Do you know that the hospitality and tourism industry contributed nearly US $98.2 Billion to our GDP in 2018? Yes, and this is expected to increase to US$ 194.7 Billion by 2028.
Best hotel stocks to buy now driver#
I mean the biggest driver of the Indian hotel business is our government! And rightly so. While tricky, the hotel business also offers great investment opportunity. So, investing in hotel stocks is indeed tricky.īut there is some good news. But as the news of Omicron and the fourth wave (and the Russia-Ukraine conflict) broke out, the stock was again down by 18%. As vaccination increased and the severity of the variants reduced, the stock witnessed an uptrend of 233% from its lows. The graph below shows the journey of Indian Hotels Ltd before, during and after the resurgence of Delta, Omicron etc.Īt the start of the pandemic, the stock fell by nearly 52%. Whatever upside they had gained in the first half of 2021, was lost just as quickly. For example, variants of the deadly coronavirus started popping up in October or November 2021, post Diwali. One bad news and we are back to square one. The stock price of Oriental Hotels Ltd jumped by 161% between Apand June 07, 2021.īut be careful…the hotel sector is a tricky business. In a matter of 10 months, the stock was up by 74%. By February 2021, the share price of Mahindra Holidays & Resorts India Ltd was back to its pre-pandemic level of Rs 154. This can be clearly seen in the rally that some of these hotel stocks witnessed between February and November 2021. And who will benefit from this growth? Of course, the hotel stocks!Īnd the markets seem to have worked this out. So, the hotel sector is expected to grow at an annual rate of 21% in a period of seven years. This is expected to increase to US$ 125 Billion by FY 2027. In FY 2020, the size of the Indian hotel market was US$32 Billion. In 2021, the number of foreign travelers in India increased to 4.6 million. But the pandemic of 2020 reduced the number of foreign travelers to 2.9 million till March 2020. Our foreign travelers grew by 24% y-o-y between 20. 441 sanctuaries and hundreds of beaches.īefore the pandemic, India attracted nearly 10.9 million foreign travelers.India also attracts travelers from across the globe. In fact, India has the highest number of domestic leisure travelers in the entire world ! Why are we saying this? Simply because India is a land of diverse cultures and Indians love to travel. The fall in the share price of these hotel stocks was so massive that most of them are yet to come back to their pre-pandemic levels.īut the good news is that the worse might just be over for Indian hotel stocks. Its stock price fell by 42% in a matter of months.
The fate of Mahindra Holidays & Resorts India Ltd, a popular hotel stock was no different. EIH Ltd, the second biggest hotel stock in India fell by 51%. fell by a whopping 50%.Īnd the story continues for all other hotel stocks. Between Februand April 03, 2020, the share price of Indian Hotels Ltd. India went into an official lockdown in March 2020. The news of the severity of the pandemic broke sometime around January 2020. It is one of the biggest hotel stocks in India as per market capitalization.
Hotel Stock #4: Barbeque Nation Hospitality Ltd With a strict lockdown, flight cancellations and overall ban on travel, Indian hotel stocks were at their rock bottom. But the sector which took the biggest hit was the hospitality or the hotel sector. There is no doubt that the Covid-19 pandemic was a difficult period for the entire economy.
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