Jefferies explained that hotels are partially discretionary and are paid for out of the customers pockets. Hence, the “prosperity of the industry partly depends on overall macroeconomic buoyancy, while hospitals are largely unaffected by short-term economic activities and are driven by clinical excellence,” it added.
The brokerage expects that the hotel industry will witness a 10–23% revenue CAGR versus a 10–14% CAGR for hospitals over fiscal 2023–2025.
Meanwhile, according to the brokerage, the Ebitda CAGR for hotels could be “superior,” at 14–34%, compared to 11–16% for hospitals.
The hotels sector would continue to benefit over fiscal 2023 through 2025 from cyclical recovery even after posting a sharp fourfold Ebitda jump in fiscal 2023 post-Covid-19 normalisation, the brokerage said.
