise revenue during peak periods, further boosting Advani Hotels’ profitability.

How has Advani Hotels maintained financial resilience?

Advani Hotels’ strong financial performance is underpinned by its debt-free status and healthy liquidity reserves. As of December 31, 2024, the company’s liquid fund reserves, including fixed deposits, stood at INR 5,700 lakhs, reflecting an 18.5% increase from the previous year. This financial stability has enabled the company to consistently reward shareholders, with dividend payouts spanning over the last 11 years, excluding the pandemic-affected financial year 2020-21.

For Q3 FY25, Advani Hotels declared a 50% dividend, equating to INR 1 per share, resulting in a total payout of INR 924.38 lakhs. This not only demonstrates the company’s commitment to delivering value to its shareholders but also reflects its strong cash flow and prudent financial management. The sustained growth in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to INR 1,679.3 lakhs, with margins improving to 46.6%, further underscores Advani Hotels’ operational efficiency and profitability.

What role does Caravela Beach Resort play in Advani Hotels’ growth strategy?

Caravela Beach Resort Goa has been pivotal to Advani Hotels’ growth strategy, serving as a flagship property that embodies the company’s commitment to luxury hospitality. The resort’s consistent performance is attributed to its strategic location, premium offerings, and focus on delivering exceptional guest experiences.

The resort’s award-winning status has also strengthened its brand positioning. In 2024, Caravela Beach Resort received several prestigious accolades, including the ‘Destination Wedding Resort of the Year—West India’ from the Economic Times MICE & Wedding Tourism Awards and the ‘Best Beach Front Wedding Destination Resort’ at the Shubh Food Travel & Wedding Tourism Expo Summit. Additionally, it was named the ‘Iconic Deluxe Beach Resort’ by Times Hospitality Icon 2024 and the ‘Best MICE Resort of Goa’ by the India MICE Awards.

Such recognitions not only boost the resort’s credibility but also enhance its appeal among high-net-worth travellers, wedding planners, and corporate clients. Furthermore, the resort’s Booking.com Traveller Review Award 2025, with a rating of 8.5 out of 10, reflects its strong reputation among global travellers, reinforcing its status as a top-tier hospitality destination in Goa.

How is Goa’s evolving tourism landscape influencing Advani Hotels’ outlook?

Advani Hotels’ growth trajectory aligns with broader shifts in Goa’s tourism landscape, which is gradually transitioning from mass-market tourism to premium, experience-driven travel. Industry experts believe Goa is on the cusp of a tourism renaissance, positioning itself as a luxury destination comparable to Southeast Asia’s elite resorts.

The state government’s efforts to improve infrastructure, address transportation issues, and promote sustainable tourism have created an environment conducive to high-value tourism. This strategic shift is attracting travellers who seek luxury experiences, cultural immersion, and eco-friendly tourism, rather than budget travellers associated with mass-market tourism.

Sunder G. Advani, Chairman and Managing Director of Advani Hotels, emphasised the company’s focus on capitalising on these trends. He noted that Q3 FY25 marked the highest revenue and net profit in the company’s history, driven by sustained growth in MICE and leisure travel. Advani expressed confidence in maintaining this momentum, highlighting the company’s strong fundamentals, strategic positioning, and commitment to delivering exceptional hospitality experiences.

What’s next for Advani Hotels?

Looking ahead, Advani Hotels is well-positioned to leverage emerging opportunities in Goa’s luxury tourism sector. With an occupancy rate of 81.3% for the nine months ended December 2024—surpassing the industry average—the company is set to continue its growth trajectory, driven by strong demand in the leisure, wedding, and MICE segments.

The company’s focus on sustainability, guest experience enhancements, and strategic partnerships will play a crucial role in its future growth. Initiatives such as water conservation through the installation of aerators and the introduction of soft adventure activities, including land and water zorbing, bungee trampolining, and local distillery tours, reflect Advani Hotels’ commitment to innovation and guest satisfaction.

In an industry marked by evolving traveller preferences and competitive dynamics, Advani Hotels’ ability to adapt, innovate, and deliver value positions it as a key player in India’s hospitality landscape.