Macquarie says Indian Hotels Company's expansion to boost revenue visibility

Indian Hotels

16/04/2026 09:32

** Macquarie says a bigger portfolio of upcoming projects improves revenue visibility for Taj-owner Indian Hotels Company IHTL.NS

** Says stronger demand visibility gives it more confidence in revenue per available room growth, while average room rates remain more volatile

** Expects average room rates to rise 5% annually and revenue per available room growth to grow 6% annually in FY25-FY28, driving 15% annual growth in room revenue

** Brokerage expects margins to improve steadily, with FY25 EBITDA margin peaking at about 36%, driven by an asset-light model, higher room rates and benefits of scale

** "Given its strong balance sheet, IH is poised to gain from industry consolidation," brokerage says, adding it models about 74 billion rupees in cumulative free cash flow over FY26-28 for the hotel chain operator

** Shares up 0.5% at 649.5 rupees, down 12.4% YTD

 (Reporting by Abhinav Parmar in Bengaluru)

 ((Abhinav.Parmar@thomsonreuters.com;))