Press Release

Press Release

February 03, 2026

GHV HOSPITALITY (INDIA) PRIVATE LIMITED
Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	85.00	ACUITE BBB \| Stable \| Assigned	-
Total Outstanding	85.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has assigned its long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) on Rs. 85.00 Cr. bank facilities availed by GHV Hospitality (India) Private Limited (GHIPL). The outlook is 'Stable'.

Rationale for rating assigned
The rating assigned reflects the company's established operational track record and the management's extensive experience of successfully having managed five-star hotel for almost eight years. The rating draws additional comfort from the long-term (15-year) agreement with Radisson Hotel Group. The rating also incorporates the year-on-year increase in average room rate (ARR) and occupancy levels, reflecting improved scale of operations and comfortable debt service coverage ratio. However, the rating is constrained on account of single property concentration risk and presence in highly competitive, fragmented and cyclical nature of industry.

About the Company

Incorporated in 2010, GHV Hospitality (India) Private Limited (GHIPL) is a hospitality company, currently operating a five-star hotel under the brand Radisson, located in Andheri, Mumbai. The company is engaged in providing hospitality services like hotel accommodation, food & beverage, event management and other related services like catering, spa, fitness centre, etc. The hotel comprises of 111 keys, 4 restaurants, 3 banquets, 1 boardroom and a swimming pool. The current directors of the company are Mr. Mustakali Husenbhai Vijapura and Mr. Siraj Harunbhai Kadiwala.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of GHIPL to arrive at the rating.

Key Rating Drivers

Strengths

Strong promoter group
Being part of GHV Group, the company benefits from the established presence of the group entities having overall operations of more than six decades in sectors like hospitality, real estate, construction and other business ventures. The hotel’s construction commenced in January 2017, and the property became operational by July 2018, with the entire project funded internally by the promoters and group entities.

Locational advantage supported by strategic association with Radisson
Radisson Mumbai Andheri MIDC enjoys a prime location in Andheri East’s MIDC commercial hub, offering seamless access to key business districts such as SEEPZ, Andheri–Kurla Road and JVLR, along with excellent connectivity to the airport (distance of 2.8 km), metro (distance of 1 km) and major road networks. This strong locational advantage supports sustained corporate, transit and short-stay leisure demand. Further, GHIPL’s long-term 15-year initial franchise agreement the globally recognized Radisson Hotels Group provides enduring brand strength, marketing reach and operational expertise. The partnership continues to reinforce the property’s revenue visibility and operational stability.

Stable operating performance driven by healthy occupancy levels
The company reported operating revenue of Rs. 43.58 Cr. in FY24, supported by healthy occupancy levels of 90.48 percent. In FY25, occupancy declined to 85.74 percent due to the general elections; however, with improvements in revenue per room available and ARR, the company maintained stable operating revenue at Rs. 44.35 Cr. During 9MFY26, with the commencement of operations of the new banquet and recovery in occupancy levels to around 92 percent, the company recorded operating revenue of Rs. 37.82 Cr., compared to Rs. 31.58 Cr. in 9MFY25. Moreover, the operating margin of the company stood stable in the range of 29-30 percent over the past three years. Going forward, the continued momentum in the occupancy levels and ARR shall remain a key rating monitorable.

Weaknesses

Exposure to group companies through extension of loans and advances
GHIPL has made significant infusions through loans & advances towards their group companies amounting to Rs. 51.59 Cr. as on March 31, 2025. Therefore, any significant outflow towards these group companies thereby impacting the liquidity of the company shall remain a key rating monitorable.

Susceptibility to occupancy levels and interest rate risk
The company’s performance remains inherently sensitive to fluctuations in occupancy levels, which are influenced by overall economic conditions, seasonal demand patterns and competitive pressures within the hospitality sector. Any sustained dip in occupancy can directly impact revenue and profitability. Additionally, the company is exposed to interest rate risk, as variations in lending rates may elevate finance costs and affect cash flows. Therefore, effective monitoring of market conditions and prudent financial management remain essential in mitigating these risks.

Exposure to a competitive and cyclical industry environment
The Indian hospitality industry is highly competitive, with many organised and unorganised players operating across various regions. The sector is inherently cyclical and remains vulnerable to economic fluctuations and seasonal demand variations. The low entry barriers have led to increased competition from both established and upcoming hotels, which may pose challenges to company's market positioning and operational performance. However, the medium-term outlook for the industry remains positive, supported by anticipated growth in commercial activity, tourism, and rising disposable incomes.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

GHIPL maintains a debt service reserve account (DSRA) equivalent to one quarter of debt obligation (principal and interest) along with escrow mechanism.

Stress case Scenario
Acuité believes that, given the presence of DSRA and waterfall payment in escrow mechanism, GHIPL will be able to service its debt on time, even in a stress scenario.

Rating Sensitivities

Any significant decline in operating performance leading to inadequate cashflows
?Significant deployment of loans and advances to the group companies

Liquidity Position

Adequate

The liquidity position of the company is adequate supported by operational revenue routed through an escrow account under a well-defined waterfall mechanism. Further, on an average the debt service coverage ratio (DSCR) is expected to remain in the range of 1.20-1.40x over the debt tenure, which shall be a key rating monitorable. Also, the company is maintaining a DSRA of Rs. 3.00 Cr., lien-marked with the bank as of January 22, 2026, providing additional cushion to liquidity. Moreover, the current ratio stood healthy at 3.01 times as on March 31, 2025, and the cash and bank balances stood at Rs. 1.48 Cr. as on March 31, 2025.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	44.35	43.58
PAT	Rs. Cr.	3.51	6.13
PAT Margin	(%)	7.91	14.06
Total Debt/Tangible Net Worth	Times	15.83	22.61
PBDIT/Interest	Times	2.66	6.50

Status of non-cooperation with previous CRA (if applicable)

None

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Service Sector: https://www.acuite.in/view-rating-criteria-50.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History :

Not Applicable

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Punjab and Sind Bank	Not avl. / Not appl.	Term Loan	20 Aug 2025	Not avl. / Not appl.	30 Jun 2035	85.00	Simple	ACUITE BBB \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Akshit Agrawal
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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