India Hospitality: 1QFY27 preview: Steady business trends despite recent disruptions

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India Hospitality: 1QFY27 preview: Steady business trends despite recent disruptions

J P M O R G A N Asia Pacific Equity Research

09 July 2026

India Hospitality

1QFY27 preview: Steady business trends despite

recent disruptions

We expect the hotel stocks under our coverage to report healthy rate and demand India Hotels & Leisure, Automobiles,

trends in a seasonally weak quarter which was also impacted by the recent Auto parts & Transportation

geopolitical disruptions. While international visitors account for 30-50% of Amyn Pirani AC

luxury/upscale hotels, the relative resilience of domestic holiday travel (also (91-22) 6157-3583

helped by international travel restrictions) has aided operations. We also note that amyn.pirani@jpmorgan.com

while industry ARRs/occupancy/RevPARs were impacted in Mar/Apr, we Harshit Mittal

witnessed a recovery in May. For established hotel brands like Indian Hotels (IH) (91-22) 6157-3152

and Leela (THELEELA), there is an additional source of revenue growth in the harshit.mittal@jpmorgan.com

J.P. Morgan India Private Limited, J.P. Morgan

form of managed revenues. We maintain OW on both stocks. Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

• Industry trends improved during the quarter: The months of March and

April 2026 witnessed occupancy declines of 100-300bps YoY while ARR and

RevPAR growth slowed to mid-single digits YoY. May has witnessed a return

to double digit RevPAR growth with occupancy improving by 500bps (albeit

on a weak base of May 2025).

• We expect IH to report steady growth trends despite the disruptions: We

expect the standalone business to report revenue growth of 10% YoY driven by

8% YoY growth in room revenues (largely RevPAR driven) and 25% YoY

growth in managed revenues.