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Business Standard
18-07-2025
- Business
- Business Standard
Indian Hotels, ITC rally upto 3% in weak market; brokerages see more upside
Hotel companies' share price today: Shares of hotel companies are trading firm on the BSE in Friday's intra-day trade in an otherwise weak market after reporting strong earnings for the quarter ended June 2025 (Q1F26). This is despite a weak May 2025, which witnessed a 1 per cent dip in the room demand due to geopolitical uncertainties. However, a strong recovery was witnessed in June 2025. Shares of ITC Hotels hit a new high of ₹250.45, surging 3.5 per cent on the BSE in intra-day trade amid heavy volumes. The stock is trading higher for the third straight day, soaring 10 per cent after announcing Q1 results. Shares of Indian Hotels Company were up nearly 2 per cent to ₹767.85 in intra-day trade. Chalet Hotels and Ventive Hospitality were trading higher by 1 per cent each. In comparison, the BSE Sensex was down 0.64 per cent at 81,735 at 11:55 AM. Indian hotel sector outlook The Indian Hotel Industry is poised to grow with significant tailwinds as moderating inflation and tax incentives provided by the government will maintain the higher spending toward discretionary and luxury categories/services. Equal weighted hotel index is forming higher peaks and troughs, indicating elevated buying demand despite geopolitical volatility, indicating inherent strength, according to analysts at ICICI Securities. Demand for luxury hotels will continue in India with strong demand from domestic leisure travel and higher demand from improving foreign tourist arrivals. Hence, the brokerage firm expects revenue per available room (RevPar) will maintain double-digit growth momentum in H2FY26, with the occupancy ratio expected to improve by 100-200bps while average room rate (ARR) is expected to grow by 8-10 per cent. According to ITC Hotels, a favourable demographic profile, steady domestic demand and rising consumption levels augur well for the hospitality industry in India. Aggregate room demand in India is expected to grow ahead of supply over the next few years. Further, the Government's push for growth in foreign tourist arrivals is expected to continue fueling growth in the Indian Hospitality industry, the company said. Strong demand from domestic leisure travellers, a steady recovery in foreign tourist arrivals (FTAs) and a resurgence in corporate travel are expected to keep hotel occupancy levels elevated, thereby supporting sustained growth in average room rates over the medium term, Chalet Hotels said. Brokerages' view on hotel stocks Analysts at ICICI Securities have a 'buy' rating on Chalet Hotels with a target price of ₹1,010 per share. A prudent room expansion plan and strong industry tailwinds will help Chalet to maintain the strong growth momentum with revenues and profit after tax (PAT) expected to grow at a CAGR of 22 per cent and 23 per cent over FY25-27. The brokerage firm also recommended a 'buy' rating on ITC Hotels with a price target of ₹282 per share. ITC Hotels registered resilient performance in Q1FY26 despite a temporary pause in May 2025. The outlook continues to remain strong for Indian Hotels, led by healthy traction in both the core business as well as new and reimagined businesses. Motilal Oswal Financial Services expects the strong momentum to continue in the medium term, led by a strong room addition pipeline and continued favourable demand-supply dynamics 'We broadly maintain our FY26/FY27 Ebitda estimates and reiterate Buy with our SoTP-based target price of ₹900," the brokerage firm said in the result update.
Economic Times
30-06-2025
- Business
- Economic Times
Liquidity driving market; overweight on hotels, real estate & REIT: Venkatesh Balasubramaniam
Tired of too many ads? Remove Ads , MD & Head of Research,, says despite real estate stocks trading above NAV, he favours DLF and REITs, attracted by potential interest rate declines boosting REIT yields . He is also overweight on hotels , citing limited investment and strong demand creating a favorable structural play. Leela Hotels and Chalet Hotels are specifically mentioned as preferred stocks. JM Financial is overweight on hotels, real estate, and REITs – all of which are outside the believe this is basically running on liquidity. Domestic flows have been very strong. The monthly SIP numbers are still very strong at almost 267 billion per month. Even though mutual funds have roughly 5% of their holdings in cash, every month when you get these holdings, when you get these flows, you need to deploy it, so that is one thing. Secondly, since March onwards, FII inflows have actually turned positive. So, March, April, May, and in June so far, FII flows have been positive. So, definitely this is running on are not that weak. Fundamentals are okay. The economic outlook is also quite good. But as valuations are not attractive – be it in largecaps, midcaps, or smallcaps – all are trading at one standard deviation or more above the mean. So, it is very tough to make a positive call based on valuations. Fundamentals are okay, outlook is okay, but at this point in time, whatever runup we are seeing is more because of are benchmarked to the Nifty and in the Nifty 50, there is no real estate stock. So, if we like any real estate stock, automatically we go overweight on real estate. Broadly, the real estate sector is not cheap. Most of the stocks are trading almost 15% to 20% above their NAV. Historically, trading bands are 15-20% below NAV. We are very selective when we come to stocks. We like DLF because it is trading on par. We also like the REIT names primarily because as interest rates come down, a lot of these REITs become very attractive. They are all trading at roughly around 7% yield and 10% growth. It is more of an interest rate kind of a play when it comes to estate, we like from an interest rate perspective, but it is not that we are positive on all real estate stocks, because some of them are expensive and we are aware that over the last couple of quarters and the next couple of quarters also are going to be a little bit on the softer to hotels, it has got nothing to do with Maha Kumbh. Over the last four to five years, hardly any investments have been done in the hotel sector. So, there is a lot of demand, but the supply is not adequate. We believe this is likely to continue over the next year, year-and-a-half or so. From that perspective, we like hotels as a structural play. Some of the stocks we like are recently listed Leela Hotels. We also like Chalet Hotels here. These are two names which we like. So, we are overweight on hotels, real estate, and REITs. Incidentally, none of them are a part of the Nifty.
