RevPAR performance for Indian Hotels (IHIN) standalone improved sequentially, led by improved occupancy levels. The company has been successful in generating an additional revenue stream (with higher EBITDA flow) without deploying additional resources. Cost reduction initiatives undertaken by IHIN have yielded results, wherein EBITDA (incl. other income) stood at INR130m for Sept'20 (v/s loss of INR600m/INR360m for July/Aug'20). This, in our view, is commendable. Factoring in the current demand scenario, we have increased our EBITDA...

Indian Hotels (IHCL) Q2FY21 revenue decline at 75% YoY was higher than our estimate of 69%. Yet, EBITDA/APAT was ahead of estimates led by higher than expected costs savings. IHCL's net debt has increased sharply by Rs 10.3bn (Rs 6.14bn in Q2) to Rs 29.4bn. We remain positive on IHCL led by its strong brand recall and footprint across segments, asset-light approach, monetization of non-core assets, focus on driving alternate revenue streams, repositioning Ginger in lean luxury segment and efficient costs management....

Indian hotel Company Limited's (IHCL's) Q2FY2021 performance improved sequentially as revenues rose to Rs. 256.7 crore from Rs. 143.6 crore in Q1FY2021. Standalone occupancy ratio improved to 32.3% in Q2FY2021 from 20.5% in Q1FY2021; average room rentals (ARR) rose by 12% to Rs. 5,424 from Q1. Company's RESET initiative is giving desired results - 1) Newer initiatives contributed Rs. 135 crore to revenues, operating cost fell 51% (fixed cost fell by Rs. 134 crore through effective asset management). Hotel industry set for strong revival in FY2022/23 as foreign tourist arrivals are...

Strong focus on cost reduction; green shoots of growth visible While the impact of COVID 19 appeared to soften in 2QFY21, there is still a long road ahead to achieving normalcy. Indian Hotels' (IHCL) 2QFY21 revenue declined by 75% YoY to Rs2,567mn, primarily due to lower occupancies, restrictions on operations of hotels in multiple cities and ARR largely remaining capped. The company reported an EBITDA loss of Rs1,503mn in 2QFY21. The net loss of Rs2,227mn was partially helped by exceptional gains of Rs205mn and deferred tax credit of Rs430mn. The balance sheet remained strong with net debt to equity of 0.68x as of 2QFY21. Owning to the management's R.E.S.E.T initiative, newer revenue streams like Qmin and Hospitality@Home,...

Cost optimisation drive to reap benefit in long run After achieving ~75% target set in Aspire 2020, the focus has shifted to R.E.S.E.T 2020. Under this, IHCL is maximising the revenue potential through initiatives such as online F&B; business (Qmin), zero tough digital transformation and rationalisation of fixed overheads. These initiatives have added | 135 crore to topline in H1 (| 77 crore in Q1). Also, cost optimisation measures like certain temporary concessions (e.g. employee costs in UK, electricity charges in Maharashtra, re-negotiation of lease, deferring...

Strong focus on cost reduction; green shoots of growth visible NBIE Values your patronage- Vote for The full impact of COVID 19 was visible in the results of 1QFY21 of Indian Hotels (IHCL). Revenue The Team in the Asia Money poll 2020. declined by 86% YoY to Rs1,436mn in 1QFY21, primarily driven by lower occupancies, Click Here restrictions on operations of hotel and ARR largely remaining capped. Company reported an EBITDA loss of Rs2,660 mn in 1QFY21. The net loss of Rs2,799mn was partially helped by exceptional gains of Rs861mn and deferred tax credit of Rs694mn. The balance sheet remained strong with net debt to equity of 0.48x as of 1QFY21....

Focus on cost optimisation to reap benefits in long run After achieving ~75% target set in Aspire 2020, the focus now shifts to R.E.S.E.T 2020. Under this, the company is planning to maximise revenue potential through initiatives like online F&B; business (Qmin), zero tough digital transformation and rationalisation of fixed overheads. These initiatives have added | 77 crore to topline. Also, cost optimisation measures like certain temporary concessions (e.g. employee costs in UK, electricity charges in Maharashtra, re-negotiation of lease, deferring renovations, etc)...

Nationwide lockdown was imposed by the Indian government from 25 th March 2020 to 31st May 2020, post which certain economic activities were permitted to commence in a phased manner. Hotels were allowed to begin operations from 8th June 2020. However, there were many difficulties in the smooth operations post 8th June 2020 as well. Certain state governments decided to extend the lockdown and insecurity among people regarding inter-state travel kept domestic tourism subdued during 1QFY21. The emergence of digital meeting platforms restricted corporate travels even post lifting of the lockdown. Restrictions on dining at hotels and restaurants still continue, thereby reducing demand for the F&B; segment of the hospitality companies. Only in-room dining, take aways and delivery orders...

Indian Hotels (IHCL) results partially reflected the impact of Covid-19. Revenue declined by 15% The Team in the Asia Money poll 2020. YoY to Rs10,630mn in 4QFY20, primarily driven by decline in revenue in March 2020. Revenue for Click Here January and February 2020 grew by 2% YoY. EBITDA margin declined marginally YoY to 19.6%. The net profit of Rs743mn was partially helped by exceptional gains of Rs401mn and deferred tax...

