Strong prospects, valuations to drive gains for hotel companies' stocks

Occupancy may improve by up to 5 per cent, with the average room rate growing at 7-8 per cent over three years

The hospitality industry has around 212,000 rooms, with an industry size of about Rs 82,000 crore. The industry could grow at an annual rate of 10.5 per cent for the next three financial years, despite a quiet Q1FY25.

The demand will be driven by domestic travellers, who will contribute roughly 50 per cent of the growth, while foreign tourists will account for 30 per cent. The meeting and conference circuit will generate the remaining 20 per cent.

Occupancy may improve by up to 5 per cent, with the average room rate growing at 7-8 per cent over