Have you ever wondered if Indian hotels’ stock prices take a leap during the holiday season? The hospitality industry in India is vast and diverse, and the holiday season can be a pick time for top hotel stocks to experience growth. With holidays just around the corner, understanding how it affects the hospitality stock can be helpful in making an informed decision.
Factors Influencing Hotel Stocks During Holidays
During holiday travel and tourism, hotel stocks in India can experience a bullish trend. However, two major factors affect hotel stock performance, which must be considered.
1. Consumer Preferences
During holidays, it is a common trend to go on vacations, which means lots of travelers to tourist destinations. This makes hotels at the prime destination a top choice as travelers need a place to stay.
As a result, even hotels leverage this tourist rush and usually charge more for their rooms, resulting in profit for the hotels and investors.
This is not limited to domestic tourists but also attracts foreign tourists to experience the Indian heritage and culture. This makes the hotels busier and earns them more money.
2. Seasonal Attractiveness and Exclusive Offers
During the holidays, hotels become more than just a place to stay; they transform into winter wonderlands or summer havens.
It's the time when hotels craft their most attractive packages and discounts, not just targeting the long-trip planners but also the spontaneous staycationers right in cities. They design exclusive holiday-themed events, spa packages, and gourmet experiences that you can't just scroll past.
It's these strategically placed promotions that spike their bookings, driving revenues and, consequently, potentially bolstering their stock prices.
3. Cultural Celebrations and Local Collaborations
The holiday season isn't just about the big global festivities; in a diverse country like India, hotels capitalize on regional celebrations, too.
Ever noticed how hotels immerse themselves in the local culture and festivities? They host exclusive events, reflecting the vibrancy of the local festivals, be it Diwali, Christmas, or Pongal.
They might collaborate with local artisans, performers, and markets to bring an authentic cultural experience right to the lobby, offering you a unique blend of luxury and tradition.
This deep dive into cultural celebrations attracts both domestic and international tourists, creating a buzz that could positively affect their stocks during these seasons.
Top India Hotel Stocks in India
Thinking about hotel stocks in India? Let's look at the big names in India's hotel stocks right now:
1. Indian Hotels Company Ltd.
The Indian Hotels Company Ltd (IHCL), a significant entity in India's hospitality sector under the Tata Group, has seen robust growth following the post-lockdown surge in domestic tourism.
Holiday periods have particularly boosted IHCL, with high demand at its luxury sites in prime locations like Goa and Rajasthan.
The company is also venturing into new areas, including mid-tier hotels and wellness retreats, leveraging its reputable brand and operational expertise to tap into India's flourishing hospitality market.
● Indian Hotels Share Price (As of 26th October 2023): ₹374.80
● Market Capitalization: 59,642 Cr
2. EIH Ltd.
EIH Limited oversees the Oberoi Group. It stands as a prominent luxury hotel chain in India. Under the iconic brand names of Oberoi, Trident, and Maidens hotels, the company has earned global acclaim for its personalized service, unwavering commitment to excellence, and meticulous attention to detail.
The group operates 10 five-star hotels under the Trident Hotels brand and 20 exceptional properties under the Oberoi Hotels & Resorts luxury umbrella.
● EIH Share Price (As of 26th October 2023): ₹213.15
● Market Capitalization: 14,317 Cr
3. Chalet Hotels Ltd.
A subsidiary of the K Raheja Corp Group, Chalet Hotels Limited operates 9 five-star hotels like Marriott and Four Points in key cities such as Mumbai, Hyderabad, Bengaluru, and Pune.
With a strong focus on development and asset management, Chalet Hotels Limited stands at the forefront of the hospitality sector. They currently manage nine active hotels, which include a flagship property featuring serviced apartments, providing a total of 2,554 rooms.
Their core mission revolves around promoting business efficiency and promoting sustainable growth from the very inception.
● Chalet Hotels Share Price (As of 26th October 2023): ₹557.25
● Market Capitalization: 12,260 Cr
4. Lemon Tree Hotels Ltd.
Lemon Tree, a prominent hospitality company in India, was founded by Patu Keshwani in 2002. In May 2004, they launched their first hotel with a modest 49 rooms. The year 2018 marked a significant milestone for Lemon Tree Hotels when they made their debut on the Indian National Stock Exchange through a public offering.
Presently, Lemon Tree manages an impressive portfolio of 95 hotels, covering 9,400 rooms distributed across 60 cities in India. Furthermore, the company has ambitious expansion plans, with both domestic and international locations on its radar.
It proudly holds the distinction of being the largest chain of mid-priced hotels in India.
● Lemon Tree Hotels Share Price (As of 26th October 2023): ₹106.90
● Market Capitalization: 9,673 Cr
4. Mahindra Holidays & Resorts India Ltd.
Club Mahindra is an Indian holiday company that started in 1996. It used to be called Mahindra Holidays and Resorts India Limited but changed its name in 1998.
They opened their first vacation spot in Goa in 1999. Right now, they have over 400 partner hotels, with 125 in India and the rest in other countries. It's one of the most popular hotel chains in India, offering fun holiday experiences to people on a timeshare basis.
Mahindra Holidays' net profit fell by 70.15% to ₹8.9 crore in Q1 FY24, from ₹29.82 crore the year before. Positively, their combined revenue rose 2% to ₹651.82 crore. Market experts anticipate the possibility of the company's stock price increasing in the coming months.
● Mahindra Holiday Share Price (As of 26th October 2023): ₹404.05
● Market Capitalization: 9,410 Cr
Conclusion
The performance of these top hotel stocks in India during holidays is a complex interplay of various factors. While there may be fluctuations in stock prices, the overall growth trend during holidays is influenced by economic conditions, travel trends, and investor sentiment.
Hotels often benefit from increased bookings during peak holiday seasons, which can positively impact their stock prices. However, it's essential for you to consider a holistic view when assessing the growth potential of hotel stocks during holidays.
Moneycontrol Journalists are not involved in creation of this article.
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