India hotels: Monthly ADR review

Research evidence excerpt

India hotels: Monthly ADR review

Global Markets Research

14 July 2026India hotels: Monthly ADR review

EQUITY: GAMING, HOTELS & LEISURE

Initial 2QFY27F ADRs resilient for IHCL and Leela on low base Research Analysts

India Property

Akash Gupta - NFASLQuick Note akash.gupta3@nomura.com

+ 91 22 40374043InourhotelADR(averagedailyrate)tracker,weanalyzethepricingtrendsacross~250

hotelsinkeycities(Delhi,Goa,Hyderabad,MumbaiandBangalore)overthepastmonth,

focusingonthreemajorbrands(IHCL’sTaj,ITCHotels,andLeela),alongwithnewhotel

openings/contractsigningsbykeyplayersinFY27YTD.Ourkeytakeawaysarebelow:

• Compared to June 2026, in cities such as Bangalore and Hyderabad, we see ADRs

improving into July after stabilizing in June after the sharp correction witnessed in

March and April.

• Moreover, compared to June 2026, we believe the negative impact of the West Asia

conflict on ADRs has reduced, with ADRs in Delhi recovering to the positive m-m

growth trajectory and Mumbai being stable m-m.

• For our coverage stocks, based on calculated ADRs, we estimate IHCL (IH IN, Buy)

and Leela (THELEELA IN, Buy) will record ADR growth rates of 7-10% y-y for

1QFY27F, despite the impact of the conflict, as they appear to benefit from resilient

domestic/leisure demand.

• Further,for2QFY27F, weseeresilientADRgrowthtrendsforLeela,followedby

IHCLwithADRgrowthratesintherangeof8-11%. Whiledownsiderisksremain

throughthequarterdependingonthelevelofescalationofthewarintheMiddleEast,

webelievethehotelswillbenefitfromtheirlowbaserecordedin2QFY26.

Average room rate trends across key markets and brands:

• Mumbai: We see ADRs bottoming out in June and stabilizing at ~INR13.7K/night in

mid-July.

• Delhi: The average ADR recovered sharply to ~INR11-11.5K/day in July, reversing