Motilal Oswal Financial Services Limited has issued 'Buy' ratings on three major hotel stocks - Indian Hotels Company Limited, Lemon Tree Hotels Limited, and Ventive Hospitality Limited - as the hospitality sector benefits from rising domestic travel and increased corporate events. According to the brokerage report, the sector is expected to see positive momentum in the second half of financial year 2026-27, supported by a robust events calendar, healthy wedding season, and continued pricing power. The latest sector report confirms that positive demand momentum is expected to sustain in the second half of FY27, driven by strong corporate travel, Meetings, Incentives, Conferences & Exhibitions (MICE), and large format events.
India's hospitality and tourism industry concluded the second quarter of financial year 2026-27 on a strong footing, supported by strong demand due to corporate travel, Meetings, Incentives, Conferences & Exhibitions (MICE), and large format events. As reported by Motilal Oswal, the industry revenue growth is likely to continue with similar momentum in the next two quarters of FY27. Resilient demand across cities, healthy corporate/MICE demand, and sustained pricing power will remain among the key contributors of segment growth. The latest sector report confirms that this positive momentum is expected to sustain in the second half of FY27, with industry growth at approximately 10% year-on-year driven by strong fundamentals.
Motilal Oswal has set specific target prices for the recommended stocks with significant upside potential. According to the brokerage report, Lemon Tree Hotels has a target price of ₹140 per share with 34% upside, Ventive Hospitality carries a target of ₹750 per share with 34% upside, and Indian Hotels Company has a target of ₹870 per share with 22% upside. The brokerage noted that healthy October bookings, a stronger wedding calendar, and rising events/conferences provide favorable visibility into the second half of FY27. The latest sector report reinforces these target prices, with the positive demand momentum expected to sustain through the remainder of the financial year.
As reported by Motilal Oswal, Indian Hotels Company closed 2.04% higher at ₹729 per share on BSE with a market capitalization of ₹1,03,768.21 crore on Wednesday. The stock has delivered 27% returns in six months and around 1% return in one month. Lemon Tree Hotels closed unchanged at ₹104.25 per share with a market capitalization of ₹8,259.17 crore, having delivered negative 37% returns in one year but 14% returns in two years. Ventive Hospitality closed marginally lower at ₹559 per share with a market capitalization of ₹13,054.98 crore, with its share price value declining 19.7% in one year.
