Buy Brigade Hotel Ventures; target of Rs 117: ICICI Securities

ICICI Securities's research report on Brigade Hotel Ventures

Brigade Hotel Ventures (BHVL) clocked strong 14% same-store RevPAR in Q2FY26, resulting in 16% YoY revenue growth and 15% adj. EBITDA growth. We estimate 17%/20% revenue/EBITDA CAGRs over FY25–28 given a robust demand outlook of 8-9% RevPAR growth over the same period and new property additions. As part of its expansion plans, BHVL intends to develop nine new hotels with 1,700 keys across south India with an estimated capex of ~INR 36bn over FY25–30 (assuming capex of ~INR 20+mn/key). Maintain BUY with an unchanged TP of INR 117/share, based on 18x Sep’27 EV/EBITDA for operational hotels and 1x capital WIP for assets opening beyond FY28E. Key risks: Slowdown in hotel occupancies/ARRs and delay in execution of upcoming hotel assets.

Outlook

We retain our BUY rating on BHVL with an unchanged target price of INR 117. We value the company’s operational hotels, as of Sep’27E, at an EV of INR 43.5bn at 18x Sep’27E EV/EBITDA of INR 2.4bn (adjusted for 50% Chennai hotel share).