MNC RESEARCH
9 Oct • 1:25 PM · SEBI-Registered Analyst
HOTEL SECTOR – THE NEXT BIG THING IN THE STOCK MARKET?
India’s hospitality sector could be entering a multi-year growth phase, driven by rising domestic tourism, premium travel, corporate events, destination weddings and increasing demand for quality hotel rooms. With demand potentially outpacing new supply in key markets, established hotel operators could benefit from improving occupancy, higher average room rates and operating leverage. ICRA estimates industry revenue growth of 7–9% in FY27, following approximately 11% growth in FY26. Three Companies Worth Tracking for the Next Five Years: 1. ITC Hotels: With an asset-right expansion strategy, ITC Hotels aims to reach 250 operational hotels and over 22,000 rooms by 2031. Its growing managed-hotel pipeline, premium brands and expansion into emerging business and leisure destinations could support long-term revenue growth without requiring ownership of every property. 2. Chalet Hotels: Chalet offers a differentiated model combining premium hospitality assets with commercial real estate exposure. Its expansion projects, including the upcoming Taj hotel at Delhi Airport and CIGNUS Powai Tower II, could add new revenue streams and strengthen its presence in key business markets. Its ability to execute projects, maintain margins and manage capital expenditure will be important. 3. IHCL (Taj Hotels): IHCL’s Accelerate 2030 strategy targets a portfolio of 700-plus hotels. Its established Taj brand, alongside Ginger, Vivanta, Gateway and other businesses, provides opportunities across luxury, upscale and midscale hospitality. A larger asset-light and managed-hotel portfolio could support expansion while improving capital efficiency.
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