Indian Hotels - Rapid Scaling Up Of Margin-Accretive New Businesses: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Indian Hotels Company Ltd.’s new and re-imagined businesses Ama Stays, Qmin, Chambers, and management contracts are expected to scale up rapidly on the lower base and high growth runway. These businesses are margin accretive with higher margin flow through, thereby driving up the return on capital employed. The new business is expected to contribute ~26% to the company’s operating profits by FY25.  Ama stay portfolio is expected to grow five times in the next two-three years with robust revenue growth, driven by the thriving industry and synergy with the group businesses. Further, it is aided by India Hotels’ asset light model. The business has higher a flowthrough of ~60-65%. Indian Hotels is establishing its Qmin brand across verticals of food delivery/quick service restaurant/ restaurants. Growing food delivery industry (~30% compound annual growth rate) and qminization of Ginger (from 8 to ~90 hotels) is expected to drive the growth ahead. Member additions are expected to drive the incremental growth for Chambers (initiation fees forms ~50% of Chamber’s revenue in H1 FY23)..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indian Hotels - Rapid Scaling Up Of Margin-Accretive New Businesses: Motilal Oswal

New and re-imagined businesses Ama Stays, Qmin, Chambers, and mgmt contracts are expected to scale up rapidly.

Choose a plan