Several hotels in the UAE are expecting near full levels of occupancy next weekend, which will be a long weekend. Most families looking for staycations prefer to take all-inclusive packages for their short breaks.

“City hotels are expected to maintain occupancies of around 85–90 per cent, while beachfront, waterfront, and resort properties are likely to be almost sold out, reaching 98–100 per cent occupancy,” said Anura Mathai, Director of New Initiatives at Flora Hospitality UAE and India. 

UAE announced a paid holiday for public and private sector employees on Friday, September 5, on the occasion of Prophet Muhammad’s birthday, which means most employees and students will get a three-day long weekend. 

Other industry experts also said they are seeing a positive response to the long break. “The interest is continuing to build as the long weekend approaches,” said Cameron McNeillie, General Manager, InterContinental Ras Al Khaimah Mina Al Arab Resort & Spa.

“Many guests are looking to take advantage of the holiday to enjoy a quick escape by the sea, and bookings are showing healthy momentum compared to regular weekends.”

How trends differ

According to Anura, long weekends traditionally see higher demand for beach, waterfront, and resort properties, while city hotels are usually quieter. “However, this time city hotels are also enjoying healthy bookings, driven mainly by strong movements from the Africa and India markets,” he said. 

He added that the trends differed according to the location of the hotel. “At our city hotels, guests are opting for simple room-and-breakfast packages,” he said. “On the other hand, at beach, waterfront, and resort properties, the demand is largely for all-inclusive packages covering stay, meals and beverages.”

Cameron agreed. “Our all-inclusive and half-board packages are seeing strong interest, especially from families who appreciate the ease of having everything taken care of,” he said. “At the same time, couples and smaller groups are opting for more personalised chilling experiences, such as villa stays with private pools or curated dining journeys.” 

He added that they are expecting to be “running at a very high capacity” throughout the holiday, driven by both “stay-cationers from across the UAE and international visitors” seeking a resort-style getaway. 

Onam festival

While many families are flocking to hotels for staycations, others are choosing to stay at home. For those hailing from the southern Indian state of Kerala, the long weekend will be a time to celebrate the state’s harvest festival Onam, which will fall on Friday, September 5. Dubai resident Manju Sreekumar said she is looking forward to celebrating the festival with her entire family after many years.

“Both my sons are working, and they don’t get a day off on Onam,” she said. “This year, because it is a public holiday, we will be able to celebrate together after more than five years. I will be inviting my friends as well as some relatives who are here in Dubai looking for a job for lunch to my house.”

One of the highlights of the festival is a fully vegetarian fest, called the Onasadhya, which serves over 30 curries on a banana leaf along with rice. Many families cook these meals at home, while others choose to eat out at restaurants.

Kamat Hotels (India) Limited (NSE:KAMATHOTEL) shareholders have had their patience rewarded with a 25% share price jump in the last month. The last 30 days bring the annual gain to a very sharp 43%.

In spite of the firm bounce in price, given about half the companies in India have price-to-earnings ratios (or “P/E’s”) above 28x, you may still consider Kamat Hotels (India) as an attractive investment with its 18.4x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s limited.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

It looks like earnings growth has deserted Kamat Hotels (India) recently, which is not something to boast about. One possibility is that the P/E is low because investors think this benign earnings growth rate will likely underperform the broader market in the near future. If you like the company, you’d be hoping this isn’t the case so that you could potentially pick up some stock while it’s out of favour.

Check out our latest analysis for Kamat Hotels (India)

Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Kamat Hotels (India) will help you shine a light on its historical performance.

Is There Any Growth For Kamat Hotels (India)?

There’s an inherent assumption that a company should underperform the market for P/E ratios like Kamat Hotels (India)’s to be considered reasonable.

Taking a look back first, we see that there was hardly any earnings per share growth to speak of for the company over the past year. Although pleasingly EPS has lifted 1,090% in aggregate from three years ago, notwithstanding the last 12 months. Therefore, it’s fair to say the earnings growth recently has been superb for the company.

This is in contrast to the rest of the market, which is expected to grow by 25% over the next year, materially lower than the company’s recent medium-term annualised growth rates.

With this information, we find it odd that Kamat Hotels (India) is trading at a P/E lower than the market. It looks like most investors are not convinced the company can maintain its recent growth rates.

What We Can Learn From Kamat Hotels (India)’s P/E?

