Most large hotel companies, during their Q3 results, guided that they expect growth to remain strong in Q4, driven by strong demand visibility in the near term.
According to Antique, Indian Hotels Company remains confident of achieving its double-digit revenue growth guidance for FY25, while Chalet Hotels guided that Q4 will be better than Q3. "Our checks suggest the strong momentum continues," the brokerage said.
For IHCL, Antique expects an ADR growth of 11% year-on-year (YoY) to ₹19,500, with occupancy improving by 100 basis points (bps) YoY to 80%.
Meanwhile, Chalet Hotels may report an ADR of ₹13,700, an increase of 15.5% YoY, with occupancy declining by 100 bps YoY to 75% on a same-store basis.
Indian Hotels
For IHCL, standalone Revenue Per Available Room (RevPAR) is expected to increase by 12% YoY.
Rate growth is expected to remain strong across key markets driven by robust demand for both business and leisure. However, growth in IHCL's international portfolio is likely to be slightly below the company’s average.
Antique builds in a revenue growth of 28% YoY to ₹2,460 crore (14% YoY excluding TajSATS) and EBITDA margins to improve by approximately 100 bps YoY to 36%. Further, it expects the growth momentum to remain strong in Q1 FY26, helped by more wedding dates and the absence of an election impact.
Chalet Hotels
The brokerage forecasts Chalet's revenue to grow by 21% YoY to ₹510 crore. "We are building hospitality segment revenue growth of 17% YoY aided by strong rate growth and incremental revenue from Dukes and the recently acquired Westin Resort, Himalayas. Further, we are building the rental portfolio revenues to increase by 70% YoY aided by improving flow through. We expect a marginal improvement of 30 bps in EBITDA margins to 44% aided by the rental portfolio."
The company's debt is expected to increase by roughly ₹500 crore. due to the acquisition of Westin Resort, Himalayas.
Antique believes that the hospitality industry will continue to deliver strong operating performance in the near term, driven by robust demand from the leisure, MICE (Meetings, Incentives, Conferences, and Exhibitions), and wedding segments.
Over the medium term, growth is expected to be fueled by an industry-wide demand-supply imbalance and a strong pipeline of new hotel additions.
On Wednesday, shares of Indian Hotels Company are currently trading 2.98% higher at ₹829.65, while the Chalet Hotels stock is up 1.02% at ₹855.35.