Apeejay Surrendra Park Hotels (PARKHOTE IN) – Company Initiation – A value play at cusp of growth revival – BUY
Published on 16 Oct 2025
We initiate coverage on Apeejay Surrendra Park Hotels (PARKHOTE IN) with a BUY rating and TP of Rs238. We believe PARKHOTE IN is at a cusp of growth revival led by 1) addition of 258 owned & leased keys over FY25-FY28E, 2) rapid store expansion in Flurys with a target to reach 200 outlets by FY27E and 3) aggressive plans to expand via the management contract route with 2,198 keys under various stages of development. Despite capex outlay of Rs9,000mn over the next 3 years, we do not expect debt levels to rise materially given healthy OCF generation indicating BS strength is likely to remain intact. Apart from BS comfort, PARKHOTE IN offers valuation cushion as well given the stock trades at 14.0x/11.7x our FY26E/FY27E EBITDA estimates with revenue/EBITDA/PAT CAGR of 17%/22%/24% over the next 3 years. Amid strong growth prospects, healthy BS and attractive valuation we initiate with a BUY on PARKHOTE IN with a TP of Rs238 valuing the hotels business at 15x Sep-27E EBITDA and Flurys at 3x Sep-27E sales.
