Home / Markets / Stock Markets /  Hotel shares continue to climb. Experts list out stocks to buy, sell or hold

Despite global economy reeling under the heat of slowdown and inflation concern, hotel stocks in India have delivered stellar return to its investors in recent times. In year-to-date (YTD) time, Indian Hotels Company shares have risen 80 per cent, shares of Lemon Tree Hotels too ascended to the tune of 80 per cent, EIH share price shot up around 50 per cent, Chalet stocks appreciated 65 per cent whereas Oriental Hotels shares surged around 60 per cent. As festive season has begun and it is expected to last till end of this year, market experts are expecting further rally in these stocks.

On why hotel stocks are skyrocketing, Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, "Nowadays, one of the investors' favorite sectors is the hotel industry. In the last quarter, hotel stocks have delivered a double to triple-digit return, because of starting of the long festival season and revenge traveling after Covid-19. Domestic tourism is seeing lots of attraction amid global uncertainties. After covid-19, organized players have gained market share and therefore we are seeing a rise in their stocks. There is a pick up in both leisure and business travel that is improving the sentiments for the industry."

Expecting revenge tourism post-Covid to continue support rally in hotel stocks, Manoj Dalmia, Founder & Director at Proficient Equities said, "Despite rise in interest rates by various banks, rate of spending has remained almost unchanged that means people are ready to spend more in this festive season and hence luxury hotels may continue to rake moolah till end of this festive season."

Buy or sell stocks for today

On which hotel stock to buy, Pravesh Gour of Swastika Investmart said, "Indian Hotels shares will remain our top pick in the hotel space due to its strong pedigree and business. The company is in expansion mode as the company plans to open 1.5 hotels per month. Technically, the counter is in a classical uptrend and witnessing a flag formation on the daily chart. An all-embracing structure is very lucrative as it is trading above all its important moving averages. Momentum indicators are also supporting the trend in the near term. On the upside, 340 apiece is the susceptible level, above this, we can expect a big rally towards 380 to 400 levels while 300 is an important support level; below this, 280 is the next support level."

Echoing with Swastika Investment expert's views, Manoj Dalmia said, "Those who don't want to take any risk can buy Indian Hotels shares whereas those who are ready to take risk can take Lemon Tree Hotels around 70 to 72 apiece range for short term target of 115 apiece maintaining stop loss below 60 per share levels."

Manoj Dalmia advised shareholders of Indian Hotels shares and Lemon Tree Hotels to hold the stock for given short term targets.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.


Asit Manohar

Chief Content Producer at Live Mint Digital Team
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