List of Hotel Stocks in India (2024)

List of Hotel Stocks in India (2024)

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India has emerged as a top global destination for business and leisure travellers, resulting in the significant growth of India's hotel industry. The Indian hotel industry is estimated to reach INR 20,527.73 billion in 2024, and it will grow at a CAGR of 13.96% making it an attractive sector for investors. By investing in the Indian hotels stock listed on the National Stock Exchange you can diversify your portfolio. In this blog, we will explore the growth of the hotel industry, list the top hotel stocks in India, discuss their features, benefits, factors, and a lot more. 
 

What are Hotel Stocks in India?

In India, hotel stocks refer to the equities of publicly listed companies that engage in the hospitality sector, with a major focus on hotels and lodging. The main work of these companies is to own, operate, or franchise hotels, resorts, and other lodging facilities across a range of different price segments, from budget-friendly to luxurious hotels. By investing in hotel stocks investors can own a part of these companies and can get a profit from their financial performance and growth in the hospitality industry.
 

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Table of Contents

  1. What are Hotel Stocks in India?
  2. Best Hotel Stocks in India 2024
  3. Overview of Best Hotel Stocks in India 
  4. Factors to Consider Before Investing in Hotel Stocks in India
  5. Features of Hotel Stocks List in India
  6. How to Invest in the Best Hotel Stocks in India?
  7. Advantages & Disadvantages Associated with Hotel Stocks

Best Hotel Stocks in India 2024

Here is the best hotel stock list in India 2024:
 

Company Name

CAGR of 5 Years (28th Aug 24)

PE Ratio

Indian Hotels Company Ltd

37.89%

73.68

EIH Ltd

19.49%

38.06

Chalet Hotels Ltd

21.18%

70.84

Lemon Tree Hotels Ltd

19.07%

72.87

Mahindra Holidays & Resorts India Ltd

23.39%

67.88

Disclaimer: The information provided on the above stocks is for informational purposes only. It is crucial to conduct thorough research before making any investment decisions regarding these stocks. We do not recommend trading any stocks without comprehensive research and professional financial advice. Always consult with a certified financial advisor to ensure informed and appropriate investment choices.
 

Overview of Best Hotel Stocks in India 

Here is an overview of the best hotel stocks in India:

Lemon Tree Hotels

Lemon Tree Hotels (LTH) was incorporated on June 02, 1992. The Company is engaged in the business of developing, owning, acquiring, renovating, operating, managing, and promoting hotels, motels, resorts, and restaurants. The company has added 723 rooms in 9 hotels across 8 cities and presently operates 56 hotels in 33 cities with 5,525 rooms. 

Get more details about Lemon Tree Hotels Ltd share price today here.
Know the Lemon Tree Hotels Ltd share price history here.
 

Chalet Hotels

It was founded in 1986 and the company is engaged in the business of hospitality (hotels), commercial and retail operations, and real estate development. 

Get more details about Chalet Hotels Ltd share price today here.
Know the Chalet Hotels Ltd share price history here.
 

Indian Hotels Company

The Indian Hotels Company was founded in 1902, it is primarily engaged in the business of owning, operating, and managing hotels, palaces, and resorts. In the upcoming financial year, the company aims to surpass Rs. 1000 crores in revenue and is committed to investing in new brands and businesses, including launching two new brands in the next six months.

Get more details about Indian Hotels Company Ltd share price today here.
Know the Indian Hotels Company Ltd share price history here.

EIH Ltd

EIH Ltd was founded in 1949 and this company is primarily engaged in owning and managing premium luxury hotels and cruisers under the luxury Oberoi, Trident, and Maidens brands. 

Get more details about EIH Ltd share price today here.
Know the EIH Ltd share price history here.
 

Mahindra Holidays & Resorts India Ltd  

Mahindra Holidays & Resorts India Ltd. (MHRIL), a part of the Leisure and Hospitality sector of the Mahindra Group, offers quality family holidays primarily through vacation ownership memberships and brings to the industry values such as reliability, trust, and customer satisfaction. Started in 1996, the company's flagship brand ‘Club Mahindra’, today has over 2,90,000 members, who can holiday at 140+ resorts in India and abroad.

Get more details about Mahindra Holidays & Resorts India Ltd share price today here.

Know the Mahindra Holidays & Resorts India Ltd share price history here.
 

