Kamat Hotels, Taj Gvk Hotels hit 52-week highs; surge up to 36% in 1 month

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.

Shares of Kamat Hotels (India) and Taj Gvk Hotels & Resorts hit their respective 52-week highs, surging up to 8 per cent on the BSE in Wednesday’s intra-day trade in an otherwise tepid market. In the past one month, these stocks have rallied up to 36 per cent. In comparison, the BSE Sensex was down nearly 3 per cent during the same period.

 

Among individual stocks, Kamat Hotels (India) rallied 8 per cent to Rs 327.55 in intra-day trade, on the back of three-fold jump in average trading days. In the past one month, the stock soared 21 per cent.

 

 

Kamat Hotels (India) operates in various categories from luxury to value for money categories across India. The company has a diverse brand portfolio having premium brands like The Orchid, Fort JadhavGadh, Mahodadhi Palace and mid-premium brands like Lotus Resorts and IRA by Orchid.

 

On March 7, 2025, Kamat Hotels (India) signed an agreement for the management and operation of a Luxury hotel, The Orchid Hotel at Rishikesh in Uttarakhand. 

 

The Hotel shall feature approximately 54 elegantly designed rooms with facilities such as high-end Spa, a swimming pool, a modern Recreational center, a dedicated Yoga center, fully equipped Conference room, exquisite 24 hours all day dining Restaurant along with a Mountain view Bar etc. The Hotel is expected to be fully operational from July 2025.

 

Earlier on February 20, Kamat Hotels (India) said it signed a Management agreement for the management and operation of the Orchid Hotel located at Mandavi in Kutch District of Gujarat.

 

The Hotel shall feature approximately 153 well-appointed rooms/ villas with facilities such as Party Lawn, Banquet halls, Pure Veg Restaurant, Swimming pool, Mini Golf Course, Gym, Spa, Kids play area, Amphitheatre, Pickle ball and Outdoor and Indoor Games Arena. The Hotel is expected to start its operations by December 2027, the company said.

 

Meanwhile, shares of Taj GVK Hotels & Resorts hit a new high of Rs 518, as they gained 3 per cent on the BSE in Thursday’s intra-day trade. In the past one month, the stock has zoomed 36 per cent. Thus far in the month of February, it has surged 41 per cent.

 

TajGVK is a joint venture (JV) between GVK Group and The Indian Hotels Company Limited (IHCL). GVK Group holds about 49.47 per cent stake in the JV and IHCL holds around 25.52 per cent stake in TajGVK (as on December 31, 2024). The balance is held by the public. 

 

The company has a strong presence in the Hyderabad market and its properties are well established, with existence for several years. TajGVK’s flagship 5-star deluxe property - Taj Krishna - is a well-established property in the Hyderabad Central Business district (CBD), commanding a revenue per available room (RevPAR) premium compared to other properties in the vicinity.

 

Apart from the three properties in Hyderabad, TajGVK has two other properties, one each in Chennai and Chandigarh, which are also well established in their respective cities. The company’s property in Mumbai under a JV, Greenwoods Palaces & Resorts Private Limited - TajSantacruz - has location-specific advantage (by virtue of its proximity to the Mumbai international airport).

 

According to Motilal Oswal Financial Services (MOFSL), the Indian hotel industry is poised to continue its strong recovery in January to March quarter (Q4FY25), fueled by healthy traction in MICE (meetings, incentives, conferences, and exhibitions) activities, cultural events, and a strong wedding season. According to the brokerage firm’s recent channel checks, key hospitality players are likely to witness 12-14 per cent year-on-year (YoY) RevPAR (Revenue Per Available Room) growth in Q4 (similar to Q3FY25), primarily driven by growth in average room rate (11-13 per cent) and higher occupancy levels.

 

MOFSL expects the overall hotel industry to maintain its growth rate in Q4, supported by industry tailwinds, favorable demand-supply dynamics, and corporate rate hikes leading to higher ARR and high occupancy levels. This, coupled with incremental contributions from inventory addition, stabilization of key hotels, and reopening renovated hotels with additional keys, will lead to healthy earnings for most of the hospitality companies in Q4FY25, the brokerage firm said in the sector update.