JPMorgan on The Leela – Schloss Bangalore (SBL)
Rating: Overweight (OW)
Target Price: ₹510
🏨 Key Investment Highlights:
✅ 40%+ ARR Premium Sustained
SBL continues to command a 40% premium in Average Room Rates (ARR) vs peers, highlighting strong brand equity and luxury positioning.
📈 Occupancy Outlook:
JPM projects 70%+ occupancy for SBL's owned hotel portfolio by FY27, driven by demand recovery and premium asset quality.
💰 RevPAR Growth:
Expecting 10% CAGR in like-for-like RevPAR between FY25–FY28, supported by pricing power and steady demand growth.
📊 Margin Expansion:
Operating EBITDA margins projected to exceed 46% by FY26–27, driven by operating leverage and efficient cost management.
💸 Valuation Call:
Stock trading at 19x FY27E EV/EBITDA, seen as inexpensive given its high-quality asset base and strong profitability trajectory.
📌 JPM View:
Attractive long-term play on premium hospitality with solid fundamentals and room for multiple re-rating.
Rating: Overweight (OW)
Target Price: ₹510
🏨 Key Investment Highlights:
✅ 40%+ ARR Premium Sustained
SBL continues to command a 40% premium in Average Room Rates (ARR) vs peers, highlighting strong brand equity and luxury positioning.
📈 Occupancy Outlook:
JPM projects 70%+ occupancy for SBL's owned hotel portfolio by FY27, driven by demand recovery and premium asset quality.
💰 RevPAR Growth:
Expecting 10% CAGR in like-for-like RevPAR between FY25–FY28, supported by pricing power and steady demand growth.
📊 Margin Expansion:
Operating EBITDA margins projected to exceed 46% by FY26–27, driven by operating leverage and efficient cost management.
💸 Valuation Call:
Stock trading at 19x FY27E EV/EBITDA, seen as inexpensive given its high-quality asset base and strong profitability trajectory.
📌 JPM View:
Attractive long-term play on premium hospitality with solid fundamentals and room for multiple re-rating.
