Introduction
The Indian hotel industry is a crucial part of the global economy. Its performance impacts the country’s tourism and hospitality stocks significantly. As the industry expands, it is expected to touch new heights, making it a lucrative investment option.
Through this post, you can learn about the top 5 hotel stocks to watch out for in 2024 and the future trends and opportunities in the industry.
Importance of investments in hotel sector stocks
Hotel stocks impact employment, tourism, and local economies directly. The sector’s direct contribution to the country’s GDP is forecasted to reach USD 1 trillion by 2047, from USD 40 billion in 2022. Thus, the economic relevance of investing in it is prominent.
With a rise in disposable income and travel, the demand for hotels has been increasing consistently. There is a higher focus on experiences, increasing the demand for superior lodging and dining options. As a result, the industry holds a crucial position in the market.
Five best hotel stocks to buy in 2024
You can see the financial details of the five best hotel stocks to buy in 2024 in the table below.
|
Hotel Stock
|
Market Capitalisation (Cr)*
|
1-Year Return*
|
|
Indian Hotels Company Ltd.
|
83,455.83
|
88.42%
|
|
East India Hotels Ltd.
|
25,299.11
|
155.68%
|
|
Lemon Tree Hotels Ltd.
|
11,091.45
|
79.85%
|
|
Chalet Hotels Ltd.
|
16,737.61
|
122.83%
|
|
Mahindra Holidays & Resorts India Ltd.
|
8,390.50
|
51.76%
|
*As of February 29, 2024
1. Indian Hotels Company Ltd. (IHCL)
The Indian Hotels Company Ltd. belongs to the renowned Tata Group of companies. It is one of the biggest hotel stocks in India based on market capitalisation. Its popular hotel brands include the iconic Taj, Vivanta, and Ginger. The company was incorporated in 1903 and has approximately 196 hotels worldwide. It manages a diverse portfolio, overseeing hotels, resorts, palaces, spas, jungle safaris, and in-flight catering services.
2. East India Hotels Ltd. (EIH)
EIH Ltd. is India’s second-biggest hotel chain. It was founded as a public limited company on May 26, 1949. It listed its equity shares on the Bombay Stock Exchange (BSE) in 1956, marking a milestone in its history. EIH owns and manages luxury hotels like Oberoi and Trident, making it a renowned player in the industry. Investors eye the company because of its long past and steady demand from high-end clientele.
3. Lemon Tree Hotels Ltd.
Lemon Tree Hotels was established in 2002. In May 2004, it inaugurated its maiden hotel, comprising 49 rooms. It caters to the demands of the mid-scale and upscale market. Since it offers specialised, high-quality services at an affordable price, it is the go-to choice for budget-conscious travellers.
4. Chalet Hotels Ltd. (CHL)
Chalet Hotels Ltd. originally known as “Kenwood Hotels Pvt. Ltd.,” the company was established on January 6, 1986. It owns and manages the Westin and JW Marriot Group of hotel chains in India. The company has gained a foothold in the market since its establishment. It is popular in major Indian cities like Mumbai and Bengaluru. The firm focuses on development. Thus, you can expect good profits from your investments in CHL stocks.
5. Mahindra Holidays & Resorts India Ltd.
Mahindra Holidays & Resorts India Ltd. was incorporated in 1996. It transformed into Club Mahindra Holidays in 1998 by registering itself as a public limited company. It inaugurated its first resort in Munnar in the same year, followed by a resort in Goa in 1999. The company focuses on the vacation ownership market and is expected to gain stability in recurring revenue.
Futures trends and opportunities of hotel stock investments
The future trajectory of the hotel industry seems promising. Recent trends, such as technology intervention, experiential travel, and sustainable practices, are further responsible for positive change. You should track innovative companies embracing these trends as they are headed toward capitalising on the changing consumer landscape.
Conclusion
Investing in India’s best hotel stocks helps you capitalise on the industry’s growth potential. It also allows you to diversify your portfolio. But make sure you do your research and due diligence before investing. You must evaluate the company’s performance, economic trends, and government regulations before making investment decisions. You must also be prepared to adapt to the dynamic nature of the market.
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