Hotel stocks in India gained momentum on Wednesday, driven by optimism around upcoming GST reforms. On August 20, share prices of Lemon Tree Hotels, ITC Hotels, Chalet Hotels, and EIH Hotels saw buzzing activity on the bourses, reflecting investor interest in the sector.
Hospitality and tourism shares were in focus on August 20, despite a muted action in the frontline indices. According to reports, the key tailwind was a proposal to cut GST from 18% to 5%. The finance ministry has not yet issued any response to the development.
India’s hospitality and tourism industry is expanding on the back of rising travel demand, domestic consumption, and infrastructure investments. Tourism revenues are projected to cross $59 billion by 2028, driven by domestic travel, foreign tourist arrivals, and corporate tourism. The Union Budget 2025-26 allocated ₹2,541 crore for tourism development, including the creation of 50 destinations across states. The hotel sector outlook for Q2FY26 is positive, aided by seasonal demand and multiple long weekends boosting leisure travel.
The following are the top five hotel stocks that saw the highest gains in early trade around 10:30 am IST:
Lemon Tree Hotels share price was trading at ₹156.25, up 5.01%, with a market capitalisation of ₹12,379 crore. The stock was trading near its 52-week high, just 3.3% below it. Fleur Hotels, a subsidiary of the company, was declared the successful bidder in an e-auction for the allotment of land at Nehru Place, New Delhi.
ITC Hotels share price was trading at ₹243.95, gaining 4.39%, with a market capitalisation of ₹50,804 crore. The stock has been on a straight bull rally since listing, giving investors 36% returns since January.
Chalet Hotels share price jumped to ₹999.95, up 4.55%, with a market capitalisation of ₹21,867 crore. The stock was trading 7.7% below its all-time high.
EIH Ltd share price was trading at ₹398.65, higher by 3.49%, with a market capitalisation of ₹24,930 crore. The stock crossed above all the important moving averages last week. It has recorded a 52-week high of ₹441.75 and a 52-week low of ₹305.
Indian Hotels Company share price was trading at ₹796.25, up 2.72%, on the back of a healthy business outlook. The company has a total market capitalisation of ₹1,13,341 crore. The stock is 10% below its all-time high of ₹894.15, which it touched on December 30, 2024.
Overall, the hotel sector in India is showing strong momentum, supported by favourable policy measures, rising travel demand, and seasonal factors.
Disclaimer: The article is for informational purposes only and not investment advice.
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