Target: ₹402

CMP: ₹314.95

We recently met with management of Juniper Hotels, which outlined an aggressive, long-term hotel development plans. The plan is to nearly double room count by FY30-FY31 while maintaining luxury and upper-upscale as core operating segments. FY26 will be a year of recovery for Juniper, which will be driven by occupancy scale-up and average room rate (ARR) increase at Grand Hyatt, Mumbai (GHM). 

Commencement of luxury asset at Bengaluru and likely acquisition of right of first offer (ROFO) assets will accelerate growth in FY27. Acquisition of ROFO assets has already been delayed by a year than the earlier stated timeline; hence, we lower our EBITDA by 20 per cent for FY26E and by 26 per cent for FY27E. 

Juniper is likely to be on a healthy growth trajectory for the next two years, driven by higher RevPAR at GHM, new hotel operationalisation and ROFO assets coming into the company. The new development pipeline is aggressive and if operationalised on time, these assets are likely to drive healthy growth in profitability. We will remain watchful on valuation of ROFO assets at which they will be acquired as it will determine the quantum of dilution for its shareholders. 

We reiterate Buy with a lower TP of ₹402 from ₹488 based on 20x (unchanged) FY27E EV/EBITDA.

Published on June 18, 2025