Top Hotel Stocks to Buy Now in India 2024
Take the example of Indian Hotels Ltd. It is one of the biggest hotel stocks in India as per market capitalization. The news of the severity of the pandemic broke sometime around January 2020. India went into an official lockdown in March 2020. Between February 01, 2020 and April 03, 2020, the share price of Indian Hotels Ltd. fell by a whopping 50%.
- 37 world heritage sites,
- 80 national parks,
- 441 sanctuaries and hundreds of beaches.
Before the pandemic, India attracted nearly 10.9 million foreign travelers. Our foreign travelers grew by 24% y-o-y between 2016 and 2019. But the pandemic of 2020 reduced the number of foreign travelers to 2.9 million till March 2020. However, things have improved. In 2021, the number of foreign travelers in India increased to 4.6 million.
- Do you know that the hospitality and tourism industry contributed nearly US $98.2 Billion to our GDP in 2018? Yes, and this is expected to increase to US$ 194.7 Billion by 2028.
- In 2019, the earnings from the hospitality and tourism industry hit a lifetime high of US$ 30.06 Billion.
Now obviously the government will try to increase their earnings from the hospitality and tourism industry. So, it has approved 100% foreign direct investment in tourism construction, development of hotels, resorts etc. Some of the other initiatives include a tie-up with e-commerce travel companies like Easy Trip Planners Ltd., Yatra.com, and Cleartrip etc. Some popular initiatives planned by the government to grow the hospitality and tourism industry –
Hotel Industry in India
The hotel industry in India is divided into the following segments –
- The Independent / Unbranded hotels, that accounts for 70% of the total available hotel rooms.
- The Alternate accommodations like homestays, farm stays which are increasingly becoming more popular.
- The New-age hotel chains. This is the fastest growing segment of the hotel industry. It is expected to grow from 7.36% in FY 2018 to 14.80% in FY 2024.
- The Traditional or Branded hotels, whose share has declined to just 5% of the total available hotel rooms.
The two key parameters used to measure the success of the hotel industry are:
- Average Room Rate (ARR)
- Revenue per Available Room (RevPAR)
The graph below shows the trends in the ARR and RevPAR of the Indian hotel industry.
List of Hotel Stocks in India
Name | Current Price (In Rs) | Market Capitalization (In Crore) | DE | PE | ROE | ROCE | PB |
Indian Hotels Co Ltd. | ₹ 210.60 | ₹ 27,828 | 1.84 | - | -22.15 | -7 | 8.56 |
EIH Ltd. | ₹ 127.90 | ₹ 7,998 | 0.2 | - | -11.7 | -11.49 | 2.68 |
Chalet Hotels Ltd | ₹ 276.05 | ₹ 5,660 | 1.71 | - | -8.46 | -2.67 | 4.1 |
Barbeque-Nation Hospitality Ltd. | ₹ 1,248.65 | ₹ 4,858 | 1.23 | - | -61.15 | -3.03 | 12.19 |
Lemon Tree Hotel | ₹ 54.50 | ₹ 4,318 | 2.54 | - | -13.33 | -0.93 | 5.08 |
Mahindra Holiday | ₹ 211.45 | ₹ 4,242 | 4.95 | 103.24 | -29.6 | 3.74 | 19.71 |
I T D C | ₹ 349.65 | ₹ 2,999 | 0 | 355.55 | -11.87 | -12.03 | 10.51 |
EIH Associate Hotels | ₹ 402.10 | ₹ 1,225 | 0.01 | 134.06 | -6.53 | -9.43 | 3.95 |
Oriental Hotels | ₹ 60.85 | ₹ 1,087 | 1.21 | - | -14.54 | -7.33 | 4.4 |
