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Analysts recommend five hotel stocks with up to 49% upside
Analysts think several hotel companies could benefit as more people travel and spend on hotels.
They gave BUY ratings to five hotel stocks.
Lemon Tree Hotels was seen as having the biggest possible gain, at 48.7%.
Brigade Hotels was next, with a possible gain of 47.6%.
Indian Hotels, Park Hotels and Chalet Hotels also received BUY ratings.
The hotel industry is adding more rooms through new properties and operating agreements.
Analysts expect festivals, weddings, business trips and meetings to bring more guests.
They also expect hotel room prices and revenue per available room to grow.
ICRA expects the Indian hospitality industry to grow by 7-9% in 2026-27.
IDBI Capital assigned BUY ratings to Indian Hotels, Lemon Tree Hotels, Brigade Hotels, Park Hotels and Chalet Hotels.
Lemon Tree Hotels has the highest cited upside at 48.7%, followed by Brigade Hotels at 47.6%.
Indian Hotels has a target price of Rs 869 from IDBI Capital, while ICICI Securities set a higher target of Rs 925.
The sector is adding inventory through management contracts and licence agreements, with Indian Hotels and Lemon Tree Hotels adding six hotels each in August.
Festive and wedding demand, corporate travel, MICE activity and industry consolidation are expected to support occupancy, ADR and RevPAR growth.
- Who
- IDBI Capital, ICICI Securities, ICRA and the five hotel companies covered by the brokerages.
- What
- Analysts recommended five hotel stocks with BUY ratings and projected upside ranging from 4.6% to 48.7%.
- Where
- India’s domestic hospitality market.
- When
- The recommendations refer to August additions and forecasts for 2026-27, 9MFY27 and FY26-FY29E.
- Why
- Festive and wedding demand, stronger corporate travel and MICE activity, rising travel spending, limited supply relative to demand and hotel-sector consolidation are expected to support growth.
Key facts
- Stocks covered
- Indian Hotels, Lemon Tree Hotels, Brigade Hotels, Park Hotels and Chalet Hotels
- Highest projected upside
- Lemon Tree Hotels: 48.7%, with a target price of Rs 158 versus a cited price of Rs 106
- Second-highest projected upside
- Brigade Hotels: 47.6%, with a target price of Rs 86 versus a cited price of Rs 58
- Indian Hotels targets
- IDBI Capital: Rs 869; ICICI Securities: Rs 925
- Lowest projected upside
- Chalet Hotels: 4.6%, based on a target price of Rs 938 versus a cited price of Rs 897
- Industry forecast
- ICRA expects hospitality-industry revenue growth of 7-9% in 2026-27, after estimated 11% growth in 2025-26
- Premium hotel outlook
- Premium occupancy is expected at 72-74%, while average room rates are projected at Rs 8,600-8,800 in 2026-27
Sources
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