Indian Hotels (IHCL) reported 14.6% drop in revenue to | 1,063 crore (I-direct estimate: | 995 crore) led by 48% drop in income for March 2020. Revenues were flattish at | 4,463 crore in FY20, in contrast to 4% growth on 9MFY20 basis. Consolidated EBITDA margins for Q4FY20 fell 330 bps YoY to 19.6% (I-direct estimate: 20.5%); standalone (pure domestic) business saw a sharper decline of 522 bps. EBITDA for the quarter dropped 27% YoY to | 207.9 crore (I-direct estimate: | 203.7 crore). For FY20, EBITDA increased 16.6% YoY, with higher share of growth coming from international business....

It is well known that the hospitality and tourism industry is the worst affected by the outbreak of COVID-19 (corona virus). This has been reflected in the stock price of hospitality stocks, which have declined by 54% to 77% from their 52 week highs. For the hospitality companies under our coverage, we have conducted an analysis of the Enterprise Value (EV) per owned/ leased room based on the current market price, price as...

We expect a sharp fall in the earnings of hospitality companies because of the outbreak Research Analyst of corona virus. The hospitality sector was already facing weaker than expected growth amit.agarwal@nirmalbang.com because of slowdown in the economy and weak demand from corporate and MICE +91-22-6273 8033 segments. The outbreak of corona virus has affected domestic and international travel, acting as yet another headwind for the hospitality sector, which was on the verge of a cyclical upcycle. Our interactions with the industry experts indicate that the ARR and occupancy for January and February 2020 saw a considerable growth on a YoY basis. However, post the implementation of precautionary measures against corona virus like...

The ongoing coronavirus outbreak has had a severe impact on the hotel bookings in India from Feb-20 onwards with massive forward booking cancellations across cities. This in turn has eroded the ability of hotels across India with heavy loss of business during this peak season time. The extent of this lost business has primarily been seen across all major tourist and business destinations and we expect the situations to remain severely weak with individuals cancelling or deferring their travel plans and thousands of companies adopting the work from home' and no travel' policies. This...

We like IHCL amongst the domestic hospitality space considering its diverse product offerings, improving balance sheet strength and declining losses from international operations. We estimate net sales/EBITDA/PAT growth of 7.3%/23.3%/34.7% over FY19-21E. Maintain BUY with a TP of Rs 200 valuing the stock at 20x EV/EBITDA and per share value in Taj GVK and Oriental Hotels at current market capitalization. Key Highlights and Investment Rationale Strong inventory pipeline to support healthy sales growth IHCL recently reached milestone of 200 hotels with 25,000+ rooms, while 50 new...

a. Following asset light model, total rooms increased by 9.4% to 18,596 rooms as on 31st January 2020. Management contracts increased to 30% of the total operational rooms from 25% in Feb 2018. The company plans to increase the management contracts to 50% of the total operational rooms by FY23. b. Restructuring and expansion of Ginger to help in overall revpar growth. c. The company has also expanded other verticals for revenue generation like launching of new brands such as Niu&Nau;, 7RIVERS, Ama stays & trails etc apart from expanding the in-house brands of restaurants....

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).

Indian Hotels (IHCL) reported a healthy performance, beating our estimates on a broad basis. The company registered 3.7% YoY growth in revenues to | 1372.7 crore (I-direct estimate: | 1404 crore). Standalone (domestic) business continued to outperform the international business for another quarter. International hotels saw a decline in RevPAR by 4.2% YoY; domestic business reported 5.6% growth YoY. EBITDA margins expanded 565 bps YoY to 31% (I-direct estimate: 27.1%). Adjusting for lease reclassification, EBITDA margins expanded 185 bps. Reported EBITDA...

Indian Hotels Company Ltd. (IHCL) reported an all-round Q3FY20 performance. The company reported net sales of Rs13,727 mn (+3.7%YoY). The growth was driven by healthy RevPAR growth across key markets where IHCL has a strong presence. EBITDA came in at Rs4,257 mn (+26.9%YoY), while EBITDA margin improved by healthy 566bps YoY to 31%. Net profit stood at Rs2,132 mn, up by 25.4% YoY. Hospitality industry is seeing early signs of ARR revival, which otherwise was limited to only growth in occupancy. The industry's RevPAR growth improved by 300bps over last quarter to 5.5%, which was driven by demand-supply gap of 220bps at 2.5% and 4.7%...

Indian Hotels (IHCL) revenue grew by 4% YoY to Rs13,727mn in 3QFY20, which was primarily driven by: (1) 5.2% YoY growth in room rental revenue (2) F&B; growth of 1.5% YoY. The Room revenue growth was driven by: (1) 5.6% YoY growth on a same store basis (SSG) in domestic Revpar - better than industry growth of 5.5% YoY (2) Addition of 855 rooms YoY. Reported EBITDA margin at 31% expanded by 566bps YoY because of: (1) Revenue increasing by 4% YoY (2) Cost decreasing by 4%. On a Pre Ind AS 116 basis, EBITDA margin stood at 27.7%, expanding by 235bps YoY because of: (1) Revenue increasing by 4% YoY. (2) Cost increasing by 2% pre implementation of Ind AS 116....

We expect weaker-than-expected earnings growth (YoY) due to the impact of slowdown in the economy. Our interactions with the industry experts indicate that the uptake of demand from corporate spending and MICE has been below expectations during 3QFY20. RevPar growth is expected to be slow. We expect revenue of Indian Hotels Company Ltd (IHCL) and Lemon Tree Hotels Ltd (Lemon Tree) to increase by 14% and 15%, respectively on a YoY basis, primarily driven by increase in rooms. Revenue of Chalet Hotels Ltd is expected to increase by 8% on a QoQ basis as 2QFY20 had witnessed sudden decline in occupancy in the Hyderabad market. We have assigned Buy rating to IHCL with TP of Rs174 and an...