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Why India’s hotels enjoy highest EV per room globally

  • 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.

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