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Best Hotel Stocks to Buy In India 2023

After a sluggish period of a few years, the hotel industry is witnessing a revival now. Furthermore, the industry in India is estimated to reach milestones in terms of expansion in the years to come. Rising from the effects of a global health crisis, the Indian hotel industry is advancing at a steady rate. With such potential, considering an investment in the best hotel stocks in India may be fruitful.

The Hospitality Sector - An Overview 

Reports suggest that the revenue in the hospitality sector, primarily in the hotel industry, is predicted to display an annual CAGR (2023-2027) of 8.29%. By 2027, it is estimated that the number of users in the hotel industry will be 61.33 million. Apart from the main sectors, the hospitality sector contributes a substantial amount to the overall GDP of India. According to statistics, this industry could outperform others as it comes back into action with expansion and growth from now onwards. Given this, the best hotel stocks in India may be worth considering for investment. 

With relaxed norms in the tourism sector, the hotel industry is ready to spread its wings and expand. Not just your conventional leisure getaway, hotels have evolved during the last few years, adapting to customers' needs and evolving with technology to operate in novel ways. The hotel industry in India has become more streamlined than in the past. Service delivery has become more unique with leisure, workcation and staycation segments diversifying how customers travel and make the most of their hotel stays. Hotels are doing more to draw guests by generating deals and discounts, and these are met with success. The hotel industry is on the brink of seeing a full recovery post the health crisis. 

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Hotel Stocks in 2023 - A Positive Outlook

The market outlook for the hotel industry is positive, and since this may be a potentially growing sector, an investment could be thought of. There is also the attraction of portfolio diversification when investing in this sector. Hotels are doing everything they can to remain sustainable in the long run, and investors could note this as a positive factor for their evolution in the future. As long as there is a travel demand, and with India’s population growing and more people travelling, there will always be growth in the hotel industry. 

The Best Hotel Stocks for 2023

When you speak of hotels, there are many types, from big hotel chains to ultra-luxury resorts and boutique hotels. The word “hotel” has taken on new meaning depending on what guests want from their stay. Hotel owners strive to make the hotel experience as authentic and as comfortable as a home-away-from-home environment. Here are some of the hotel stocks to buy in 2023 after you do your research:

1. EIH Ltd

Essentially, this is part of the Oberoi Hotel Group, which owns and manages hotels in India and overseas. Their popular brands like Oberoi, Maidens and Trident make the group acknowledged as one of the best hotel chains in the world, not just domestically. With luxury at every step of the way when you stay at any of the group’s hotels, these hotels are known for their brilliant locations and holiday deals that are irresistible. With luxury hotels and resorts spread over India, this may be considered a valuable investment depending on an investor’s financial goals. 

2. Indian Hotels Company Ltd.

The Indian Hotels Company Ltd. was founded by one of the patriarchs of the Indian industry, Sir Jamsetji Tata. In the segment of hotel stocks, this is among the most important companies to probably consider for investment. Famous for their hospitality and impeccable service, hotels like the Taj and Vivanta are big names in the Indian hotel industry. The Taj brand was voted as the world’s strongest hotel brand in 2022, and with hotels in 10 countries, over 125 locations, with 265+ hotels under its belt, this is one of the world’s largest hotels (largest in South Asia) companies and a serious contender for investment in the best hotel stocks in India. 

3. Lemon Tree Hotels Ltd.

A hotel company that boasts of the largest Indian hotels in the mid-price category, Lemon Tree Hotels Ltd. is one of the popular chains for travellers who want comfort, cleanliness and affordability. Established in 2004, it has made a name for itself in the hotel industry and has loyal customers from all over India. 

4. Chalet Hotels Ltd.

A subsidiary of the K. Raheja Group, the company owns hotels and resorts in India. The hotel portfolio includes eight hotels across Bengaluru, Hyderabad, Pune, New Delhi and Mumbai in India, and with aims to expand, this is a company worth watching. 

5. Byke Hospitality Ltd. 

This is one of India’s quickest emerging hotel chains, with locations at hill stations and scenic spots in India. The group has a presence in 9 states and 16 cities across India, with 21 hotels in total. The distinctiveness and fame of Byke Hotels are that they cater to pure vegetarian tastes and draw in a substantial Indian population. Out of all the hotel stocks in 2023, investors may view emerging hotels and growth prospects. 

The Crossroads of Investment

With a crucial transformation on the cards, the Indian hotel industry is at a crossroads of sorts. Of course, there are highly established hotel companies that can be considered for investment according to investors’ goals, but investors may wish to look at smaller chains and those on the growth path. Opening a demat account is easy enough, but picking a varied bag of stocks to invest in may be a challenge. Hotel stocks may offer diversity in a financial portfolio, as will an upcoming IPO. Hotel stocks are stocks which may be viewed as novel stock investments, and with the travel and leisure industry set to see a boom, they could be rewarding for investors. 

 

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account 

 

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