List of Best Hotel Stocks in India 2024
Whether traveling for business or with your family, you always want to be comfortable. You constantly search for a hotel that meets all your requirements, such as good meals, a cozy bed, and other services. The hotel industry features a mix of domestic and international companies.
In this blog, we will discuss the Indian hotel industry and provide an overview of the top hotel companies based on market capitalization and 1-year returns.
Overview of the Hotel Industry
The hotel industry is one of the key elements of any nation that encourages tourism. In addition to lodging, the hotels provide local and foreign guests with various other amenities. In this industry, there are many players; some cater to the wealthy, while others serve the middle class. India’s hotel industry is valued at $ 24.61 billion in 2024 and is expected to reach a valuation of $ 31.01 billion by 2029 at a CAGR of 4.73%.
The Ministry of Tourism launched the “Dekho Apna Desh” initiative in April 2020 to encourage tourists to explore cultural destinations of India. They also launched the National Integrated Database of Hospitality Industry (NIDHI) scheme to encourage the use of technology in the hotel business.
Top Hotel Stocks Based on Market Capitalization
The Top Hotel Stocks in 2024 are:
| S.No. | Hotel Stocks |
|---|---|
| 1 | Indian Hotels Company Ltd. |
| 2 | EIH Limited |
| 3 | Chalet Hotels Limited |
| 4 | Lemon Tree Limited |
| 5 | Juniper Hotels |
The hotel stocks have been listed in descending order based on their market capitalization in the table below:
| Company | Market Capitalization (in INR crore) | Current Market Price (INR) | 52-Week High | 52-Week Low |
| Indian Hotels Company Ltd. | 88,651 | 623 | 663 | 371 |
| EIH Ltd. | 24,489 | 392 | 566 | 205 |
| Chalet Hotels Ltd. | 17,245 | 791 | 959 | 477 |
| Lemon Tree Hotels Ltd. | 9,598 | 121 | 158 | 92.5 |
| Juniper Hotels Ltd. | 9,223 | 414 | 538 | 361 |
Best Hotel Stocks in India Based on Market Capitalization – An Overview
The best hotel stocks in India are given below, along with a brief overview:
1. Indian Hotels Company Ltd.
India Hotel Company Ltd. was founded in 1899, with its headquarters in Mumbai. The company opened its first hotel, The Taj Mahal Palace, in Mumbai in 1903. IHCL has 218 hotels currently operating, with another 91 in the pipeline, covering luxury, premium, and budget categories. The company’s hotel chains include Taj, SeleQtions, Vivanta, and Ginger. The Indian Hotel Company focuses on providing high standards of service and guest experience.
2. EIH Ltd.
EIH Ltd. is an Indian hospitality company with the Oberoi, Trident, and Maidens brands. It has over 30 hotels and resorts across India and overseas, with luxurious accommodations, fine dining, and end-to-end event services. Its business model features an in-house hotel management and operations system focusing on high-end service and guest satisfaction. The company’s headquarters is in New Delhi.
3. Chalet Hotels Ltd.
Chalet Hotels Ltd., incorporated in 1986, is an Indian hospitality company based in Mumbai. The company has a portfolio of 10 luxury hotels and serviced apartments across select metro cities such as Mumbai, Bangalore, and Hyderabad. These are managed under various brands like JW Marriott and The Westin. Its business model centers on the ownership and management of upscale hotels, working out strategic locations and worldwide hospitality partnerships to deliver extraordinary guest experiences.
4. Lemon Tree Hotels Ltd.
Lemon Tree Hotels Ltd. is one of India’s largest hotel chains and was incorporated in 2002. The company has its headquarters in New Delhi. The company operates 100 hotels in 64 cities across India. The company owns seven brands including, Aurika Hotels and Resorts, Lemon Tree Premier, Lemon Tree Hotels, Keys Prima, etc. Their services have concentrated on offering midscale and upscale accommodations, dining options, and meeting facilities. Lemon Tree Hotels has adopted an asset-light business model of managing and franchising properties to achieve operational efficiency.
5. Juniper Hotels Ltd.
A joint venture between the Saraf Group and Hyatt led to the creation of Juniper Hotels. In 1998, the Arun Kumar Saraf-led Saraf group partnered with Hyatt to create a chain of upscale hotels in India. The Grand Hyatt Mumbai Hotel and Residences, the company’s first hotel, was opened in 2004 in Mumbai. In 2024, the company was listed on the Indian Stock Exchange. The company’s headquarters is in Mumbai.
Top Hotel Stocks Based on 1-Year Return
The hotel stocks have been listed in descending order based on their 1-year returns in the table below:
| S.No. | Company | 1-Year Return |
|---|---|---|
| 1 | Viceroy Hotels Ltd. | 4472.65% |
| 2 | The Byke Hospitality Ltd. | 106.94% |
| 3 | India Tourism Development Corporation Ltd. | 99.24% |
| 4 | Robust Hotels Ltd. | 98.62% |
| 5 | EIH Ltd. | 82.93% |
Best Hotel Stocks in India Based on 1-Year Return – An Overview
The best hotel stocks according to 1-Year return are given below, along with a brief overview:
Viceroy Hotels Ltd.
