Motilal Oswal has issued a buy rating on Indian Hotels Company Limited (IHCL) with a target price of ₹870, according to the research report dated July 13, 2026. The brokerage firm's recommendation is based on the company's strong fundamentals and growth prospects in India's expanding hospitality sector. IHCL, India's largest hospitality company with over 120 years of operating history, is positioned to benefit from the country's structural consumption-led growth trends.
IHCL has entered into a first-of-its-kind partnership in India's hospitality industry with The Claridges, marking a significant milestone in the company's expansion strategy. As part of this collaboration, IHCL has acquired licensing rights to expand and groom The Iconic Resort Label into a global hospitality giant. This strategic alliance, led by Mr Suresh Nanda's longstanding relationship with IHCL through flagship properties such as Taj Surajkund and Taj Dubai, positions IHCL to add a distinguished luxury identity to its growing portfolio. The partnership is crucial for both organizations, with IHCL gaining a distinguished luxury identity while Suresh Nanda strengthens competitive positioning amid increasing global competition.
IHCL has demonstrated significant expansion under its Accelerate 2030 vision, achieving a new milestone in FY26 by acquiring three new brands and signing 250 hotels. This strategic move has expanded the company's total portfolio to 645 hotels, as reported by Motilal Oswal. The diversified brand portfolio and asset-light expansion strategy have positioned IHCL to capitalize on India's resilient hospitality market, which is supported by strong structural tailwinds and a widening demand-supply gap. The company has outlined an ambitious roadmap to expand The Iconic Resort portfolio to over 20 properties by 2030, reflecting its commitment to aggressive growth in the luxury hospitality segment.
According to Motilal Oswal's analysis, IHCL is expected to achieve a CAGR of 15%/17%/21% in revenue/EBITDA/adjusted PAT over FY26-28. The company's Return on Invested Capital (ROIC) is projected to improve to 22.5% by FY28 from 17.5% in FY26. These projections are based on the company's strong operational performance and favorable market conditions in India's hospitality sector, with the partnership with The Claridges expected to contribute significantly to these growth metrics.
IHCL is uniquely positioned to benefit from India's structural consumption-led growth, driven by rising private consumption, increasing domestic tourism, expanding affluence, and accelerating demand for premium travel experiences. As reported by Motilal Oswal, the company's strategic positioning in India's resilient hospitality market, supported by strong structural tailwinds and a widening demand-supply gap, provides a favorable backdrop for sustained growth and expansion opportunities. The partnership with The Claridges represents more than a hotel expansion strategy, embodying collaborative efforts of two iconic brands with a cohesive vision of elevating trust and operational excellence in the luxury hospitality sector.
