Prestige stock hits 52-week high on Marriott deal, strong launch pipeline

Increase in debt in September quarter is an overhang

The Prestige Estates stock hit its 52-week high after it signed a deal with Marriott International to build six hotels comprising 1,000 rooms over the next 5-6 years. This will double the hospitality portfolio of Prestige, currently at 1,262 rooms with an annual revenue of Rs 400 crore. 

The management indicated that the reduction in the goods and services tax from 28 per cent to 18 per cent for premium and luxury hotels, lower corporate tax, and regional airport development are helping boost market demand for such hotels. This is the second deal for the company in the month after