Press Release October 15, 2025 RKD HOTELS PRIVATE LIMITED (ERSTWHILE HOTEL SUKHAMAYA PRIVATE LIMITED) Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	42.20	ACUITE A- | Stable | Reaffirmed	-
Bank Loan Ratings	0.20	-	ACUITE A2+ | Reaffirmed
Total Outstanding	42.40	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) and the short-term rating of ‘ACUITE A2+’ (read as ACUITE A two plus) on the Rs. 42.40 Cr. bank facilities RKD Hotels Private Limited (RKDHPL; Erstwhile Hotel Sukhamaya Private Limited). The outlook is ‘Stable’. Rationale for rating The rating reaffirmation takes into account strong parentage support of RKD Construction Private Limited (ACUITE A/Positive/A1) to RKDHPL. Further, the rating also factors the growth in revenue backed by revival of operations post the renovation, coupled with improvement in occupancy & tariff rates. Moreover, rating draws comfort from the strategic tie-up with IHCL for 25 years starting 2023, locational advantage of the hotel and adequate liquidity position. However, the rating is constrained by moderate financial risk profile and presence in highly competitive industry.

About the Company

RKD Hotels Private Limited (RKDHPL) was incorporated in 1981 by RKD Construction Private Limited (RKDCPL) who holds 93.91% shareholding, balance held by the promoter family. The company operates a hotel named ‘The Crown’ in Bhubaneswar, Orrisa with a total capacity of 81 rooms. The company is currently headed by Mr. Rohan Das.

Unsupported Rating

­ACUITE BB+/Stable

Analytical Approach

Acuité has considered standalone business and financial risk profile of RKDHPL. Further, parent notch-up of RKD Construction Private Limited has been considered to arrive at the rating. The parent notch-up is based on majority shareholding, financial support and corporate guarantee extended by RKD Construction Private Limited to RKDHPL.

Key Rating Drivers

Strengths

­Strong parentage and support RKDHPL is a subsidiary concern of RKD Construction Private Limited (RKDCPL). RKDCPL is a reputed EPC player in Orrisa and has almost four decades of experience in construction of roads and highways. In addition to this, RKDCPL has provided corporate guarantee to RKDHPL and has extended unsecured loans (Rs.17.00 Cr. outstanding as on 31st March, 2025) to meet the working capital requirements. Further, RKDCPL had made equity infusion in the company to the extent of Rs.13.00 Cr. in FY24. Operational tie-up with reputed brand During FY22, the company signed a formal agreement with IHCL for 25 years for branding, operating and marketing of the hotel under the brand ‘SeleQtions’. IHCL is a well-established franchise of the Taj Group which has presence in India as well as internationally. Improvement in scale of operations The revenue of RKDHPL increased to Rs.33.81 Cr. in FY25(Prov.) from Rs.21.53 Cr. in FY24. The growth in revenue is on account of improved occupancy levels coupled with increase in average tariff by nearly 30-40% for low and peak season both. Furthermore, the hotel also records revenue from the service of food and beverages through in-room dinning, cafes and restaurants which accounted for ~57% of the revenue during FY25(Prov.) (~54% in FY24). Subsequently, the operating and profitability margins of the company improved to 29.57% and 4.38% in FY25(Prov.) from 24.59% and -5.48% in FY24 respectively. Going ahead, RKDHPL's scale of operations is expected to sustain with continued benefits from the tie-up with IHCL through online reservation systems and marketing strategies.

Weaknesses

Moderate financial risk profile The financial risk profile of the company is moderate marked by moderate net-worth, moderate debt profile and improving debt protection metrics. The net-worth of the company improved marginally to Rs.45.50 Cr. in FY25(Prov.) (includes unsecured loans treated as quasi equity of Rs. 170.00 Cr.) as against Rs.43.63 Cr. in FY24. Further, while the debt protection metrics remain comfortable with interest coverage ratio (ICR) of 2.42 times as on 31st March, 2025(Prov.) (1.56 times as on 31st March, 2024) and debt service coverage ratio (DSCR) of 1.46 times as on 31st March, 2025(Prov.) (1.14 times as on 31st March, 2024), however,  the Debt/EBITDA stood high at 3.48 times in FY25(Prov.). Susceptibility to cyclicality in the hospitality industry and increasing competition RKDHPL like any other hospitality player is exposed to inherent cyclicality owing to domestic and international economies, seasonality risk and competition from the established players. During slack seasons, revenue per available room for premium and mid-segment hotels get more acutely affected than economy hotels. On the other hand, cost of operating premium properties is high, even during downward shifts in demand; cash flow from these properties are, therefore, more vulnerable to economic downturns.

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)

­RKD Hotels Private Limited (RKDHPL) receives parentage as well as financial support from RKD Construction Private Limited (RKDCPL).  Stress Case Scenario Acuité believes that , owing to the strong parentage support and financial linkages with RKDCPL, RKDHPL is expected to service its debt obligations on time, even in stress scenarios.

Rating Sensitivities

Ability to sustain the scale of operation with improvement in profitability margins. Significant reduction in occupancy levels leading to deterioration in business operations. Any major debt funded capex affecting the financial risk profile.

Liquidity Position

Adequate

The liquidity is adequate marked by generation of sufficient cash accruals of Rs.5.42 Cr. in FY25(Prov.) against maturing debt repayment obligation of Rs.2.40 Cr. during the same period. The cash and bank balances of the company stood at Rs. 1.33 Cr. as on March 31, 2025(Prov.). The current ratio stood moderate at 1.14 times as on March 31, 2025(Prov.). The fund-based & non fund-based limit utilization stood low at ~3.40% & 20% respectively for last six months ended July 2025.

Outlook: Stable

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Other Factors affecting Rating

­None.

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	33.81	21.53
PAT	Rs. Cr.	1.48	(1.18)
PAT Margin	(%)	4.38	(5.48)
Total Debt/Tangible Net Worth	Times	0.77	0.87
PBDIT/Interest	Times	2.42	1.56

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

­Not Applicable.

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 • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 18 Jul 2024 Term Loan Long Term 40.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 2.00 ACUITE A- | Stable (Reaffirmed) Bank Guarantee (BLR) Short Term 0.40 ACUITE A2+ (Reaffirmed) 20 Apr 2023 Term Loan Long Term 35.47 ACUITE A- | Stable (Reaffirmed) Term Loan Long Term 4.53 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 1.00 ACUITE A- | Stable (Reaffirmed) Proposed Cash Credit Long Term 1.00 ACUITE A- | Stable (Assigned) Bank Guarantee (BLR) Short Term 0.40 ACUITE A2+ (Reaffirmed) 07 Apr 2023 Cash Credit Long Term 1.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 4.53 ACUITE A- | Stable (Assigned) Term Loan Long Term 35.47 ACUITE A- | Stable (Reaffirmed) Bank Guarantee (BLR) Short Term 0.40 ACUITE A2+ (Assigned) 14 Jan 2022 Proposed Long Term Loan Long Term 35.47 ACUITE A- | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating State Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.20 Simple ACUITE A2+ | Reaffirmed State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE A- | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.20 Simple ACUITE A- | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Term Loan 10 May 2022 Not avl. / Not appl. 05 May 2031 32.00 Simple ACUITE A- | Stable | Reaffirmed

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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No Company Name 1 RKD Hotels Private Limited (Erstwhile Hotel Sukhamaya Private Limited) 2 RKD Construction Private Limited ­

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Dhruvi Chauhan 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. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.