TajSATS, The ‘Taj’ Of Indian Hotels’ New, Reimagined Businesses: Motilal Oswal

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Motilal Oswal Report

Going forward, Indian Hotels Company Ltd. is likely to sustain double-digit consolidated revenue growth in FY25, with its new and reimagined business likely to grow at a much higher pace. TajSATS being an integral part of its new and reimagined business portfolio is likely to aid the growth momentum on the back of strong industry tailwinds.

We expect the strong momentum for Indian Hotels to continue in FY25, led by:

an increase in ARR due to healthy demand, asset management strategy (upgrades in hotels), and corporate rate hikes;
sustaining higher occupancy levels led by favorable demand-supply dynamics;
a strong room addition pipeline until FY28 in both owned/leased (2,779 rooms) and management hotels (10,174);
higher income from management contracts; and
value unlocking by scaling up reimagined and new brands.

We reiterate our Buy rating with an SoTP-based target price Rs 680.

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Motilal Oswal Indian Hotel Update.pdf

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