List of Hotel Shares on NSE India 2023 for Your Portfolio

The Indian hotel industry is an integral part of the global economy and has a significant impact on the tourism and Indian hospitality sectors. With the rise in disposable income and travel, the demand for hotels has been on the rise, making it a lucrative investment option. Make hotel stocks a part of your investment portfolio as a part of long term strategy.
Investing in the best hotel stocks in NSE can offer diversification to your investment portfolio. Also it can be an effective way to capitalize on the growth potential of the hotel sector stocks. 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 2023.
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 list, investors can participate in the growth and profitability of these companies. They can also earn returns on their investments.
List of Top Hotel Stocks in India
Here are the best listed hotel companies in India that could be excellent hotel investments for investors with different risk appetite.
Hotel Stocks India | Market Cap(in Cr) | Share Price |
---|---|---|
Indian Hotels Company Ltd. | ₹60,260.48 | ₹420.85 |
EIH Ltd. | ₹17,025.54 | ₹251.9 |
Byke Hospitality Ltd | ₹157 | ₹39.5 |
Chalet Hotels Ltd. | ₹11,086.72 | ₹535.6 |
Lemon Tree Hotels Ltd. | ₹8,553.57 | ₹107.7 |
Note: The data is from 4th September, 2023. However, for real-time updates on stock prices and market trends, visit smallcase stocks collection today!
Growth of the Hotel Industry in India
The hotel industry in India has seen significant growth over the past few decades. It’s driven by the rise in domestic and international tourism. The sector is an important contributor to the Indian economy. Wth 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 hotels 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.
Top Hotel Companies in India
Let’s have a look at the top hotel shares in India.
Indian Hotel Company
Indian Hotel Company Limited (IHCL) is a leading hotel company in India and is part of the Tata Group. It operates under various brands such as Taj, Vivanta, and Ginger. The hotel stock India has a presence in several countries worldwide, and its portfolio includes luxury hotels, resorts, and palaces.
- Moderate Risk: Stock is 2.53x as volatile as Nifty
- Midcap: With a market cap of ₹60,260 cr, stock is ranked 104
EIH Ltd
EIH Limited, also known as Oberoi Hotels & Resorts, is another prominent hotel company in India. It has a presence in India and abroad, including countries like Egypt, Indonesia, and Mauritius. The company operates luxury hotels and resorts under its flagship brand, The Oberoi.
- High Risk: Stock is 3.41x as volatile as Nifty
- Smallcap: With a market cap of ₹17,025 cr, stock is ranked 291
Byke Hospitality Ltd
The Byke Hospitality Ltd. is a mid-sized hotel company in India that operates under the brand name “The Byke.” The company has a presence in several locations across India, and its portfolio includes mid-segment hotels, resorts, and villas.
Chalet Hotels Ltd
Chalet Hotels Ltd, a K Raheja Corp subsidiary, is a hospitality company that operates under the brand names “JW Marriott” and “Renaissance.” The company has a presence in several locations across India, and its portfolio includes luxury hotels, resorts, and serviced apartments.
- Moderate Risk: Stock is 2.76x as volatile as Nifty
- Smallcap: With a market cap of ₹11,086 cr, stock is ranked 380
Lemon Tree Hotels Ltd
Lemon Tree Hotels Limited is a mid-sized hotel company in India that operates under various brands such as Lemon Tree Premier, Lemon Tree Hotels, and Red Fox Hotels. The hotel stock has a presence in several cities across India and offers a range of hotels, from midscale to upscale.
- High Risk: Stock is 3.47x as volatile as Nifty
- Smallcap: With a market cap of ₹8,553 cr, stock is ranked 448
How to Invest in the Best Hotel Stocks in NSE?
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 a buy order for the desired hotel stocks India through the brokerage platform.
- Monitor your investment and keep up-to-date with industry news and trends.
- Regularly review and evaluate your investment portfolio.
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolio 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.
Factors Affecting the Indian Hotels Stock Price
Hotel sector stocks 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 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 are 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 the 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 hotel company.
- 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.
Types of Hotel Stocks in India
Hotel stocks are categorized into three types. The categorisation is based on the level of service and amenities offered to customers. These categories are:
Luxury Hotel Stocks
The luxury hotel shares are typically associated with high-end services and amenities such as fine dining, spa services, and personalized attention to guests. These India 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. These hotel stocks are considered less volatile than luxury hotel stocks. Have 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 offer basic services at an affordable price point and are often located in tourist and business districts. These hotel stocks are considered to be the least volatile and offer stable cash flows due to their 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.
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, which can help in reducing overall portfolio risk.
- Income Generation: Many hotel stocks India offer a dividend to their shareholders, which 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, which can help in reducing risk and maximizing returns.
Risks Associated with Hotel Stocks
Hotel shares, 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 the 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, COVID-19 severely impacted the hotel industry by reducing travel demand, leading to hotel closures and job losses.
- 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 to buy 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.
FAQs
According to recent updates, here are the top 3 hotel sector stocks that you can invest in – Indian Hotel Company, EIH Ltd & Byke Hospitality Ltd. However, it’s important to do your own research or consult a financial advisor before investing.
You can invest in hotel stocks India by opening a trading account with a stockbroker and buying shares of hotel companies 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.
Investing in the top hotel stocks in India can be appealing to several types of investors. Including: long term investors, growth-oriented investors, those with high risk appetite, and finally, the investors who believe in the economic and tourism trends.
The future of hotel stocks in India is positive, with the industry expected to grow at a CAGR of 8.5% from 2023 to 2027.
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