Royal Orchid Hotels currently operates 48 hotels across the country.
Royal Orchid Hotels shares gained more than 3 percent intraday on Wednesday after the company opened its new hotel, Regenta Central Harsha in Vapi, Gujarat.
The stock was quoting at Rs 103.65, up Rs 2.90, or 2.88 percent on the BSE, at 11:21 hours IST.
The hotel has 57 well equipped and luxurious rooms.
"We are putting our continuous effort to expand footprint at strategic locations in the country ensuring a memorable stay for the travellers," Chander K Baljee, Managing Director, Royal Orchid Hotels said.
In the last two years the company has spread across the country with conscious selection of economically growing cities which welcomes trade and new businesses, he added.
Royal Orchid Hotels primarily operates a blend of 5 star, 4 stars, leisure, business and adventure hotels. It currently operates 48 hotels across the country.
Stewart & Mackertich Wealth Management is bullish on the stock and assigned strong buy rating with a price target at Rs 161, implying 60 percent potential upside from February 26's levels.
"Rapid expansion of properties via the asset light model, favorable taxation structure under GST, turnaround in business operations combined with lower operational and finance expenses is a boost to the company," the research house said.
The company’s growth strategy is to expand via leased hotels in order to increase the topline and plans to have 100 properties by 2022.
"Ongoing tourist season to be continued till end of FY19 along with increasing foreign tourist arrival and robust air passenger traffic bodes well for the company. The 5 percent hike in corporate contracts is an added advantage for the company since more than 40 percent of the total revenue is attributed to the same," it said.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.