Taj GVK Hotels | ₹ 142.50 | ₹ 893 | 0.46 | - | -10.35 | -2.68 | 2.52 |
Speciality Rest. | ₹ 153.20 | ₹ 719 | 1.05 | 41.05 | -22.13 | -11.13 | 5.44 |
HLV | ₹ 9.52 | ₹ 628 | 0.05 | - | -10.11 | -8.84 | 1.41 |
Sayaji Hotels | ₹ 236.20 | ₹ 414 | 0.3 | 701.37 | -49.31 | -20.43 | 2.11 |
Advani Hotels. | ₹ 88.20 | ₹ 408 | 0.02 | 95.28 | -9.01 | -11.29 | 10.94 |
Royal Orchid Hotel | ₹ 113.95 | ₹ 312 | 1.22 | - | -16.95 | -7.1 | 2.32 |
Benares Hotels | ₹ 1,950.00 | ₹ 253 | 0.1 | 69.83 | -6.95 | -7.07 | 3.61 |
Sinclairs Hotels | ₹ 82.00 | ₹ 228 | 0.1 | 31.99 | 1.97 | 2.75 | 2.16 |
Asian Hotels (E) | ₹ 198.00 | ₹ 228 | 0.17 | - | -4.04 | -1.85 | 0.33 |
Apollo Sindoori | ₹ 790.00 | ₹ 205 | 0.24 | 14.65 | 11.35 | 11.98 | 2.21 |
Asian Hotels (W) | ₹ 160.00 | ₹ 186 | 24.82 | - | 0.85 | 11.77 | 4.82 |
U P Hotels | ₹ 320.50 | ₹ 173 | 0 | 44.15 | -8.44 | -11.48 | 2 |
Asian Hotels (N) | ₹ 78.55 | ₹ 153 | 3.39 | - | -23.11 | -1.78 | 0.5 |
Kamat Hotels | ₹ 61.95 | ₹ 146 | - | -2.51 | |||
Graviss Hospital | ₹ 20.00 | ₹ 141 | 0.2 | - | -8.16 | -8.88 | 0.81 |
Country Club Hos | ₹ 8.00 | ₹ 131 | 0.4 | - | -12.16 | -2.37 | 0.37 |
The Byke Hospitality | ₹ 32.20 | ₹ 129 | 0.58 | - | -10.17 | -4.58 | 0.82 |
CHL | ₹ 16.49 | ₹ 90 | - | -10.44 | |||
Savera Industrie | ₹ 49.95 | ₹ 60 | 0.07 | 126.78 | -6.2 | -5.73 | 1.04 |
KHFM Hospitality | ₹ 55.25 | ₹ 55 | 0.95 | 16.99 | 8.88 | 10.64 | 1.45 |
Gujarat Hotels | ₹ 132.40 | ₹ 50 | 0 | 20.92 | 6.68 | 7.92 | 1.41 |
Best Eastern Hot | ₹ 25.70 | ₹ 43 | 1.21 | - | -13.82 | -8.28 | 20.72 |
Royale Manor | ₹ 23.80 | ₹ 43 | 0.17 | 63.52 | -1.27 | 0.7 | 0.96 |
Phoenix Township | ₹ 29.85 | ₹ 42 | 0.46 | 33.13 | -7.18 | -1.97 | 1.96 |
Aruna Hotels | ₹ 10.30 | ₹ 35 | 55.22 | - | -7.54 | 17.05 | |
Dhanada Corp. | ₹ 6.21 | ₹ 35 | 22.01 | - | -73.83 | -5.02 | 23.79 |
TGB Banquets | ₹ 10.58 | ₹ 31 | 0.26 | - | -4.47 | -2.9 | 0.38 |
Jindal Hotels | ₹ 41.55 | ₹ 28 | 4.17 | - | -48.7 | -8.05 | 1.88 |
Velan Hotels | ₹ 8.29 | ₹ 27 | 2.41 | - | -10.05 | -2.33 | 1.02 |
Reliable Ventur. | ₹ 17.90 | ₹ 20 | 0.03 | 6.61 | -2.16 | -1.88 | 0.66 |
Viceroy Hotels | ₹ 4.17 | ₹ 18 | - | - | - | -17.37 | - |
H. S. India | ₹ 8.16 | ₹ 13 | 0.86 | 55.2 | -5.18 | 0.46 | 0.5 |
Ras Resorts | ₹ 29.65 | ₹ 12 | 0.2 | 106.97 | -1.84 | 0.11 | 0.56 |
Polo Hotels | ₹ 5.13 | ₹ 11 | 1.3 | - | -0.98 | -0.43 | 0.17 |
Roopshri Resorts | ₹ 23.00 | ₹ 11 | 0 | 1106 | 0.13 | 0.13 | 1.46 |
Vidli Restaurant | ₹ 23.65 | ₹ 10 | 0.15 | 127.95 | 1.49 | 2.78 | 4.74 |
Cindrella Hotels | ₹ 26.65 | ₹ 10 | 0.16 | 50.47 | -9.48 | -7.94 | 1.23 |
Blue Coast Hotel. | ₹ 5.98 | ₹ 8 | - | - | - | -65.38 | - |
Mac Hotels | ₹ 23.50 | ₹ 7 | 1.05 | - | -68.72 | -40.58 | 3.01 |
Howard Hotels | ₹ 7.70 | ₹ 7 | 0.28 | - | -14.07 | -11.58 | 0.75 |
Sterling Green | ₹ 16.20 | ₹ 7 | 0.64 | - | -1.73 | -0.03 | 0.43 |
Hotel Rugby | ₹ 4.50 | ₹ 6 | 0.08 | - | -0.85 | -0.83 | 1.13 |
Lords Ishwar | ₹ 7.24 | ₹ 5 | 0.7 | - | -7.4 | -4.18 | 1.22 |
Pecos Hotels | ₹ 25.00 | ₹ 3 | 0 | - | -16.4 | -15.67 | 0.88 |
Arambhan Hospitality Services Ltd | ₹ 3.96 | ₹ 2 | - | - | - | - | - |
We will be taking a look at the top 5 hotel stocks as per market capitalization. Let’s start with the biggest hotel stock as per market capitalization – Indian Hotels Co. Ltd.
