Ventive Hospitality: Motilal Oswal shares future growth of the hospitality stock with target

Synopsis: Hospitality stock with a balanced domestic and international presence is projected to deliver 21% revenue and EBITDA CAGR over FY25–28. MOSL initiates coverage with a Buy rating, seeing 28% upside.

The shares of the hospitality firm engaged as one of India’s largest luxury-focused hospitality platforms, strategically allied with global hotel giants such as Marriott, Hilton, Minor Hotels, and Atmosphere, are in the spotlight after MOSL sees that it could deliver a CAGR of 21% in both revenue and EBITDA during FY25–28 and initiated an upside of 28%.

With a market capitalisation of Rs. 18,239 cr, the shares of Ventive Hospitality Ltd closed at Rs. 781 per share, up by 0.6% from its previous close of Rs. 775.70 per share. The stock rose by 1% last year, 5% so far this year, 2% over the past six months, and 2% in the last month.

MOSL Initiates Coverage on Ventive Hospitality

Motilal Oswal Securities Limited (MOSL) has initiated coverage on Ventive Hospitality with a Buy rating and set a target price of Rs. 1,000. At the current market price (CMP) of Rs. 781, this implies an upside potential of around 28%, signaling strong confidence in the stock’s growth prospects.

Ventive Hospitality operates across two key segments which are hospitality (77%) and annuity (23%). Within the hospitality business, international operations contribute 54% of the segment’s revenue, while Indian operations make up 46%. This balanced revenue mix demonstrates the company’s global footprint and domestic presence.

Growth Outlook

The company’s international business is expected to grow at a 21% revenue CAGR and 27% EBITDA CAGR over FY25–28. Favorable demand-supply dynamics in the core markets are expected to support continued growth. Overall, Ventive Hospitality is projected to deliver a CAGR of 21% in both revenue and EBITDA during FY25–28, reflecting consistent expansion across its operations. 

Ventive’s profitability is expected to improve significantly. PAT (Profit After Tax) is projected to more than double, supported by operating leverage, lower interest costs, and reduced tax burden. This suggests that the company is poised to convert revenue growth into substantial earnings growth efficiently.

In conclusion, MOSL’s coverage indicates a strong bullish outlook for Ventive Hospitality, driven by international expansion, robust growth in core markets, and improving profitability. The 28% upside potential makes it an attractive investment opportunity for investors looking for exposure to luxury hospitality and annuity businesses.

Ventive Hospitality Ltd is a premier division of Panchshil Realty, a leading owner, developer, and asset manager of luxury and business hotels and resorts. With a strong presence in Pune and the Maldives, the company is known for creating landmark properties that combine world-class service, innovative design, and sustainable practices. Its portfolio includes 13 fully operational hotels and resorts, with 7 more under development, delivering exceptional and memorable experiences across every stage of the hospitality lifecycle.

In Q3 FY26, the company delivered strong financial performance with total income rising 27% YoY to Rs. 7,220 crore, driven by a 28% growth in revenue from operations. 

EBITDA increased by 25% to Rs. 3,475 crore from Rs. 2,774 crore, though margins saw a marginal dip to 48%. Profit after tax surged 305% YoY to Rs. 1,405 crore, reflecting improved operational efficiency.

Revenue Breakup 

In Q3 FY26, Ventive’s hospitality revenue shows a strong contribution from both India and international operations. In India, total revenue was driven mainly by Rooms at Rs. 123.4 crore (52%), followed by F&B at Rs. 94.2 crore (39%) and Others at Rs. 21.5 crore (9%). International operations performed even stronger, with Rooms contributing Rs. 207.4 crore (63%), F&B at Rs. 83.6 crore (26%), and Others at Rs. 35.4 crore (11%), highlighting the higher room-led revenue mix overseas.

Indian and International KPI’s

In Q3 FY26, India operations delivered strong pricing-led growth. Average Daily Rate (ADR) stood at Rs. 13,230, registering a healthy 17% increase year-on-year. Occupancy was stable at 62%, with a marginal decline of 1 percentage point. Despite this, revenue metrics remained robust, with RevPAR rising 15% to Rs.  8,262 and TRevPAR increasing 14% to Rs. 15,985, reflecting improved monetisation and higher spend per guest.

International operations showed solid operating performance, supported by strong same-store growth. Occupancy reached 65% on a same-store basis, improving by 4 percentage points, while overall occupancy including Raaya stood higher at 71%. 

TRevPAR for same stores grew 17% to Rs. 81,936, while Raaya contributed a TRevPAR of Rs. 68,892, further strengthening the international portfolio’s revenue performance.

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