Best Hotel Stocks in India 2024

Indian hospitality is considered one of the best in the world. This is why Indian hotel stocks have been booming over the last few years. The demand from both domestic and foreign travelers is increasing, as the Indian government is running programs to boost tourism. Investing in the best hotel stocks can be a lucrative investment option.

According to a recent estimation, the hotel industry contribution in India GDP was $40 billion in 2022 and it is expected to reach ₹68 billion by 2027. Foreign Direct Investment is an important source of funding for the Indian hotel industry because of which the Indian government has allowed a 100% FDI to it through the automatic route which makes picking Indian hotel stock a good idea.

 

 

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Top Hotel Stocks in India to invest in 2024

Here is the best hotel stocks list of some of the prominent companies which are indulged in the business of hospitality in India:

 

1). Indian Hotels Company Limited (IHCL)

 

 

Indian Hotels Company Limited owned by the Taj Group is a giant hospitality company founded in 1899 by Jamsetji Tata. It all began in 1903 when the first hotel of the company, The Taj Mahal Palace Hotel, was opened. 

This grand hotel was impressive and was regarded as the finest hotel east of the Suez Canal. It changed the definition of luxury hotels in India that offered international comforts and experiences to the people.
Today, the Taj Group owns and runs multiple hotels, palaces, and resorts all over India. They have a range of hotels from ultra-luxurious hotels like the Taj Mahal Palace to more affordable options under the Ginger brand. The USP of Taj hotels in their hospitality and unique historical palaces.

 

 

2). EIH Limited

The EIH Associated Hotels Limited, or EAHL, was established in 1949. EIH runs start-of-the-art five-star and deluxe five-star hotels in different Indian cities and tourist spots with their head office located in Chennai.

EAHL has two main hotel brands: The Oberoi and Trident. Many of their prominent hotels include The Oberoi Cecil in Shimla and The Oberoi Rajvilas in Jaipur. EIH is also involved in managing Trident hotels in different Indian cities like Agra, Jaipur, and Udaipur.
 
The Trident hotels under EIH have restaurants with variety of Indian and international delicacies. As a customer you can also unwind at their bars with drinks and snacks from across the world. currently, EAHL has over 4,900 hotel rooms and have their presence in 24 Indian cities and even 7 other countries.

 

3). Lemon Tree Hotels Limited

Lemon Tree Hotels is a well-known hotel chain in India, famous for its modern and world-class facilities. According to a report, they're the best mid-priced hotels available in the country. 
Currently, they have a huge network of more than 100 hotels offering nearly 10,000 rooms all over India. They cater to people with different budgets ranging from fancy luxury places to mid-price options.  
They even have different brands for various price ranges, like Lemon Tree Premier for higher end stays and Red Fox Hotels for travelers who want to keep it budget friendly. Lemon Tree Hotels isn't limited to big Indian metros but also in various smaller cities all over India.

 

4). Chalet Hotels Limited

Chalet Hotels, which came into being in 1986, is a company owned by the K Raheja Corp group. They focus on luxury hotels in big Indian cities like Mumbai and Delhi. They handle everything from building the hotels to running them day-to-day.  
 Chalet Hotels in involved with owning and running high-end hotels under prominent brands like Marriott and Accor. It builds and sells commercial spaces such as office buildings or shops in close proximity of their hotels. 
The brand has new hotels and commercial spaces under their ranks. Currently, they have 10 hotels with over 3,000 rooms and about 1.2 million square feet of commercial space near their hotels.   

 

 

5). Indian Railway Catering and Tourism Corporation Limited (IRCTC)

Established in 1999, IRCTC is an Indian government company and one of the best railway stocks in India that is involved in multiple business verticals. It has a monopoly in selling train tickets online, provides food and drinks at stations and on trains, and even bottle drinking water for trains. Apart from it they manage restaurants and other food services in train stations, on trains. 
IRCTC is also involved in providing comfortable stays for travelers such as special lounges for executives with Wi-Fi facilities and meals at stations. They also provide affordable rooms to relax in at stations during layovers.

 

 

6). Royal Orchid Hotels Limited

Royal Orchid & Regenta Hotels is a prominent brand in Indian hospitality sector which is growing very quickly. The company have over 3900 rooms in 58 hotels and resorts across 38 cities all across India. The company was established in 2001 and since then they have made it a trusted brand. with ambitious plans to reach 100 hotels by 2023. 
What makes them special is their variety as they offer places to stay in all sorts of locations including Wildlife sanctuaries (3), Religious pilgrimage sites (over 7), Hill stations (10), Leisure destinations (over 20), business cities (over 27).

 

 

7). Oriental Hotels Limited

Oriental Hotels Limited has partnered with the Indian Hotels Company Limited (IHCL), which is a big name in Indian hospitality. OHL is concerned with managing 7 hotels across South India in cities like Chennai, Cochin, Coimbatore, and Mangalore.
Some of the hotels under OHL are prominent Taj-branded hotels, while other hotels are part of IHCL's Vivanta and Gateway collections. Apparently, OHL only owns 3 of these hotels itself. The others operate under lease or licensing agreements with IHCL. This partnership goes back to the 1970s, when OHL opened its first ever hotel with IHCL's help.

 

 

Factors to consider before investing in hotel stocks in India

 

Here are some of the crucial factors which you should keep in mind before investing in the best hotel stocks in India:

• Choose right locations: Pick stocks of hotels in the right locations with a reputation for world-class services. It gives you the dual benefit of a good spot and satisfied customers, which results in more money for you as investor. 

• Stay updated with trends: Find out the current happening of the Indian hotel business. Find out the vacancy of rooms in the chain of hotels of the stock you are picking, amount they charge per night, and how much money they make overall. It will give you an idea of what might happen in the future.

• Verify company's overall health: Take a look at the financial position of the company. Ascertain the money they charge, their profit margins, and the amount of debt it incurs. It will help you take a call on if they're a good investment. 

• Brand Value: If a specific hotel chain is in your mind, consider ascertaining the popularity their brand possesses.  Strong brands are in a position to charge more, and it results in customers keeping coming back, which means more profits. 
• Tourists footfall: Regular footfall of tourists keeps hotels busy. See if tourism in India the possibility has to grow, both from within India and from other countries.  Think about what the government is doing to attract tourists, how easy it is to travel around India, and where people like to visit.
 
• Pricing: Before considering a stock of a hotel company, compare their price to similar companies in the business and how their stock price changes over time. It will help you in deciding if the stock is the right choice for you or not.