Indian Hotels Company lacks valuation comfort despite strong outlook

IHCL continues to expand its network and has opened six hotels in Q1FY25, crossing the milestone of 325 hotels

Tata Group-backed Indian Hotels Company Limited (IHCL), one of the country’s largest hotel brands, reported a flat June quarter (Q1FY25) performance, weighed down by multiple headwinds on the revenue front.

Consolidated revenue growth at 5.7 per cent year-on-year (Y-o-Y) was lower than in previous quarters and was impacted by general elections, heat wave and fewer wedding days. On a sequential basis, growth fell about 31 per cent.

In the June quarter, while average room rates (ARR) were up 2 per cent Y-o-Y, revenue per available room (RevPAR) performance too was muted with an increase of 4 per