Top Indian Hotel Stocks to Buy in 2023

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According to experts, the expansion of hotels would occur at the quickest rate in the world in the Indian hospitality sector.

With growth prospects predicted to be fairly stable over the next 10 years, the sector is predicted to be worth an astounding USD 300 billion in the future years.

Additionally, as India’s tourist industry grows, it is projected that hotel stocks would prosper.

The best hotel stocks in India, a summary of their performance, and important considerations for buying hotel sector stocks are all included in this blog.

Table of Contents

Best Hotel Stocks in India 2023

Now that we have a better knowledge of this sector, let’s evaluate the top hotel shares in India.

S.No.	Hotel Stocks List
1.	Indian Hotels Company Ltd.
2.	EIH Ltd.
3.	Byke Hospitality Ltd.
4.	Chalet Hotels Ltd.
5.	Lemon Tree Hotels Ltd.

Considerations Before Buying Hotel Industry Stock

The following are some things to think about before purchasing shares in Indian hotel firms that are publicly traded. –

High Dependence on Environment, Economy, and Competitive Pressure

One possible disadvantage of being a hotel investor is the reliance of these investments on the economic system, the location of the physical property, and the presence of close competition.

The majority of hotel guests are likely leisure travelers, thus they must have the extra money to enjoy such pleasures.

Hotels may see a dramatic decline in both the number of guests they can attract and the rates guests are willing to pay in difficult economic times as a result.

The popularity of a hotel is greatly influenced by its location. Even destinations with a solid reputation for drawing tourists might occasionally undergo popularity fluctuations that are out of your control.

Also, it’s likely that a neighbouring competitor may emerge or an existing rival will come out with a more alluring offer, which might turn customers away from your hotel.

Depending on Efficient Administration & Governance

Another possible issue that hotel owners may have to handle is the dependency of hotel investments on effective hotel management and prudent operational decisions.

The emphasis should be on staying current with market trends and making sufficient investments in cutting-edge hotel technology.

If an estate lags behind in terms of the technology provided to guests or the tools and equipment utilized by personnel, competitors will probably gain an advantage.

Visitors will, after all, favor the location that offers a smooth, modern, hassle-free experience.

Investors in hotels should never view a hotel’s actual location as anything more than a hotel set. Yet, a hotel’s performance and strategic decisions will determine whether it succeeds or fails.

This indicates that having a capable management team and having all hotel departments cooperate is essential.

Heavily Leveraged Capital Threat

Many hotel investors are persuaded to borrow sizable sums of money for their projects since doing so might boost the likelihood of bigger profits. The hotel may, however, accumulate an excessive amount of debt.

A hotel is considered to be over-leveraged if its debt increases to the point that it cannot pay its interest and operational expenses.

More debt puts you at a greater danger of having to pay higher interest rates, which raises the likelihood that your assets may lose money.

If a hotel starts to have operational issues, which can be caused by a number of outside circumstances that are impossible to forecast or control, you will need money to invest in your business. If you take on too much debt and lose your hotel property, you won’t be able to do this.

Top India Hotel Stocks: An Overview

1) Indian Hotels Company Ltd.

The list of stocks in the hospitality sector includes Indian hotels, which is one of the most chosen options.

This is due to the fact that under the management of the Indian Hotels Company Limited (IHCL) and its subsidiaries, several brands and businesses provide friendly Indian hospitality and first-rate service.

They include Ginger, which is reinventing the lean luxury industry, SeleQtions, a branded hotel collection, and Vivanta, stylish, upmarket hotels. Of course, Taj represents legendary hospitality to the fullest.

The Tata Group was formed by Jamsetji Tata, and it made its debut in 1903 with the opening of The Taj Mahal Palace in Bombay.

IHCL has 196 hotels in its portfolio, with 40 of them now under development in 12 countries, 4 continents, and more than 80 different cities.

The Indian Hotels Corporation Limited (IHCL), the largest hospitality firm in South Asia, is determined by market capitalization.

2) EIH Ltd.

EIH Ltd is in charge of The Oberoi Group, one of the largest chains of upscale accommodations in India. They all run hotels under the well-known brand names Oberoi, Trident, and Maidens.

Their customized service, commitment to excellence, and attention to detail have earned them committed customers and recognition from the international hotel sector.

They have a strong commitment to integrating the best CSR practices into their business practices. A prominent and well-known hotel industry group in India is comprised of EIH Associated Hotels Ltd (EAHL).

The business presently owns and runs 10 five-star hotels under the Trident Hotels brand and 20 outstanding properties under the premium Oberoi Hotels & Resorts banner.

3) Byke Hospitality Ltd.

One of India’s fastest-growing hotel companies, The Byke Hospitality Ltd., operates 21 hotels with 1,255 rooms in 16 cities and 9 states.

Byke’s distinctive Pure Vegetarian Hotels & Resorts motif draws travelers looking for a cozy experience.

With a homage to the adage inherent in conventional Indian culture, “Atithi Devo Bhavah,” they provide contemporary hospitality services.

The Bhavah’team has years of expertise and is committed to providing our guests with the greatest accommodations for both business and pleasure.

The stock price has not yet achieved its potential given TBHL’s strategic advantages. The aforementioned chart only displays 20% gains over the previous year in comparison to its rivals, leaving potential for a major investment opportunity.

One of the best hotel stocks in India to think about buying is TBHL.

4) Chalet Hotels Ltd.

Seven five-star hotels are operated by Chalet Hotels Ltd, a division of the K Raheja Corp Group, in Mumbai, Hyderabad, Bangalore, and Pune.

In Mumbai and Bangalore, Chalet Hotels Ltd is the owner of well-known brands including Marriott and Four Points.

The stock price of Chalet Hotels has dramatically risen during the past few years. As a result, it will benefit from the upcoming tourism boom in India.

Hence, your profits can drastically improve by integrating a reliable stocIndia’sCHL in your portfolio.

5) Lemon Tree Hotels Ltd.

As of June 30, 2017, Lemon Tree Hotels (LTH) was India’s third-largest chain overall and its biggest chain in the mid-priced hotel sector, according to the Horwath Report.

This prestigious Indian hotel group includes 87 sites across 52 states, 8,400 rooms, and more than 8,000 employees.

At more than 87 sites across India, Lemon Tree Hotels Ltd has hotels ranging from Super Luxury to Economical.

In other words, Lemon Tree Hotels don’t simply cater to high-end travellers; they also serve a wide range of customers from all socioeconomic strata.

In addition, the graph above shows that during the previous several months, Lemon Tree’s share price has climbed dramatically. Given the operational range and clientele of Lemon Tree Hotels, it is a smart purchase for you.

Conclusion

Because demand is expected to be high throughout the forthcoming Christmas season and occupancy rates are growing, the hotel business is one to watch in the following months.

There are also expectations for corporate action since locked-up or stopped merchandise will ultimately be placed up for sale.