Happy holidays! Did you know that this time of year is the most profitable for the tourist sector? Because of important occasions like Christmas and New Year’s, families are vacationing. You may participate in the success of companies like these by purchasing their stock, such as the “Best Hotel Stocks in India.”
Why hotel stocks?
Analysts believe that this season’s rise in hotel stock prices will continue. There are high expectations for this stock, and experts believe buying it before the end of 2022 would have the most advantages.
Before the pandemic outbreak, global lockdowns had a negative impact on the travel and tourist sectors, ultimately leading to the economy’s collapse. The industry should, however, strengthen as reported cases of COVID-19 drop and the market opens up.
Additionally, selecting market-beating stocks in a precarious economic climate is a simple task, particularly given that some experts predict a severe recession for the following year. It is always wise to search for companies with long-term competitive advantages, alluring values, and the potential to succeed in a downturn in an uncertain environment.
The tourism industry, which many think will overcome the anticipated recession that will occur next year, is one underappreciated sector having such characteristics. Read on to learn more about the hotel sector and the top stocks to purchase now. But remember to start trading these stocks. You need the Best Demat Account in India.
What are hotel stocks?
The provision of short-term lodgings, such as hotels and motels, as well as services connected to lodging, is the primary emphasis of the hotel industry. It is a subsection of the enormous hospitality (or leisure) sector.
Hotels that are C-corporations and hotel real estate investment trusts (REITs) are the two primary types of businesses that make up the hotel industry.
Hotels run by C-corporations often work in hotel management, branding, marketing, and sometimes franchise licensing. They usually have limited real estate holdings and must pay corporation taxes on dividends because of their legal form.
On the other side, hotel REITs concentrate more on purchasing, owning, and managing hotel real estate. Some REITs even oversee their hotels. Although their legal structure exempts them from paying taxes on issued dividends and from qualifying as a REIT, they must distribute 90% of their taxable revenue to shareholders.
Top 10 Fastest Growing Hotel Stocks In India
Institutional investors have put much smart money into hotel companies because the hospitality sector has historically been profitable for investors. The list below shows 10 of the best hotel stocks for this year.
1. Byke Hospitality Ltd.
Established On: March 29, 1990
Registered: Registrar of Companies in Mumbai
Paid-up capital: Rs. 400,977,984
Authorized share capital: Rs. 410,000,000
2. Chalet Hotels Ltd.
Established On: January 06, 1986
Registered: Registrar of Companies in Mumbai
Paid-up capital: Rs. 4,450,999,800
Authorized share capital: Rs. 2,050,240,000
3. EIH Ltd.
Established On: May 26, 1949
Registered: Registrar of Companies in Kolkata
Paid-up capital: Rs. 3,000,000,000
Authorized share capital: Rs. 1,250,728,320
4. Indian Hotels Company Ltd.
Established On: April 01, 1902
Registered: Registrar of Companies in Mumbai
Paid-up capital: Rs. 2,000,000,000
Authorized share capital: Rs. 1,420,399,620
5. India Tourism Development Corporation Ltd.
Established On: March 31, 1965
Registered: Registrar of Companies in Delhi
Paid-up capital: Rs. 1,500,000,000
Authorized share capital: Rs. 857,694,020
6. Lemon Tree Hotels Ltd.
Established On: January 24, 2007
Registered: Registrar of Companies in Delhi
Paid-up capital: Rs. 400,000
Authorized share capital: Rs. 350,000
7. Mac Charles (India) Ltd.
Established On: September 28, 1979
Registered: Registrar of Companies in Bangalore
Paid-up capital: Rs. 200,000,000
Authorized share capital: Rs. 13,010,520
8. Mahindra Holidays & Resorts India Ltd.
Established On: September 20, 1996
Registered: Registrar of Companies in Chennai
Paid-up capital: Rs. 3,000,000,000
Authorized share capital: Rs. 2,009,381,760
9. Oriental Hotels Ltd.
Established On: September 18, 1970
Registered: Registrar of Companies in Chennai
Paid-up capital: Rs. 750,000,000
Authorized share capital: Rs. 178,599,008
10. Taj GVK Hotels & Resorts Ltd.
Established On: February 02, 1995
Registered: Registrar of Companies in Hyderabad
Paid-up capital: Rs. 341,000,000
Authorized share capital: Rs. 125,402,992
Most Sought-After IPO 2023: OYO
Oyo, an Indian budget hotel operator and aggregator, has updated the first half of its fiscal year’s financial figures in its draft red herring prospectus, indicating that they want to issue its initial public offering (IPO) shortly.
According to a source close to OYO and the Best stock advisor in India, they reveal that Oyo plans to have its initial public offering in the first quarter of 2023, which would fall between April and June.
Oyo has submitted an amended draft red herring prospectus to the Securities and Exchange Board of India in preparation for its first public offering, which includes financial performance through the first half of the fiscal year.
According to OYO’s projections, India will generate a $26 billion potential by 2030. To improve its position in India, the organization filed a draught red herring prospectus (DRHP) with the SEBI in October 2021 for a US $6.5 billion valuation in the initial public offering (IPO). Taking this action was done to strengthen the company’s status in India.
Trends To Watch In Hospitality
After suffering greatly during the COVID-19 epidemic, the hotel sector is now beginning to recover. The rebuilding process has been sluggish for many companies in the hospitality sector, including hotels, restaurants, and cruise lines.
People are more at ease with shorter vacations and excursions closer to home. Therefore, this trend has grown more prevalent. This development benefits hotels with several product lines targeting sizable regional audiences.
The developments with COVID-19 will have repercussions for the hotel industry as a whole. So far, the most successful businesses are the ones that can quickly adapt to changing market conditions.
For Instance: To strengthen their position in India, companies like Accor and Wyndham Hotels and Resorts publicly announced in October 2021 that they intended to build new hotels and other properties there.
Accor, a French hospitality company, is adding nine new mid-range and low-cost hotels to its portfolio in India. It would boost the country’s total number of hotels to 54.
The Final Word
According to a recent analysis directed by the World Travel and Tourism Council (WTTC), India’s travel and tourism organizations to the country’s gross domestic product (GDP) rank seventh in the world. In FY20, Indian travelers spent $75 billion, and by 2027 they will spend $125 billion.
Travel and tourism will contribute $121.9 billion to the country’s economy in 2020, growing to $512 billion in 2028. Between 2019 and 2028, the sector’s direct contribution to India’s GDP will increase by 10.35 percentage points.
Based on these statistics, Indian hotels are ready to take advantage of the enormous opportunities available. One sector to watch out for is this one.