Hotel Stock #1: Indian Hotels Co. Ltd
The Indian Hotels Co. Ltd comes from the trusted Tata Group of companies. They have been in the hotel business for more than 116 years. Some of their popular hotels include the iconic TAJ and Vivanta among others. This hotel stock is present in 10 countries and 93 locations in India.
Indian Hotels Brands
Current Price (In Rs) | Market Capitalization (In Crore) | Debt to Equity Ratio | Price to Earnings Ratio | Return on Equity (%) | Return on Capital Employed (ROCE) | Price to Book Value |
₹ 210.60 | ₹ 27,828 | 1.84 | - | -22.15 | -7 | 8.56 |
Hotel Stock #2: EIH Ltd.
EIH Ltd is the second biggest hotel stock in India. It has a market capitalization of Rs 8,067 crore (as of March 16, 2022). It owns luxury hotels like the Oberoi and the Trident in Mumbai. It also provides in-flight catering and airport restaurant services. They manage a total of 32 hotels under the EIH Ltd group.
Current Price | Market Capitalization | Debt to Equity Ratio | Price to Earnings Ratio | Return on Equity (%) | Return on Capital Employed (ROCE) | Price to Book Value |
₹ 127.90 | ₹ 7,998 | 0.2 | - | -11.7 | -11.49 | 2.68 |
Hotel Stock #3: Chalet Hotels Ltd.
Chalet Hotels Ltd. is the proud owner of the JW Marriot Group and the Westin chain of hotels in India. This company is promoted by the K Raheja Group and is involved in the hospitality and real estate development. The company is going to invest Rs 660 crore in FY 2022-23 for building commercial projects. This hotel stock has rallied by 66% in the last one year (as of March 16, 2022).
Current Price | Market Capitalization | Debt to Equity Ratio | Price to Earnings Ratio | Return on Equity (%) | Return on Capital Employed (ROCE) | Price to Book Value |
₹ 276.05 | ₹ 5,660 | 1.71 | - | -8.46 | -2.67 | 4.10 |
Hotel Stock #4: Barbeque Nation Hospitality Ltd.
We have all heard and probably even eaten the lavish buffet spreads at Barbeque Nation. It is one of the fastest growing hotel chains in India. As of March 2020, Barbeque Nation has 150 restaurants across 77 cities and towns in India. This hotel stock is fairly new to the hotel sector. It listed for trading on April 09, 2021 at Rs. 489.85 per share. The stock is up by 110% in the last one year (as of March 16, 2022).
Current Price | Market Capitalization | Debt to Equity Ratio | Price to Earnings Ratio | Return on Equity (%) | Return on Capital Employed (ROCE) | Price to Book Value |
₹ 1,248.65 | ₹ 4,858 | 1.23 | - | -61.15 | -3.03 | 12.19 |
Hotel Stock #5: Lemon Tree Hotels Ltd.
Lemon Tree Hotels Ltd. is the third largest hotel chain in India. It operates a total of 84 hotels spread across 50 Indian cities. It also operates two international hotels, one in Dubai and the other in Bhutan. It dominates 17% of the branded mid-sized market hotels in India. This mid-cap hotel stock is up by 43% in the last one year (as of March 16, 2022).
Current Price | Market Capitalization | Debt to equity | Price to Earning | Return on equity | Return on capital employed | Price to book value |
₹ 54.5 | ₹ 4,318 | 2.54 | - | -13.33 | -0.93 | 5.08 |
This concludes our discussion on the top hotel stocks in India. The hotel industry in India is expected to compound at 13% to reach a value of Rs. 1,210 Billion by the end of 2023. Do you want to be a part of this growth? You can do so by investing in hotel stocks. But before you invest in hotel stocks, you must first check the stock’s rating on Samco Stock Page. Open a FREE Demat account with India’s best broker Samco Securities now to enjoy best in class trading and investment ideas. Related Articles: Digital India Stocks EV Stocks Top Metaverse Stocks in 2022