Hotel stocks rally on heavy volumes; Chalet, Lemon Tree soar over 10%

While Q2FY22 witnessed a sharp rebound in revenues on a lower base, ICICI Securities expect a further recovery in revenues during Q3FY22E supported by healthy festive season travel demand.

Shares of hotel companies rallied up to 13 per cent on the BSE in Monday’s intra-day trade on back of heavy volumes on expectation of healthy earnings going forward as higher vaccination and lower hospitalization rates will lead to a much stronger rebound than the second wave.

Lemon Tree Hotels surged 13 per cent to Rs 54.65 on three-fold jump in trading volumes. A combined 12.68 million equity shares representing 1.6 per cent of total equity of the company changed hands on the NSE and BSE.

EIH Associated Hotels and Chalet Hotels rallied 13 per cent and 12