Buy Indian Hotels; target of Rs 440: Motilal Oswal

Motilal Oswal's research report on Indian Hotels

Indian Hotels (IH) reported consolidated revenue growth of 16% YoY, aided by strong growth in standalone ARR (up 11% YoY) and better occupancy (up 430bp YoY). EBITDA grew 9% YoY due to high operating expenses in 1QFY24 vs. a lower base YoY. Consolidated management contract revenue grew 20% YoY to INR980m in 1QFY24.

Outlook

We maintain our FY24/FY25 EBITDA estimates and retain BUY with our SoTP-based TP of INR440.