The Indian hotel industry is an integral part of the global economy and has a significant impact on the tourism and Indian hospitality sector stocks. With the rise in disposable income and travel, the demand for hotels has been on the rise, making it a lucrative investment option.
Investing in the best hotel stocks in NSE can offer diversification to your investment portfolio. Additionally, it can be an effective way to capitalize on the growth potential of the hotel and tourism stocks in India. In this blog, we will explore the ins and outs of hotel stocks India. Moreover, we’ll also highlight the popular hotel shares in India that you can consider buying in 2024.
What are Hotel Stocks India?
Hotel stocks India are shares of companies that operate in the hospitality industry, including hotels, resorts, and other accommodation facilities. By investing in the best hotel stocks in India list, investors can participate in the growth and profitability of these companies. Also, it potentially earns returns on their hospitality shares India.
List of Top 10 Hotels Share in India
Here is the top 10 listed hotel companies in India that could be excellent hotel investments for investors with different risk appetites.
|Hotel Stocks India
|Market Cap(in Cr)
|Indian Hotels Company Ltd
|Chalet Hotels Ltd.
|Lemon Tree Hotels Ltd.
|Mahindra Holidays and Resorts India Ltd
|Samhi Hotels Ltd
|Oriental Hotels Ltd
|TAJ GVK Hotels and Resorts Ltd
|EIH Associated Hotels Ltd
Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data on the top listed hotel companies in India in the list is from 23rd January 2024. However, for real-time updates on hotel stock prices and market trends, visit the smallcase stocks collection today!
Top 10 Hotels Share in India
Let’s have a look at the top hotel shares in India, from our list of hotel share prices.
Indian Hotels Company Ltd
With a rich heritage, IHCL might benefit from its iconic Taj brand and diverse portfolio. It can potentially attract both domestic and international travellers.
EIH, can be synonymous with luxury through its Oberoi properties. It may experience steady demand from high-end clientele, but its performance can be influenced by economic fluctuations.
Chalet Hotels Ltd
Chalet Hotels might navigate the hospitality market by leveraging its upscale properties. However, its performance could be subject to market trends and the broader economic scenario.
Lemon Tree Hotels Ltd
Positioned in the mid-scale segment, Lemon Tree Hotels may appeal to budget-conscious travellers. Thus, its expansion strategies might play a crucial role in its future growth.
Mahindra Holidays and Resorts India Ltd
Mahindra Holidays, focusing on the vacation ownership market, may find stability in recurring revenue, but economic uncertainties might affect consumer spending on leisure.
Samhi Hotels Ltd
As a player in the hospitality sector, Samhi Hotels might witness growth through strategic partnerships and acquisitions, but its success could depend on regional tourism trends.
Oriental Hotels Ltd
Oriental Hotels, operating under the brand name of Taj Coromandel, could be impacted by local economic conditions and global travel patterns, influencing its revenue streams.
The performance of HLV Ltd might hinge on factors such as operational efficiency and market demand, with potential for growth if managed effectively in a competitive environment.
TAJ GVK Hotels and Resorts Ltd
TAJ GVK Hotels, a joint venture between the Taj Group and GVK, may see success in premium hospitality but could face challenges from market fluctuations and competition.
EIH Associated Hotels Ltd
EIH Associated Hotels, a subsidiary of EIH Ltd, might witness correlated performance but could also face unique challenges based on its distinct market positioning and regional focus.
Growth of the Hotel Industry in India
The hotel industry in India has seen significant growth over the past few decades, driven by the rise in domestic and international tourism. The sector is an important contributor to the Indian economy, with a market size of over USD 20 billion and a share of around 9% of India’s GDP.
The industry is dominated by major players such as Taj Hotels, Marriott International, AccorHotels, and IHG, along with various local players. The hotel sector has also seen significant foreign direct investment (FDI) over the past few years, with major international hotel chains expanding their operations in India.
However, the Indian hotel industry faces various challenges, including high taxes, regulatory hurdles, and intense competition. The COVID-19 pandemic has also had a significant impact on the industry as the average hotel occupancy rate fell to 33- 36% in 2020 but now it’s flourishing again.
In a nutshell, the hospitality industry in India is a key player in the country’s economy and offers various investment opportunities for investors looking for exposure to the tourism and hospitality sector.
