Scope for price appreciation for players like Indian Hotels: Elara Capital

Harendra Kumar, Head of Institution Broking and Global Research, Elara Capital, in a chat with ET Now talks about the hotel and tourism space.

What is your view on the levels at which the deal for Viceroy was done? Do you think tourism stocks like Thomas Cook or a Cox & Kings offer good value?

I do not know about the valuations of Thomas Cook and Cox & Kings but we are among the few people who track hotels very seriously and we like the space. We will hit a super cycle closer to 2012 in what we saw in 2003 and there is a tremendous scope for price appreciation for players like Indian Hotels who expanded in a significant manner and they are available at very cheap valuations from hereon as well.

This space is going to see a lot of interest and we are going to see M&A, private equity as well as secondary market appreciation. So be invested in some of ideas out there.