Q4 Results Preview: Hotel industry likely to post double-digit revenue growth over robust demand
Q4 Results Preview: Aviation sector to post weak quarter as airfares soar high In terms of new hotels openings, the industry has seen 26 per cent growth in new hotel openings to 146 but a 10% decline in room additions to 9,833 between April 2023 and February 2024, as per HVS Anarock report. According to Elara Capital, strong leisure and growing business travel will continue to accelerate ARR growth and increase occupancy. The macroeconomic environment for India remains robust, which is expected to sustain demand for the hotel industry.
On the other hand, luggage companies are also expected to post decent performance. “We expect luggage stocks in our universe to report decent performance as VIP is expected to clock double digit growth in top-line after 3 quarters while Safari’s market share gain journey will continue. Within hospitality, we expect double digit ARR growth for both Chalet and Lemon Tree with EBITDA margin of 46.0%/49.7% respectively," PL said in its note.
For Chalet, the brokerage firm expects ARR’s to increase 16.4 per cent YoY with an occupancy of 72 per cent. Overall, the hotel is likely to report 36.6 per cent YoY growth in revenue with EBITDA margin of 46.0 per cent. “We maintain our ‘ACCUMULATE’ rating on Chalet as deleveraging process has begun and demand environment continues to remain robust.
Our revised SOTP based TP stands at Rs888 (earlier Rs820)," PL added. Also read: Q4 Results Preview: Auto companies to post stronger earnings led by PV, 2W/3W; TVS Motors, Tata Motors to lead the pack The firm expects ARR’s to increase 12.8 per cent YoY with an occupancy of 72%. Excluding Aurika, and a single digit hike in ARR with occupancy being a replica of 4QFY23.
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