Lemon Tree, EIH: Good time to check into hotel stocks, say analysts

At the bourses, most hotel stocks have gained ground from their respective March 2020 low. ITDC, Lemon Tree Hotels, Indian Hotels, EIH and Taj GVK have rallied 56 per cent to 163 per cent since then

Domestic travel industry has been one of the worst sufferers of Covid-19, as the pandemic and the ensuing lockdown hit their coffers hard. However, the economic activity picking up over the past few months, travellers – both leisure and business – are slowly returning. With an improvement in macro indicators in terms of business as well as COVID recovery rate, the hospitality sector is also expected to witness a revival in demand, though at a slower pace.

“There has been a sharp surge in demand, our on-ground checks reveal. That apart, the room costs have surged as more and more