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Hotel companies earnings: Hotel companies show improved profitability amid rising trend of asset light approach

In an asset light model, instead of owning properties, hotel companies adopt franchise route thereby reducing capital investment. Between FY15 and FY23, the average operating margin before depreciation and amortisation (EBITDA margin) of the sample hotel companies improved to 34.6% from 17.6%. The share of rooms based on management contract (asset-light model) during the period increased to 40% from around 15%. ....

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hotel stocks to buy: Triveni Sangam! G20 among 3 triggers making bulls check into hotel stocks

Shares of India s largest hospitality group Indian Hotels (IHCL), which owns brands like Taj, Vivanta and Ginger, have risen 35% in the last 6 months to fresh record high levels. Similarly, EIH, which is the flagship company of the Oberoi Group, Chalet Hotels and Lemon Tree Hotels also hit fresh highs on Thursday. ....

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