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JM Financial initiates coverage on ITC Hotels with ‘Sell’ rating, sets Rs 215 target price

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Shares of ITC Hotels traded under pressure on Monday after domestic brokerage firm JM Financial initiated coverage on the stock with a ‘sell’ rating and a target price of Rs 215, flagging concerns over stretched valuations despite highlighting its strong fundamentals.’

Following the brokerage’s note, the stock slipped 1.8% to an intraday low of Rs 240.35 on the BSE.

In its coverage initiation report, JM Financial said that ITC Hotels has evolved into an industry leader with around 140 properties and 13,500 keys, enjoying a distinct positioning with nearly 60% of its inventory in the luxury segment.

The brokerage acknowledged that the company has delivered a 22% CAGR in EBITDA over FY23-25, aided by strong RevPAR growth, but cautioned that “growth remains restricted with no new asset getting commissioned till FY28E.”

JM Financial stated, “We expect it to report 11%/13% CAGR in revenue and EBITDA over FY25-28E aided by c.7% growth in ADR and ramp-up of the Sri Lanka asset.” However, it added that at current valuations of around 30x FY27 earnings, such growth is already priced in.


The brokerage also highlighted ITC Hotels’ strong portfolio of 5,500 owned keys and its shift to an ‘asset-right’ strategy, which allows expansion into tier 2 and tier 3 cities while optimising capital allocation.The brokerage firm pointed out that ITC Hotels has a pipeline to expand its footprint to over 200 hotels and around 20,000 keys by 2030, with its fee business expected to grow at a CAGR of 16% over FY25-FY28.On the financial front, the brokerage firm said that ITC Hotels enjoys a strong balance sheet with a net cash position of Rs 17 billion, expecting it to generate cumulative free cash flow of Rs 25 billion over FY26-28, positioning it for expansion and inorganic growth opportunities.Despite acknowledging these strengths, the brokerage reiterated that “robust cash generation can enable it to accelerate growth by way of inorganic acquisitions, [but] we believe such an outcome is adequately priced in at current valuations.”

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)



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Lemon Tree Hotels expands wildlife portfolio with new Pench resort 

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This signing represents Lemon Tree Hotels’ continued expansion in the wildlife tourism segment, where the company already operates five properties
| Photo Credit:
SIVAKUMAR PV

The shares of Lemon Tree Hotels Ltd were trading today on the NSE at ₹167.79 up ₹2.60 or 1.57 per cent at the closing bell.

Lemon Tree HotelsLtd has signed a license agreement for a new property in Maharashtra, announcing the addition of Lemon Tree Resort, Pench on August 27, 2025. The resort will be managed by Carnation Hotels Private Ltd, a wholly-owned subsidiary of the hospitality company.

The 60-room wildlife resort will be located in Pench, Maharashtra, positioned near the famous Pench National Park. The property will include a restaurant, banquet facilities, swimming pool, spa, and other recreational amenities to serve guests visiting the tiger reserve area.

The resort’s strategic location offers convenient access with Nagpur Airport approximately 85 km away and Nagpur Railway Station about 62 km from the property. Road connectivity provides options for public and private transportation to the facility.

This signing represents Lemon Tree Hotels’ continued expansion in the wildlife tourism segment, where the company already operates five properties. The addition strengthens the group’s presence in Maharashtra, bringing their total to 15 operational hotels in the State with 10 additional properties in the development pipeline.

Vilas Pawar, CEO of Managed & Franchise Business at Lemon Tree Hotels, emphasised the company’s commitment to enhancing their wildlife portfolio through this new property.

Pench National Park, spanning 758 square km across Madhya Pradesh and Maharashtra, gained recognition as a national park in 1975 and became a tiger reserve in 1992. The park served as inspiration for Rudyard Kipling’s “The Jungle Book.”

Published on August 28, 2025



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Hawaii court sides with hotel employees over tip disclosures

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A recent ruling by the Hawai‘i Supreme Court has clarified the legal requirements for hotels and restaurants regarding service charges, impacting the hospitality industry both locally and internationally.

