Top 10 Hotel Stocks in India 2025

The hotel industry is vital to influence tourism in the country. Likewise, the Indian hotel sector contributes to boosting travel and tourism activities. It has become one of the best global travel destinations and is somewhere contributing to economic growth or GDP (Gross Domestic Product). The hotel sector is anticipated to grow with a CAGR (Compound Annual Growth Rate) of 4.73% by the end of 2029. Such immense growth figures have made top hotel stocks in India a significant way to build wealth. Investors are looking forward to adding to their wealth because of this expected growth in this promising sector in the coming years. 

What are Hotel Stocks?

Hotel Stocks are the shares and equities of organisations that manage, own, and franchise different types of hotels and resorts. These companies generally provide services such as room bookings, lodging, dining, and more. 

Today, hotel stocks in India have become popular among investors as they have a high potential to deliver returns. If you believe in investing in the long term to generate extensive returns, then stocks of Indian hotels could be a better option. Let’s explore the best hotel stock list with their LTP (Last Traded Price), market capitalisation, and 52-week high/low for a better understanding.

Hotel Stocks List By Market Capitalisation

*Data is updated as of 20th November 2024.

Factors to Consider When Investing in Hotel Stocks in India

Investment in the hotel sector could diversify our portfolio. But it also comes with different types of uncertainties. To cope up with them, one can consider different factors that might have an impact on the whole investment journey. Explore the factors to know more.  

1. Aggressive Competition:

Higher competition in the hotel sector leads to increased complexities for businesses to sustain. There are a number of giant players with luxury hotels, resorts, budget-friendly rooms, and more. This aggressive level of competition sometimes creates price pressure on companies. Identify and select the hotel stocks in India that sustain a competitive edge in the market with full accessibility of resources. 

2. Consumer Preferences

We know that consumers are dynamic in nature. Their taste, preferences, and behaviour change from time to time. It depends on the businesses whether they modify their services according to the change in customer preferences or not. Keep an eye on the recent and past innovative strategies of hotel chains to satisfy their customers in the market. Customer-oriented or best hotel stocks in India can bring the required improvements and alterations to their strategy. Thus, it could help you create a diversified investment portfolio. 

3. Regulations

Rules and regulations bound the business enterprises to operate smoothly with the compliances. There are huge penalties for breaching laws that may impact the company’s profitability and reputation in the market. As a result, investor consider evaluate the historical records of Indian hotel stocks to follow such regulatory frameworks. Some of the regulations related to the hotel sector include taxation, labour laws, and zoning laws. Research and explore them to analyse their impact on stock prices in advance. 

4. Industry Trends

Beware of the shifts in industry trends such as consumer demand, preferences, flexible tourism, and law amendments. It could provide valuable insights into the future performance of the hotel chains operating in the country. Explore and select the stocks following all types of industry trends to sustain a competitive edge. This strategy could help you invest safely and diversify your investment portfolio. 

5. Religious and Cultural Tourism

India is all-inclusive of religion and cultural events. Every year, millions of citizens and foreigners travel to the country because of cultural events. For example, during the wedding season, most people travel to different locations to attend marriage ceremonies. This encourages the demand for hotel rooms, dining, and lodging, which will help companies improve their sales figures. This factor could have an impact on the performance and growth of Indian hotel stocks. 

Top Hotel Stocks Based on 1-Year Returns

*Data is updated as of 20th November 2024

Dividend Yield in Indian Hotel Stocks in 2024

*Data is updated as of 20th November 2024

Advantages of Investing in Indian Hotel Stocks 

Investing in the best hotel stocks in India offers investors numerous benefits. Here are some of them to explore:

• Wealth Generation: The Indian hospitality industry has bright prospects of growth in emerging markets. Along with this growth trend in the tourism sector, more need for services like room bookings, dining, and lodging will arise. Thus, this trend may offer wealth-generation opportunities to investors from the best hotel stocks in India.
• Dividend Income: Top hotel stocks in India offer a dividend income to their shareholders. Many investors can enjoy a regular income stream from these types of stocks. Additional shares can be bought by reinvesting in dividends, which may help investors pay for their daily expenses.
• Diversification: Hotel chains have diversified revenues which mostly come from room bookings, food and beverage sales, events, and catering services. This diversification will help generate stable revenues during the economic boom and slump. As a result, most investors get motivated to invest in the best hotel stocks in India so that they can earn more returns in the coming years.
• Consumer preferences: As the process of urbanisation progresses, the trend to dine out and travel should increase further. Shift in the consumer behaviour to being spend-happy on dining, leisure travel, and social activities is one of the growth enablers in this industry. 

Risks Associated With Top Hotel Stocks

The risk of investing might impact the returns on investment. Investors should know about such risks before investing in Indian hotel stocks. Let’s explore them together. 

• Natural Calamities: Natural disasters such as floods, earthquakes, and wildfires can harm hotel properties and disrupt travel plans. Similarly, pandemics like COVID-19 can severely impact hotel industry shares in Dalal Street. Have a diversified portfolio to reduce the impact of this risk in the stock market.
• Law Amendments: Hotel companies face governmental rules related to taxation, zoning, environmental laws, and labor laws. Their amendments take place periodically. In case of their non-compliance, the company has to face hefty fines, legal liabilities, and reputational degradation. Consider the organisations complying with all the rules, regulations, and their changes.
• Economic Fluctuations: Indian hotel stocks are highly sensitive to economic cycles. In the situation of an economic downturn or recession, discretionary spending, including travel and vacation, tends to be reduced. This can impact the demand for hotel rooms and thus follow through with revenue and profits for those operating hotel businesses.

Let’s Wrap

Hotel companies have to abide by a number of regulations, including zoning laws, building codes, environmental laws, and labor laws. Failure to comply with these can result in legal liabilities and penalties as well as tarnishing the hotel chain reputation. Additionally, the aggressive competition among hotel players leads to price wars and a reduction in profit margins, which often define the financial health of such companies. Thus, before investing in top hotel stocks in India, conduct your research and consider the risks of deciding to invest or not. 

Consider Univest as the best stock advisory platform for selecting potential stocks in this promising sector. 

FAQs on Hotel Stocks in India

1. What are the best hotels stocks to buy in 2025?

Ans. Here are some top hotel stocks in India for 2025.

*Data is updated as of 20th November 2024

2. Why should we invest in hotel stocks?

Ans. Investing in best hotel stocks comes with an excess potential to deliver healthy returns to investors. If you are an investor looking for long-term investment opportunities, then these stocks could be the best option. Investors also continue to invest in such shares to earn dividend income. 

3. How to invest in the best hotel stocks in India?

Ans. Investing in hotel stocks in India is easy. Investors should consider the below-mentioned steps. 

• Get registered with a broker and open a demat account.
• Conduct research and use a stock advisory platform to choose the best hotel stocks to buy. 
• Select the quantity you wish to buy and place a transaction to invest in. 

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