Hotel Stocks

Indian Hotels Company reported a Q4FY26 net profit of ₹600 crore, a 15% YoY increase. Revenue rose 14% to ₹2,845 crore, driven by strong hotel segment performance. The company anticipates opening 60 new hotels in FY27, with optimistic demand forecasts.

ITC Hotels share price: The hotel stock has risen 15 per cent in the last five sessions, in line with bulls gripping Nifty 50 and Sensex. The benchmarks zoomed over four per cent, logging their biggest weekly rise in four years.

Benares Hotels shares have surged 29% YTD despite the ongoing stock market correction, and reported a significant profit increase in Q3FY25, positioning it favourably for future expansion in the Indian hospitality sector.

Jefferies has initiated coverage on ITC Hotels with a 'Buy' rating and a target price of ₹240, anticipating a 40% upside. The hotel chain is expected to benefit from a recovery in the hospitality sector, with projected revenue growth driven by strategic management and expansion plans.

Shares of ITDC, ITC Hotels, and Lemon Tree rose by up to 8% on February 1, following the Finance Minister's announcement of measures to enhance the tourism sector in the Budget speech.

The hotel sector may see new IPOs from Schloss Bangalore, Ventive Hospitality, and Brigade Hotels, expected to raise ₹8000 crore, according to Jefferies. Robust travel demand continues, but profitability challenges and high leverage pose risks to sustained growth in the hospitality industry.