The structural outlook remains favourable, analysts said. Mumbai contributes nearly 15 per cent to India's hotel room revenue and disproportionately dominates the luxury segment.
Hotel prices in India's metro cities are likely to remain firm due to limited supply additions, even as higher room availability in tier-2 markets may cap rate growth, YES Securities said.
Analysts at Yes Securities said Samhi Hotels has a presence in key metro markets with upcoming capacity additions and a proven track record of asset turnaround
Technical charts suggest that share price of ITC Hotels, Indian Hotels, Taj GVK, Lemon Tree and Chalet Hotels could see up to 20 per cent upside from here.
Nuvama said the hotel operator's Q1 growth was "driven by improving average room rates (ARRs) and occupancies across portfolio brands" despite geopolitical tensions and air travel disruptions.
Demand for luxury hotels will continue in India, with strong demand from domestic leisure travel and higher demand from improving foreign tourist arrivals
Indian Hotels share rose after the company delivered a robust performance in Q1FY26, reporting a 32% Y-o-Y jump in consolidated revenue to ₹2,102 crore, compared to ₹1,596 crore in Q1FY25.
Shares of Samhi Hotels hit a 52-week high of ₹234.90, rallied 6% on the BSE in Wednesday's intra-day, trading close to its record high level of ₹237.80, touched on February 27, 2024.
Hotel, Airline stocks to buy: Analysts suggest investors selectively park their money in hotel and aviation stocks, as compared to luggage and travel aggregators, amid better earnings visibility
In Q4 and the subsequent quarters of the next financial year, the sector is expected to witness demand buoyancy on account of large-scale regional events, weddings and sustained transient travel.
The hotel industry is poised to continue its strong recovery in Q4FY25, fueled by healthy traction in MICE activities, cultural events, and a strong wedding season, believe analysts at Motilal Oswal.
Buoyed by the government's policy interventions for the hospitality sector and a flourishing domestic tourism industry, ITC Hotels has strong growth enablers in place.
Benares Hotels hit a new high of Rs 10,990, rallied 15% on expectations of record revenue in March quarter, due to strong domestic demand on account of Kumbh Mela and related travels in the UP region.
