Buy Apeejay Surrendra Park Hotels Ltd for the Target Rs.156 By Prabhudas Lilladher Ltd
Disciplined execution remains a key monitorable
* F&B remains a core growth pillar for PARKHOTE IN, consistently contributing over ~40% of topline. PARKHOTE IN remains strategically committed to sustaining the F&B share moving forward.
* Ran Baas, Patiala is becoming a destination wedding property, comprising of 35 suites. The property commands an ARR of ~INR 30,000 and has the ability to reach ~INR60,000 during the peak season.
* Aim is to add 472 keys in H2FY27E, primarily through management contracts. This expansion centres on resort properties and hotels in key religious destinations. As part of this strategy, three new resort-style properties are expected to be signed in Himachal Pradesh.
* Renovation of existing rooms will continue over the next three to four years, with ~50-100 rooms scheduled for renovation annually. Renovated rooms are expected to command an incremental ARR of ~15%. Recent renovations include 28 rooms in Delhi and 24 rooms in Chennai, with each renovation cycle taking ~3 to 4 months.
* Allotment of incremental development rights can lead to addition of two new floors at the Juhu property. This expansion can increase the room inventory from 78 to over 100 keys.
* Flurys has recorded same-store sales growth of ~8-9% in FY26.
* For management contracts, the typical gestation period from signing an agreement to opening a hotel is ~12-18 months.
* Managed hotels currently operate at occupancy levels of ~76-78%
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SEBI Registration number is INH000000933
