Best Long Term Hotel Stocks

Indian Hotels Company Ltd leads with a 17.80% return, followed by EIH Ltd at -17.93%. Other notable stocks include Chalet Hotels Ltd and Ventive Hospitality Ltd, with various performance trends in the hotel sector. These stocks represent significant investment opportunities based on their market cap and recent growth.

The table below shows the best long-term hotel stocks based on market cap.

What is Long Term Stock?

Long-term stocks refer to investments held for an extended period, typically several years, with the goal of benefiting from the company’s sustained growth. Investors choose these stocks for their potential to appreciate in value over time, capitalizing on the company’s ability to weather market fluctuations and thrive in the long run.

What is Hotel Stock?

Hotel stocks refer to shares in companies that own, operate, or manage hotels and hospitality-related services. These stocks are a subset of the broader hospitality industry and can include major hotel chains, boutique hotels, and even companies involved in the real estate aspect of the industry. Investors buy hotel stocks to benefit from the growth in travel and tourism, expecting long-term returns from the rise in demand for accommodations.

Features Of Long Term Hotel Stocks

The key features of long-term hotel stocks reflect their potential for steady growth due to industry dynamics such as consistent demand for travel, hospitality, and leisure services. Investing in these stocks provides an opportunity to benefit from a well-established market while managing volatility and risks associated with economic fluctuations.

1. Strong Market Demand: Hotel stocks often thrive in markets with growing tourism and travel demand, ensuring a steady revenue stream. As the tourism industry expands, hotel companies can see long-term profitability through increased bookings and occupancy rates.
2. Diverse Revenue Streams: Many hotel stocks have diversified income sources, including room bookings, restaurant services, and event hosting. This helps minimize risks by reducing reliance on any single income stream and provides a buffer during economic downturns.
3. Economic Sensitivity: Hotel stocks tend to be sensitive to broader economic conditions. During economic growth periods, travel and leisure spending increase, benefiting these stocks. However, in times of recession, the industry may face declines, impacting profitability.
4. Real Estate Value: Hotel companies often own substantial real estate, which adds to their long-term value. As property values appreciate over time, these companies benefit from increased asset values, which can boost stock prices.
5. Brand Strength and Loyalty: Hotel companies with strong brands and customer loyalty programs tend to perform better. Established brands like Marriott, Hilton, and Accor build trust with customers, creating a reliable, repeat business base, and enhancing long-term stock stability.

Best Hotel Stocks For Long-term

The table below shows the best hotel stocks for the long term based on 5-year average net profit margin.

Top Long Term Hotel Stocks

The table below shows the top long-term hotel stocks based on a 1-year return.

Hotel Penny Stocks List

The table below shows the hotel penny stocks list.

How To Invest In Long Term Hotel Stocks?

To invest in long-term hotel stocks, you should focus on evaluating companies with strong fundamentals, stable revenue streams, and solid growth potential. These stocks typically benefit from sustained demand for travel and tourism, making them a good long-term investment choice.

1. Research the Market: Begin by researching the hotel industry and identifying leading companies with a strong market presence. Look for established brands with solid growth in hotel bookings, occupancy rates, and overall financial performance.
2. Evaluate Financial Health: Assess the financial health of hotel companies, focusing on key indicators such as revenue growth, profit margins, and debt levels. Strong financial performance and low debt are essential for long-term stability and growth.
3. Diversify Your Portfolio: Diversifying your investments across multiple hotel stocks reduces risk. It’s essential to balance your portfolio with companies in different segments, such as luxury hotels and budget accommodations, to mitigate market fluctuations.
4. Monitor Industry Trends: Keep an eye on global travel and tourism trends. Changes in consumer preferences, economic conditions, and geopolitical events can influence hotel stocks. Regularly update your knowledge to make informed decisions about your investments.
5. Use a Reliable Broker: Use a reputable stock broker like Alice Blue to facilitate the purchase of hotel stocks. A trusted platform can provide insights, technical tools, and market analysis to help you make educated investment choices.

Advantages Of Investing In Long Term Hotel Stocks?

