India Lodging/Hotels

Research evidence excerpt

India Lodging/Hotels

Macquarie Equity Research

10 July 2026

Consumer Services

IndiaIndia Lodging/Hotels

1QFY27 preview: Quarter of contradictions

Sameet

Key Points Sinha

• Between low foreign travellers, a low YoY base, high domestic

leisure and low domestic MSME business traffic, this is a quarter of

contradictions. Figure 1 - India Lodging coverage

Company Rating TP (Rs) CMP (Rs) TSR• We trim our Lemon Tree revenue estimate due to weaker MSME

business traffic, but margins could be higher due to cost savings. LEMONTREE OP 170 118 44%

• We increase estimates for Indian Hotels due to strength in domestic CHALET OP 1,050 840 25%

leisure and this drives our TP increase from Rs770 to Rs820. ITCHOTEL OP 220 187 18%

IHCL OP 820 752 9%

Source: Bloomberg, Macquarie Research, July 2026

• Quarter filled with opposing dynamics. Among the positives, we have a Current Market Prices as on 10-July-2026

low base and high domestic leisure traffic offset by low foreign travellers

and impacted domestic MSME business traffic. Related Research

• Domestic leisure travellers save the quarter. The West Asia crisis The Minibar Memo - Volume 21

continues to impact foreign traveller traffic to India, and it has also Lemon Tree - 4QFY26: Beat Q with some impact from

constrained travel out of India. As a result, people who had planned conflict

US/Europe/Middle East vacations are staying in country and driving ITC Hotels - 4Q FY26: Slight miss on West Asia

conflict

occupancy in domestic hotels. Hotels are also running promotions which

are driving up staycation trips, especially at business-oriented hotels Chalet - 4QFY26: Solid Q; hospitality resilient

which have low weekend occupancy. This quarter also benefits from a The Minibar Memo - Volume 20

low base.