Hashwani Hotels Limited (hereafter referred to as ‘HHL’ or ‘the Company’) was incorporated in Pakistan on 12 October 1972 as a private limited company under the Companies Act, 1913 (now the Companies Act, 2017) and was converted into a public limited company on 11 November 1974. The registered office of the Company is situated at Karachi Marriott Hotel - 9-Abdullah Haroon Road, Civil lines, Karachi.

The Company commenced its commercial operations in 1978, with the launch of Holiday Inn Islamabad under the franchise agreement with Bass Europeans, Netherlands. In an effort to expand its operations, HHL launched Holiday Inn Karachi in 1981.  After more than a decade of successful operations, HHL approached the Marriott Worldwide Corporation USA in order to negotiate the franchise to own and operate the Marriott chain of hotels in Pakistan. Based upon their successful experience of managing foreign hotel franchises, HHL was awarded the franchise to own and operate the Marriott chain of hotels in Pakistan in 1992, under a franchise agreement. As a part of the Marriott Hotel Network, HHL has access to the Marriott International Reservation System (MARSHA) for easy access to any Marriott Worldwide Hotel and travel agents worldwide. Both hotels are renowned for their ideal locations, décor, and friendly atmosphere. The hotels have a tradition of continuous product development, service improvement, and upgrading of operating standards, exceeding the expectations of their guests.

The Company is a prominent player in Pakistan’s hospitality sector, holding the franchise for the international Marriott hotel chain. It currently owns and operates Marriott Hotels in Islamabad and Karachi, in addition to the Zaver Pearl Continental Hotel in Gwadar. The Company employs over 1,000 individuals across its various locations. Furthermore, it has an upcoming project, the Zaver Pearl Continental Hotel Hayatabad Peshawar, indicating continued expansion.

The Company operates as a subsidiary of M/s Verintex General Establishment, a foreign entity incorporated in Vaduz, Liechtenstein, holding a controlling interest of ~81.39% of its shares. The remaining ownership is distributed, with Mr. Sadruddin Hashwani holding ~18.42% of the shares, and the rest being held by the Company’s senior management.

The ownership structure of the Company is deemed stable, as it has remained under the control of the current sponsors for several decades, with no changes expected in the foreseeable future.

Mr. Sadruddin Hashwani-well known entrepreneur of Pakistan established his business from 1960. First hotel was set up in 1978 and second in 1981 under the brand ‘Holiday Inn’ by HHL. In the following years, Company gained franchise rights for Marriott Hotels by Marriott International. The sponsors have considerable expertise in hospitality sector. 

The Sponsor’s decades-long active involvement in both the oil & gas and hospitality sectors clearly demonstrates its strong business acumen. Their sustained success is deeply rooted in two core strengths: proven local business accomplishments and a strategic ability to forge alliances with leading global hotel chain. This potent combination enables them to effectively navigate market complexities while simultaneously leveraging international best practices and global brand recognition. 

The board comprises five members: four non-executive directors (including the chairman) and one executive director who also serves as the CFO.

All members of the Board of Directors (BoD) are seasoned professionals with extensive industry experience and long-standing affiliations with the Company. The Chairman, Mr. Hasan Ali Hashwani, has been an integral part of the Board since 2022 and completed his master’s degree in Switzerland. Since then, he has played a pivotal role in the Company’s continued success. Among the non-executive directors are Mr. Babar Hussain and Mr. Syed Maqsood Sher who further strengthen the Board with their diverse professional backgrounds and extensive expertise.

The board of Hashwani Hotels Limited has established an HR & Remuneration Committee to enhance its effectiveness. The committee is chaired by the CEO and includes members from the board. The meetings are held on an as-needed basis. This structure raises concerns over the consistent independent oversight and robust governance.

Hashwani Hotels Limited demonstrates a strong commitment to financial transparency. The Company’s external auditors are Grant Thornton Anjum Rahman Chartered Accountants, a firm with a satisfactory QCR rating and classified in category ‘A’ by the SBP. For the financial year ended June 2024, the firm expressed an unqualified opinion on the Company’s financial statements.

