INDHOTEL

is firing on all cylinders, but the market's having second thoughts about hotel valuations

Thirteenth straight quarter of record highs with revenue up 32% and profits up 19% - that's an impressive run. They're adding hotels aggressively (12 signed, 6 opened this quarter), occupancy is solid at 74%, and room rates are up 12%. The domestic market is strong with weddings and corporate events back in full swing. But here's the reality check: hotel stocks are down 30% this year despite these great numbers. The market's basically saying "we've seen this movie before" - post-pandemic revenge travel eventually normalizes, and then what? At current valuations, every quarter needs to be perfect, which rarely happens in cyclical businesses. The ₹1,200 crore capex plan and 3,700 room pipeline show they're betting big on continued growth. That's either brilliant timing or expensive hubris, depending on how demand holds up. Hotels are great businesses when occupancy is high and terrible when it's not - there's not much middle ground.

's execution has been flawless, their brand portfolio is strong, and domestic travel isn't going anywhere. But the stock seems to assume this growth trajectory continues forever at these margins. Sometimes the best-performing companies become mediocre investments when expectations get too high. The fundamentals are solid, but the valuation leaves zero room for disappointment.