1. At a Glance – Blink and You’ll Miss the Irony
Brigade Hotel Ventures Limited is trading at ₹60.5, licking its wounds after a ~28% fall in 6 months, while reporting Q3 FY26 revenue of ₹139 Cr (+11.6% QoQ) and PAT of ₹22 Cr (+140% YoY). Market cap sits at ₹2,303 Cr, EV/EBITDA 12.6x, P/B 2.5x, ROCE 14.1%, Debt/Equity 0.38—not exactly a balance-sheet horror movie. Operations are humming: OPM ~34%, ARR ₹6,694, Occupancy ~76.8%, RevPAR ₹5,138 (FY25).
And yet, the stock is priced like the market is asking: “Nice hotels, but who’s paying the bill?” With 9 hotels, 1,604 keys across South India and global operators running the show, BHVL looks operationally sharp, financially improving, and valuation-wise… polarising. Curious? You should be.
2. Introduction – Welcome to the Hotel That Markets Don’t Check Into
Hotels are back. Weddings, conferences, corporate offsites—India is travelling again. BHVL is right in the middle of this party, owning premium real estate and outsourcing the headache of running hotels to Marriott International, Accor, and InterContinental Hotels Group.
The pitch is elegant: own the asset, lease or manage with global brands, clip stable cash flows. The execution? Improving margins, falling interest costs, and a post-IPO balance sheet that finally looks breathable.
But the market is grumpy. Why? Because hotels are capital guzzlers, expansion is expensive, and 49x P/E makes people nervous when capex pipelines stretch into FY29. Is this a long-term
compounding asset story—or just a beautifully furnished leverage machine? Let’s tear it apart, politely.
3. Business Model – WTF Do They Even Do?
BHVL doesn’t run hotels. It owns or leases them. The actual sweating—staffing, pricing, loyalty programs, global distribution—is handled by Marriott, Accor, and IHG.
BHVL focuses on:
- Location selection (CBDs, IT corridors, convention hubs)
- Capital deployment (build/buy hotels, then brand them)
- Asset optimisation (ARR, occupancy, RevPAR)
This model keeps operating risk lower but shifts risk to capital allocation and debt discipline. If RevPAR rises, BHVL smiles quietly. If tourism sneezes, EMIs still need to be paid. Simple.
4. Financials Overview – Numbers That Actually Matter
Quarterly Comparison (₹ Cr)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 139 | 124 | 126 | 12.1% | 11.6% |
| EBITDA | 47 | 43 | 37 | 9.3% | 27.0% |
| PAT | 22 | 10 | 11 | 120% | 100% |
| EPS (₹) | 0.53 | 0.30 | 0.24 | 76.7% | 120.8% |
Annualised EPS (Q3 rule): Avg(Q1+Q2+Q3) × 4
Q1 ₹0.22, Q2 ₹0.24, Q3 ₹0.53 → Avg ₹0.33 → Annualised EPS ~₹1.32 (close to TTM ₹1.39)
Commentary: Margins expanded, interest costs fell, depreciation stayed real (as hotels should). This is not accounting
