Revenues matrix remains firm for Hotels in February: 11MFY24 average room revenue growth in double digits

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Indian Hotels Co , Lemon Tree Hotels , EIH Ltd, Chalet Hotels share prices have seen gains of 73-127 % over last one year. Even for Juniper Hotels the gains stand at around 26.5% even since its listing in February. The hospitality industry received a lot of attention during recent past and was for the correct reasons.

Travel demand has continued to increase post-COVID led restriction continued to ease and India's strong travel theme continued to play and is still strong. The past six months have seen large events as G-20 meet, cricket world cup followed by holiday and wedding season. February has seen strong traction continue as indicates the data.

As per data published by Jefferies’ Global Lodging analyst Jaina Mistry, Average room rate for Hotel Industry in India grew 8% year-on-year in February-24. Also Read- Despite regulatory challenges, Paytm shares can cross ₹500, believes Motilal Oswal, sees 30% upside Stronger year-on-year growth in RevPAR (revenue per available room) of 10%, was driven by higher ARRs (average room rate) and higher occupancy, which increased by 160bps in February. ARR/RevPAR growth for 11MFY24 was approximately 14–15% YoY.

Jefferies still continues to build 7-9% ARR growth for FY25 and FY26 for Indian Hotels. Indian Hotels revealed a green field project to build a 350-key greenfield Taj hotel in Indore, one of the largest convention facilities in Central India. A few days back Indian Hotels also opened a new scenic hotel in Munnar.