Nomura names Leela top hotel pick; Indian Hotels, ITC Hotels eye Q1 gains on domestic demand

Nomura's Q1FY27 preview backs Leela (PT 530, +11.3%) as top pick, followed by Indian Hotels (PT 800) and ITC Hotels (PT 195), citing domestic demand offsetting a foreign travel slump. Leela revenue seen +14% YoY, EBITDA +16%. Neutral on Phoenix Mills and Chalet as retail consumption growth outpaces rental income.

— Source publishedTue, 7 Jul, 2026, 07:58 IST·First seen Tue, 7 Jul, 2026, 07:59 IST·Source Financial Express · BrandWagon

What happened

Leela Palaces, Hotels and Resorts · Nomura's Q1FY27 hotel sector preview names Leela top pick, followed by Indian Hotels and ITC Hotels, citing domestic demand

Key facts

  • Leela revenue +14% YoY
  • Leela EBITDA +16% YoY
  • Indian Hotels revenue/EBITDA +13% YoY
  • Indian Hotels standalone revenue Rs 1,170 crore
  • ITC Hotels hospitality +8% YoY, total +22% YoY
  • Chalet revenue +10%, EBITDA +12%
  • Phoenix retail consumption +25-30% YoY, retail income +17%
  • Leela PT 530 (+11.3%)
  • Indian Hotels PT 800 (+9.7%)
  • ITC Hotels PT 195 (+8.9%)

Why this matters

The hotel-sector strength versus neutral calls on retail-rental plays like Phoenix Mills and Chalet suggests hospitality assets are the more attractive M&A and expansion target right now.

What to watch

  • Q1FY27 RevPAR and occupancy data across metros
  • Foreign tourist arrival statistics from tourism ministry
  • Leela actual revenue/EBITDA print vs +14%/+16% estimate
  • Domestic air passenger traffic trends
  • New room supply announcements affecting pricing power
  • Rotation of institutional flows toward Leela and Indian Hotels ahead of Q1FY27 prints
  • Peer brokerages issue confirming or contrarian previews on hospitality names
  • ITC Hotels gains incremental coverage post-demerger visibility
  • Retail REIT/rental names see relative de-rating vs hotel operators

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