Apeejay Surrendra Park Hotels Gets Yes Securities 'Buy' Initiation, Sees 42% Upside

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Yes Securities Report

We initiate coverage on Apeejay Surrendra Park Hotels Ltd. with a Buy rating due to a strong value unlocking potential driven by:

1. Robust ARRs supported by addition of luxury/upper-upscale portfolio

2. Diversified positioning across segments and geographies,

3. Rapid store addition in Flurys enables scale and better profitability,

4. Aggressive keys addition in owned portfolio to ensure future growth,

5. Healthy balance sheet which allows company to pursue incremental growth opportunities,

6. Valuation comfort compared to other branded peers.

Park Hotels is well placed to play the long-term industry upcycle through its existing and upcoming assets. We value the hotels segment at Jun’27E EV/Ebitda multiple of 15 times, Flurys at 18x and arrive at SoTP based target price of Rs 230.

Initiate coverage with a Buy rating.

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