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JM Financial Names Hotel Stocks to Buy Ahead of Holiday Season
JM Financial thinks many hotels in India could have a busy season.
It expects hotel revenue per available room to rise 12–13% in the second quarter of FY27.
Leisure trips, business travel and large events are expected to bring guests.
Delhi-NCR and Mumbai could be especially busy.
The firm expects Leela Hotels to perform particularly well and has raised its price target for the company.
Lemon Tree Hotels and ITC Hotels are also among its preferred hotel stocks.
More wedding dates this year may help hotels attract customers.
But the outlook could be hurt if room-price growth slows, the economy weakens sharply or geopolitical tensions disrupt travel.
JM Financial expects hotel-sector RevPAR to grow 12–13% year-on-year in Q2 FY27, supported by leisure, events and corporate travel.
Delhi-NCR and Mumbai are identified as key demand drivers, while healthy October 2026 bookings point to a strong second half of FY27.
Leela Hotels is forecast to lead same-store RevPAR growth at 15–16%; JM Financial maintains its Buy rating and raises its target price to ₹685 from ₹610.
JM Financial names Leela, Lemon Tree Hotels and ITC Hotels as its preferred picks; it expects revenue growth of 14% at Lemon Tree and 15% at ITC Hotels.
Risks include slower average room rate growth, a sharp economic slowdown and renewed geopolitical escalation that weakens travel demand.
- Who
- JM Financial and the hotel companies it covers, including Leela Hotels, Lemon Tree Hotels and ITC Hotels.
- What
- JM Financial has a positive outlook on hotel stocks and names Leela, Lemon Tree and ITC Hotels as preferred picks.
- Where
- India, with Delhi-NCR and Mumbai highlighted as demand drivers.
- When
- Ahead of the Diwali and holiday season; the forecast covers Q2 FY27 and the rest of FY27.
- Why
- Resilient domestic travel, favourable demand-supply dynamics, pricing power and a strong events and wedding pipeline.
Key facts
- Expected sector RevPAR growth
- 12–13% year-on-year in Q2 FY27
- Leela target price
- ₹685, raised from ₹610; Buy rating retained
- Leela forecast
- 22% revenue growth and around 16% RevPAR growth
- ITC Hotels forecast
- Around 15% revenue growth and 18% EBITDA growth
- Lemon Tree Hotels forecast
- 14% revenue growth, 16% EBITDA growth and occupancy up around 370 basis points
- Wedding dates
- More than 90 auspicious dates in FY27, compared with around 70 in FY26
- Risks cited
- Moderating average room rate growth, a sharp economic slowdown or renewed geopolitical escalation
Quotes
JM Financial
Brokerage providing the hotel-sector outlook and stock recommendations.
“Our preferred picks in the space are Leela, Lemon Tree and ITC Hotels”
livemint.com
Sources
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