Best Hotel Stocks in January 2025: Indian Hotels Company, EIH- Based on 5 Yr CAGR

According to a CRISIL report from December 2024, the branded hotel sector in India is projected to see strong revenue growth in FY25, expected to reach 13-14%. This growth is driven by factors such as a surge in domestic tourism, a rise in weddings, and an increase in short weekend vacations.

As January 2025 begins, the hotel industry in India continues to show positive signs of recovery, with several stocks demonstrating a solid 5-year compounded annual growth rate (CAGR). These stocks highlight the sector’s resilience, bolstered by rising travel demand and greater consumer spending.

In this evolving landscape, we’ll focus on companies that have shown strong performance, particularly those leading the way with the best 5-year CAGR.

Best Hotel Stocks in January 2025 – Based on 5-Yr CAGR

Note: The list of best hotel stocks here is sorted based on their 5Y CAGR, as of January 8, 2025.

Overview of the Best Hotel Stocks in January 2025

• Indian Hotels Company Ltd

Indian Hotels Company Limited (IHCL) is a leading hospitality company in India, renowned for its iconic brand, Taj, alongside other brands such as SeleQtions, Vivanta, Ginger, and amã Stays & Trails.

For Q2 FY25, IHCL reported a remarkable 232.24% surge in consolidated net profit, reaching ₹554.58 crore. The company’s revenue from operations grew by 27.42%, reaching ₹1,826.12 crore, driven by strong demand and operational efficiencies.

Key metrics:

• Earning per Share (EPS): ₹8.85
• Return On Equity (ROE): 13.42%

• EIH Ltd

EIH Ltd., part of The Oberoi Group, operates luxury hotel brands like Oberoi and Trident across India and internationally. The company manages over 4,300 rooms in 16 locations across 7 countries.

For Q2 FY25, EIH Ltd. reported a consolidated revenue of ₹623 crore, a 13% year-over-year increase. The company’s consolidated profit after tax (PAT) rose by 41% to ₹133 crore.

Key metrics:

• EPS: ₹10.22
• ROE: 16.91%

• Chalet Hotels Ltd

Chalet Hotels Limited is a leading player in India’s upscale hospitality sector. The company is committed to operational excellence, sustainability, and growth, with recent expansion into leisure destinations like Goa.

For the second quarter of FY25, Chalet Hotels reported a strong 20% year-over-year increase in total income, reaching ₹3.8 billion. Its EBITDA also surged by 20%, totalling ₹1.6 billion, driven by higher room rates and solid occupancy rates.

Key metrics:

• EPS: ₹13.55
• ROE: 14.72%

• Oriental Hotels Ltd

Oriental Hotels operates a portfolio of prestigious hotels and resorts across India, including renowned properties like Vivanta, Taj, and Gateway brands.

For Q2 FY25, Oriental Hotels reported a 6.62% increase in consolidated net profit, reaching ₹8.38 crore compared to ₹7.86 crore in Q2 FY24. Revenue from operations for the quarter stood at ₹103.30 crore, reflecting a growth of 13.48% year-on-year.

Key metrics:

• EPS: ₹2.78
• ROE: 8.58%

• TAJ GVK Hotels and Resorts Ltd

TajGVK Hotels & Resorts Limited is a joint venture between the Hyderabad-based GVK Group and the Indian Hotels Company Limited (IHCL), established in 1995.

For Q2 FY25, the company reported a profit after tax (PAT) of ₹19.65 crore, marking a 76.55% year-on-year increase. Revenue from operations stood at ₹105.17 crore, reflecting a 17.6% growth compared to the same period in the previous year.

Key metrics:

• EPS: ₹14.78
• ROE: 18.37%

Conclusion

Hotel stocks can offer significant potential, particularly for those looking to benefit from the growth of the hospitality and tourism sectors. However, it’s crucial to carefully consider your investment objectives and risk tolerance, as the industry is highly sensitive to economic cycles, travel trends, and external factors such as geopolitical events and health crises. It is advisable to consult a financial advisor before making any investment decisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.