The hospitality industry in India has risen from the effects of COVID-19 and recorded one of the fastest growth rates worldwide. Experts anticipate that the Indian hospitality sector will be worth USD 300 billion in the upcoming years, advancing steadily. With such potential lurking, we will explore the investment opportunities in the hospitality sector in India and discuss the best hotel stocks to buy.
Besides the primary sectors, hospitality also significantly contributes to the country’s GDP. The Indian hospitality sector is anticipated to outperform as the tourism industry in the country expands.
An industry overview
As the travel norms relaxed post-Covid pandemic, the Indian hospitality sector is ready to see significant growth. The COVID period has helped the Indian hotel industry to evolve and expand its scope beyond conventional leisure and business travel and expand its capacity with a slew of changes. The Indian hotel industry has matured by streamlining service delivery, leveraging technology, and diversifying revenue into workcation, staycation and leisure segments. The changes helped the industry sustainably and pushed a rapid recovery.
The industry has already achieved several significant milestones in 2022. Nationwide room occurrence has crossed the 50% mark with an average room rate just shy of Rs. 5000. Hotel room supplies in the branded hotels have crossed the 1.5 lakh mark in 2022.
The overall market outlook is positive, but one must also remain aware of the challenges to remain sustainable in the long run. Inflationary pressure and supply chain disruption contributing to increased operational expenses will remain primary concerns for investors. Further, inflationary pressure also escalates input expenses of the under-construction projects.
List of best hotel stocks in india
| Sl No. | Company Name | Share price change in last 12 months % | PE ratio (TTM) |
|
1 |
Indian Hotels Company Ltd |
72.24 |
100.37 |
|
2 |
EIH Ltd |
42.89 |
79.31 |
|
3 |
Byke Hospitality Ltd |
23.78 |
NA |
|
4 |
Chalet Hotels Ltd |
55.70 |
415.46 |
|
5 |
Lemon Tree Hotels Ltd |
95.64 |
1849.62 |
Indian Hotels Company Ltd.
The company founded by Jamsetji Tata is an embodiment of Indian hospitality. Today Indian Hotels Company Ltd. is one of the famous hotel stocks in the segment. Several branded hotels offer warm hospitality services under the company’s umbrella, including Vivanta, SelecQtion, Taj, and others.
Market Cap: ₹ 46,056 crore
EPS (TTM): 3.23
Profit/loss in 2022: ₹ -248 crore
EIH Ltd.
The Oberoi Group owns India’s most significant chains of luxury hotels. Oberoi, Trident, and Maidens hotels are all known luxury hotel brands maintained by the company. It runs ten five-star hotels under Trident and twenty unique hotels under the Luxury brand of Oberoi Hotels and Resorts umbrella.
Market Cap: ₹ 11,088 crore
EPS (TTM): 2.53
Profit/loss in 2022: ₹ -97.46 crore
Byke Hospitality Ltd.
Byke Hospitality is quickly growing in the niche segment of Pure Vegetarian Hotels and Resorts. Travellers who prefer a cosy stay frequently opt for Bykes for their distinctive Indian style of hospitality.
Market Cap: ₹ 169 crore
EPS (TTM): -0.35
Profit/loss in 2022: ₹ -12.82 crore
Chalet Hotels Ltd.
Chalet Hotels is a K Raheja group subsidiary that manages seven five-star hotels in Mumbai, Hyderabad, Bengaluru, and Pune. They own branded hotels like Marriott and Four Points in metro cities of Mumbai and Bengaluru.
The company is ready to gain from the impending tourism boom in India.
Market Cap: ₹ 7,537 crore
EPS (TTM): 1.14
Profit/loss in 2022: ₹ -81.53 crore
Lemon Tree Hotels Ltd.
They were the third-largest hotel chain in India and the largest one in the mid-price segment, according to a report published by Horwarth.
Market Cap: ₹ 7,786 crore
EPS (TTM): 0.05
Profit/loss in 2022: ₹ -87.43 crore
Conclusion
The Indian hotel industry is standing at the crossroad of significant transformation. With the growth in tourism, leisure and business travel, Indian hotels are ready to exploit the massive potential offered to them. It is one sector to look out for. Explore more investment opportunities the Nest hotel shares in NSE with Angel One. If you are interested in buying a share of any of the above companies, open demat account and start investing today!
