The hospitality industry is booming in India. The industry was struggling from the pandemic during the same quarter last year. However, the sector continued to post strong yearly growth in the third quarter of the 2022 calendar year due to festivals, weddings and increased corporate travel.
Motilal Oswal Financial Services said in its hotel sector update said that the hotel occupancy rate is expected to improve on the back of strong demand drivers such as wedding season, G20 summit meetings, and the resumption of foreign inbound travel. It added that the average room rent (ARR) is expected to continue increasing, thereby boosting Revenue per available room (RevPAR).
Many Indian hotel companies have also changed their profit strategies. Many of them have become asset-light by selling some properties, reducing debt or combining owned and managed hotels.
Here are three hotel stocks that gave multibagger returns in the past year:
Lemon Tree Hotels Ltd
It is one of the largest mid-priced and third-largest overall hotel chains in India. The company announced that it had signed a licence agreement for a 42-room property in Jamshedpur, Jharkhand, earlier this week. It has also signed another licence agreement for a 42-room property in a 42-room hotel in Tezpur, Assam, earlier this month.
The company’s shares reached a fresh 52-week high of ₹ 102.50 on Wednesday after it surged more than 8% during intra-day trades. It saw a spurt in trading volumes and the number of shares changing hands on exchanges jumped by more than 2.28 times. On Thursday, its shares were trading at ₹ 98 levels.
Lemon Tree Hotels’ shares have given multibagger returns of 119.24% in the past year. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been 2.19 lakhs today.
Oriental Hotels Ltd
The company primarily owns, operates and manages hotels, palaces and resorts. It operates its brands under the IHCL brands of Taj and has a portfolio of 7 hotels with 825 rooms and 42 suites.
The share price of Oriental hotels surged more than 6% on Wednesday to reach a 52-week high of ₹ 88.20 apiece on the National Stock Exchange (NSE). More than 39 lakh shares changed hands on the exchange. They were trading at ₹ 84.20 levels on Thursday.
Its shares have given multibagger returns of 139.38% in the past year. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been 2.39 lakhs today.
Royal Orchid Hotels Ltd
This hotel company is one of India’s fastest-growing hospitality brands, managing a portfolio of over 3920 guest rooms across 58 hotels & resorts across 38 cities across the country.
Its shares were trading at ₹ 300 apiece (up 0.27%), on Thursday. The company has given multibagger returns of 283.46% in the past year. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 3.83 lakhs today.
A few other stocks that gained notably were Taj GVK Hotels & Resorts Limited, up 71.30% and Indian Hotels Company Ltd, up 78.44% in the past year.
Written by Simran Bafna
Disclaimer
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