 "Hotel Leelaventure, TAJGVK, Lemon Tree jump up to 15% on GST rate cut hopes")
Shares of hotel companies rallied by up to 15 per cent on the BSE in the early morning trade on Wednesday after reports said the Goods and Services Tax (GST) Council could cut rates for five-star hotels to provide relief to the hospitality industry. The Council is scheduled to meet on Friday, September 20.
Among individual stocks, Hotel Leela Venture and TAJGVK Hotels & Resorts jumped 15 per cent and 11 per cent, respectively in the intra-day trade so far. Meawhile, Royal Orchid Hotels, EIH Associated Hotels, Oriental Hotels, EIH, Lemon Tree Hotels and Indian Hotels were up between 3 per cent and 5 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.45 per cent at 36,645 points at 09:29 am.
The GST Council is likely rationalise rates for five-star hotels at its next meeting, holding out hopes for a boost to the tourism industry, a Business Standard report said. The fitment panel, comprising Central and state officials, have recommended a rate cut for outdoor catering and rate rationalisation for match sticks in its final agenda circulated to the council members, the report added. CLICK HERE TO READ FULL REPORT
Motilal Oswal Financial Services (MOFSL) has a ‘buy’ rating on Lemon Tree Hotels as the brokerage firm believes the company’s growth should mainly be driven by the recently commenced/upcoming hotels in high demand and high Average Room Rate (ARR) markets of Pune, Mumbai, Kolkata and Udaipur.
“H2 (October-March) is a seasonally strong period for hotels. Nearly 70-75 per cent of yearly profits of the hotel sector come in H2 and the December 2019 quarter would be an early indication of that. Even a small miss on growth expectations during H2 could hurt valuations, ” Amit Agarwal, an analyst with Nirmal Bang Securities, says. CLICK HERE TO READ FULL REPORT
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%