Despite Kamat Hotels (India)’s shares building up a head of steam, its P/E still lags most other companies. While the price-to-earnings ratio shouldn’t be the defining factor in whether you buy a stock or not, it’s quite a capable barometer of earnings expectations.

We’ve established that Kamat Hotels (India) currently trades on a much lower than expected P/E since its recent three-year growth is higher than the wider market forecast. There could be some major unobserved threats to earnings preventing the P/E ratio from matching this positive performance. At least price risks look to be very low if recent medium-term earnings trends continue, but investors seem to think future earnings could see a lot of volatility.

We don’t want to rain on the parade too much, but we did also find 1 warning sign for Kamat Hotels (India) that you need to be mindful of.

It’s important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Picture this: Reliance Industries holds Reliance Retail and Reliance Jio under one roof, Tata Motors runs both its Commercial Vehicle and Passenger Vehicle divisions, and Edelweiss houses businesses ranging from asset management to housing finance. Such a business often attracts a holding company discount.

It’s because the market struggles to assign fair value to each business individually, and the potential of these units often gets overshadowed within the larger consolidated structure. Additionally, growth can also be subdued.

A division that could have scaled faster on its own may find itself limited when it is part of a much bigger, slower-moving entity. This is why conglomerates often opt to demerge, creating standalone verticals with independent management and focus.

These businesses can chart their own course, move faster, and unlock value that was previously hidden. Such demergers, when backed by strong financial performance, can turn into massive value creators for shareholders.

On similar lines, three recently demerged businesses have entered the market, and they are worth keeping on your radar.

#1 ITC Hotels: Riding Travel Boom, Targeting 20,000 Rooms

ITC Hotels is a standalone entity that was demerged from ITC. It is among the fastest-growing hospitality chains in India with 143 properties and 13,469 rooms under 6 brands. This includes ITC Hotels, Mementos, Welcomhotel, and Fortune.

ITC Hotels owns 42% of this portfolio while it manages 58%, from which it earns management fees. The company plans to increase the managed portfolio to 70% by 2030 as it expands.

RevPAR and occupancy gains drive steady growth.

In Q1FY26, standalone revenue grew 20% year-on-year (YoY) to ₹7.8 billion, driven by a 12.8% increase in revenue per available room (RevPAR) to ₹7,900. Of the total revenue, 50% came from rooms, food and beverages (40%), and others (10%).

ITC Hotels’ RevPAR in luxury, upper-upscale, and upscale is 34% higher than the overall industry. Occupancy also grew 300 basis points (bps) to 73%.

EBITDA grew 13% to ₹2.3 billion, while margins remained stable at 32%. Higher RevPAR, higher management fees, and cost optimisation drove this growth. Profit after tax (PAT) grew 47% to ₹1.5 billion.

Aggressive expansion plan with one hotel a month

Looking ahead, the company aims to reach 220 hotels, with 20,000 rooms, by 2030. To achieve this, it aims to open 1 hotel per month for the next 24 months. Of this, 58 hotels with 5,340 rooms are in the pipeline.

ITC Hotels sees significant headroom for growth, with 25% of its inventory operating at occupancy levels below 70%. ITC Hotels trades at an EV/EBITDA multiple of 36x, in line with Indian Hotels (35x).

ITC Hotels Share Price

#2 Aditya Birla LifeStyle Brand: A Company with Iconic Brands

Aditya Birla Lifestyle, a part of the Aditya Birla Group, recently demerged from Aditya Birla Fashion and Retail. The business currently houses renowned lifestyle brands like Van Heusen, Louis Philippe, Peter England, Allen Solly, American Eagle, Forever 21, and Reebok.

As of 30 June 2025, the company has a retail network comprising 3,230 brand stores, 569 small-town stores, and a presence in over 785 cities and 190 malls. The company operates under two business segments: Lifestyle brands, Youth Brands, and Innerwear.

Iconic labels hold steady as youth brands stumble.

Lifestyle brands include Louis Philippe, Van Heusen, Allen Solly, and Peter England. Lifestyle revenue rose 6% YoY to ₹15.7 billion, with 15% like-to-like growth. The EBITDA margin declined by 110 bps to 17.9%, primarily due to increased advertising spending during a high-intensity event.

In channel-mix, revenue from retail stores increased by 12% to ₹10.5 billion, indicating that demand may be rebounding. The company also noted a bounce-back in sales from small towns. Wholesale rose 6% to ₹2.9 billion, while e-commerce declined 19% to ₹1.7 billion.