Time of India
30-06-2025
- Business
- Time of India
Liquidity driving market; overweight on hotels, real estate & REIT: Venkatesh Balasubramaniam
Live Events You Might Also Like: Rakshit Ranjan on sectors to focus on to geopolitically risk-proof your portfolio (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel , MD & Head of Research,, says despite real estate stocks trading above NAV, he favours DLF and REITs, attracted by potential interest rate declines boosting REIT yields . He is also overweight on hotels , citing limited investment and strong demand creating a favorable structural play. Leela Hotels and Chalet Hotels are specifically mentioned as preferred stocks. JM Financial is overweight on hotels, real estate, and REITs – all of which are outside the believe this is basically running on liquidity. Domestic flows have been very strong. The monthly SIP numbers are still very strong at almost 267 billion per month. Even though mutual funds have roughly 5% of their holdings in cash, every month when you get these holdings, when you get these flows, you need to deploy it, so that is one thing. Secondly, since March onwards, FII inflows have actually turned positive. So, March, April, May, and in June so far, FII flows have been positive. So, definitely this is running on are not that weak. Fundamentals are okay. The economic outlook is also quite good. But as valuations are not attractive – be it in largecaps, midcaps, or smallcaps – all are trading at one standard deviation or more above the mean. So, it is very tough to make a positive call based on valuations. Fundamentals are okay, outlook is okay, but at this point in time, whatever runup we are seeing is more because of are benchmarked to the Nifty and in the Nifty 50, there is no real estate stock. So, if we like any real estate stock, automatically we go overweight on real estate. Broadly, the real estate sector is not cheap. Most of the stocks are trading almost 15% to 20% above their NAV. Historically, trading bands are 15-20% below NAV. We are very selective when we come to stocks. We like DLF because it is trading on par. We also like the REIT names primarily because as interest rates come down, a lot of these REITs become very attractive. They are all trading at roughly around 7% yield and 10% growth. It is more of an interest rate kind of a play when it comes to estate, we like from an interest rate perspective, but it is not that we are positive on all real estate stocks, because some of them are expensive and we are aware that over the last couple of quarters and the next couple of quarters also are going to be a little bit on the softer to hotels, it has got nothing to do with Maha Kumbh. Over the last four to five years, hardly any investments have been done in the hotel sector. So, there is a lot of demand, but the supply is not adequate. We believe this is likely to continue over the next year, year-and-a-half or so. From that perspective, we like hotels as a structural play. Some of the stocks we like are recently listed Leela Hotels. We also like Chalet Hotels here. These are two names which we like. So, we are overweight on hotels, real estate, and REITs. Incidentally, none of them are a part of the Nifty.
Time of India
18-06-2025
- Business
- Time of India
Hotel stocks lose steam, fall up to 14% in 2025. Time to check out?
