BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Q3 FY23 was buoyant for the hotel industry, aided by an increase in the average room rate, which led to higher revenue per available room despite lower occupancy versus pre-Covid levels.
In this report, we present the current demand scenario in key cities and insights based on the Q3 FY23 results and management commentaries of major hospitality players – Indian Hotels Company Ltd., Lemon Tree Hotels Ltd., Chalet Hotels Ltd., EIH Ltd., Oberoi Realty Ltd., Brigade Enterprises Ltd., and ITC Ltd.
As per HVS Anarock, the occupancy rate stood at ~65% in Q3 FY23, little lower than pre-Covid levels (lower 170bp versus Q3 FY20), impacted by the accumulation of major festivities in Oct-22. The ARR kept on rising to Rs 7,233 (up 16% versus Q3 FY20).
Compared to pre-Covid levels (Q3 FY20), the hospitality basket reported a higher flow through (incremental Ebitda to incremental revenue) in Q3 FY23, with Lemon Tree leading the pack (133%), followed by EIH and Indian Hotels-standalone.
Occupancy rate is expected to again surpass the pre-Covid levels in the coming quarters on the back of strong demand drivers such as the wedding season, G20 Summit meetings, the ICC ODI Cricket World Cup and the resumption of foreign inbound travel. ARR should continue to inch higher, thereby boosting RevPAR.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
