ICICI Securities maintains a BUY rating on Brigade Hotel Ventures Limited (BHVL), affirming its robust operational trajectory and confident growth prospects. The research house sets a target price of Rs 117 per share, signalling a projected upside from the current market price of Rs 83. Brigade Hotel Ventures, with its concentrated expansion pan-India, stands at the juncture of strong demand momentum, operational excellence, and strategic asset creation—characteristics that make this stock a compelling proposition for sophisticated investors assessing India's evolving hospitality landscape.

Summary of the Investment Proposition

Brigade Hotel Ventures Limited (BHVL) proudly boasts a remarkable operational performance in Q2FY26, with double-digit revenue and EBITDA growth propelled by travelers’ resilience, new property launches, and tactical expansion. ICICI Securities recommends a BUY on BHVL, citing a Rs 117 target price, arguing that it is attractively valued versus sector peers. The report illuminates the company’s expansion pipeline, financial strength, and prudent risk management, positioning it as an institutional-quality bet amidst India’s dynamic hotel industry.

Strong Operational Performance and Revenue Momentum

Q2FY26 delivered a standout 14% same-store RevPAR surge, underpinned by a 16% YoY revenue increase and a 15% adjusted EBITDA growth. This growth originated largely from Bengaluru, where ARR soared 19% YoY, spotlighting the segment’s commercial vibrancy. Despite a one-off Rs 60mn property tax provision temporarily muting headline EBITDA, operational leverage remained intact—demonstrating management’s capacity to absorb shocks and maintain performance discipline.

Strategic Expansion Pipeline and Capital Allocation

BHVL is executing an ambitious growth blueprint: nine new hotels totalling 1,700 keys are planned across South India through FY25-30, enabled by a Rs 36bn capital expenditure commitment (Rs 20mn per key assumed). From its current portfolio of 1,604 keys spread across leading markets (Bengaluru, Chennai, Kochi, Mysuru, GIFT City), BHVL aims to double operational capacity to around 3,300 keys by FY29E—setting the stage for scalable and sustainable earnings acceleration.

Financial Performance Snapshot

Below is an HTML table capturing the forward-looking financial metrics, as projected by ICICI Securities:

Valuation Framework and Investor Targets

The research house employs a sum-of-the-parts (SoTP) approach, valuing operational hotels at 18x Sep’27E EV/EBITDA—a prudent discount to peers like Lemon Tree and Chalet, reflecting portfolio composition. Hotels opening post-FY28E are valued at 1x capital work-in-progress. After adjusting for net debt, the equity value per share computes to Rs 117, framing the central investor target for the next 12 months. The multiple contraction relative to sector leaders hints at latent upside should premium/luxury segment properties deliver above-market performance from FY28E onward.

Key Risks and Sensitivities

Potential headwinds include a slowdown in occupancy rates, average room rate (ARR) stagnation, or execution delays across future assets. A sudden shock to corporate travel or macroeconomic volatility could also dampen forecasted RevPAR expansion, requiring vigilant risk assessment from stakeholders.

Shareholding Pattern and Institutional Interest

As of latest filings, promoter holding remains steady at 74.1%, with institutional investors comprising 20.9%. Mutual funds and foreign institutional investors continue to inject confidence, while retail free-float stands at 13%. Such ownership structure underscores the stock’s low volatility and alignment between long-view capital and growth-oriented management.

Stock Levels and Trading Range

Current Market Price: Rs 83 12-Month Target Price: Rs 117 Key Technical Zones: The stock oscillates in a range of Rs 77 – Rs 92, providing entry points for accumulation upon corrections and momentum trades above Rs 90 as new project announcements take root.

Bottomline

Brigade Hotel Ventures stands at the precipice of multi-year expansion, with operational discipline and project pipeline fortifying its investment case. ICICI Securities’ Buy call and Rs 117 price target reflect conviction in the company’s ability to monetize assets and capture secular demand trends. For investors seeking exposure to India’s surging hotel sector, BHVL emerges as a compelling paradigm of growth, governance, and value creation.