India's Axis Capital initiates coverage on hotel operators with 'buy'

Lemon Tree Hotels

12/12/2024 06:17

** Axis Capital initiates coverage on Chalet Hotels
 CHAL.NS , Juniper Hotels  JUNI.NS , The Indian Hotels Co
 IHTL.NS  with 'buy', and Lemon Tree Hotels  LEMO.NS  with 'add'
    
    CHALET HOTELS AND JUNIPER HOTELS
    ** Brokerage sees revenue and occupancy at CHAL and JUNI
benefiting from premium brand affiliations (CHAL-Mariott;
JUNI-Hyatt)
    ** CHAL and JUNI's assets all located near business centers
and airports, targeting business travellers - brokerage
    
    INDIAN HOTELS CO AND LEMON TREE HOTELS 
    ** IHTL, which operates the iconic Taj Brand, and LEMO to
benefit from premiumization
    ** Both IHTL and LEMO plan to increase the share of managed
hotels in their portfolios, as part of an asset-light model
strategy, a plus for management fee growth and profit margins -
brokerage  
 HOTEL   TARGET PRICE  UPSIDE TO   AVG             YTD
                       LAST CLOSE  RECOMMENDATION  GAIN/LOSS
                                   BY ANALYSTS-    
                                   LSEG            
 CHAL    1191 rupees   28%         'BUY'           37.58%
 JUNI    442 rupees    22%         'STRONG BUY'    -9.7%
                                                   since Feb
                                                   28 trading
                                                   debut
 IHTL    976 rupees    17%         'BUY'           90.43%
 LEMO    153 rupees    7%          'BUY'           21.65%
 
    ** On the day, CHAL up 5.27% to 976 rupees ($11.50), LEMO up
1.56% to 145 rupees, while JUNI down 1.02% to 358.6 rupees and
IHTL flat 
    
    

($1 = 84.8625 Indian rupees)

 (Reporting by Ananta Agarwal in Bengaluru)
 ((Ananta.Agarwal@thomsonreuters.com))