Indian hoteliers' Q1 growth likely unfazed by conflict with Pakistan, Jefferies says

Apeejay Surrendra Park Hotels

10/06/2025 09:04

** Jefferies expects "healthy" Q1FY26 growth for Indian hotel firms, undeterred by some travel softness in May due to military conflicts between New Delhi and Islamabad

** Q1 "started on a strong note in April, extending Q4 performance and June is expected to see normalcy" - note

** Adds, hotel firms to continue to benefit from industry uptrends, including demand outstripping supply

** Taj-parent Indian Hotels Co Ltd IHTL.NS, ITC Hotels ITCT.NS and Chalet CHAL.NS are brokerage's top sectoral picks

** On the day, IHTL flat, ITCT edges up 0.2%. CHAL down 1%

** All three cos outperformed or were in-line with industry in terms of Y/Y Q4 revenue growth per available room, a key operating metric

Hotel firms
RevPAR growth range in Q4 (in %) (source: Jefferies)
Chalet, EIH, Samhi
21-22
ITC Hotels, Indian Hotels, The Park
16-18
Industry average
17
Leela, Lemon Tree, Juniper
14-15

 (Reporting by Hritam Mukherjee in Bengaluru)

 ((Hritam.Mukherjee@thomsonreuters.com;))