Raysons Properties LLP

Brickwork Ratings reaffirms the long term ratings for the Bank Loan Facilities of Rs. 46.50 Crs. of Raysons Properties LLP

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
Facilities**	Previous	Present	Tenure	Previous (31 Dec 2024)	Present
Fund Based	46.50	46.50	Long Term	BWR BB- /Stable Assignment	BWR BB - /Stable Reaffirmation
Grand Total	46.50	46.50	(Rupees Forty Six Crores and Fifty lakhs Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure

RATING ACTION / OUTLOOK

Brickwork Rating has reaffirmed the long-term ratings for bank loan facilities of Raysons Properties LLP at BWR BB-/Stable for the bank loan facilities of Rs 46.50 Crs.

The reaffirmation reflects the firm delays in the completion of construction of its hotel and the commencement of commercial operations, which was scheduled in October 2025. However, the completion of work has been delayed and the management expects it to complete by March 2026. The rating also reflects the Risk of Delay in Commencement of Operations, Inadequate experience of the promoter in the Hotel industry, which might keep the firm exposed to higher competition in the medium term, particularly in the initial few years of operations, and other external factors. However, the rating is supported by brand recognition of Hyatt group and the hotel’s favourable locational advantage, and considerable fund infused by partners.

A financial summary is not available as the firm has not yet commenced operations.

KEY RATING DRIVERS

Credit Strengths:

Brand Recognition :
The firm has proposed the construction of a five-star Resort featuring 64 Key villas in Udaipur, Rajasthan. The firm has entered into a 30-year agreement with Hyatt, marking the first Hyatt hotel in Udaipur. As a result, the firm gains a first-mover advantage, benefiting from the goodwill and global brand recognition associated with Hyatt. Hyatt is a globally recognized brand known for its high standards of service and luxury, which is expected to attract both domestic and international tourists.
Favourable Location :
The Resort is situated in a prime location in Udaipur, Rajasthan. Udaipur is a popular tourist destination known for its rich culture, history, and natural beauty. It attracts numerous domestic and international visitors every year who seek to experience the charm and hospitality of the city. The city is also home to many luxurious and heritage hotels that offer a memorable stay for visitors.

Credit Risks:

Risk of Delay in Commencement of Operations :
The firm had planned to complete the construction of the hotel and commence its operations by October 2025. However, the completion of work has been delayed and is likely to be finished by March 2026, with the Date of Commercial Operations (DCCO) scheduled for April 1, 2026. During discussions with the management, the firm operation was delayed due to setbacks in certain interior finishing works, guest experience enhancements, and achieving operational readiness as per Hyatt's requirements and brand standards. The management stated that the firm has obtained an extension of the completion date to March 2026 from Hyatt, which has also been approved by the bank.
Competition in the Industry :
The Indian subcontinent, with vast opportunities and potential for high growth, has become the focus area for major international hotel chains. Several of these chains have already established hotels, while others have their plans to establish to to take advantage of these opportunities. The entry of these chains is expected to intensify the competitive environment. BWR believes that the success of the company will depend on its ability to compete in areas such as room rates, quality of accommodation, service levels, convenience of location, and the quality and range of other amenities, including food and beverages.
Inadequate experience of the promoter in the Hotel industry :
The promoters are new to establishing and running a 5-star resort. While the project construction is nearing completion (current status: 95% complete), the firm's lack of prior operational experience in the hospitality sector may expose it to challenges, particularly regarding higher competition and establishing market presence during the initial few years of operation. Mitigation is partially achieved through the management agreement with Hyatt, which provides established operational protocols and brand standards.

ANALYTICAL APPROACH - Standalone

Standalone - For arriving at its ratings, BWR has considered the standalone performance of M/S Raysons Properties LLP. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Positive: The timely commencement of operations with no further delay in the completion of project and the subsequent achievement of stable operations and adequate cash accrual and DSCR above 1.65x and room occupancy above 55% on sustain basis will be positive for the ratings.

Negative: Any delay in the commencement of operations, beyond April 2026 and inability to achieve stability in operations thereby affecting the firm's debt service ability will be negative for the ratings.

LIQUIDITY INDICATORS - Adequate

The company is availed of debt of Rs 46.50 crores, which has already been disbursed. The repayment will start from April 2026, and in line with the revised commencement of operations date April 2026 and will be around Rs 3.49-4.66 crore per annum in the initial years, as per the repayment schedule. As the company is yet to commence operations, timely commencement and sufficient cash accrual will be key metrics to monitor. The partners will likely provide need-based support by way of equity or unsecured loans. Cash and cash equivalents of Rs 1.36 Crs at FY25 (FY24: 0.02 Crs).

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Consumer Discretionary	Realty	Realty	Real Estate related services

M/s. Raysons Properties LLP was incorporated as a private limited company in 2007 and was subsequently converted into an LLP in 2016. The company engages in construction services. Raysons Properties LLP was registered on 30th December 2016 in Ahmedabad City, Gujarat, India. The two partners of the LLP, Mr. Rajkumar M. Kukreja and Mrs. Pushpaben R. Kukreja have distinct roles within the company. The firm has proposed to construction of a five-star hotel with 64 key villas located at Udaipur, Rajasthan. This is the first Hyatt Hotel in Udaipur. the firm gets a first-mover advantage with the goodwill of the Hyatt brand. The total revised cost of the project is Rs 76.34 crore which is term loan (sanctioned) of Rs 46.50 crore, with the remaining amount being met through the promoter's capital/Unsecured Loans (USL).

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Unaudited)	FY 24 - 25 (Audited)	FY 25 - 26 (Unaudited)
Operating Revenue	Rs.Crs.	Not Available	9.25	Not Available
EBITDA	Rs.Crs.	Not Available	8.98	Not Available
PAT	Rs.Crs.	Not Available	9.03	Not Available
Tangible Net Worth	Rs.Crs.	13.61	31.30	Not Available
Total Debt / Tangible Net Worth	Times	Not Available	0.87	Not Available
Current Ratio	Times	Not Available	15.24	Not Available

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for Bank loan facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Not Applicable

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	46.50	BWR BB-/Stable (Reaffirmation)	NA	NA	31Dec2024	BWR BB- Stable (Assignment)	NA	NA
Grand Total		46.50	(Rupees Forty Six Crores and Fifty lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Md Saif Ali Khan Rating Analyst saifali.k@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

Raysons Properties LLP

ANNEXURE-I

Details of Bank Facilities rated by BWR

SL.No.	Name of the Bank/Lender	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)	Complexity of the Instrument
1	Central Bank of India	Term Loan - Sanctioned	46.50	_	46.50	Simple##
Total			46.50	0.00	46.50
TOTAL (Rupees Forty Six Crores and Fifty lakhs Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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