The Travel and Hospitality sector was one of the worst-hit sectors during the pandemic. Due to the restrictions, people stayed home and travelling was not an option. The occupancy rate fell down by 70% affecting the hotel’s revenue. But with the restrictions being lifted now, the industry is all set to bounce back and here are the 5 hotel stocks to be considered.
1. Indian Hotels Company
Indian Hotels is a part of the esteemed Tata Group. Recent quarterly results showed the company’s revenue grew by 85% year-over-year (YoY). A profit was also reported after persistent losses in the previous quarter. Taking advantage of the booming demand, Indian Hotels has plans to expand. 2021 will see the opening of 17 hotels in 16 cities. In addition, its pipeline includes 60 hotels, including close to 8,000 rooms in India.
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2. Lemon Tree Hotels
Recently, however, revenues grew by 110% YoY as occupancy and ARR increased. Despite the company recording a loss during the quarter, it reduced its losses by 88.6% YoY, indicating improved operational performance. By the end of 2022, the company expects to reach more than 100 hotels and 10,000 rooms to increase its market share to 22% from its current 17%.
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3. Mahindra Holidays And Resorts
Mahindra Holidays and Resorts is one of the most respected companies in the business of family vacations. As well as operating leisure hotels, it is the largest vacation ownership company in Europe. The company’s revenue fell by 7% in the past three years. Despite the recent pandemic, the company has exceeded its pre-pandemic performance.
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4. EIH Limited
The Oberoi Group, which owns EIH Limited, is a pioneer in the Indian hospitality industry. Company revenue increased by 93.6% YoY in the recent quarter. Profit grew to ₹32.18 crores from a net loss of ₹40.84 crores a year ago. Weddings and leisure travel are expected to drive revenue growth as the economy returns to normal.
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5. Chalet Hotels
Chalet Hotels is a part of the K Raheja group. In the recent quarter, the company’s revenue grew 89% year over year, led by growth in its hospitality division. In the next financial year, the company plans to increase its asset base and revenues by developing commercial, residential, and hospitality projects.
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Also Read: Indian Hotels And Restaurants Are Mass Hiring So Float Your Resume Right Now!