The tourism market is growing due to social media and consequently hotel industry is also growing. Tourists come with their fair share of obstacles, there is hope for the future of India’s hotel stocks because tourism is increasing and people’s tastes are also changing. Investors looking for investing in top 5 hotel stocks in India are on the right place as we will explore here about these stocks in detail. Let’s explore about these stocks.
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What are meaning of Hotel Stocks?
Hotel stocks in India Means the shares of companies which are running their business in the hospitality industry like hotels and resorts. Investing in these stocks may give you a part of their growth and make money from their success.
Top 5 Hotel Stocks in India in 2024
1. Lemon Tree Hotels
Lemon Tree Hotels Limited was founded in New Delhi, India in 1992. It manage a number of business and leisure hotels that provide project design, management and housing rentals. In India and beyond, they have presence of their hotels like Aurika Hotels and Resorts, Lemon Tree Hotels, Lemon Tree Premier, Red Fox Hotels, Keys Select, Keys Lite, and Keys Prima. Hence it is on the first place in the list of top 5 hotel stocks in India 2024.
- Current Market Price – ₹ 157.10
- Market Capitalization – ₹ 12,098 crore
- Net profit has moved from negative to positive
- EBITDA has been improving steadily over the last three years
- The company achieved a good net margin of 12.66%
- The company achieved a good return on equity of 15.04%
- Annual Net Profit has been rising over the last 3 years.
- Annual Sales have increased for last 3 consecutive years.
- Quarterly Sales have been on the rise for the last 5 years
2. HLV Ltd
HLV Ltd was established in the 1981 and based at Mumbai, India. HLV Limited operates The Leela Mumbai which offers 394 guestrooms. It was previously known as to as Hotel Leela venture Limited before it changed its name on December 2019 to HLV Limited and it is one the second place is the our list of top 5 hotel stocks in India 2024.
- Current Market Price – ₹ 28.20
- Market Capitalization – ₹ 1,849 crore
- EBITDA has been improving steadily over the last three years
- The company achieved a good net margin of 12.67%
- The company achieved a good return on equity of 3.41%
3. Chalet Hotels
Chalet Hotels Limited was founded in 1986 in Mumbai, India, it is the business entity that is into the ownership, development, management as well as operation of the hotels. Besides this, it also deals with accommodation provision through renting and other forms of tenancy services like annuity and real estate development. The portfolio consists of seven active hotel facilities inclusive of commercial properties. Additionally, their activities extend towards construction and development of residential units.
- Current Market Price – ₹ 882.95
- Market Capitalization – ₹ 18,850 crore
- Every significant Trailing Twelve Months Margin is growth with 15%
- Net profit has moved from negative to positive
- Annual Net Profit has been going upward over the last three years
- EBITDA has been improving steadily over the last three years.
- The company achieved a good net margin of 17.58% and
- The company achieved a good return on equity of 13.59%.
4. TAJ GVK Hotels and Resorts Ltd
In 1995 there were people who started a company in Hyderabad called TAJGVK Hotels & Resorts Limited. This company runs hotels, palaces, and resorts under the TAJ brand across India. It manage Taj Deccan, Taj Krishna, and Vivanta Begumpet in Hyderabad, Taj Chandigarh in Chandigarh and Taj Club House in Chennai. It is fourth place in the list of top 5 hotel stocks in India 2024.
- Current Market Price – ₹ 133.70
- Market Capitalization – ₹ 2,376 crore
- Book Value has increased over the past three years.
- Over the past three years, annual net profit has trended upward;
- Over the same period, EBITDA has increased steadily.
- The company achieves a good return on capital employed of 14.30%,
- Good return on equity of 14.69%
- Good net margin of 20.35%,
- Debt to equity ratio that has declined to its lowest level in the previous five years.
5. Oriental Hotels Ltd
It was established in 1970 and headquartered in Chennai, India. Oriental Hotels Limited owns, operates, and manages hotels and resorts located at different parts of India. The hotel’s portfolio consists of famous properties such as Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai, Taj Malabar Resort & Spa in Cochin, Vivanta in Coimbatore, The Gateway Hotel in Pasumalai, Madurai, Gateway in Coonoor as well as The Gateway Hotel at Old Port Road in Mangalore. They offer accommodation, dining, mobile food, and catering services in their hotels.
- Current Market Price – ₹ 377.40
- Market Capitalization – ₹ 2,346 crore
- The company has achieved a good net margin of 12.63% over the last four quarters;
- Consistent growth in EPS
- Consistent growth in total assets over the last three years.
- Debt to equity ratio is now lower than it has been in the previous five years.
List of Top 5 Hotel Stocks in India 2024
| Stock Names | CMP | Market Cap (Cr) | PE Ratio | ROE | EPS |
|---|---|---|---|---|---|
|
Lemon Tree Hotels
|
₹157.10
|
₹12,098
|
96.65
|
15.04%
|
1.58
|
|
HLV |
₹28.20
|
₹1,849
|
75.81
|
3.41%
|
0.37
|
|
Chalet Hotels
|
₹882.95
|
₹18,850
|
81.08
|
13.59%
|
10.66
|
|
TAJ GVK Hotels and Resorts
|
₹377.40
|
₹2,346
|
29.14
|
14.69%
|
12.84
|
|
Oriental Hotels |
₹133.70
|
₹2,376
|
47.86
|
8.03%
|
2.78
|
Note: The above details was last updated on May 2, 2024 from google finance. For the latest updates on hotel stock prices and market trends, visit the Google finance today!
Read also: Top Healthcare Stocks in India – 2024
Growth of the Hotel Industry in India
Final Words
With the hotel industry catering to a diverse range of travelers and enjoying steady growth driven by increasing domestic travel and tourism. Hence investing in these stocks offers an opportunity to get the benefit from this promising market. By staying update on key metrics like occupancy rates and economic trends, the investors can know the ups and downs of the market.
Disclaimer: The above list provided is purely for educational purposes and not a recommendation. Always do your own research or seek advice from a financial expert before making any investment decisions.
Frequently Asked Questions (FAQ)
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