Jefferies sees IHCL’s 300-hotel pipeline powering growth, reiterates Buy
Jefferies retained its Buy call on Indian Hotels Co. with an Rs 875 target, citing sustained hotel demand, a 300-hotel development pipeline and around 50 annual openings. IHCL expects FY27 revenue growth of 12–14%, supported by rate increases, Ginger’s expansion and more asset-light income.
What happened
Indian Hotels Co Ltd (IHCL) · Jefferies retained a Buy on IHCL with a Rs 875 target, citing sustained hospitality demand, a 300-hotel pipeline, 50 annual
Key facts
- Rs 875 target price
- 23% potential upside
- FY27 revenue growth guidance of 12-14%
- 300-hotel pipeline
- 50 annual openings
What changed
Jefferies retained a Buy on IHCL with a Rs 875 target, citing sustained hospitality demand, a 300-hotel pipeline, 50 annual openings and potential India acquisitions. Management expects growth from rate hikes, Ginger expansion and increasing asset-light contributions.
Why this matters
Jefferies’ Buy call and Rs 875 target rest on sustained hotel demand, rate-led growth and a 300-hotel pipeline that could support 12–14% FY27 revenue growth.
What to watch
- Quarterly net room additions, hotel openings versus the stated target of around 50 annually, and the proportion of asset-light signings.
- RevPAR growth split between occupancy and average daily rate, especially in key metro and leisure destinations.
- Ginger occupancy, room-rate growth and margin contribution relative to premium-brand performance.
- Management and franchise fee income growth as a share of total revenue.
- Any acquisition announcement, including purchase price, funding source, asset ownership mix and integration timetable.