Buy Indian Hotels for target of Rs 118: ICICI Direct

In a chat with ET Now, Pankaj Pandey, Head Of Research, ICICI Direct, talks about the outlook of EIH Associated Hotels and Indian Hotels.

EIH Associated Hotels or Indian Hotels, which one would you pick?

In Indian Hotels, we have a target price of Rs 118 and EIH already factors in the acquisition premium which it is getting. In that sense, Indian Hotels could definitely be a preferred pick. From 52% levels the occupancy has improved to about 64%-66% and we expect occupancies to improve further. Plus there could be upside in terms of uptick in ARR. That is why we would like the space and even October to March is quite a very good season for most of the hospitality players. The stocks should do well going forward even on a short term basis and a long term basis also.