Hospitality Stocks Soar: Market Trends and Insights

Did you know that hospitality stocks rose up to 84% in the last one year? 🚀

Room rates? They’re expected to climb another 8-10% in 2025.

According to a recent Crisil Ratings Report, branded hotels are expected to grow their revenue further by 13-14% this year.

This is because branded hotels in India are experiencing a surge in demand.

The hospitality industry is driven by the vision of regional expansion and increased occupancy rates.

Top Hotel Stocks: Performance Insights

Here’s a closer look at 4 hotel stocks analyzed by their market capitalization and Return on Capital Employed (ROCE):

#1 Indian Hotels Co

• Up 84% in 1 year
• Part of Tata Group, including Vivanta, SeleQtions, and Ginger brands in its portfolio.
• Market Cap: ₹1.21 Lakh Cr
• ROCE: 15%

#2 EIH

• Up ~53% in 1 year
• Luxury-focused hotel chain, manages Trident hotels.
• Market Cap: ₹25.96 K Cr
• ROCE: 23%

#3 Chalet Hotels

• Up ~32% in 1 year
• Develops and manages properties in urban centres. Caters to corporate travellers.
• Market Cap: ₹21.01 K Cr
• ROCE: 10%

#4 Lemon Tree Hotels

• Up ~14% in 1 year
• Known for innovation and eco-friendly practices.
• Market Cap: ₹11.86 K Cr
• ROCE: 11%

#5 Juniper Hotels

• Caters to budget-conscious consumers in metro and tier-2 cities.
• Market Cap: ₹7.59 K Cr
• ROCE: 6%

Factors Driving the Surge 🚀

• Strong Occupancy Rates: Expected to stay steady at 74-75%.
• Top Seven Metros: Account for 25% of upcoming hotel additions, offering both leisure and business hospitality.
• Increased Travel Demand: From holidays, short weekend trips, weddings, and business events.
• Air Traffic Boom: Over 376 crore passengers, including 69.6 crore international travellers.
• MICE Momentum: Meetings, Incentives, Conferences, and Exhibitions (MICE) are driving demand, expected to grow at an 18% CAGR from 2023 to 2030.