The company was originally named Palace Heights Hotels Ltd. and was established in 1965. Eventually, the business increased its operations by forming strategic alliances with global names like Marriott International. In 2001, the business rebranded itself as Viceroy Hotel. The company’s primary goal is to give its clients access to top-notch facilities. The organization’s headquarters is in Hyderabad.
The Byke Hospitality Ltd.
When the company was first founded in 1990, it was known as Suave Hotels. In 2011, the name was changed to The Byke Hospitality Limited. The company has 21 hotels across 16 cities offering comfortable accommodations to the tourists. The company was listed on the Indian Stock Exchange in 2015. The company’s headquarters are in Mumbai, operating 21 hotels across the nation.
India Tourism Development Corporation Ltd.
The Indian government founded ITDC, or India Tourism Development Corporation Limited (ITDC Limited), in 1966 to promote tourism in India. The company established the Ashok Group of Hotels around the country and also operates duty-free stores at airports. Its main office is located in New Delhi.
Robust Hotels Ltd.
The business was founded in 2007 under the name Robust Hotels Private Limited. The company’s primary goal is to offer hospitality services. The company operates a hotel named Hyatt Regency in Chennai. Robust Hotels Ltd. is a part of the Saraf group, which has been in the hotel business since 1977, when they opened their first hotel in Kathmandu, Nepal.
Overviews of the remaining companies have been given above.
Key Performance Indicators (KPIs)
| Company | ROE (%) | ROCE (%) | Debt to Equity | P/E | P/B |
| Indian Hotels Company Ltd. | 13.31 | 14.66 | 0.03 | 68.56 | 9.33 |
| EIH Ltd. | 16.22 | 20.20 | 0 | 38.91 | 6.2 |
| Chalet Hotels Ltd. | 15.48 | 12.14 | 1.53 | 68.96 | 9.26 |
| Lemon Tree Hotels Ltd. | 15.35 | 11.52 | 1.96 | 65.8 | 9.87 |
| Juniper Hotels Ltd. | 0.89 | 6.56 | 0.32 | 1,016.15 | 3.54 |
| Viceroy Hotels Ltd. | 3.57 | 1.86 | 2.52 | -172.73 | 10.78 |
| The Byke Hospitality Ltd. | 2.79 | 4.5 | 0.05 | 70.42 | 1.92 |
| India Tourism Development Corporation Ltd. | 18.07 | 27.71 | 0 | 91.89 | 16.53 |
| Robust Hotels Ltd. | 7.95 | 1.99 | 0.16 | 57.67 | 0.68 |
Benefit of Investing in Hotel Stocks
Investing in hotel stocks can have several advantages, some of which are listed below:
- Sectoral Growth – Investing in hotel stocks can help you enhance the return on your portfolio due to the rise in tourism.
- Asset Value – The corporations own hotels in desirable locations, and as time goes on, their value will rise as well, making them an asset in their portfolio.
- Diversified Revenue – Besides accommodation, the hotels offer food and beverage services, spa and wellness centers, and event management.
Factors to be Considered Before Investing in Hotel Stocks
There are various factors one should take into account before investing in hotel stocks:
- Competition – The hotel industry is quite competitive due to the presence of well-known companies and many small players. As a result, prices are very competitive, which lowers the company’s profit margin.
- Seasonal Business – Most people in India go on a vacation during summer vacations or holiday seasons, which affects hotel occupancy and revenue.
- Economic Conditions – Revenues of hotels decline if people’s disposable income declines as they won’t travel or spend money on holidays.
Future of Hotel Sector in India
The hotel industry is expected to rise by 7-9% in FY 2025 due to rising tourism and favorable government initiatives. The rise in business trips and weddings is expected to drive up hotel occupancy rates in India, particularly in tier 2 cities, where it is expected to reach its highest level in a decade. Additionally, the government has approved 100% foreign direct investment in the hotel sector, which is expected to reach 31.01 billion USD by 2029. However, it is advised to consult a financial advisor before investing.
Conclusion
To summarize, investing in hotel stocks can be profitable due to the growth potential of the hotel industry. Hotel stocks can also help you achieve portfolio diversification. Before making any investments, an investor should assess the firm’s financial data, such as its revenue and profit margins. Additionally, an individual must consult a financial advisor before investing.
Frequently Asked Questions (FAQs)
Which hotel companies are listed on the stock market in India?
The top hotel stocks in India are Lemon Tree Hotels, Indian Hotels Company Ltd., Chalet Hotels, EIH Ltd., etc.
Is it a good time to invest in Hotel Stocks?
Yes, you may invest in hotel stocks since they have a lot of room to grow their operations. The Indian hotel business is predicted to grow to be worth 31.01 billion USD by 2029; therefore, investors can invest after consulting a financial advisor.
Is the hotel business cyclical in nature?
Hotel business is cyclical as tourism increases during holiday seasons and summer vacations, resulting in high revenues. During other times, the vacancy rate increases, and the revenue decreases.
Do hotel stocks pay dividends?
Some hotel stocks pay dividends, while others do not. Dividend yield also varies between companies.
Is it safe to invest in hotel stocks?
You should consider investing in hotel stocks, as the industry is expected to grow in the future. However, an investor should do a thorough analysis or consult a financial advisor before investing.
