During the last 1 month, hospitality stocks like Indian Hotels, Taj GVK, EIH, Lemon Tree have seen strong growth. Investors seem particularly kind to hotel stocks. According to market experts, the main reason for this jump in hotel stocks has been the complete reduction of restrictions imposed due to COVID-19. In the medium to long term, this factor will also decide the position and direction of hotel stocks.
Experts also say that the ongoing 2022 season of IPL, destination weddings and destination corporate meetings are some of the other reasons due to which hotel stocks have run up 15-25 per cent above pre-covid levels.
Hotel companies are expected to have excellent results in the short to medium term. Market experts say that the outlook for Hotel Stocks looks very good for all types of investors. This is the reason why the market is currently enthusiastic about hospitality stocks.
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Anuj Gupta of IIFL Securities It is said that hotel stocks are getting the most benefit from the unlock theme. The wedding season has started and the destination wedding is in full swing. Apart from this, corporate meets of big companies are also being held due to unlocking. Apart from this, the long season of IPL is also on which is fueling the hotel stock. If we look at the occupancy rate of big hotels in India, then it has reached 85 to 95 percent while the hotels in North East are 100% booked for May 2022. This is the reason why hospitality stocks are attracting investors’ attention.
Rahul Sharma of Equity 99 It says that hotel stocks are in the news due to the mild corona epidemic and a strong recovery in the October-December quarter. The restrictions imposed due to COVID have been lifted. Business travel is expected to further strengthen with the opening of offices. The market expects all this to lead to an increase in earnings for hotel stocks in the first quarter of FY2023.
Which stocks to invest in
Rahul Sharma of Equity 99 It says that Indian Hotels Company, Taj GVK Hotels, Resorts and Lemon Tree Hotels are looking very good for investing in hotel stocks.
Anuj Gupta of IIFL Securities says that apart from hotel stocks, positional investors should also keep an eye on specialty stocks in the hospitality sector. From this perspective, Delta Corp and EIH look good.
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