PACRA Maintains Entity Ratings of Nishat Hotels and Properties Limited

Nishat Hotels & Properties Limited (hereafter referred to as “NHPL” or “the Company”) holds a well-established position within Pakistan’s hospitality and retail sectors. Following the merger of Nishat Hospitality (Private) Limited (NHL) and the acquisition of a property in Margala, Islamabad, during FY26, NHPL now operates three hotel properties. All the luxury apartments under the Nishat Residences brand have been fully sold, effectively concluding the Company’s residential development chapter, with service and maintenance charges continuing to contribute to topline revenues. The ratings draw comfort from NHPL’s association with the Nishat Group, a well-established Pakistani business conglomerate with a diversified presence across textiles, cement, energy, hospitality, and financial services. Sponsor commitment remains active, evidenced by equity contribution to capital reserves during 9MFY26. Pakistan’s tourism sector continues to offer a constructive backdrop, supported by digital visa reforms, CPEC-linked infrastructure development, and growing MICE (Meetings, Incentives, Conferences, Events) demand. During CY26, Lahore’s expanding calendar of cultural and sporting events generated periodic demand impulses for the hospitality and retail sectors, supported by higher room occupancy and stronger mall footfall, directly benefiting integrated hospitality-retail developments. The competitive landscape in Lahore’s luxury hotel segment has become more dynamic with new international entrants, though NHPL’s integrated Emporium complex, combining a hotel, retail mall, banquet halls, food court, and multiplex cinema, provides a structural advantage relative to standalone competitors. Operationally, net revenues for 9MFY26 reached PKR 9,653 million, reflecting period-on-period growth of 30.1%. Emporium Mall and hotel rooms occupancies remained healthy. Structured annual rental increments on mall leases and improving average daily room rates support revenue floor visibility. The profitability matrix has strengthened considerably: net profit margin improved to 27.5% in 9MFY26 from 14.3% in FY25, driven by a notable decline in finance costs as policy rates eased. The financial risk profile of the Company is considered strong, characterized by comfortable coverage metrics, healthy cash flows, and an efficient working capital cycle. Capital structure is moderately leveraged, with borrowings predominantly comprising long-term facilities.
The ratings remain sensitive to sustained operational performance across all revenue segments in a dynamic business environment. The timely completion and successful commissioning of a property in Margala, Islamabad, progress in improving hotel occupancy at the Johar Town property, and maintenance of strong coverage metrics will remain critical.

About the Entity
Nishat Hotels & Properties Limited (NHPL) is a venture of the Nishat Group, a well-established Pakistani business conglomerate with a presence across textiles, cement, energy, hospitality, and financial services. NHPL is owned by the Mansha family and associated companies, who collectively hold approximately 98.73% of issued share capital. The Company’s seven-member Board is chaired by Mr. Mian Raza Mansha, with Mr. Hasan Mansha serving as Chief Executive Officer. NHPL operates three hotel properties, two in Lahore and one in Islamabad.