Indian Hotels, EIH, lemon Tree others: Softer Q1 expectations from Hotels impacted by heat wave, Lok Sabha Elections

livemint.com:

Indian Hotels Company, EIH Ltd, Lemon Tree Hotels , Chalet Hotels share price have risen sharp 54-112% in a year benefitting from rising occupancy , average room rates leading to better revenue per available room (RevPar). The tailwinds have remained strong post easing of COVID-19 pandemic, and there has been a sustained increase in travel demand, with India continuing to be a popular destination.

Starting October significant events like the G-20 meeting, cricket world cup, followed by the holiday and wedding seasons, have occurred improving the earnings prospects of Indian Hotels Company, EIH Ltd, Lemon Tree Hotels , Chalet Hotels and others. The same led to strong performance in the January to March quarter for Indian Hotels Company, EIH Ltd, Lemon Tree Hotels , Chalet Hotels and others with strong outperformance by likes of EIH, Indian Hotels as per analysts.

India's Hotel universe delivered strong more than 25% Ebitda (earnings before interest tax, depreciation and amortisation) in 4Q with companies delivering record margins and a healthy RevPAR (average revenues per room) ranging 7-17% yoy, highlighted analysts at Jefferies India Pvt Ltd. Industry average room revenues grew at average 8-9% YoY in the March'2024 quarter, however slowing compared to nine month FY24 period highlighted Jefferies.Also Read- From TCS to Infosys, IT stocks jump 2-3% on Accenture's Q3 results. Is the worst over for tech firms?While average room rent growth may be normalizing and most companies remain optimistic on growth outlook, first Quarter FY25 nevertheless may be slightly soft.The April-June quarter 2024 may see softer performance by the Hotels impacted by severe heat wave conditions in the North and also the Lok Sabha Elections 2024.