The main advantages of investing in long-term hotel stocks stem from their potential for consistent growth, driven by an expanding tourism sector and increasing demand for travel. These stocks can offer investors significant long-term returns while benefiting from a stable market.

1. Stable Revenue Streams: Hotel companies generate steady cash flow from room bookings, food and beverage sales, and event hosting, offering investors consistent earnings. This stability makes them attractive for long-term investment, especially in growing travel markets.
2. Growth Potential: As global travel and tourism rise, the hotel sector is poised for expansion. Investing in hotel stocks allows you to benefit from increasing demand, providing an opportunity for capital appreciation and long-term value growth.
3. Diversification: Hotels come in various categories, from luxury to budget, offering diverse investment opportunities. By investing in a mix of hotel stocks, you can diversify your portfolio and reduce the risks associated with any single market segment.
4. Inflation Hedge: Hotel stocks can act as a hedge against inflation. As the cost of living rises, hotel prices tend to increase, which can lead to higher revenue for hotel chains, providing inflation-adjusted returns for investors.
5. Tourism Sector Recovery: The hotel industry is often among the first to recover after economic downturns or global crises. As tourism rebounds, hotel stocks may see substantial growth, making them an attractive option for long-term investors seeking to capitalize on recovery trends.

Risks Of Investing In Long Term Hotel Stocks?

The main risks of investing in long-term hotel stocks arise from factors like market volatility, changes in tourism demand, and external economic events. These risks can lead to uncertain returns and losses, especially in challenging market conditions.

1. Market Fluctuations: Hotel stocks are susceptible to economic cycles and market fluctuations. A downturn in the global or local economy can negatively impact demand, leading to reduced revenue and potential losses for investors in the short and long term.
2. Seasonality: The hotel industry experiences seasonal fluctuations, with demand peaking during holidays or certain times of the year. Off-season periods may cause lower revenues, affecting the stock performance and making hotel investments more volatile.
3. Competition: The growing number of hotel chains and alternative accommodations like Airbnb increases competition in the hospitality industry. Strong competition can limit a company’s market share and impact its long-term profitability and growth.
4. Natural Disasters and Pandemics: Hotel stocks are vulnerable to disruptions caused by natural disasters, pandemics, or other unforeseen events. Such disruptions can significantly reduce travel demand and hotel bookings, leading to financial losses for hotel companies.
5. Regulatory Changes: Changes in regulations or government policies, such as stricter zoning laws or new taxes, can negatively affect hotel operations. These changes may increase costs or restrict growth, reducing the potential returns for long-term investors in the hotel sector.

Introduction to Best Hotel Stocks In India

Indian Hotels Company Ltd

The Indian Hotels Company Limited, based in India, is a hospitality company that specializes in owning, operating, and managing hotels, palaces, and resorts. Its diverse portfolio includes premium and luxury hotel brands as well as various F&B, wellness, salon, and lifestyle brands. Some of its well-known brands are Taj, SeleQtions, Vivanta, Ginger, ama Stays & Trails, and more. 

Taj, the company’s flagship brand, has around 100 hotels, with 81 currently operational and 19 in the development pipeline. The Ginger brand has about 85 hotels in its portfolio, spanning 50 locations, with 26 in the process of being developed. In addition, the company offers culinary services and food delivery through its Qmin app in about 24 cities, complemented by offline options like Qmin Shops, Qmin QSR, and Qmin food trucks.

• Close Price ( ₹ ): 761.20
• Market Cap ( Cr ): 108351.66
• 1Y Return %: 54.34
• 6M Return %: 17.80
• 1M Return %: -9.77
• 5Y CAGR %: 41.03
• % Away From 52W High: 17.56
• 5Y Avg Net Profit Margin %: -0.61 

EIH Ltd

EIH Limited is a luxury hospitality company based in India. The company specializes in owning and managing luxurious hotels and cruisers under the renowned Oberoi and Trident brands. Additionally, EIH Limited is involved in flight catering, airport restaurants, project management, and corporate air charters. 

