Nomura Recommends Buy on IHCL, ITC Hotels: Up to 22% Return Potential

• Nomura has issued a "Buy" rating for Indian Hotels Company Limited (IHCL) and ITC Hotels, projecting over 20% returns.
• Indian Hotels (IHCL) has a target price of ₹830, indicating a 22% upside, driven by strong demand, limited supply, and rising Average Daily Rate (ADR).
• IHCL is focusing on an asset-light model and expanding its budget segment with the Ginger brand, aiming to exceed 2030 targets.
• ITC Hotels has a target price of ₹230, suggesting a 20% upside, supported by stable Average Room Rate (ARR), improving occupancy, and RevPAR growth.
• Both companies are expected to see significant revenue and EBITDA growth between FY25 and FY28, with positive analyst sentiment.

Why It Matters: Nomura sees strong growth potential in IHCL and ITC Hotels, recommending 'Buy' for over 20% returns.