List of all stocks in Hospitality sector - Hotel restaurants.

Hospitality sector stocks in India refer to companies engaged in managing hotels, resorts, restaurants, or franchised hotels. The hospitality sector is considered crucial for the Indian Economy to grow and develop, as investors can potentially increase their returns by investing in hospitality sector stocks in India. The performance of this sector is dependent on the country’s travel data and on the tourism industry. People with rising disposable incomes and growing trends of encouraging travel as a long-term investment option for those looking to generate wealth and are willing to earn potential dividends. The level of profitability from hospitality stocks is highly dependent on tourism in India, as well as the inclusion of both tourists and business clients in this sector.

As of 31st March, 2023, the top 10 hospitality brands were operating with inventory size control of approximately 76% of the total branded inventory in India. According to the Hotel Association of India (HAI) and Benori Knowledge, the total contribution to India's GDP is approximately $40 billion in 2024, and it is expected to reach $68 billion by 2027, with a growing CAGR of 11.20%. According to a report by Google and Boston Consulting Group, the Indian online travel market is projected to grow at a CAGR of 13.1% from 2023 to 2028. According to another report, which FICCI and EY have released, the tourism market is expected to grow at a CAGR of 20-25% from the previous year, and these factors are anticipated to drive the growth of the hotel industry.

Hospitality Stocks 

Market Capitalisation(Cr.)

The Indian Hotels Company Ltd.

1,04,665.00

Indian Railway Catering And Tourism Corporation Ltd.

57,224.00

ITC HOTELS LIMITED

44,862.00

EIH Ltd.

24,098.00

Chalet Hotels Ltd.

20,811.00

Travel Food Services Ltd.

17,687.00

TBO Tek Ltd.

16,988.00

VENTIVE HOSPITALITY LTD

18,601.00

Lemon Tree Hotels Ltd. 

13,028.00

• Stable Cash Flows: Identify the best Hospitality stocks list that belong to the hospitality sector stocks in India. Many hospitality stock companies have long-term contracts with either the private or government sectors, which ensure the company’s revenue and contribute to increased revenue growth.
• Government Backing: The government supports the best hospitality sector stocks in India to consider for multibagger returns in the future. Hospitality projects are supported by government policies and funding provided to companies. Select the best hospitality stocks list that the government backs. 
• Capital Intensive: The low price of hospitality sector stocks in India makes them a more attractive option for small investors seeking a multibagger return with minimal risk. High initial investments and long-term development cycles are typical of other investments.
• Revenue growth: The hospitality sector stocks in India offers high-growth potential, as the financials of hotels and other companies engaged in the industry are driving strong revenue growth in the country. The revenue is constantly rising with the rise of the hospitality sector.

Hospitality Stocks 

P/E Ratio

The Indian Hotels Company Ltd.

49.68

Indian Railway Catering And Tourism Corporation Ltd.

42.78

ITC HOTELS LIMITED

65.47

EIH Ltd.

5.22

Chalet Hotels Ltd.

73.04

Travel Food Services Ltd.

46.59

TBO Tek Ltd.

73.24

VENTIVE HOSPITALITY LTD

94.03

Lemon Tree Hotels Ltd. 

48.08

• Company Fundamentals: Review the financial reports of the hospitality companies. We’ve already witnessed the increasing demand for it. It would help the best infrastructure stocks maintain healthy financial records. Check for the company’s profit margins, YoY revenue growth, and cash flow position.
• Regulatory Environment: Stay informed about regulatory changes implemented by legal departments that affect companies under various circumstances. Verify whether the chosen hospitality sector stocks in India comply with all regulatory requirements and their relevant amendments to avoid incurring higher legal penalties.
• Market demands and sector trends: Analysing market demand in various segments, such as power, transport, or telecom, helps these segments identify growth areas. Sector-specific trends can impact target areas and profitability, and a rise in demand can lead to more favourable investment outcomes.
• Economic Growth: Hospitality sector stocks in India that invest are heavily dependent on the country’s economy. India is positioned as one of the fastest-growing economies, and its stocks include undervalued or cheap stocks that benefit from the country's development and public spending.

• Strong growth in Demand: Domestic travel is enabling recovery from the pandemic, and the growing popularity of MICE (Meetings, Incentives, Conferences, Exhibitions) is driving demand for wedding tourism in the Indian Economy.
• Favourable supply-demand dynamics: The market demands of the hospitality industry are consistently growing, resulting in favourable growth and demand in the market. This enables existing players to exercise price power and achieve higher occupancy rates.
• Revenue growth: The hospitality sector stocks in India offers high-growth potential, as the financials of hotels and other companies engaged in the industry are driving strong revenue growth in the country. The revenue is constantly rising with the rise of the hospitality sector.
• Government Support: India supports tourism by improving infrastructure and promoting technological advancements in the economy, which leads to profitable returns due to the high level of government support across the sector.

• Operational Costs: The hospitality sector must incur high operating costs for labour, energy, taxes, and other expenses, which are highly variable, thereby potentially eroding margins.
• Changes in Government Policies: Any sudden changes in government policies may impact the profitability of the hospitality sector in India, as policies related to taxes and other government regulations play a crucial role in this sector.
• External shocks: Certain macroeconomic factors, such as geopolitical issues, pandemics, and natural calamities, may negatively impact the hospitality sector stocks in India; tourists may consider these factors before exploring the country’s resources.
• Highly Competitive: The hospitality sector stocks in India is highly competitive due to the presence of platforms like Airbnb, budget lodging, and other types of hotels, making it challenging to invest in hospitality stocks in India.  

Hospitality Stocks 

P/B Ratio

The Indian Hotels Company Ltd.

9.38

Indian Railway Catering And Tourism Corporation Ltd.

15.62

ITC HOTELS LIMITED

4.20

EIH Ltd.

5.22

Chalet Hotels Ltd.

6.83

Travel Food Services Ltd.

16.79

TBO Tek Ltd.

14.22

VENTIVE HOSPITALITY LTD

3.45

Lemon Tree Hotels Ltd. 

11.19

 Investors shall follow the steps given below for investing in the best Hospitality Sector Stocks in India:

Step 1: Investors should evaluate the reasons behind the investment and assess the optimal method for investing.

Step 2: Research the top 10 Hospitality sector stocks in India to make informed decisions. 

Step 3: To generate the higher returns, choose the best shares to grow fundamentally.

Step 4: Open the demat account and place a buy order for the quantity of stocks you wish to purchase.

Step 5: Execute the order and start tracking your portfolio from day one to identify the proper exit position for profit booking.

Hospitality stocks in India refer to companies engaged in managing hotels, resorts, restaurants, or franchised hotels. The hospitality sector is considered crucial for the Indian Economy to grow and develop, as investors can potentially increase their returns by investing in hospitality sector stocks in India. The profitability of hospitality sector stocks in India is highly dependent on tourism, as well as on the inclusion of both tourists and business clients in this sector. As of 31st March, 2023, the top 10 hospitality brands were operating with inventory size control of approximately 76% of the total branded inventory in India. According to the Hotel Association of India (HAI) and Benori Knowledge, the total contribution to India's GDP is approximately $40 billion in 2024, and it is expected to reach $68 billion by 2027, with a growing CAGR of 11.20%.