Beyond Taj & Leela: Why Nomura sees ITC Hotels as the luxury sector’s next big compounder
Nomura initiated coverage on ITC Hotels with a ‘Buy’ rating and expects a 20% rise in stock over the next 12 months. The brokerage is confident due to high RevPAR visibility and potential for margin improvement. ITC Hotels has shifted to an asset-light model and is expected to generate significant revenue from international assets. However, slower portfolio growth and weak ADR growth pose risks.