Indian Hotels stock: Well-placed to ride the demand opportunity

Operational gains will be driven by domestic business; debt reduction should add to profits

After a poor operating performance on account of unfavourable industry dynamics, weak performance of overseas subsidiaries and higher costs, things are looking up for India’s largest hospitality player, Indian Hotels. The improving demand scenario has led to the domestic industry occupancy levels and average room rates for FY18 hitting their highest levels in at least five years. Analysts say Indian Hotels, which has 14,500 rooms across the country, will be a key beneficiary of a turnaround in the domestic industry. Rashesh Shah and Devang Bhatt of ICICI Securities expect the sector to witness robust growth in the coming years led