Geopolitical tensions and the recent Air India tragedy have dampened sentiment around tourism, but hotel stocks have been under pressure for most of 2025, with declines of up to 14%. The disconnect between solid fundamentals and stock performance reflects investor caution — a trend mirrored across the broader tourism sector . EIH Limited , the flagship company of the Oberoi Group, has been among the worst hit, with its shares down 14% so far this year. Tata Group-owned Indian Hotels Company (IHCL) has seen a similar decline. Other notable laggards include Lemon Tree Hotels (-10%), Chalet Hotels (-9%), and Mahindra Holidays & Resorts (-5%). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Premium Apartments by Signature Global Signature Global Book Now Undo An outlier in the sector has been Valor Estate (formerly DB Realty), which has delivered over 34% returns in 2025. Despite being primarily a real estate firm with hospitality interests, the company reported a 347% YoY surge in Q4 revenue and managed to significantly narrow its losses. EIH posted a 12% growth in its Q4FY25 topline while its net profit in the January-March quarter remained flat. Meanwhile, IHCL reported strong quarterly earnings which grew 37% YoY in Q4 while the company recorded a 27% jump in its revenues. Chalet Hotels also posted an impressive set of numbers, delivering a 50% PAT growth and 25% revenue uptick. As for Mahindra Holidays, the sentiments have remained subdued because of lackluster results. The profit after tax (PAT) fell 13% YoY in the quarter under review while the topline plunged nearly 3%. Live Events Nifty Tourism index: Indigo flies solo The Nifty India tourism index, a collection of 14 stocks and a representative of the overall tourism sector has declined 3% in 2025. Only two stocks have managed to report positive returns -- one is Valor and the other is Interglobe Aviation . The stock of Indigo airline operator has outperformed Nifty with 18% returns versus 5% by the latter. The situation for travel and tourism has been pretty much the same despite impressive Q4 earnings growth. BLS International, for instance, saw a stellar 70% jump in PAT and 55% rise in sales but slumped over 23% YTD. Similarly, Westlife Foodworld reported a 99% PAT surge, yet fell nearly 12%. QSR company Devyani International which is synonymous with brands like KFC, Pizza Hut and Costa Coffee has seen its shares fall by over 9% despite a 16% growth in revenue and narrowing of Q4 losses. Restaurant Brands Asia shares have slipped 8.26 on the year-to-date basis. The Burger King and Popeyes owner narrowed its Q4 loss on the YoY basis while its revenue was up 6%. Likewise, Jubilant FoodWorks shares are down 4%. The company reported a sharp drop of 80% in its Q4 PAT though the revenue increased 34% YoY. In contrast, Interglobe Aviation (IndiGo) shares were driven by strong earnings momentum. The PAT was up 26% while revenue surged 62%. Hotel stocks: Check-in or check-out? Market expert, Kranthi Bathini , who is Director-Equity Strategy at WealthMills Securities said that he remains positive about the long term prospects of the Indian tourism industry, notwithstanding the recent setbacks and concerns around global economy and geopolitics. These factors have impacted the investor sentiments around hotel and travel stocks and this could continue in the medium-to-short term. With growing disposal incomes and return of corporate travel, the outlook remains positive, Bathini said. Stocks to buy Nuvama has a buy view on Lemon Tree Hotels shares with a marginal downward revision in the target price at Rs 166. It noted that the Bengaluru, Mumbai and Delhi markets clocked the highest RevPAR (Revenue Per Available Room) improvement among other micro markets on a YoY basis in Q4. "Across LTs, key brands, Aurika/Lemon Tree Premier/Lemon Tree/Red Fox/Keys reported a YoY RevPAR growth of 25%/11%/8%/20%/24%," the brokerage noted. JM Financial has a buy view in Juniper Hotels, a smallcap stock with a market capitalization of Rs 7,081.14 crore. The stock has a 29% upside for a price target of Rs 410. Bathini recommends a buy on SAMHI Hotels and IHCL for an upside of 20%. He has a long term view on both counters. Schloss Bangalore, which operates the Leela brand, was listed on June 2. The stock is currently trading below its issue price of Rs 435. Many top brokerages like Anand Rathi remain positive on the counter for a long term period. (Data Inputs by Ritesh Presswala) ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Skift
21-05-2025
- Business
- Skift
Indian Hotel Industry to Reach $13 Billion by 2027: What's Driving This Growth
Domestic and inbound tourism, along with a growing MICE segment, are the Indian hotel industry's biggest bets, as demand continues to outpace supply. The Indian hotel sector is expected to cross INR 1 trillion ($11.7 billion) by the end of the current financial year and touch INR 1.1 trillion ($13 billion) by 2026-27, according to risk management and monitoring platform Rubix Data Sciences. This figure stood at INR 820 billion ($9.6 billion) at the end of the 2024 fiscal year. In its recent industry report, the firm projected that the country's hospitality sector will grow 10.5% annually till March 2027. Three key factors are expected to drive this growth: domestic travelers, foreign arrivals, and MICE (meetings, incentives, conferences, and exhibitions) segment. Rubix estimates that domestic travelers will contribute 50% of the incremental growth in revenue, while foreign tourists are projected to account for a 30% revenue share. The MICE segment is expected to account for the remaining 20% increase in revenue, the report said. 'These drivers are expected to remain sustainable over the next three years and will significantly fuel the sector's expansion,' it said. On foreign tourist arrivals (FTAs), the report said that there was a positive correlation between foreign tourists and the average daily rates (ADRs) in the premium hotel segment. 