Buy Indian Hotels Company; target of Rs 900: Anand Rathi

Moneycontrol • 9 days ago

Original source

Key Investment Pillars

  • Domestic Travel Growth: IHCL is expected to benefit from structural growth in domestic travel, MICE, and weddings, with FY28 wedding nights expected at ~95 vs. normal 60-65.
  • International Recovery: London recovery is gaining traction with double-digit revenue growth in Oct-26, and the international portfolio is expected to improve in H2.
  • Management Fees: High-teens growth outlook is maintained, with a target to cross Rs10bn in two years.
  • Expansion: The portfolio has crossed 675 hotels, nearing 400 operational hotels, with revised Accelerate 2030 targets expected by mid-Nov.

Thesis Validation Checklist

To validate the thesis, investors should watch for: (1) continued growth in domestic travel and weddings, (2) improvement in international portfolio performance, (3) high-teens growth in management fees, and (4) successful expansion and integration of new hotels. Risks include lower demand due to economic slowdown and external factors like terrorist attacks and epidemics.