ITC Hotels, Chalet, Ventive, IHCL, SAMHI: Hotel stocks to buy despite travel disruptions
Brokerages remain bullish on India's hotel sector despite geopolitical disruptions. Check top hotel stock picks, RevPAR outlook, earnings expectations and target prices.
- Jul 25, 2026,
- Updated Jul 25, 2026 12:55 PM IST
India’s hotel sector is expected to post another resilient quarter in the June period despite geopolitical tensions and travel disruptions affecting occupancy, according to multiple brokerages. They expect strong room rate growth, healthy expansion in revenue per available room (RevPAR) and sustained long-term demand, supported by a favourable supply-demand balance.
Elara Capital said the hospitality industry is likely to report like-for-like occupancy growth of 100-150 basis points and average room rate growth of 10-12 per cent in Q1FY27, leading to RevPAR growth of about 12-14 per cent. It said demand remained healthy, but occupancy growth was capped by tensions along the India-Pakistan border, safety concerns and flight cancellations following the Air India crash.
Elara said travel disruptions hurt hotel demand in Chandigarh, Amritsar, Srinagar and Jodhpur, while flight cancellations affected bookings in Ahmedabad, Goa, Jaipur, Udaipur, Mumbai, Delhi and Bengaluru. It added that a stronger wedding calendar and continued domestic travel helped cushion the impact.
The brokerage expects momentum to continue in Q2FY27, helped by multiple long weekends, Onam-led festive travel and business events such as the Indian International Jewellery Show in Mumbai. It expects another quarter of double-digit RevPAR growth, led mainly by room rate increases. Its preferred picks are Indian Hotels, Chalet Hotels and SAMHI Hotels, while Juniper Hotels and Lemon Tree Hotels could be tactical plays.
Choice Institutional Equities said foreign tourist arrivals remained under pressure in Q1FY27 because of the West Asia conflict, airspace restrictions and flight cancellations, although resilient domestic demand largely offset weaker inbound tourism. It estimated industry RevPAR growth at 7-9 per cent in April and 22-24 per cent in May on a favourable base. Choice added that overseas-focused assets, especially hotels in the Maldives and Dubai, are likely to face a larger impact from weaker international travel and higher operating costs.
Choice said the sector’s structural growth story remains intact, backed by rising domestic travel, improving infrastructure, expanding middle-class incomes, recovery in corporate travel and growing spiritual tourism. It expects demand to rebound strongly in the second half of FY27 as geopolitical concerns ease and pent-up travel demand returns.
PL Capital also expects steady operational performance in the June quarter, supported by a favourable wedding season and a low base, with occupancy levels likely to remain broadly stable despite temporary disruptions.
Overall, brokerages remain constructive on the Indian hospitality sector. While near-term geopolitical uncertainty and global travel disruptions may weigh on occupancy, limited room supply, sustained domestic travel demand and healthy pricing power are expected to support earnings growth over the medium term.
What industry experts say Industry experts said that the markets that depend heavily on international arrivals or transit traffic may experience softer demand, while destinations with strong domestic tourism or diversified source markets are likely to remain more resilient. Domestic demand has done a great job of supporting the hospitality sector, and I believe it will continue to remain a key growth driver.
During geopolitical uncertainties, travellers become cautious about their destination choices, travel planning, and booking patterns but the broader trend suggests that travellers are not necessarily cancelling holidays but are becoming more selective. The impact will be destination-specific for hospitality players with an international footprint, said Animesh Kumar, Commercial Head at ibis & ibis Styles India.
Hotels achieve stronger pricing when demand comes from a healthy mix of domestic travellers, international tourists and business guests, as each segment has different travel patterns and spending behaviour. The trend is sustainable in the near term, but stronger ARR growth will improve as inbound tourism recovers, international connectivity strengthens, and business travel gains momentum, adds Kumar.
Top picks & targets Top high-conviction ideas are of Choice Institutional Equities include names like ITC Hotels (Target Price: Rs 210), Ventive Hospitality Target Price: Rs 790 and SAMHI Hotels (Target Price: Rs 200). It also has a 'buy' rating on Chalet Hotels (Target Price: Rs 920) and Juniper Hotels (Target Price: Rs 240).
Among asset owners, Elara Capital like Chalet Hotels (Target Price: Rs 1,039) and SAMHI Hotels (Target Price: Rs 329). Juniper Hotels (Target Price: Rs 402) and Lemon tree Hotels (Target Price: Rs 185) could be tactical plays for the quarter. It also gave a 'buy' rating to ITC Hotels (Target Price: Rs 213) but maintained an 'accumulate' for Indian Hotels with a target price of Rs 732.
