Nishat Hotels and Properties Limited (hereafter referred to as ‘the Company’ or ‘NHPL’) was incorporated in Pakistan as a public company limited by shares under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017) on October 04, 2007. The Company's registered office is at 53-A, Lawrence Road, Lahore.

A strategic demerger in 2013 spun its hotel properties into separate entities, narrowing the Company's direct management to a single property in Johar Town, Lahore. The Company’s scope expanded through the September 2020 merger with Nishat (Gulberg) Hotel and Properties Limited (Nishat Residences), incorporating its completed high-end apartment project at FCC in Gulberg, Lahore. Looking ahead, in FY25, the Company executed a key acquisition: ~100% of ‘Nishat Hospitality (Pvt.) Limited' in Lahore, and is also planning further acquisitions in the future. These recent actions demonstrate the Nishat Group’s renewed and robust commitment to expanding its market share within the hospitality sector.

Nishat Hotels & Properties Limited (NHPL) primarily owns, manages, establishes, and operates the 'Nishat Emporium' complex on Abdul Haque Road, Johar Town, Lahore. This integrated property includes a shopping mall, the 'Nishat Hotel' with its banquet halls, and under the 'Nishat Residences' brand, residential apartments located at 75-FCC, Gulberg, Lahore. The expansive 15-acre Nishat Emporium & Hotel features a prominent ~199-room hotel, a shopping mall with ~191 shops, a food court offering over 30 international and local chains, a multiplex cinema, and 7 banquet halls capable of catering to 5,000 people. Since its opening in 2016, the multi-purpose property has become one of Lahore's largest malls, alongside Packages Mall. Currently, 100% of the mall's retail space is leased out, with anchor tenants including Carrefour, the food court, and the multiplex cinema. While the mall operates at full capacity, NHPL's strategic focus is now on increasing hotel occupancy rates (currently ~70%). This push is expected to further enhance the Company's financial performance. Additionally, the Company recently expanded its recreational offerings by opening Jumpzone and Padel Courts on Zafar Ali Road, Gulberg V, Lahore. 

The Company is a part of Nishat Group. Major shareholding rests with sponsoring family; Mansha Family (67.44%) and Security General Insurance Co. Ltd (17.94%), D.G Khan Cement Co. Ltd (8.55%) & Nishat Mills Ltd (6.08%).

Ownership structure of the Company is seen as stable as no major changes are expected. Moreover, documented succession planning will be considered positive.

Nishat Group is a premier business house in Pakistan. The Group has been operating for more than sixty years and is considered to be at par with multinationals operating in Pakistan. 

The emergence of Nishat Group as a conglomerate spans over sixty years with business ventures in textile, cement, power, dairy, hotel, agriculture, aviation, automotive, financial sectors, etc. The sponsors of the Company are strong and will support the Company if it needs financial assistance.

The Company’s board of directors comprises seven members, including the chairman, one executive director, and five non-executive directors. Representation is dominated by the Mansha Family, with four representatives belonging to the family, whereas the remaining three are executives from associated companies. However, the Company lacks representation of independent members. Though they are not required but their inclusion will be considered positive.

Mr. Mian Raza Mansha, the Chairman of the Board, holds a bachelor's degree from the University of Pennsylvania. He, along with all other board members, brings decades of extensive experience spanning diverse sectors including textile, cement, power, dairy, hospitality, agriculture, aviation, automotive, finance, etc.

The board has formed an audit committee for effective oversight. It implements strict policies and procedures to ensure proper reporting and professionalism. Board meetings are properly organized, with minutes being captured formally.

A.F. Ferguson Chartered Accountants & Co., classified in category ‘A’ by the SBP and having a satisfactory QCR rating, are the external auditors of the Company. They have given an unqualified opinion on the financial statements of the Company for the year ending June 2024.

The Company’s organizational structure mainly consists; finance, operations, leasing and admin departments. Overall department heads report directly to the CEO of the Company. 

With an overall experience spanning over 2 decades, Mr. Hasan Mansha is the Chief Executive Officer of the Company. He is supported by Mr. Muhammad Ali Pervaiz, who serves as the Chief Financial Officer of the Company. Mr. Ali is a fellow member of ICAP and brings with him an experience of over 25 years. This leadership is further assisted by a team of experienced professionals, ensuring good governance and strategic direction.

The Company has department-wise management meetings in place on a day-to-day basis, and the management accounts are discussed among senior management to review monthly activity.

The Company has deployed Oracle as its enterprise resource planning system. Reports are submitted to senior management on a daily, weekly, and monthly basis. They include information relating to revenues, project cost, marketing, and receivables.

