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 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
Analysts at Yes Securities said Samhi Hotels has a presence in key metro markets with upcoming capacity additions and a proven track record of asset turnaround
Royal Orchids share price rose after the company announced the signing of its latest property at Ambala, a city in Haryana bordering Punjab.
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.
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.
Demand for luxury hotels will continue in India, with strong demand from domestic leisure travel and higher demand from improving foreign tourist arrivals
Indian Hotels share rose after the company delivered a robust performance in Q1FY26, reporting a 32% Y-o-Y jump in consolidated revenue to ₹2,102 crore, compared to ₹1,596 crore in Q1FY25.
Shares of Samhi Hotels hit a 52-week high of ₹234.90, rallied 6% on the BSE in Wednesday's intra-day, trading close to its record high level of ₹237.80, touched on February 27, 2024.
Technical outlook on hotel stocks: Taj GVK, Juniper Hotels look good on charts, while EIH could face some downward pressure.
Hotel stocks have been on a hot streak over the past month, buoyed up by a steady business outlook
Hotel, Airline stocks to buy: Analysts suggest investors selectively park their money in hotel and aviation stocks, as compared to luggage and travel aggregators, amid better earnings visibility
In Q4 and the subsequent quarters of the next financial year, the sector is expected to witness demand buoyancy on account of large-scale regional events, weddings and sustained transient travel.
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.
During Q3, hotels reported strong pricing growth across key markets. Revenue growth is expected to remain strong in Q4
Buoyed by the government's policy interventions for the hospitality sector and a flourishing domestic tourism industry, ITC Hotels has strong growth enablers in place.
Benares Hotels hit a new high of Rs 10,990, rallied 15% on expectations of record revenue in March quarter, due to strong domestic demand on account of Kumbh Mela and related travels in the UP region.
Earlier in the day, the Indian Hotels share rose as much as 2.60 per cent to hit an intraday high of Rs 835 per share
The rise in Lemon Tree Hotels share price came after the company announced that it has signed a new property in Valsad, Gujarat