Shares of hotel companies Hotel Leela, Kamat Hotels, Sayaji Hotels, TajGVK and Oriental Hotels rallied up to 20 per cent on BSE in the intra-day trade on Thursday, on expectations of robust growth in the coming years.
On Wednesday, shares of Hotel Leela Venture surged 20 per cent to Rs 15.28 on the BSE in intra-day trade amid reports that a consortium, including Thailand’s Minor International, is considering an investment of about Rs 2.5 billion ($350 million) to acquire a majority stake in Indian hospitality firm.
The stock has zoomed 107 per cent in the past four trading days from Rs 8.85 on November 22, 2018.
It touched a multi-year low of Rs 8.61 last Friday in intra-day trade on the BSE.
The market experts believe that the domestic hotel industry is expected to witness robust growth in the coming years led by higher occupancy, limited capacity addition and a rise in spending by domestic travellers.
Analysts at JP Morgan believe market demand-supply dynamics will be favorable for the hotel industry until 2021 and the hotel cycle will get into mid-cycle over FY19/20 indicating the scope for RevPAR (Revenue per Available Room) improvement across domestic markets. Given the imputed leverage both in operations and financials, consequent improvements in earnings could be significant.
At 12:10 pm, shares of Hotel Leela Ventures were trading 20 per cent higher at Rs 18.33, Kamat Hotels was trading at Rs 47.40, up 15.19 per cent while shares of Sayaji Hotels were trading around 5 per cent higher at Rs 242.10 on BSE. In comparison, the S&P BSE Sensex was trading 350 pts higher at 36,066 level.
|COMPANY NAME||LATEST||HIGH||LOW|| CHG |
|HOTEL LEELA VEN.||18.32||18.33||16.50||3.04||19.90||1308427|