Hotel stocks decline amid geopolitical tensions
Shares of hotel companies traded lower as rising geopolitical tensions and surging crude oil prices weighed on sentiment across the travel and hospitality sector.
Taj GVK Hotels & Resorts dropped 4.04%, while India Tourism Development Corporation fell 3.37%. EIH Associated Hotels declined 3.36%, and Chalet Hotels slipped 3.24%.Among other hospitality players, Asian Hotels (North) fell 2.92%, Lemon Tree Hotels declined 2.02%, and Kamat Hotels slipped 0.54%. Meanwhile, Indian Hotels Company edged down 0.67%, while EIH was marginally lower by 0.11%.
The decline comes as escalating geopolitical tensions raise concerns over a potential slowdown in international travel. A spike in crude oil prices could push airfares higher, prompting travellers to defer leisure trips and affecting hotel occupancy, food and beverage revenues, and other ancillary spending.
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