The Company maintains a robust control environment, anchored by an efficient internal audit department which forms an integral part of the Company to ensure efficiency in reporting and standard operating procedures. The department probes business procedures for any potential weaknesses and failures. Various tests and analyses are run by the department to identify any discrepancies and to review the accuracy of transactions. Upon conclusion of the department’s assessment, a report summarizing its findings is submitted to the Board of Directors and stakeholders. Transparency and public engagement are key, evidenced by a regularly updated website showcasing construction progress and mall brands, complemented by a strong social media presence. 

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 now 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) projects 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), Hashwani, and Avari are strategically expanding into the budget and mid-scale segments through brands such as Hotel One (PC’s brand), Marriott (Hashwani’s) and AvariXpress, respectively. 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. 

Nishat Hotel, a prominent premium brand with ~199 rooms, is strategically integrated within Nishat Emporium Mall, a premier lifestyle destination in Lahore. This mall offers extensive retail, cinema, a children’s play area, food court, and premium parking, driving significant foot traffic that directly benefits the hotel. Hotel room rates at Nishat Hotel are influenced by seasonality, occupancy, location, and the competitive landscape. Its unique integration within a major shopping mall provides a distinct advantage over competitors like Packages Mall and the recently established Dolmen Mall. The Lahore hospitality market is anticipating increased competition with the entry of new local and international hotel chains. However, this dynamic also presents opportunities for NHPL to further penetrate the market through strategic positioning and leveraging its unique integrated offering.

Nishat Hotel generates revenue from five core segments, reflecting its diversified business model centered around the integrated Nishat Emporium Mall. These streams include: Rental Income, Service and management charges, Advertisement & parking income, Room, banquet rent & services charges, and lastly play zone income. Following the September 2020 merger with Nishat Residence, an additional revenue stream, FCC Apartments, was added, comprising income from the sale of 77 apartments within that complex. The Company has demonstrated strong financial performance. In FY24, revenue increased to ~PKR 8.7bln, a ~15% year-on-year growth from ~PKR 7.6bln in FY23. This growth was driven by higher Average Daily Rate (ADR). Performance further improved in 9MFY25, with both mall footfall and hotel occupancy rates rising, translating into ~PKR 7.2bln in revenue and ~10% YoY growth.

The Company’s protability metrics have exhibited improvement, with gross margin increasing to ~50.7% in 9MFY25 (FY24: ~48.4%, FY23: ~48.2%, FY22: ~44.5%) and operating margin rising to ~41.2% in 9MFY25 (FY24: ~39.6%, FY23: ~38.7%, FY22: ~34.2%). This trend indicates enhanced operational effciency. Similarly, the Company’s profit margin for 9MFY25 reached ~23.2%, compared to ~20.4% in FY24.

Nishat Hotel, while a more recent entrant compared to established luxury brands like Pearl Continental, Serena, and Avari, effectively leverages the Nishat Group’s robust brand reputation for delivering top-tier facilities and services. This affiliation is critical in the hospitality sector, where strong brand recognition significantly influences customer choice. The Company has recently demonstrated its strong commitment to expanding its hospitality footprint through the acquisition of the Nishat Hotel Gulberg. Despite the recent proliferation of new shopping malls in Lahore, including Packages Mall and Dolmen Mall, Emporium Mall has consistently sustained its leading market position and high footfall. This resilience is primarily due to its strategic location in a densely populated area, its reputation for engaging recreational activities (e.g., seasonal celebrations, aggressive marketing), and its proximity to the Motorway, which attracts visitors from nearby cities, especially on weekends. This sustained footfall directly benefits the co-located Nishat Hotel. Additionally, the management is vigilant and actively evaluates the future earnings prospects based on budgets and prudent financial projections.

The Company’s working capital requirements are primarily a function of its trade receivables, as its business nature does not necessitate significant inventory holdings. Over recent periods, the Company has demonstrated strong working capital management, effectively administering its debtors and creditors. Consequently, gross working capital days have consistently decreased, standing at ~45 days in 9MFY25 (FY24: 62 days; FY23: 90 days). Similarly, net working capital days have also improved significantly to ~33 days in 9MFY25 (FY24: 54 days; FY23: 81 days), reflecting enhanced liquidity.

The Company’s FCFO demonstrated positive growth, reaching ~PKR 3,362mln in 9MFY25 (compared to PKR 4,034mln in FY24). This improvement in FCFO, combined with significant advancements in working capital management, has translated into enhanced liquidity and an improvement in the interest coverage ratio to 2.5x in 9MFY25 (FY24: 1.5x; FY23: 1.4x).

NHPL’s total borrowings remained largely stable at ~PKR 10.842bln in 9MFY25, a marginal decrease from PKR 10.891bln in FY24. This stability, coupled with underlying performance, led to an improvement in the Company’s leverage ratio to ~25.3% in 9MFY25 from ~26.4% in FY24, indicating a strengthening capital structure. A significant portion of the Company’s debt, ~93.3% in 9MFY25, is long-term, providing enhanced financial stability.