Indian hotels to see upbeat Q4 as demand boosts avg room rate, notes Emkay

Lemon Tree Hotels

19/02/2024 07:50

** Brokerage Emkay Research forecasts strong Q4 for Indian
hotel operators as demand momentum strengthens average room rate
(ARR)
    ** ARR expected to pick up in Q4 as business travel resumes
post-holiday period, weddings and conferences to support demand
- Emkay 
    ** Indian cricket tournament in end-March to aid demand for
Indian Hotels Co  IHTL.NS , pickup in business travel to support
Chalet Hotels  CHAL.NS  - note
    ** Brokerage expects margin improvement for IHTL, CHAL and
Lemon Tree Hotels  LEMO.NS ; estimates double-digit revenue
growth over FY24-26  
    ** Adds, IHTL rev to rise from new businesses, higher-margin
commercial properties to drive rev growth for CHAL 
    ** Emkay rates all three cos "add", prefers CHAL; avg rating
on all three cos equivalent to "buy", per LSEG data  
    ** LEMO and IHTL up 0.4% and 1% respectively, while CHAL
down 1.2% 

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))