More check-ins, financial de-leveraging to aid Indian Hotels: MS

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26 Aug, 2025 12:21

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Moneycontrol BureauMorgan Stanley (MS) has retained its overweight rating on the Indian Hotels Company Limited (IHCL) with a price target of Rs 160. Expected turnaround in the overall hotel industry as well as financial de-leveraging at the company will boost the returns, says the brokerage house. As per a Crisil report, July proved to be a strong month for the hotel industry. The all-India revenue per available room (RevPAR) rose to 15.5 percent year-on-year as against a 5.4 percent growth seen in the first quarter of FY17. Another research agency STR Global mentions a 9.6 percent RevPAR growth in July. “RevPAR (revenue per available room) growth was driven by occupancy, up 667 basis points YoY in July. Key cities with strong growth were Jaipur, Pune, Kolkata and NCR,” mentions the MS report. Strong tourist arrival as well as rise in corporate events across the country led to this increase. Morgan Stanley believes that inflexion point is reached already in the industry. Expanding occupancy numbers can lead to further rise in pricing in second half of FY17, the note says.