Features of Hotel Stocks Listed in India
Before looking out for the best hospitality shares to buy in India, let’s have a look at its features:
- Diverse Market: India’s hospitality industry caters to various segments, from budget hotels to luxury resorts, offering investment opportunities across different price points and risk profiles.
- More Financial Opportunities: Many hotel and tourism stocks in India offer attractive dividend yields, providing a steady income stream for investors.
- Co-working Spaces: Some hotel companies are exploring new business models, such as co-working spaces and extended stay options, to cater to changing consumer preferences and expand their revenue base.
- Mergers and Acquisitions: Mergers and acquisitions are common in the Indian hotel industry, creating opportunities for investors to capitalize on consolidation and growth strategies.
How to Invest in the Best Hotel Stocks in India?
Here are the steps that you need to follow to invest in the best hotel stocks in India:
- Research and analyze the Indian hotel industry and its trends.
- Identify hotel companies that align with your investment goals and strategy.
- Research the financials and performance of the identified hotel companies.
- Open a DEMAT account with a reputable broker.
- Place the best hotel shares in India to buy for the desired hotel stocks India through the brokerage platform.
- Monitor your investment and keep an eye on hotel share prices.
- Regularly review and evaluate your hotels share list portfolio.
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered experts
- smallcase.com offers over 200+ stock portfolios, created by 180+ managers
- Some of the popular smallcases among new investors are as follows:
Disclosures for aforementioned smallcases
Invest in Hotel smallcases
House of Tata
The House of Tata is a well-known conglomerate in India that operates in a variety of industries, from automotive to hospitality. IHCL, which is an investor-favourite being a Tata product, is also included in the House of Tata smallcase.
This smallcase is a curated portfolio of stocks that represent the company’s various business interests, giving investors an opportunity to invest in a diverse range of industries through a single investment. Hence, if you want to invest to diversify your portfolio along with investing in hotel stocks, you can check out this smallcase.
Happy Hours: Cheers to Good Times
Happy Hour smallcase is a curated basket of stocks that seeks to benefit from the growth potential of India’s travel, leisure, and entertainment industry. It includes the stocks of hotels, restaurants, travel, and beverage companies.
Hence, if you want to capitalize on the growth potential of India’s travel, leisure, and entertainment industry, you may check out this smallcase.
Disclosures for Happy Hours: Cheers to Good Times smallcase.
Types of Top Hotel Stocks in India
The best hotel and tourism stocks in India can be broadly categorized into three types based on the level of service and amenities offered to customers. These categories are:
Luxury Hotel Stocks
The luxury hotel share list is usually associated with high-end services and amenities. Such as fine dining, spa services, and personalized attention to guests. These Indian hotel stocks are often considered more volatile due to their dependency on discretionary spending and luxury travel trends. Some of the luxury hotel stocks India include Marriott’s Ritz-Carlton and Four Seasons Hotels and Resorts.
Mid-Range Hotel Stocks
Mid-range hotel stocks India offer a balance between luxury and affordability, with basic amenities such as Wi-Fi, breakfast, and fitness centres. This hotel stock list can be considered less volatile than luxury hotel stocks. It has a wider customer base, including both leisure and business travellers. Some of the mid-range hotel stocks India are Hilton Garden Inn and Courtyard by Marriott.
Budget Hotel Stocks
Budget hotel shares in India offer basic services at an affordable price point and are often located in tourist and business districts. These hotel stocks can be considered to be the least volatile and offer stable cash flows. This may happen due to the customer base, which includes budget-conscious travellers and long-term stay guests. Examples of budget hotel stocks India include Motel 6 and Red Roof Inn.
Factors Affecting the Indian Hotels Stock Price
Hotel sector stocks in India can be a promising investment opportunity for those seeking to build a diversified portfolio. However, before investing in any hotel stock, it’s important to consider the following factors:
- Economic Trends: Economic trends such as the GDP growth rate, inflation, and interest rates can significantly impact the hotel share price. Therefore, it’s essential to keep an eye on economic indicators to gauge the potential impact on the hotel industry.
- Global and Local Market Trends: It’s important to consider global and local share market trends while investing in hotel stocks to buy. The demand for hotels’ occupancy rates is impacted by factors such as tourism, business travel, and events in the area. Therefore, it’s essential to evaluate market trends to gauge the potential performance of hotel stocks India.