The Company maintains a well-defined organizational structure with eight functional and administrative departments, each operating under a multi-layered hierarchy. These departments are led by qualified heads who report directly to the CEO and COO, ensuring streamlined communication and effective management. Notably, the organizational oversight is further bolstered by structured delegation of authority and an internal audit department, led by a board director, enhancing governance and control. Currently, all key positions are fully staffed, which is a positive indicator of the Company’s commitment to operational efficiency and a robust workforce.

The management team at Hashwani Hotels Limited is composed of qualified professionals with extensive skills. The CEO, Mr. Kamran Ahmed, has over 30 years of experience in investment banking and the oil & gas industry, including working with Shell Pakistan, Dar Al Maal Islami S.A., Merrill Lynch, Bankers Equity, and IIBL. He has been with Orient Petroleum Inc. for 20 years and has spearheaded the growth of Orient Petroleum Inc. (OPI). Mr. Alex Bloch Jorgensen, the COO, is an experienced Australian project manager with over 20 years in international construction and development. He specializes in client-side management of large-scale projects across multiple countries. This leadership is assisted by a team of seasoned professionals, including the CFO, Mr. Shah Faisal, who is a qualified chartered accountant with almost two decades of professional experience, especially in the hotel industry. He has also served in various positions at the Ramada Continental Hotel Dubai and Shell UK.

HHL’s senior management receives daily performance reports of the operations which results in optimal monitoring. While there are no formal management committees, key management personnel meet on daily and weekly basis to discuss key issues. Furthermore, there are regular need-based meetings for discussion of issues.

The Company’s adoption of Oracle’s ‘Opera’, an integrated, cloud-based management system tailored for the hospitality industry, demonstrates a commitment to robust operational efficiency and data management. This system is crucial for streamlining hotel operations, from reservations and guest services to financial reporting. Additionally, the Company leverages Tejari Pakistan for procurement facilitation, indicating a strategic approach to optimizing its supply chain and enhancing cost efficiencies. This combination of specialized software and strategic procurement partnership suggests a well-considered MIS framework that supports both core hospitality functions and broader operational needs.

Hashwani Hotels Limited maintains a robust control environment through a detailed and updated Management Information System (MIS). This system, which features key performance indicators, is submitted to the Chairman/CEO/CFO on a regular basis. Crucially, the integration of the Company’s MIS with global Marriott standards significantly elevates its internal control framework. This alignment implies adherence to internationally recognized best practices, standardized operational protocols, and enhanced data integrity across its properties.

Pakistan’s robust services sector remains the largest contributor to the national GDP. As of the third quarter of FY25, it demonstrated a positive growth of 3.99% and accounts for an estimated 57.7% of the GDP for FY24, significantly surpassing the combined size of agriculture and industry. The hotel and restaurant industry, an integral component of this sector, directly contributes to the GDP and is intricately linked to tourism performance. The tourism sector in Pakistan is witnessing a notable resurgence. The sector’s growth is driven by both domestic and international travelers, improved infrastructure, government initiatives (including eased visa policies for 126 countries), and increased global recognition. The World Travel and Tourism Council (WTTC) projected the Pakistan T&T sector’s contribution to GDP to grow to 6.1% (~PKR 5.91 trillion) in 2024, up from 5.8% in 2023. This positive trend, however, is leading to an increasingly competitive landscape within the hotel industry. Established luxury chains like Pearl Continental (PC), Serena, Nishat, and Avari are strategically expanding into the budget and mid-scale segments through brands such as Hotel One (PC’s brand), AvariXpress, etc. This diversification, alongside the entry of new local and international hotel brands, signifies a transformative period for the industry, characterized by greater choice and intensifying competition across various market segments. The market is projected to register a CAGR of over 6.56% during the forecast period (2025-2030), reflecting sustained growth momentum.