'For businesses like Chalet Hotels, which derive 35%-40% of their revenue from foreign guests, FTAs are a key driver of ADR performance. Foreign tourists, with higher spending power and a preference for luxury services, are vital contributors to the demand for premium rooms.' It added that by 2028, foreign tourist arrivals in India are expected to reach nearly 30.5 million, up from 9.6 million in 2024. However, India is still struggling with low inbound numbers exacerbated by a low global tourism promotion budget. Growing Occupancy: According to the report, the occupancy rates of hotels is expected to reach 73% by 2026-27, up from 68% in 2024 financial year and the all-time low of 35% during the pandemic. This is expected as demand is projected to continue outstripping supply. 'Demand is projected to grow at a 10.5% annual rate, while supply is expected to increase by only 8% annually. This supply-demand imbalance is likely to reduce vacancy rates and drive higher occupancy levels, as hotels face increased pressure to meet the rising demand,' it said. This higher demand is driving more hotel companies into India. In April, six international hotel brands announced deals in India within a span of four days. Singapore-based The Ascott Limited announced its expansion plans with a focus on Tier-2 and 3 cities. Its Chief Operating Officer for EMEA & South Asia, Lee Ngor Houai said that there is a 'significant under-penetration of branded hotels' in smaller cities. For Accor's chairman and CEO Sébastien Bazin, India is 'one of the world's most exciting travel markets.' India also continues to be a cornerstone of Marriott International's future growth, with the company projecting that the country will become its third-largest market. Inside Radisson's Expansion Plans, Marketing Strategy Radisson Hotel Group's portfolio in India has expanded to 200 operational and developing properties. The chain has been present in the country for 26 years. Indians relate to Radisson as an Indian brand, Nikhil Sharma, managing director and chief operating officer for South Asia at Radisson Hotel Group told Skift. 'As an international brand, we are very local and nationalistic in our approach. We continue to grow because more than 50% of our portfolio is in smaller cities.' He said that over the next 5-7 years, India could go from 185,000 branded hotel rooms to 1 million operating rooms. The company is working on a program that aims to prepare its properties across the world for Indian travelers. The program, called Welcome India, is currently in the works, he said. Competition is intensifying in India as the brands present in India are increasing their inventory and more brands are entering. He said Radisson is counting on word of mouth and loyalty to help distinguish itself among an increasingly discerning customer base. Radisson is also upping its experiential offerings for sports enthusiasts, readers, and couples looking to get married soon. Indian Railways Unveils its SuperApp The Indian Railway Catering and Tourism Corporation (IRCTC) has unveiled its new mobile application SwaRail. The app is meant to be a unified platform for all railway-related services. SwaRail allows users to check their booking status, book meals, explore facilities on stations, and access tourist services. It also provides real-time train tracking service and eliminates the need for frequent logins. Last November, a report by Accenture revealed that Indians are dissatisfied with the existing travel planning options and are seeking a travel superapp. It added that travelers feel the booking process is the most complicated stage of a journey. Indian online travel agency MakeMyTrip is eventually planning to launch a travel superapp, while Skyscanner is also preparing to launch a new marketplace within its app offering a range of additional services. U.S. Imposes Restrictions on Indian Travel Agents The U.S. on Monday said it was imposing restrictions on the owners, executives, and senior officials of India-based travel agencies for knowingly facilitating illegal immigrants to the North American nation. It added that its India Mission was working 'actively' to identify and target individuals and agencies involved in facilitating illegal immigration and human smuggling operations. 'Our immigration policy aims not only to inform foreign nationals about the dangers of illegal immigration to the United States but also to hold accountable individuals who violate our laws, including facilitators of illegal immigration,' the U.S. Mission in India said in a statement. This comes just days after the U.S. warned Indian citizens against overstaying in the country. 'If you remain in the United States beyond your authorized period of stay, you could be deported and could face a permanent ban on traveling to the United States in the future,' the India mission of the U.S. said on Saturday. Delhi Airport Operator Divests in Aviation Services Company for $1.5 Million Delhi Airport operator DIAL has sold its entire 50% stake in Delhi Aviation Services (DASPL) for INR 130 million ($1.5 million). The stake has been sold to Bird Flight Services, which already held a 25% share in the company. Delhi Aviation Services was given the concession to run the operations of bridge-mounted equipment, including ground power units, pre-conditioned air units and supply of potable water to aircraft at Terminal 3 of the Delhi Airport. However, according to a regulatory filing, the company is currently not carrying any business operations. Evoke Experiences Announces New Experiential Hotels Experiential hotels company Evoke Experiences is undertaking a strategic expansion to grow its presence in the hospitality landscape. The company said Monday that the expansion would mark a shift in its operating model, which currently focused on immersive glamping retreats and cultural tent cities. Now, the company will widen its experiential properties portfolio and will look for asset leasing and management collaborations. Currently, it operates 750 keys and plans to expand this figure to 1,000 by the end of the year. It also said that while it has a property coming up in Ayodhya, the company is preparing to launch a new site in Gujarat's Gir.
