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.
The buying on the counter came after the company announced the signing of two new properties - Lemon Tree Hotel, Surat Airport and Keys Prima by Lemon Tree Hotels, Haridwar
Motilal Oswal Financial Services recommends Reliance Industries and HCL Tech from the large-cap basket, while BEL and M&M Financial are top bets from mid-cap
The industry witnessed 18-20 per cent growth in the first half of Fy26 and is expected to clock mid to high teens growth in the second half as well
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Hotel rooms under ₹7,500 move to 5% slab, will bolster midscale segment
Any disappointment on the rate front, analysts believe, could trigger a knee jerk correction fall in the stocks and sectors that have seen a good run in the last few weeks
Lemon Tree Hotels share price was quoting 3.25 per cent higher at ₹170.64 per share against the previous close of ₹165.27 on the NSE
Indian Hotels is aggressively expanding its presence in India's hospitality sector through its 'Accelerate 2030' roadmap, targeting growth in the midscale segment.
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.
Lemon Tree Hotels stock gains 7% in Monday's trade: Fleur Hotels, subsidiary of the company, was declared a successful bidder in an e-auction for allotment of land at Nehru Place, New Delhi.
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.
Lemon Tree and Indian Hotels are top stocks in the hospitality sector for Motilal Oswal, as they are expected to continue their strength in the current financial year