Indian Hotels shares: Buy stock for 28% upside, says ICICI Securities; here's why
Indian Hotels had around 33,600 operational keys as of June 2026, while another around 32,600 keys are in the pipeline and are expected to open over the next four to five years.
- Aug 27, 2026,
- Updated Aug 27, 2026 3:13 PM IST
ICICI Securities has maintained its 'Buy' rating on Indian Hotels Co Ltd, with an unchanged target price of Rs 925, implying 28 per cent potential upside. The brokerage is valuing the stock at 30 times estimated June 2028 EV/Ebitda, citing a strong project pipeline and favourable demand tailwinds
On Thursday, the scrip traded at Rs 721 apiece on BSE. ICICI Securities said Indian Hotels delivered a resilient performance in the June quarter (Q1FY27) despite geopolitical disruptions, with consolidated revenue and Ebitda growing 15 per cent and 17 per cent, respectively. Domestic like-to-like revenue per available room (RevPAR) growth stood at 14 per cent.
"Demand drivers intact heading into H2FY27," the brokerage said, adding that business on books for the September quarter (Q2FY27) remains robust and the hotelier is confident of achieving double-digit revenue growth in FY27.
Indian Hotels had around 33,600 operational keys as of June 2026, while another around 32,600 keys are in the pipeline and are expected to open over the next four to five years. ICICI Securities said the strong room pipeline, high single-digit industry RevPAR growth and contribution from new businesses and management fees could support mid-teens revenue and EBITDA growth in the medium term.
The brokerage expects Indian Hotels to deliver a 12 per cent revenue CAGR and 15 per cent EBITDA CAGR over FY26-FY29, assuming 7 per cent like-to-like RevPAR growth. It also expects management fees to grow at a 19 per cent CAGR to Rs 1,160 crore by FY29.
ICICI Securities also highlighted the proposed merger of Oriental Hotels Ltd with Indian Hotels through a scheme of arrangement. The all-stock transaction proposes an exchange ratio of 25 Indian Hotels shares for every 117 Oriental Hotels shares, with completion targeted for the second half of FY28, subject to statutory approvals.
Oriental Hotels has a portfolio of seven hotels with 825 rooms, including Taj Coromandel, Taj Fisherman's Cove Resort & Spa, Gateway Coonoor, Taj Malabar Resort & Spa, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.
The brokerage said the proposed merger could simplify the group's holding structure by increasing Indian Hotels' direct ownership across several entities. It also noted that Indian Hotels had a net cash position of Rs 4,400 crore as of June 2026, which could support further growth.
ICICI Securities has maintained its 'Buy' rating on Indian Hotels Co Ltd, with an unchanged target price of Rs 925, implying 28 per cent potential upside. The brokerage is valuing the stock at 30 times estimated June 2028 EV/Ebitda, citing a strong project pipeline and favourable demand tailwinds
On Thursday, the scrip traded at Rs 721 apiece on BSE. ICICI Securities said Indian Hotels delivered a resilient performance in the June quarter (Q1FY27) despite geopolitical disruptions, with consolidated revenue and Ebitda growing 15 per cent and 17 per cent, respectively. Domestic like-to-like revenue per available room (RevPAR) growth stood at 14 per cent.
"Demand drivers intact heading into H2FY27," the brokerage said, adding that business on books for the September quarter (Q2FY27) remains robust and the hotelier is confident of achieving double-digit revenue growth in FY27.
Indian Hotels had around 33,600 operational keys as of June 2026, while another around 32,600 keys are in the pipeline and are expected to open over the next four to five years. ICICI Securities said the strong room pipeline, high single-digit industry RevPAR growth and contribution from new businesses and management fees could support mid-teens revenue and EBITDA growth in the medium term.
The brokerage expects Indian Hotels to deliver a 12 per cent revenue CAGR and 15 per cent EBITDA CAGR over FY26-FY29, assuming 7 per cent like-to-like RevPAR growth. It also expects management fees to grow at a 19 per cent CAGR to Rs 1,160 crore by FY29.
ICICI Securities also highlighted the proposed merger of Oriental Hotels Ltd with Indian Hotels through a scheme of arrangement. The all-stock transaction proposes an exchange ratio of 25 Indian Hotels shares for every 117 Oriental Hotels shares, with completion targeted for the second half of FY28, subject to statutory approvals.
Oriental Hotels has a portfolio of seven hotels with 825 rooms, including Taj Coromandel, Taj Fisherman's Cove Resort & Spa, Gateway Coonoor, Taj Malabar Resort & Spa, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.
The brokerage said the proposed merger could simplify the group's holding structure by increasing Indian Hotels' direct ownership across several entities. It also noted that Indian Hotels had a net cash position of Rs 4,400 crore as of June 2026, which could support further growth.