Buy Indian Hotels; target of Rs 870: Motilal Oswal

Motilal Oswal's research report on Indian Hotels Indian Hotels (IH) reported healthy consolidated revenue growth of 22% YoY in 2QFY27, led by 26% growth in the standalone business and 17% growth in subsidiaries. Growth in the standalone business was led by room revenue (RevPAR up 28% YoY, led by ARR/OR growth of 19%/700bp), followed by F&B revenue (up 20%), other services (up 49%), and management fees (up 16%). IH has upgraded its FY27 revenue guidance to 15-17% (from 12-14% growth), driven by sustained domestic travel demand, robust growth across its asset-light management business, and emerging brands such as Ginger, Qmin, amã Stays & Trails, and Tree of Life. Moreover, the company has a pipeline of 34,800 keys (with 81% of the signed pipeline being assetlight), almost equal to its current operational keys of 34,213, thereby supporting sustained growth momentum. Outlook We expect IH's performance to continue its uptrend, with a CAGR of 14%/15%/19% in revenue/EBITDA/adj. PAT over FY26-28. We broadly maintain our FY27/FY28 EBITDA estimates and reiterate BUY with our SoTP-based TP of INR870. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Indian Hotels - 2210026 - moti