Best Hotel Stocks in India to Invest In

Hotel stocks in India represent the shares or equities of business enterprises engaged in services like dining, lodging, accommodation, and more. The excessive travel and tourism in the country set the hospitality sector for steady growth. Thus, the services of hotel companies can be affected by fluctuations in the travel and tourism sector. Stocks of hotel companies could be an efficient way to get capital appreciation. But which hotel stocks to buy? Let’s dive deeper into the overview of the hotel sector and stocks to make an informed investing decision. 

Hotel Sector in India: An Overview

The government of India accepted the significance of the hotel sector for economic growth. As a result, 100% of FDI (Foreign Direct Investment) is allowed in this promising industry through the automatic route. The hotel sector in India is categorised into different segments, including independent hotels, new-age hotel chains, and traditional hotel chains. 

Over the past few decades, the market capitalisation of this sector has shown significant growth of 473% and reached over INR 1,300 crores. It is anticipated that domestic travelers will contribute 50% of the total increment in the upcoming year. This will lead to potential growth for investors in Indian hotel stocks. Investing in such stocks could build wealth. So, let’s explore the best among them to create a diversified investment portfolio. 

Hotel Stocks List

*Data is updated as of 20th November 2024

Overview of Hotel Stocks

Have a look at the best hotel stocks in India and explore for a better understanding of their potential to grow in the coming years. 

1. Indian Hotels Company Ltd. 

Indian Hotels Company Ltd., or IHCL, was founded in 1902 and owns a portfolio of jungle safaris, hotels, resorts, and spas. Tata Group owns this company with an ambition of “Accelerate 2030” to double the hotel portfolio. IHCL is headquartered in Mumbai, Maharashtra, and serves with its subsidiaries: Taj, Vivanta, Ginger, and SeleQtions. 

This year, IHCL declared that they have plans to establish more than 90 new properties in the future. This news was sufficient to gather the interest of investors in this one of the best hotel stocks in India. The market capitalisation of IHCL is INR 1,07,000 crores, and its PE (price-to-earnings) ratio is 63.91, which also makes it a popular choice for investors. 

2. Eastern India Hotels Ltd. 

Eastern India Hotels Ltd. is a major holding company of the Oberoi Group founded in 1949 and currently operating as a leader in luxury hospitality. It covers around 16 locations with 4,320 managed rooms in India. The subsidiaries of EIH include Trident Hotels, Oberoi Flight Services, and more. It is one of the most popular health stocks in India, and it has a high potential to deliver impressive returns and dividends. 

The product portfolio of this hotel company includes services such as restaurants, hotel rooms, in-flight catering, and more. This company is consistently trying to reduce carbon footprints and foster sustainability. Eastern India Hotels Ltd. has a market capitalisation of INR 22,330 crores and a PE (price-to-earnings) ratio of 33.49. 

3. Chalet Hotels Ltd. 

Chalet Hotels Ltd. was founded in 1986 and is headquartered in Mumbai, India. The company owns and operates hotel chains in metro cities such as Hyderabad, Bangalore, Mumbai, and Pune. Chalet Hotels Ltd. believes in operating sustainably for which the company has partnered with Tata Power Company Ltd. to get power from renewable sources. Tata Power is expected to generate around 13.75 million units of green energy in this collaboration. 

Investors never hesitate to invest in this stock as it delivers healthy returns in the long run. The market capitalisation of this one of the best hotel stocks in India is INR 18,410 crores, and its PE (price-to-earnings) ratio is 217.39.

4. Lemon Tree Hotels Ltd. 

Lemon Tree Hotels Ltd. is an Indian Hotel Chain founded in 2002 and is currently headquartered in New Delhi, India. It manages more than 100 hotels, including 9,700+ rooms, to deliver services in metro cities like Delhi-NCR, Mumbai, Bangalore, Chennai, etc. In 2024, Lemon Tree Hotels Ltd. expanded its hotel chain to cities such as Srinagar, Vijayawada, and Mussoorie. The fresh vibes of this hotel chain are sufficient enough to retain its customers in the market. 

