Nomura Initiates Buy Ratings on Indian Hotels and ITC Hotels with Positive Growth Outlook

Nomura has initiated coverage on Indian Hotels Company (IHCL) and ITC Hotels with Buy ratings, citing strong demand, constrained hotel supply, and asset-light expansion strategies. The brokerage forecasts revenue and EBITDA compound annual growth rates of around 15-18% over FY25-FY28, supported by resilient average room rate growth and improving occupancy. Target prices are set at Rs 830 for IHCL and Rs 230 for ITC Hotels, implying upside potentials of over 20%. Nomura highlights steady growth prospects and improving return ratios amid favorable market dynamics.