Double tax relief expands room for growth of hotel firms; stocks rise

While lower GST would push occupancy and thereby aid room rates, lower corporate tax rate should add to earnings

Apart from the gains from the reduced corporate tax rates announced last Friday, the hotel sector is blessed with lower goods and services tax rates. With a 2.8 per cent rise in the BSE Sensex, the stocks of most of the hotel players gained 7-20 per cent on Monday. And, analysts see more gains ahead for hotel companies. 

The GST Council slashed GST for hotel accommodation with tariffs of up to Rs 7,500 per night to 12 per cent from 18 per cent, and on room tariff of above Rs 7,500 to 18 per cent from 28 per cent. There