This one of the best Indian Hotel Stocks provided investors with 107.46% returns in the past five years. The investors are also looking forward to investing in this stock as it has high growth potential for the year 2025. The market capitalisation of Lemon Tree Hotels Ltd. is INR 9,590 crores, and its PE (price-to-earnings) ratio is 63.40, which makes it a popular choice for investors. 

5. Juniper Hotels Ltd. 

Juniper Hotels Ltd. was founded in 1985 and operates with 7 hotels and 1,836 rooms across the nation. This Mumbai-based hotel chain is engaged in luxury hotel development under Hyatt. Juniper Hotels finds opportunities in hospitality, designs luxury hotels, and manages its assets with class. This ensures that travellers experience great times because of its focus on operational excellence and guest-centric service. The company’s properties are located in Ahmedabad, Raipur, Lucknow, Delhi, Mumbai, and Hampi. 

It is a company visionary that continually challenges boundaries in the pursuit of efficiencies and growth, all the way from the pre-development and construction phase to the operations phase. The market capitalisation of this one of the best hotel stocks in India is INR 7,080 crores, and its PE (price-to-earnings) ratio is 165.06.

6. Phoenix Township Ltd. 

Phoenix Township Ltd. was founded in 1993 and is headquartered in Goa. The primary focus of this company is to develop hotels and resort chains. The company serves food, beverages, accommodations, and many other services to approximately one crore customers. Hotel features of Phoenix Township Ltd. include free Wi-Fi, coffee, ironing, a swimming pool, AC rooms, parking, bars, herbal treatments, and more. 

Under this resort are some sub-resorts, such as Phoenix Island Resort, Castle House, and Park Inn. All these offer different rooms namely premium cottages, king cottages, and deluxe cottage. The market capitalisation of this one of the best hotel stocks in India is INR 328 crores, and its PE (price-to-earnings) ratio is 1.66.

Hotel Stocks With PE Ratio

*Data is updated as of 20th November 2024

How to Invest?

To invest in the best hotel stocks in India, open a Demat account with an authentic broker. Then, conduct research or use stock advisory services to explore potential stocks.   

Select two or more stocks to diversify your portfolio. Choose the quantity and price on your demat account. Review your order details and then place a transaction. In the portfolio section, watch the stock performance. 

To Conclude

A diversified portfolio filled with the best hotel stocks in India could make you rich, but it also comprises several risk factors. These factors include economic downturns, market volatility, health uncertainties, and more. To cope with such factors, investors should adopt the right strategy. Hotel stocks come with high growth potential and could double or triple the investor’s wealth. Research the best stocks before investing invaluable money in the hotel sector. Invest smartly with Univest, the best stock advisory platform. Start now to get five trades for free.

FAQs

1. Is investing in Indian hotel stocks worth it?

Ans. Yes, investment in hotel stocks could offer higher returns to investors in the long term. For example, Phoenix Township Ltd. provided a 211.01% return in the past year and has become one of the most popular stocks in the hotel sector. Apart from capital appreciation, one can also earn regular income (dividends) from such stocks. 

2. Which hotel stocks are best to buy now?

Ans. Here are the best hotel stocks you can consider for investing in at the end of 2024. 

*Data is updated as of 20th November 2024

3. How does tourism impact the hotel industry in India?

Ans.  The travel and tourism sector has a pivotal role in the hotel sector in India. Excess travel could be an opportunity for hotel companies to increase their revenue and sales figures. However, less travel might impact their revenue negatively. 

4. Which is the largest hotel company in India?

Ans. Indian Hotels Company Ltd. is the largest hotel business with a current market capitalisation of INR 1,07,000 crores. It operates with 300+ hotels and more than 500 restaurants in the country. IHCL is headquartered in Mumbai, Maharashtra, with Taj, SeleQtions, Ginger, and Vivanta in its chain.