Significant room for upside in Indian Hotels stock, say analysts

Analysts estimate annual growth of 15% in revenue and 20% in Ebitda during FY23 to FY25, and have target prices ranging Rs 375-380

There was a mixed trend in the results of the hospitality sector for the October-December quarter of the 2022-23 financial year (Q3), which indicates a somewhat K-shaped recovery. While the luxury segment saw high average room rates (ARRs), occupancy rates improved sequentially but were still low compared to the pre-Covid-19 levels. The festival and holiday season meant that business travel was down.

While premium hotels are expected to report decadal-high ARRs and occupancy rates, the budget segment is likely to see ARR trend at 20 per cent higher than the pre-pandemic (FY20) number but with occupancies below the pre-pandemic level.