30-100% returns in 1 yr: Hotel stocks are soaring & there's more steam left

With premium hotels best-placed to reap the benefits, stocks such as Indian Hotels and EIH should see a revenue uptick

Led by Indian Hotels and EIH, hotel stocks have been hitting their 52-week highs on expectations of strong December quarter results as well as a favourable demand-supply situation. Stocks in the sector, which have been laggards in recent years, generated returns between 30 and 100 per cent over the past one year.

The immediate trigger would be the December quarter results. Foreign tourist arrivals have grown 14.5 per cent in the December quarter after five consecutive quarters of single-digit growth. With better growth in foreign tourist arrivals and improved domestic demand, analysts at ICICI Securities expect occupancy levels to improve