Reserving success: Hotel stocks thrive as demand checks in for long stay

Ride the wave of Q3FY24 strength, fuelled by rising average room rates and enhanced occupancy

Led by the luxury hospitality major EIH, listed hotel stocks have been major outperformers over the past year, and the trend has continued over the past month. Compared to the S&P BSE Sensex/National Stock Exchange Nifty, which has delivered flat performance over the past month, the average returns for the top four listed entities were 4 per cent.

EIH has performed much better than peers as well as the benchmarks, with a return of 36 per cent over the past month and over 70 per cent over three months.

The recent trigger for hotel stocks has been the strong performance