Court decision mandates clear disclosure of service charge allocations

In a significant legal development, the Hawai‘i Supreme Court ruled that hotels and restaurants must provide explicit information about how service charges are distributed.

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The case, Rodriguez v. Mauna Kea Resort LLC, involved a class-action lawsuit filed by over 100 hotel workers who alleged that their employers failed to adequately disclose the allocation of service charges.

The court determined that vague statements, such as “a portion” of the service charge going to employees, do not meet the legal standard set by Hawai‘i Revised Statutes § 481B-14.

The statute requires businesses to either distribute service charges directly to employees as tips or clearly disclose to customers if the charges are used for other expenses.

Implications for global hotel operations

This ruling has broader implications for hotel operations worldwide. International hotel chains operating in Hawai‘i must now ensure that their service charge policies comply with the state’s legal requirements.

Failure to provide clear disclosures could lead to legal challenges and potential financial liabilities. Hotels are advised to review and update their service charge practices to align with the court’s interpretation of the law.

Industry response and future considerations

The hospitality industry is closely monitoring the impact of this decision. Industry associations and legal experts are expected to provide guidance to help businesses navigate the new requirements.

Hotels may need to adjust their billing practices, staff training, and customer communication strategies to ensure compliance and maintain transparency with guests.

As legal standards evolve, staying informed and adaptable will be crucial for the continued success and reputation of hotel establishments.

This case underscores the importance of clear communication and adherence to legal standards in the hospitality industry. Hotels worldwide should take proactive steps to review their service charge policies and ensure they meet legal requirements to avoid potential legal disputes and maintain customer trust.




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IHCL Signs A Ginger In Satara, Maharashtra

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MUMBAI, AUGUST 28, 2025:Indian Hotels Company (IHCL), India’s largest hospitality company today announced the signing of aGingerhotel inSatara, Maharashtra. This is a greenfield project.

Ms. Suma Venkatesh, Executive Vice President – Real Estate & Development, IHCL, said, “Satara’s convergence of education, healthcare and business attracts a steady stream of demand, making it an ideal fit for Ginger’s expansion. This signing is in line with IHCL’s approach to expanding its brandscape into such high-potential markets. We are delighted to partner withMs. Vedantika Raje Bhonslefor this project.”

Strategically located in the Satara MIDC area, the125-key Ginger Satarawill embody the brand’s lean luxe ethos combining stylish design with seamless service. The hotel will featureQmin, Ginger’s signature all-day diner, a conference hall, and a well-equipped gym, catering to both business and leisure travellers.

Ms. Vedantika Raje Bhonslesaid, “We are pleased to partner with IHCL to bring Ginger to Satara. This development significantly contributes to the city’s growing infrastructure and hospitality landscape.”

The industrial district of Satara, renowned for its scenic and cultural attractions, is home to the well -established Maharashtra Industrial Development Corporation (MIDC) and companies across sectors like paper, paints and consumer goods.

With the addition of this hotel, IHCL will have43hotels inMaharashtra, including16under development.

About the owner

Ms. Vedantika Raje Bhonsle is actively engaged in real estate development in Satara, overseeing residential projects that contribute to the region’s infrastructure.

About The Indian Hotels Company Limited

The Indian Hotels Company Limited (IHCL) and its subsidiaries bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. These include Taj – the iconic brand for the most discerning travellers and ranked as World’s Strongest Hotel Brand 2025 and India’s Strongest Brand 2025 as per Brand Finance; Claridges Collection, a curated set of boutique luxury hotels merging elegance with historical charm; SeleQtions, a named collection of hotels; Tree of Life, private escapes in tranquil settings; Vivanta, sophisticated upscale hotels; Gateway, full-service hotels designed to be your gateway to exceptional destinations and Ginger, which is revolutionising the lean luxe segment.

Incorporated by the founder of the Tata Group, Jamsetji Tata, the Company opened its first hotel – The Taj Mahal Palace, in Bombay in 1903. IHCL has a portfolio of over 550 hotels including 215 under development globally across 4 continents, 14 countries and in over 150+ locations. The Indian Hotels Company Limited (IHCL) is India’s largest hospitality company by market capitalization. It is listed on the BSE and NSE.



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