Gathering of hotel actions; Indian hotels at new high, Chalet, EIH earn up to 14%

Shares of hotel companies were the center of attention and climbed to 14% on BSE in intraday trading on Monday in hopes of a recovery in business after the economy unblocked and the resumption of travel. Management’s comments on the strong recovery from July are encouraging and analysts believe business will return to pre-Covid levels by the fourth quarter of FY22, if there is no third wave of the pandemic.

Among individual actions, EIH, Taj GVK Hotels & Resorts and Chalet Hotels grew between 10% and 14%. Indian Hotels Company (IHCL) jumped 14% to a record Rs 169.20, on BSE in intraday trade. The share of the company Tata Group exceeded its previous record of Rs 164.10 touched on June 26, 2019.

Analysts remain positive on IHCL’s business recovery outlook due to its strong brand recall and footprint across all segments, lean approach to assets, Ginger’s repositioning in the lean luxury segment and effective cost management.

So far in September, the IHCL share price has appreciated by 21%, after the company announced a plan to raise Rs 3,000 crore through a rights issue. to existing shareholders of the company. The aim of the issue is to meet the company’s financing needs for capital spending, growth plans and debt repayment and will be finalized in consultation with investment bankers, the company said. .

Rating agency ICRA on September 2 reaffirmed IHCL’s non-convertible bond program ratings of Rs 300 crore and revised the outlook from negative to stable. Long-term rating outlook review takes into account the likely improvement in IHCL’s capitalization metrics and cash flow position, following its recent fundraising announcement, ICRA said in the scoring justification.

The Tata group owns 40.75 percent of the capital of IHCL through Tata Sons (38.09 percent of the capital) and other group companies. Tata Sons has demonstrated its financial support to IHCL over the years, endorsing various fundraising activities of the company and CIFAR expects the same to continue as well, should the need arise. The company also benefits from considerable financial flexibility and lender / investor comfort thanks to the lineage of the Tata group.

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor

About Elizabeth Smith

Check Also

Lady Primrose is organizing an ephemeral first shopping for the holidays

DALLAS, November 25, 2021 (GLOBE NEWSWIRE) – Lady Primrose, a luxury boutique fragrance company, today …