- Company Performance and Financials: The financial performance of hotel stocks India is a crucial factor to consider before investing. It’s important to evaluate the revenue, profit margins, debt, and liquidity of the best hotel company in India.
- Government Regulations: Government regulations such as zoning laws, taxes, and labour regulations can impact the hotel share price. Therefore, it’s important to evaluate the regulatory environment and its potential impact on the hotel industry.
Benefits of Investing in the Hospitality Industry in India
Investing in hotel industry shares can provide several benefits to investors. Here are some of the key advantages of investing in hotel stocks:
- Diversification: Hotel stocks can offer diversification to an investor’s portfolio by providing exposure to a different sector. By investing in hotel stocks India, investors can diversify their investments across various industries. Thus, this can help in reducing overall portfolio risk.
- Income Generation: Many hotel stocks India offer a dividend to their shareholders. This can provide a steady source of income to investors. The dividend payments can be reinvested to buy more shares, which can help in generating long-term wealth.
- Potential for Long-term Growth: The Indian hospitality industry has significant growth potential, especially in emerging markets. As the global tourism industry continues to expand, there is a growing demand for hotels and accommodation. This trend can translate into long-term growth opportunities for hotel stocks.
- Global Exposure: Many hotel stocks India have a global presence, which can provide investors with exposure to the international markets. This can help in diversifying one’s investments across different geographies and currencies. Thus, this can help in reducing risk and maximizing returns.
However, investors must do their own research and/or consult their financial advisor before investing.
Risks Associated with Hotel Stocks
Hotel industry shares in India, like any other stocks, come with certain risks that you must consider before investing in the top hotel stocks list. Some of the key risks associated with hotel stocks India are as follows:
- Economic Downturns: The hotel industry is highly sensitive to economic cycles. During an economic downturn, people tend to cut back on discretionary spending, including travel and vacations. This can lead to a decrease in demand for hotel rooms and a corresponding drop in revenue and profitability for hotel companies.
- Natural Disasters and Pandemics: Natural disasters such as hurricanes, floods, earthquakes, and wildfires can damage hotel properties and disrupt travel plans. Similarly, pandemics like COVID-19 can severely impact the hotel industry.
- Competition: The hotel industry is highly competitive, with numerous players vying for market share. This competition can lead to price wars and thin profit margins, which can impact the financial performance of hotel companies.
- Regulatory Risks: Hotel companies are subject to various regulations related to zoning, building codes, environmental laws, and labour laws. Non-compliance with these regulations can result in fines, legal liabilities, and reputational damage.
To Wrap It Up…
Investing in the top hotel shares in India can be a smart move to diversify your portfolio and capitalize on the growth potential of the Indian hospitality industry. However, it is important to consider various factors. Such as economic trends, company performance, and government regulations before making any investment decisions.
With the right approach, investing in the best hotel sector stocks can offer potential long-term growth. Hence, the best hotel stocks in India can be a great addition to your investment strategy. Moreover, instead of investing in individual hotel stocks India, try smallcases that consist of hotel stocks. Why? Because it will help you diversify your portfolio without wasting a hell lot of time evaluating individual stocks.
According to recent updates, here are the top five hotel sector stocks that you can invest in –
1. Indian Hotels Company Ltd
2. EIH Ltd.
3. Chalet Hotels Ltd
4. Lemon Tree Hotels Ltd
5. Mahindra Holidays and Resorts India Ltd
Note: This information is provided for educational purposes and is not intended as a recommendation or endorsement.
You can invest in hotel stocks India by opening a trading account with a stockbroker and buying hotel industry shares listed on the stock exchange.
Investing in Indian hotel stocks looks promising with expected sector recovery. India’s tourism industry is set to grow at 8.7% CAGR (2022-2028) due to a rising middle class, increased disposable income, and improved tourism infrastructure. However, it’s important to do your own research and/or consult a financial advisor before investing.
Investing in the top hotel stocks in India can be appealing to several types of investors. This includes long-term investors, growth-oriented investors, and those with high-risk appetite. Finally, investors who believe in the economic and tourism trends. However, one must consider their risk appetite and investment goals before investing.
The future of the top hotel stocks in India can be viewed as promising, with the hotel industry stocks expected to grow at a CAGR of 8.5% from 2023 to 2027. However, investors should comprehend both the growth potential and challenges confronted by listed hotel companies in India.
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