Business · India Bureau
Hotel stocks surge on recovery hopes; analysts bullish on Q2 demand
Indian hotel operators Indian Hotels and Oriental Hotels rallied up to 6% as market sentiment shifts toward stronger domestic travel demand and major events expected in the coming quarter. Analysts cite improving metro-city tourism and the BRICS Summit as key catalysts for hospitality sector recovery.
LSN India ·
Hotel stocks extended gains on Tuesday as investors grew optimistic about a rebound in domestic travel and corporate bookings. Indian Hotels and Oriental Hotels led the rally, with shares climbing as much as 6% on expectations of improved sector momentum through the remainder of the year.
The hospitality sector faced headwinds in the first quarter following geopolitical tensions between the US and Iran, which dampened international visitor arrivals and corporate travel. However, market analysts now see a turning point ahead, with demand patterns suggesting stronger performance in the second quarter and beyond.
Axis Securities highlighted improving demand from India's major metropolitan centers as a key growth driver, noting that city-based hospitality operators are seeing accelerated bookings from both domestic leisure and business segments. The brokerage also flagged the BRICS Summit—scheduled to be hosted in India—as a significant near-term catalyst that could drive both room bookings and ancillary revenue streams across major hotel chains.
Industry observers say the combination of seasonal travel recovery and high-profile international events positions the hotel sector favorably for the remainder of the financial year, after a challenging opening quarter. Market participants are now watching advance booking trends and occupancy rates in major cities for further confirmation of the anticipated recovery trajectory.