Hashwani Hotels Limited, with its prominent premium brand portfolio, including global hotel franchises, is well-positioned to consistently attract a high-end clientele, ranging from discerning local patrons to international travelers and state guests. The Company effectively leverages its established group expertise and strong global brand image, particularly by operating in key metropolitan centers of Pakistan. While Pakistan’s hospitality market is anticipating increased competition with the entry of new local and international hotel chains, this dynamic simultaneously presents strategic opportunities for HHL. By leveraging its premium offerings and strategic expansions, HHL is well-equipped to further penetrate the market and solidify its leadership in the luxury segment. Currently, based on the number of rooms, Pearl Continental (PC) leads with ~1,701 rooms, followed by Serena Hotels with ~961 rooms, Hashwani Hotels with ~619 rooms, Avari hotel with ~600 rooms, and Nishat Hotel with ~200 rooms.

The Company derives its revenue from three primary segments: rooms (the largest contributor), food & beverage, and other ancillary services. As of 9MFY25, the ADR for Marriott properties in Islamabad and Karachi stood at ~PKR 42,228, with an occupancy rate of ~77.12%. In contrast, the ADR and occupancy rate for the Gwadar hotel stood at ~PKR 16,391 and 2.72%, respectively. Total revenue of the Company reached ~PKR 7.5bln (FY24: ~PKR8.3bln, FY23: ~PKR 6.2bln) in 9MFY25, representing a robust ~20.2% YoY growth.

The Company’s profitability metrics show improvement at all levels. The gross margin increased to ~48.9% in 9MFY25 (FY24: ~35.7%, FY23: ~40.1%, FY22: ~40.7%), while the operating margin rose to ~31.7% in 9MFY25 (FY24: ~17%, FY23: ~18.4%, FY22: ~18.3%). This upward trend indicates enhanced operational efficiency. Concurrently, the profit margin for 9MFY25 reached ~26.4%, a notable increase from ~14.1% in FY24.

The Company fundamentally rely on brand strength to attract and retain customers. In this regard, the HHL possesses a significant competitive advantage. Its decades-long involvement in the hospitality sector has cemented its position as a well-known and trusted brand, synonymous with top-tier facilities and services. This established reputation is crucial for long-term sustainability. Furthermore, the strategic affiliation with a global brand like Marriott amplifies this strength considerably. This partnership provides the Company direct access to a vast network of high-profile national and international clientele who often prioritize globally recognized brands for their first choice in accommodations. This dual brand power—the established local credibility of HHL’s own four decades experience combined with Marriott's international reach—positions the Company robustly against competitors and underpins its ability to drive consistent customer traffic.

The Company’s gross working capital days slightly increased to ~33 days in 9MFY25 (FY24: ~27 days, FY23: ~25 days, FY22: ~19 days), driven by an increase in trade receivable days. Despite this, the net working capital cycle has remained negative over the years, standing at ~6 days in 9MFY25 (FY24: ~27 days, FY23: ~37 days, FY22: ~34 days), indicating strong operational liquidity management.

The Company demonstrated strong coverage ratios during 9MFY25. The EBITDA to Finance Cost ratio significantly improved to 6.5x (3.6x in FY24, 1.9x in FY23, 2.6x in FY22), while the interest coverage ratio stood at 6.1x (FY24: 3.3x, FY23: 1.7x, FY22: 2.4x). The core coverage ratio also strengthened to 2.2x (FY24: 1.2x, FY23: 0.6x, FY22: 0.7x) and a debt payback ratio was 2.2x as of Jun-24. It is noted that coverage ratios had weakened in FY24 and FY23 primarily due to an increase in finance costs.

Hashwani Hotels Limited maintained a moderately leveraged capital structure, with its leverage ratio improving to ~36.3% in 9MFY25, compared to ~39.9% in FY24 and ~49.1% in FY23. The Company's borrowings exclusively comprise long-term facilities, primarily utilized for CAPEX requirements.