Hotel Stocks

Analysts estimate annual growth of 15% in revenue and 20% in Ebitda during FY23 to FY25, and have target prices ranging Rs 375-380

The demand outlook for the sector in 2023 remains robust on the back of sporting events such as world cup hockey and cricket and global events like the ongoing G20.

After closing three weeks with losses, the benchmark indices ended the last week of 2022 with gains

Hotel stocks are seeing healthy accumulation with select stocks eyeing up to 35 per cent jump this travel season

Occupancy rate is expected to improve further from the pre-pandemic levels, on the back of strong demand drivers including resumption in foreign inbound travel, says analyst at Motilal Oswal.

The Positive Outlook reflects a consistent recovery in CHL's business operations since 2QFY22, with 1QFY23 revenue and EBITDA exceeding the pre-COVID-19 levels.

Most of the signals are positive, and if sustained, many businesses could see a big rebound

Analysts anticipate a faster recovery in the demand environment and are hopeful that consumption will reach normalised pre-Covid levels in H1FY23

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Govt okays Neelachal Ispat sale to Tata Steel Long Products; stock rises 6%; Adani Wilmar IPO subscribed 17.36 times; GMP halves in a week; Hotel stocks rally on improved outlook after third wave

While Q2FY22 witnessed a sharp rebound in revenues on a lower base, ICICI Securities expect a further recovery in revenues during Q3FY22E supported by healthy festive season travel demand.

These stocks have corrected between 10-20 per cent over the last one month relative to benchmarks' 3 per cent fall. Here's a possible way forward for these stocks

Indian hotel industry is reporting a consistent and rapid recovery in occupancies after the halt on the recovery put by second wave of COVID-19

Shares of Indian Hotel have rallied nearly 30 per cent in the past one month

Indian Hotels shares have gained 25 per cent in the last four trading sessions

Share prices have risen in past fortnight on hopes of recovery in biz

Analyst believe hospitality business will be back to pre-Covid level by Q4FY22, if there won't be third wave of the pandemic

Analysts also expect IHCL to maintain a valuation premium to peers due to its strong brand, which would aid pricing and occupancy levels

Shares of Indian Hotels Company have rallied 105 per cent from its 52-week low levels hit in May last year

At the bourses, most hotel stocks have gained ground from their respective March 2020 low. ITDC, Lemon Tree Hotels, Indian Hotels, EIH and Taj GVK have rallied 56 per cent to 163 per cent since then

Cost cutting initiatives by Indian Hotels, EIH helps restrict loss at the operating level