Factors to Consider Before Investing in Hotel Stocks in India

Here are some factors you should consider before investing in the best hotel stocks in India: 

  1. Economic Growth: A strong and growing economy supports the hotel sector stocks as it increases disposable income which is the income left after spending on necessities. With an increase in disposable income people will spend more on hotels. On the other hand,  if there is high inflation then the price of goods and services will rise, which unfortunately will lead to less disposable income, directly affecting the hospitality industry.
  2. Geographical Diversification: Before investing, ensure the hotel is in a prime location near tourist spots, transportation hubs, and business centres because this makes them work better as it attracts several guests. Also, hotels with different locations can easily tolerate economic downturns. 
  3. Market Competition: Carefully examine the market competition and take into consideration the national and international hotel chains, individual properties, and other hotel choices like Airbnb. Companies with a high brand reputation and market share are often better able to face competitive challenges. 
  4. Peak and Off-Season Performance: In the hotel industry, seasonal fluctuations are common and they can affect occupancy and revenue. By understanding the peak and off-season performance you can easily evaluate the financial health and profitability of the Indian hotels stock. 
     

Features of Hotel Stocks List in India

Before investing in Indian hotel stocks let’s have a look at the features: 

  1. Growth Possibility: The Indian hotel industry has a major growth possibility because the middle class is growing, rise in business travel after Covid and there's an increase in both domestic and foreign tourists. 
  2. Wide Range of Properties: There are many different types of properties available in India, including business suites, luxury hotels, and budget-friendly hotels. With the help of this diversity, different sectors of the market can be attracted. 
  3. Governmental Proposals and Assistance: The Government of India has taken many initiatives to promote tourism, like tourism marketing campaigns, and the development of the infrastructure. 
  4. Operational Efficiency: The hotel stocks can receive profitability when there is effective management and operation. To achieve operational effectiveness, investors can closely examine the features related to occupancy rates, average room cost, cost management, and revenue per available room (RevPAR). 
     

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How to Invest in the Best Hotel Stocks in India?

Here are the steps you need to follow to start investing in the best hotel stocks in India:

Step 1: You should first do your thorough research on the Indian hospitality sector. To make sure you make informed investment decisions you can study the financial statements and performance indicators in detail about the specified hotel companies.

Step 2:  Open a Demat and Trading Account to buy and sell stocks, including hotel stocks, with a registered brokerage firm like BlinkX. 

Step 3: Once you have decided on which hotel stock will be great for your investment, you can place buy orders through the brokerage platform. You need to specify the number of shares you wish to purchase and the price at which you're willing to buy.

Step 4: You can regularly monitor your portfolio's performance and stay informed about company news, market trends, and any potential changes that might affect your investment decisions.
 

Advantages & Disadvantages Associated with Hotel Stocks

Here are the advantages and disadvantages associated with Indian hotel stocks: 

Advantages

Risks

With a rise in business and tourism hotel stocks can see major growth. Economic crises have a direct impact on hotel stocks leading to lower traffic and occupancy rates. 
A regular source of income is provided by the dividends paid on several hotel stocks.In the hotel industry, seasonal fluctuations are common which has an impact on revenue consistency.
Well-known hotel brands frequently enjoy pricing power and loyal customers.The market is highly competitive and puts new competitors at risk.
Hotels frequently own priceless real estate that increases in value with time.Profitability may be impacted by high fixed expenses for personnel, maintenance, and utilities, particularly during times of low occupancy.
Hotels can make money from events, food and beverage services, and reservations for rooms, among other sources.Changes to taxation or building laws, for example, may hurt hotel operations and profitability.


Conclusion
Investing in Indian hotel stocks offers a great opportunity for investors to profit from the success and development of the hospitality sector. Investors can make informed decisions by examining the types of hotel stocks, their financial growth, and their market position. Even though these stocks come with a lot of advantages, it is important to know about the risks involved in them. To start your investment journey in the hotel sector stocks you need to download the share market app

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FAQs on Hotel Stocks in India

The simple and best way is by creating a trading account with a stockbroker and purchasing shares of the hotel industry listed on the stock exchange.

Long-term investors may find Indian hotel stocks attractive, especially if the companies have high brand recognition, sound financial standing, and favourable market positions.

To reduce risk you should invest in a variety of hotel stocks and have proper knowledge of the latest reports regarding the market and economic developments.

One of the hotel chains in India that is growing fast is Sarovar Hotels and Resorts. It is currently making a comeback in Africa, where it has gained significant traction after the end of the COVID-19 pandemic.

The benefits of purchasing the hotel stocks are growth from rising tourism, consistent dividend income, brand strength, holdings of valuable real estate, growth potential from increased tourists, and advantages from technological improvements.