Indian Hotels shares rise 2% on signing agreements for 11 hotels

With this expansion, the country's largest hospitality company has expanded its portfolio to 270 hotels.

Shares of Indian Hotels rose 2 percent in early trade on July 7 as the company announced signing agreements for  11 hotels and opening five new hotels across destinations during the April-June quarter.

With this expansion, the country's largest hospitality company has expanded its portfolio to 270 hotels. Not just that, the current portfolio also places the company well on track to achieve its vision of over 325 hotels by 2025.

At 09.22 am, shares of Indian Hotels Co were trading 1.75 percent higher at Rs 391.90 on the National Stock Exchange.

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“Keeping pace with signings, Indian Hotels opened 5 new hotels in the quarter taking the total operating hotels to 191 across brands," Deepika Rao, Executive Vice President – Hotel Openings and Corporate Communications, Indian Hotels stated in a press release.

"This fiscal, Indian Hotels will also be stepping into new areas like Gangtok in Sikkim, Tawang in Arunanchal Pradesh, Jaisalmer in Rajasthan and adding to its portfolio in Mumbai, National Capital Region (NCR), Kolkata, Ahmedabad, Srinagar, Tirupati, Ranthambore among others," Rao added.

Currently 70 percent of Indian Hotels' pipeline is fee based while 7 percent is owned and the remaining 23 percent is under operating leases for the Ginger brand.

Brokerage firm Motilal Oswal Financial Services maintains a positive view for Indian Hotels' strong pipeline of 10,145 rooms (~48 percent of operational portfolio) coupled with the rapid scaling of the re-imagined new businesses, which it expects to carve a diversified growth path for the company going ahead.

"Indian Hotels has focused on tapping into adjacent categories and re-imagining its existing businesses. TajSATS and Ginger (re-imagined businesses) have witnessed significant success and continue to have a robust outlook going ahead," MOFSL highlighted in its report. The firm gave a 'buy' call to the stock, with a price target of Rs 440.

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