Youth Brands are in an investment phase.

Youth Brands’ (American Eagle, Reebok, and Van Heusen Innerwear) revenue declined 2% to ₹3.1 billion, primarily due to the closure of Forever21. However, the portfolio continues to deliver margin expansion, with margins increasing 170 bps to 2.8%.

This segment continues in investment mode with the innerwear business yet to achieve profitability. It is now available in over 37,000 trade outlets and more than 100 exclusive stores. Reebok is profitable and is available in 175+ stores and 950+ offline touchpoints.

On a consolidated basis, revenue grew 3.2% YoY to ₹18.4 billion in Q1FY26. EBITDA grew by just 1%, while margins fell 40 basis points to 15.5%, primarily due to lower margins from youth brands. PAT remained flat at ₹240 million, as against ₹230 million in the same quarter last year.

Looking ahead, the company anticipates accelerating its growth trajectory through a rapid pace of store additions over the next three years. Lifestyle Brands are expected to achieve double-digit growth for the next few years, building on sustained strong like-to-like growth.

Scaling innerwear and Reebok to unlock the next leg

Newer businesses, including American Eagle, Reebok, and Innerwear, are projected to grow at even higher rates of 18-20%. Innerwear is expected to break even in FY27, which would enable it to post a higher margin and PAT. It also plans to open 250 stores in FY26 across all brands.

From a valuation standpoint, the company trades at an EV/EBITDA multiple of 15.3x. The valuation is at a discount to Vedant Fashion (25.5x) and a premium to Raymond Lifestyle (13x) and Arvind Fashions (12x).

Aditya Birla Lifestyle Share Price

#3 Siemens Energy: A Play on Clean Energy

Siemens Energy, a leading energy technology company, is a recently listed entity following its demerger from Siemens, a group company of Siemens Energy AG. Its business spans decarbonisation, power generation, power evacuation, and clean energy.

Powering ahead on India’s energy transition wave

Decarbonisation is a key focus for Siemens Energy, benefiting from India’s decarbonization efforts. The company provides solutions to help customers achieve energy transition goals and reach decarbonization and net-zero targets.

In the power generation sector, it provides products such as large gas and steam turbines, as well as large generators, to customers. Its customers include electric utilities and industrial customers. It provides grid automation and EPC services in power evacuation. EPC stands for engineering, procurement, and construction services.

The company holds exclusive rights for the parent Siemens Energy products, solutions, and services portion in several South Asian countries, specifically India, Bhutan, Nepal, Sri Lanka, and the Maldives. Siemens’ financial year ends in September every year.

Strong growth driven by sectoral tailwind

Revenue grew 93.3% YoY to ₹51.8 billion in the nine months ended June 2025. This growth was driven by both power transmission and power generation. Transmission segment revenue grew 113% to ₹28.3 billion, while generation segment revenue grew 73.7% to ₹23.5 billion.

PAT more than doubled to ₹7.4 billion, from 3.3 billion in 9MFY24. In terms of profitability, the transmission segment’s profit before tax increased 178% to ₹5.6 billion, while the generation segment’s profit grew 58% to ₹4.0 billion.

Strong order book ensures visibility for two years.

Siemens Energy has a robust order backlog of ₹156 billion, providing revenue visibility for over two years. With global expertise, the company is well-positioned to tap into ₹3.4 trillion capex on inter-state transmission over the next 4-5 years.

The demand for high-voltage (HV) and grid stability equipment is increasing, and Siemens is well-positioned to capitalize on it. To meet the demand, it is also expanding its capacity, with an investment of ₹2.8 billion at its Aurangabad factory.

Premium valuations leave little margin for error

Siemens Energy is trading at a P/E of 291x, significantly higher than Hitachi Energy (174.5x) and ABB (59.2x). Being newly listed, there isn’t much historical data to assess its valuation.

Siemens Energy Share Price

Conclusion

Demerger stories are exciting because they promise to unlock shareholder value, but the outcome ultimately hinges on financial performance. If a newly listed company starts showing strong and consistent growth, the market usually rewards it with a rerating. But if earnings remain weak, the stock often drifts lower, sometimes trading even cheaper than before. At the end of the day, stock prices move in line with earnings growth—and no amount of structural change can override that.

Disclaimer

Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.

The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.

Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.

A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.

Disclosure: The writer and his dependents do not hold the stocks discussed in this article.

The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The articles’ content and data interpretation are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.