Indian Hotels – Survive, Revive, Thrive: Dolat Capital

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The Indian Hotels Co.’s management in its investor meet attempted to imbibe confidence on high-margin new revenue streams (Qmin, Ama, Chambers, etc.) and costs-optimisation initiatives.

Management reiterated its focus on driving profitable revenue growth in an asset-light manner that will improve return on capital employed.

That said, lack of corporate travel and foreign guests are key dampeners for annual recurring revenue in short-term.

As per management, rate/revenue per available room recovery is likely only in long-term.

High-debt (Rs 31 billion) makes it inevitable for equity raise (~Rs 10-15 billion in our view) and consequent dilution.

Click on the attachment to read the full report:

Dolat Capital Indian Hotels Company Update.pdf


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