Hotels Sector Check - Strong End To Another Stellar Year, Demand Outlook Remains Positive: ICICI Securities

ICICI Securities Report

According to HVS Anarock, March 2024 was another strong month for hotel industry; we note industry revenue per available room of Rs 5,248 was 10% above March-23 levels with average room rates being 8% higher YoY while occupancies were also up 200bps YoY at 63-65%.

Along the expected lines, demand was bolstered by MICE and weddings. As per our channel checks, forward hotel rates between May-July 2024 pan-India are up 7-8% YoY.

While FY24 (April-23-March-24) was a stellar year with industry RevPAR growth at 14% and with various industry estimates pegging industry supply CAGR at 5-6% over FY24-28E versus demand CAGR at ~10%, we expect high single digit ARR CAGR of 7-9% across hotels over FY24-26E with occupancies rising 100-200bps each in FY25E and FY26E.

Reiterate Hold on Indian Hotels Company Ltd., Add on Lemon Tree Hotels Ltd. and Buy on Chalet Hotels Ltd.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.