Apeejay Surrendra Park Hotels (PARKHOTE IN) – Q1FY27 Result Update – Soft operating performance – BUY
Published on 18 Aug 2026
We cut our EBITDA estimates by 4.4%/4.6% for FY27E/FY28E as we fine tune our RevPAR growth and margin assumptions. PARKHOTE IN reported a modest operating performance with EBITDA margin of 28.1% (PLe 28.8%); while RevPAR was flat at INR6,858 amid a challenging operating environment. Led by acquisition of Zillion Hotels, Juhu and the buyout of Malabar House, Fort Kochi and Purity, Lake Vembanad, we do not foresee any major delays in the near term planned inventory pipeline. Further, Flurys is poised to expand its geographical footprint, with planned addition of ~30 new outlets in FY27E. To support this expansion, PARKHOTE IN is actively engaging with mall developers, airport owners and multiplex operators to secure strategic locations across multiple geographies. We expect sales/EBITDA CAGR of 17%/20% over FY26-FY28E and retain BUY with a SoTP based TP of INR156 valuing the hotel business at 11.5x FY28E EBITDA and Flurys at 1.5x FY28E sales (no change in target multiple).
