24 February 2020 Company Update Hospitality Indias hotel industry performance this fiscal has been impacted by various factors, including Jet Airways shutdown, general elections, protests (albeit to a smaller extent) in the NCR region, and the lack of pick-up in corporate demand due to the economic slowdown. With that, the company has outpaced industry in terms of room addition under management contracts, in our view. IHIN estimates income from management contracts at INR2,350m in FY20, which has ~70% flow through to EBITDA. Overall management contract pipeline stands at 4,727 rooms, which is ~50% of rooms that generate management fee income (total of ~9,500 rooms and fees are also earned from owned managed hotels, JV, subsidiary and associates). Indian Hotels IHIN had guided for generating an additional revenue stream by capitalizing on the existing brands (Chambers)/launching new brands (Ama, nui&nau;, launch Anuka brand in Taj SATS for directly offering services to B2C segment, Brew Pub with AB InBev and Paper Moon).