5 Best hotel stocks you should consider in 2023

As the Indian hotel industry experiences a remarkable revival post-pandemic, smart investors are eyeing the potential growth in hotel stocks.

The hotel industry in India is undergoing a robust resurgence, presenting a golden opportunity for investors to capitalise on its growth. Amidst this positive trajectory, savvy investors are turning their attention to the best hotel stocks that offer promising returns and a foothold in India's thriving hospitality sector. Let's discover the top 5 hotel stocks in India and gain insights into why this investment avenue is worth exploring.

What are the best 5 hotel stocks?

1. Indian Hotels Company Ltd. (IHCL): Offering upscale to economy options, IHCL commands global recognition with brands like Taj, Vivanta, Ginger, and SeleQtions.

2. EIH Ltd.: Oberoi Group's luxury gems, including Oberoi, Trident, and Maidens, set a gold standard for personalised service.

3. Byke Hospitality Ltd. (TBHL): With a focus on Pure Vegetarian Hotels and resorts, TBHL offers affordable comfort across multiple states and cities.

4. Chalet Hotels Ltd.: A rising star with upscale properties partnered with Marriott and Four Points is poised to thrive in India's tourism resurgence.

5. Lemon Tree Hotels Ltd. (LTH): India's largest mid-priced chain, LTH's inclusivity and quality commitment bolster its stock's recent growth.

Here's a snapshot of the top hotel stocks:

Values as of  29-Aug-23.

Why should you invest in hotel stocks in India?

The Indian hospitality sector is gearing up for exponential growth for the following reasons:

1. Booming tourism: India's rich cultural heritage and UNESCO sites continue to attract tourists.

2. Diverse cuisine and culture: Indian cuisine and diverse cultures make it a global hotspot for travellers.

3. Tourism-focused government initiatives: The government's focus on easing VISA norms and promoting domestic tourism ensures steady demand.

4. High returns: India's hospitality sector has provided impressive returns of 70–180% in the last year.

Also Read: 5 Best Pharma Stocks You Should Consider In 2023

What factors should you consider before investing?

1. Economic dependency: Hotel stocks are influenced by economic conditions, tourist spending, and competitive pressure.

2. Effective management: Wise operational decisions and the adoption of modern technology are vital for successful hotel operations.

3. Balanced leverage: While borrowing funds can boost returns, over-leveraging can lead to financial strain.

The takeaway

As India's hospitality industry grows, the hotel sector presents a promising avenue for investors seeking diversity and potential returns. From established market leaders to emerging stars, the key lies in informed decision-making.

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 Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.