Q1FY22 Result Preview - Hotels & Tourism - ICICI Direct

While the Q4FY21 performance showed a strong rebound in tourism demand, the pace of recovery started losing steam from April 2021 onwards with rising incidence of Covid-19 cases and state induced localised restrictions. This again led to a fall in demand for leisure destinations that during H2FY21 remained a key driver for revenues for hotel space. Major corporate clients have continued with their work from home policy. This has continuously kept demand from the corporate segment muted in Q1 as well. Overall, we expect Q1FY22E to witness a temporary moderation in demand. However, with subsiding of Covid cases along with increased vaccination drive, we expect a strong recovery, going ahead, though a full demand recovery would be visible only post full resumption of domestic as well as international flights as foreign tourists' arrivals especially from the US and UK remains a top contributors to the revenues of premium segment hotel rooms. In terms of individual performances, we expect premium segment hotel players to report QoQ revenue de-growth of 24% while mid-scale players like Lemon Tree are expected to report revenue de-growth of 32% QoQ. On a YoY basis, revenues for I-direct universe are expected to improve sharply over 227% YoY due to a very low base.

For details, click on the link below: Link to the report

Source : Equity Bulls

Keywords