Hotels (India): Sharp improvement in May

Research evidence excerpt

Hotels (India): Sharp improvement in May

trongest growth at 25% YoY, followed by Mumbai, Bangalore, Hyd growing 12-14%.

Exhibit 3 - YoY RevPar Growth - By City

Leisure markets outperformed with growth in Goa and Raj markets at 29-33% YoY. Among key (Domestic)

int'l markets, while Dubai remained impacted in May (-55%), growth in Sri Lanka rebounded 40% Goa Rajasthan Pan India

33%

New Delhi 29%(+35%) 35%30% 25% 23% 25%

20% Mumbai Bengaluru Hyderabad

14% 14% 14% 12% 15%Near-term demand tailwinds likely to persist: Domestic hotel demand is expected to sustain 9%9% 7% 10% 6% 6% 5%

3% 2% 5% 3%1% 3%its recovery in the coming months, supported by a low base due to disruptions last year. Easing

geopolitical tensions in the Middle East (subject to stability) should help revive corporate travel -5%0% -2%

-8%sentiment and alleviate concerns around recent austerity signals (from govt). A partial offset -10% March April May March April May March April May March April May March April May March April May March April May

could emerge from airline capacity cuts, which may weigh on overall air traffic; however, .Source: CoStar Data; Jefferies

this could redirect some demand towards road-accessible destinations, benefiting domestic

leisure hotels. Overall, we see 7%+ RevPAR growth as achievable in FY27. Exhibit 4 - YoY RevPar Growth - By City (Intl)

40% 35% Maldives

Recent commentary from Indian hoteliers: Per a recent ET interview, IHCL indicated it remains 20% 1% 1% 0% 4% 19% 16% Dubai 16%

0% -2% -2% -3% -5%

-13% Sri Lankaon track for ~12-14% topline growth in FY27, led by its expanding capital-light management -20%0% New York London

fee business and a strong global pipeline of hotel openings. Separately, in a CNBC interaction, -40% Frankfurt -25%