Highest Upside

Unlocking Value in an expanding business hospitality landscape

We anticipate modest multiple compression over the next two years as the company transitions from hypergrowth to steady compounding. The applied multiples (55.0x for FY26E and 50.0x for FY27E) remain premium but reflect a necessary normalization from the market's current peak valuation (61.3x).

We increase our PAT estimates after accounting for minority interest by 20.6%/12.7% for FY26E/FY27E as we re-align our debt & interest forecast post fund infusion by GIC into a newly created JV platform for upscale hotel assets. SAMHI reported an in-line operating performance with EBITDA margin of 38.1% (PLe 36.9%) while PAT was impacted by an exceptional charge of Rs194mn; offset by a tax write back of Rs233mn. We expect top-line CAGR of 12.9% over the next 2 years led by addition of 245 keys with an EBITDA margin of...

Ambitious 2030 growth plan and asset-light strategy

SAMHI IN reported a miss at operating level with EBITDA margin of 33.2% (PLe 34.7%) as revenue growth in May-25 dropped to mid-single digit due to geopolitical events. However, recovery was swift in June-25 with same-store RevPAR registering a growth of 10.3% YoY to Rs4,760 in 1QFY26. We expect top-line CAGR of 13% over the next 2 years led by addition of 245 keys with an EBITDA margin of 37.5%/38.8% in FY26E/FY27E. After the fund infusion by GIC...

We maintain our BUY rating on the stock and value it at an EV/EBITDA of 18x for FY27E to arrive at a target Rs 380/share price

Apeejay Surrendra Park Hotels Ltd.'s (ASPHL) Q4FY25 result was broadly in-line with our estimates on net sales and EBITDA front, while net profitability disappointed. The company witnessed an increase of 13% YoY in both ARR at 8,758, and RevPAR at 8,074, while occupancy stood at 92%. The management reiterated high teens growth for FY26E, which is encouraging. ASPHL intends to double its key count to about 5400 keys in the next 5 years including 1,011 keys of its own. In Q4FY25 ASPHL signed a binding MoU for the acquisition 60 service apartment under Zillion Hotels and Resorts at Juhu, Mumbai. Further, the...

Brigade Hotel Ventures (BHVL) clocked strong 14% same-store RevPAR in Q2FY26, resulting in 16% YoY revenue growth and 15% adj. EBITDA growth.

We are optimistic about the company’s growth prospects, supported by the completion of its extensive renovation program, which is already yielding higher Average Room Rates (ARR) and occupancy gains across key properties.

Apeejay Surrendra Park Hotels Ltd.'s (ASPHL) Q1FY26 was in-line with our estimate on net sales and EBITDA front, while net profitability disappointed. The company during the quarter witnessed an increase of 13% YoY in ARR at Rs7,335, and 11.5% in RevPAR at Rs6,751. While occupancy for Q1FY26 stood at 92%. Total Revenue from the F&B segment stood at Rs660mn during Q1FY26, contributing 42% to the total revenue. Revenue from management contracts in Q1FY26 was Rs40mn. This division is expected to generate over Rs200mn in revenue by year-end, potentially reaching Rs250mn with new additions. The...

Q2FY26 performance: Consolidated revenues grew by 8% YoY to Rs.839.5cr in Q2FY26 driven by 7% growth in the standalone revenues and 14% YoY growth in the subsidiaries revenues. Domestic RevPar grew by 9.5% YoY to Rs.8,100/night while ITC Ratnadipa Sri Lanka RevPar grew by 1.6x YoY, witnessing a fast scaleup since its launch in Apr,24. Consolidated EBIDTA margins improved by 200bps YoY to 29.3%; operating EBIDTA grew by 16% YoY to Rs245.8cr. Higher other...

Indian Hotels (IH IN) has reported a resilient H1FY26 performance with enterprise RevPAR up 9%, consolidated revenue up 20% and EBITDA up 21% despite being impacted by domestic/international geopolitical factors.

Indian Hotels (IH IN) reported Q1FY26 consolidated revenue of INR 20.4bn and EBITDA of INR 5.8bn (2% above I-sec estimate of INR5.7bn) driven by higher standalone ARR of INR 14,552 (up 12% YoY).

IHCL reported stellar Q2FY26 results which was in-line with our estimates on key parameters. The company delivered 14th consecutive best ever quarter despite experiencing short-term industry headwinds during Q2. The management guided that the long-term trajectory for the sector remains intact and is driven by structural tailwinds, supporting confidence in achieving double-digit revenue growth guidance for the year. The company reiterated healthy double digit RevPAR growth in FY26E, aided by healthy demand, increasing FTA and higher spending on MICE, weddings etc. IHCL's new business are growing at a robust...

IHCL reported stellar Q1FY26 results beating our and consensus estimates on all key parameters. The company delivered 13th best ever quarter aided by healthy demand in domestic market and improved operational performance of overseas hotels. Moreover, despite unpresented disruptions, RevPAR growth in domestic market is commendable. The management reiterated healthy double digit RevPAR growth in FY26E, aided by healthy demand, increasing FTA and higher spending on MICE, weddings etc. IHCL's new business are growing at a robust pace and will continue to support consolidated earnings. Net sales increased by...

Q2FY26 performance: IHCL consolidated revenues grew by 12% YoY to Rs.2,041cr. Hotel business revenues witnessed slower growth on account of factors such as high base, room innovation and intense rainfall in Q2FY26. Standalone room revenues decreased by 3% while F&B revenues grew by just 2% during the quarter. RevPAR stood at Rs.11000. Consolidated EBIDTA margins improved by 49bps YoY to 27.9%. EBIDTA grew by 14% YoY to Rs570.1cr. Overall PBT grew by 17%yoy to...

Chalet Hotels (CHALET)’s Q2FY26 hospitality revenue/EBITDA grew 13%/10% YoY, as new hotel openings impacted margins. The company expects robust demand in H2FY26 to flow into earnings.

We value the stock at a EV/EBITDA of 20x on H1FY28E earnings, arriving at a target price of Rs 1,120/share, implying an upside potential of 17%. We maintain our BUY recommendation on the stock.

About the stock: Chalet Hotels Ltd (Chalet) is an owner, developer and operator of premium hotels, commercial office spaces and residential properties in India. The Company's portfolio comprises 11 fully operational hotels representing 3359 keys, across mainstream and luxury segments, and commercial spaces, representing...

Indian Hotels (IH) reported strong consolidated revenue growth of 32% YoY in 1QFY26, led by healthy RevPAR growth of 11% (ARR up 12% and OR down 90bp YoY) in its standalone business. Like-for-like consol hotel revenue/TajSATS grew ~13%/20% YoY.