Domestic brokerage firm ICICI Securities has initiated coverage on the recently listed Brigade Hotel Ventures (BHVL), a subsidiary of the Brigade Group, The brokerage highlights BHVL’s asset ownership strategy, its portfolio operated by global hospitality labels such as Marriott, Accor, and InterContinental Hotels Group, and its plans for expansion in the Indian market.
As of June 2025, BHVL operates nine hotels across Bengaluru, Chennai, Kochi, Mysuru, and GIFT City, totalling 1,604 keys. The company plans to develop nine additional hotels, adding 1,700 keys in South India with a capital expenditure of Rs 34 crore over FY25-29. This would take BHVL’s operational keys to around 3,300 by FY29.
ICICI Securities notes that BHVL’s parentage provides a significant strategic advantage. Brigade Enterprises Ltd, the parent company, is a diversified real estate developer with expertise in real estate, leasing, and hospitality. This relationship enables BHVL to access favourable land parcels, collaborate in mixed-use developments, and benefit from shared services such as human resources and accounting to drive operational efficiencies.
BHVL’s operational portfolio is oriented towards the upper upscale, upscale, upper-midscale, and midscale hospitality segments. Its hotels offer amenities including fine dining, speciality restaurants, MICE (Meetings, Incentives, Conferences, and Exhibitions) venues, lounges, swimming pools, outdoor spaces, spas, and gymnasiums, enhancing the guest experience.
Shares of Brigade Hotel Ventures were listed at the bourses on July 31, 2025 after the company raised a total of Rs 759.60 crore. The company issues shares at Rs 90 apeice with a lot size of 166 equity shares. However, the stock is currently trading 10 per cent below its issue price.
“We estimate 20% EBITDA CAGR over the same period with EBITDA margins expanding 260bps to 37.7% in FY28 vs. 35.1% in FY25 on account of operating leverage. Beyond FY28E, margins may expand further as the Hyderabad and Chennai luxury/premium hotels begin to meaningfully contribute to revenue and EBITDA at higher margins upon stabilisation,” it said.
ICICI Securities projects strong financial growth for BHVL over the medium term. The brokerage states: “We build in same-store RevPAR growth of ~8% for operational hotels over FY25-28E, in line with our view on the hotels industry; the balance revenue contribution of 9-10% stemming from new hotels and increased F&B revenue over the medium term, which was ~33% of overall hotel revenue in FY25.
“We initiate coverage with a BUY rating on BHVL with a target price of Rs 117. We value the company’s operational hotels as of Sep’27E at an EV of Rs 4,350 croreat 18x Sep’27E EV/EBITDA of Rs 240 crore (adjusted for 50% Chennai hotel share) – at a 20% discount to our target multiple of 23x for peers such as Lemon Tree Hotels and Chalet Hotels, considering company’s operational portfolio leans more towards upper upscale hotels.
As the company’s premium/luxury hotels begin operations from FY28E, the EBITDA multiple may expand over time. For the company’s hotels set to open beyond FY28E, we add 1x capital WIP of INR 15.1bn and reduce Sep’27E net debt of Rs 14.1bn factoring in the capex required for these hotels. Hence, we arrive at a target equity value of Rs 4,450 crore or Rs 117/share.”
Key risks identified by ICICI Securities include potential slowdowns in hotel occupancies or average room rates, and possible delays in the execution of new hotel projects. The report positions BHVL in comparison to industry peers such as Lemon Tree Hotels and Chalet Hotels, emphasising its focus on the upper upscale segment and the likelihood of margin expansion as new luxury properties stabilise their operations.
ICICI Securities’ coverage initiation underscores confidence in BHVL’s strategy of leveraging the Brigade Group’s expertise and expanding across key southern Indian markets. The brokerage expects that as new hotels come onstream and contribute to revenue and EBITDA, BHVL’s value proposition will strengthen further within the hospitality industry.