6 days ago
ICICI Securities Sees 28% Upside in Indian Hotels Shares
ICICI Securities thinks Indian Hotels shares could rise by 28%.
It says people are still booking hotel rooms and demand remains strong.
Indian Hotels operated about 33,600 rooms in June 2026.
It also plans to add about 32,600 more rooms over the next four to five years.
The brokerage expects the company’s sales and profits to grow strongly.
It also expects fees from managing hotels to increase.
Indian Hotels may merge with Oriental Hotels in a share-based deal.
The merger still needs approval from the authorities.
ICICI Securities recommended buying Indian Hotels shares, citing a potential 28% upside.
Indian Hotels had about 33,600 operational rooms as of June 2026, with another 32,600 in its pipeline.
The brokerage expects Indian Hotels to achieve 12% revenue and 15% EBITDA annual growth from FY26 to FY29.
Management fees are projected to grow at a 19% annual rate to Rs 1,160 crore by FY29.
A proposed all-stock merger with Oriental Hotels could be completed in the second half of FY28, subject to approvals.
- Who
- ICICI Securities, Indian Hotels and Oriental Hotels.
- What
- ICICI Securities recommended buying Indian Hotels shares and highlighted the company’s growth outlook and proposed merger with Oriental Hotels.
- Where
- Indian Hotels’ hotel network, including properties in India; the article does not specify a single location for the recommendation.
- When
- The assessment refers to June 2026, FY26-FY29, and a proposed merger targeted for the second half of FY28.
- Why
- The brokerage cited strong bookings, hotel-room expansion, industry RevPAR growth, new businesses, management fees and Indian Hotels’ net cash position.
Key facts
- Potential upside
- 28%, according to ICICI Securities
- Operational rooms
- Around 33,600 as of June 2026
- Rooms in pipeline
- Around 32,600, expected to open over the next four to five years
- Projected revenue CAGR
- 12% from FY26 to FY29
- Projected EBITDA CAGR
- 15% from FY26 to FY29
- Projected management fees
- Rs 1,160 crore by FY29, growing at a 19% CAGR
- Net cash
- Rs 4,400 crore as of June 2026
- Merger exchange ratio
- 25 Indian Hotels shares for every 117 Oriental Hotels shares
Sources
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