India’s hotel sector is expected to post another resilient quarter in the June period despite geopolitical tensions and travel disruptions affecting occupancy, according to multiple brokerages. They expect strong room rate growth, healthy expansion in revenue per available room (RevPAR) and sustained long-term demand, supported by a favourable supply-demand balance.
Elara Capital said the hospitality industry is likely to report like-for-like occupancy growth of 100-150 basis points and average room rate growth of 10-12 per cent in Q1FY27, leading to RevPAR growth of about 12-14 per cent. It said demand remained healthy, but occupancy growth was capped by tensions along the India-Pakistan border, safety concerns and flight cancellations following the Air India crash.
Elara said travel disruptions hurt hotel demand in Chandigarh, Amritsar, Srinagar and Jodhpur, while flight cancellations affected bookings in Ahmedabad, Goa, Jaipur, Udaipur, Mumbai, Delhi and Bengaluru. It added that a stronger wedding calendar and continued domestic travel helped cushion the impact.
The brokerage expects momentum to continue in Q2FY27, helped by multiple long weekends, Onam-led festive travel and business events such as the Indian International Jewellery Show in Mumbai. It expects another quarter of double-digit RevPAR growth, led mainly by room rate increases. Its preferred picks are Indian Hotels, Chalet Hotels and SAMHI Hotels, while Juniper Hotels and Lemon Tree Hotels could be tactical plays.
Choice Institutional Equities said foreign tourist arrivals remained under pressure in Q1FY27 because of the West Asia conflict, airspace restrictions and flight cancellations, although resilient domestic demand largely offset weaker inbound tourism. It estimated industry RevPAR growth at 7-9 per cent in April and 22-24 per cent in May on a favourable base. Choice added that overseas-focused assets, especially hotels in the Maldives and Dubai, are likely to face a larger impact from weaker international travel and higher operating costs.
Choice said the sector’s structural growth story remains intact, backed by rising domestic travel, improving infrastructure, expanding middle-class incomes, recovery in corporate travel and growing spiritual tourism. It expects demand to rebound strongly in the second half of FY27 as geopolitical concerns ease and pent-up travel demand returns.
PL Capital also expects steady operational performance in the June quarter, supported by a favourable wedding season and a low base, with occupancy levels likely to remain broadly stable despite temporary disruptions.
Overall, brokerages remain constructive on the Indian hospitality sector. While near-term geopolitical uncertainty and global travel disruptions may weigh on occupancy, limited room supply, sustained domestic travel demand and healthy pricing power are expected to support earnings growth over the medium term.
What industry experts say Industry experts said that the markets that depend heavily on international arrivals or transit traffic may experience softer demand, while destinations with strong domestic tourism or diversified source markets are likely to remain more resilient. Domestic demand has done a great job of supporting the hospitality sector, and I believe it will continue to remain a key growth driver.
During geopolitical uncertainties, travellers become cautious about their destination choices, travel planning, and booking patterns but the broader trend suggests that travellers are not necessarily cancelling holidays but are becoming more selective. The impact will be destination-specific for hospitality players with an international footprint, said Animesh Kumar, Commercial Head at ibis & ibis Styles India.
Hotels achieve stronger pricing when demand comes from a healthy mix of domestic travellers, international tourists and business guests, as each segment has different travel patterns and spending behaviour. The trend is sustainable in the near term, but stronger ARR growth will improve as inbound tourism recovers, international connectivity strengthens, and business travel gains momentum, adds Kumar.
Top picks & targets Top high-conviction ideas are of Choice Institutional Equities include names like ITC Hotels (Target Price: Rs 210), Ventive Hospitality Target Price: Rs 790 and SAMHI Hotels (Target Price: Rs 200). It also has a 'buy' rating on Chalet Hotels (Target Price: Rs 920) and Juniper Hotels (Target Price: Rs 240).
Among asset owners, Elara Capital like Chalet Hotels (Target Price: Rs 1,039) and SAMHI Hotels (Target Price: Rs 329). Juniper Hotels (Target Price: Rs 402) and Lemon tree Hotels (Target Price: Rs 185) could be tactical plays for the quarter. It also gave a 'buy' rating to ITC Hotels (Target Price: Rs 213) but maintained an 'accumulate' for Indian Hotels with a target price of Rs 732.