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Target: ₹440
CMP: ₹391.55
Indian Hotels’ FY23 annual report highlights the strong growth witnessed by the company during the year, on the back of robust traction in core business. The strong pipeline of 10,145 rooms (about 48 per cent of operational portfolio) coupled with rapidly scaling reimagined new businesses are expected to drive the diversified growth path for the company going ahead.
IH is on track to achieving a majority of the targets outlined in Ahvaan 2025 within the designated timeline. The company has even upgraded certain metrics beyond the original guidance. These upgrades include an increased number of hotel openings, stronger growth from new and re-imagined businesses (Ginger/Chambers), maintaining margins (at 33 per cent) through an asset-light growth strategy (50:50 portfolio mix), and strengthening its balance sheet.
We expect the strong momentum to continue in FY24, led by: a further improvement in occupancy rate, driven by multiple large global events such as G20 and ICC Cricket Men’s World Cup in CY23; increase in ARR due to increased demand, upgrades in hotels, and corporate rate hikes; higher income from management contracts; and value unlocking by launching reimagined and new brands.
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