Hotel stocks order room service: See strong Q1, a stronger outlook

Inbound tourism, higher occupancies, and lean cost model are positives for listed hospitality majors

Hotel stocks have been among the largest sectoral gainers over the past month, riding on strong April-June quarter (first quarter, or Q1) results of 2022-23 (FY23) and improving outlook ahead of the peak season.

While the scrip of the largest listed player in this space - Indian Hotels Company (IHCL) - was up 17 per cent, its smaller peers EIH (formerly East India Hotels) and Lemon Tree Hotels gained between 13 per cent and 18 per cent.

Among larger players, Chalet Hotels was the only outlier - it was down 7 per cent over this period.

Better prospects for the