India's top listed hotel companies like IHCL, EIH, and Schloss Bangalore have the highest enterprise value per room globally, surpassing major international players like Marriott, Hilton, and Accor.
The elevated valuations in India are attributed to factors such as ownership of a large portion of inventory, optimistic growth expectations, and a shift towards asset-light strategies in the future.
Indian hotel firms are being priced for future potential due to improving domestic tourism, higher room rates, and occupancy, as well as the return of global travelers post-pandemic.
While Indian hotel stocks have shown strong valuations and low debt levels, a shift towards asset-light strategies may lead to convergence with global benchmarks in the future.