India’s Hotels & Resorts sector is booming, with pan-India premium hotel occupancy rates projected at 70–72% in FY2025 and average room rates (ARR) expected to reach ₹8,000–9,000. The industry is set to reach $52–55 billion in market size by 2025, driven by robust domestic tourism, 693 new projects, and growing branded inventory.
With a market capitalization of Rs 1.08 lakh crore, the shares of Hotels Company Ltd were trading at Rs 763.40 per share, increasing around 1.09 percent as compared to the previous closing of Rs 755.20 apiece.
Brokerage Recommendations
Jefferies, one of the well-known brokerages globally, gave a ‘Buy’ rating on the hotel stock with a target price of Rs 980 apiece, indicating a potential upside of 28 percent from Tuesday’s price of Rs 763 per share.
As per the brokerage noted the company’s significant scale-up and transformation over the past eight years. Management reaffirmed confidence in the positive demand-supply dynamics for the hospitality sector in India and reiterated its FY26 guidance of double-digit revenue growth.
Additionally, for FY26, Indian Hotels projects 12–15% revenue growth, driven by strong performance from the Taj brand and increasing contributions from its new business segments. This aligns with its broader expansion strategy and reflects confidence in demand resilience and the success of its evolving portfolio mix.
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Financial & operational performance
Looking forward to the company’s financial performance, revenue increased by 27 percent from Rs 1,905 crore in Q4FY24 to Rs 2,425 crore in Q4FY25. Further, during the same time frame, net profit increased by 29 percent from Rs 438 crore to Rs 563 crore.
As of May 31, 2025, Indian Hotels Company Limited (IHCL) operates 249 hotels with 139 more in the pipeline, totaling 388 properties. The Taj brand leads with 134 hotels, followed by Ginger (103) and Vivanta (53), reinforcing IHCL’s diversified portfolio and dominant position in India’s hospitality sector.
By FY30, Indian Hotels targets over ₹30,000 crore in enterprise revenue and ₹15,000+ crore in consolidated revenue, doubling current levels. It also aims for 20%+ ROCE and a sustained positive net cash position, reflecting strong financial discipline and profitability despite rapid expansion plans across its diversified hotel portfolio.
Written by Abhishek Singh
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