The company’s hotel services encompass accommodation, food and beverage offerings, as well as a range of services provided by various hospitality establishments such as hotels, inns, resorts, holiday homes, restaurants, and caterers. Other services provided by the company include licensing, management and marketing of shops, laundry services, spa facilities, guest transfers, membership programs, loyalty offerings, and other related services.  

• Close Price ( ₹ ): 361.05
• Market Cap ( Cr ): 22578.77
• 1Y Return %: 13.06
• 6M Return %: -17.93
• 1M Return %: -10.33
• 5Y CAGR %: 20.50
• % Away From 52W High: 39.09
• 5Y Avg Net Profit Margin %: -5.91

Chalet Hotels Ltd

Chalet Hotels Limited, based in India, is involved in owning, developing, managing, and operating luxury hotels, as well as serviced residences, in Mumbai metropolitan region, Hyderabad, Bengaluru, and Pune. The company is divided into segments including Hospitality (Hotels), Real Estate, and Rental/Annuity Business. The Hospitality (Hotels) segment focuses on hotel operations, while the Real Estate segment involves selling residential flats. 

The company’s portfolio includes seven fully operational hotels spanning mainstream and luxury sectors, along with commercial and retail spaces in close proximity to its hospitality properties. Notable properties in its portfolio are JW Marriott Mumbai Sahar, Renaissance Mumbai Convention Centre Hotel, The Westin Hyderabad Mindspace, Bengaluru Marriott Hotel Whitefield, and Novotel Pune Nagar Road.

• Close Price ( ₹ ): 753.35
• Market Cap ( Cr ): 16457.34
• 1Y Return %: -0.05
• 6M Return %: -11.60
• 1M Return %: -22.83
• 5Y CAGR %: 18.05
• % Away From 52W High: 39.39
• 5Y Avg Net Profit Margin %: -3.26

Ventive Hospitality Ltd

Ventive Hospitality Ltd is a hospitality company focused on providing innovative solutions to the hotel industry. With a growing presence in the sector, it manages a range of hotel properties across various locations. The company’s portfolio includes both luxury and mid-range accommodations, catering to both business and leisure travelers. 

By leveraging modern technology and customer-centric services, Ventive Hospitality aims to enhance the guest experience while maximizing operational efficiency. The company strives to deliver high-quality services and ensure long-term growth, contributing to the evolving landscape of the hospitality industry. 

• Close Price ( ₹ ): 698.60
• Market Cap ( Cr ): 16315.22
• 1Y Return %: -0.82
• 6M Return %: -0.82
• 1M Return %: -2.49 
• % Away From 52W High: 10.86
• 5Y Avg Net Profit Margin %: 19.5 

Lemon Tree Hotels Ltd

Lemon Tree Hotels Limited is an Indian hotel chain that operates in both the upscale and mid-market segments, covering upper-midscale, midscale, and economy categories. The company runs under various brand names, such as Aurika Hotels and Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels, Keys Prima, Keys Select, and Keys Lite. 

With a total of 87 hotels and approximately 8,350 rooms in 53 destinations domestically and internationally, the company’s presence spans across key metro cities like NCR, Mumbai, Kolkata, Bengaluru, Hyderabad, and Chennai, as well as other tier I and II cities like Pune, Ahmedabad, Chandigarh, Jaipur, Thiruvananthapuram, and Vijayawada.

• Close Price ( ₹ ): 134.88
• Market Cap ( Cr ): 10680.44
• 1Y Return %: -2.93
• 6M Return %: -8.11
• 1M Return %: -6.09
• 5Y CAGR %: 19.56
• % Away From 52W High: 20.40
• 5Y Avg Net Profit Margin %: -8.36

Mahindra Holidays and Resorts India Ltd

Mahindra Holidays & Resorts India Limited is a player in the leisure hospitality sector, offering vacation ownership sales and related services in India. The company also provides holiday amenities through Club Mahindra, which grants members a week-long holiday annually. Club Mahindra members have access to a wide range of resorts in India and abroad, with a total of over 143 properties in countries such as India, Asia, Europe, and the United States. 

The company’s resorts in India are located in various states including Goa, Gujarat, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Puducherry, Rajasthan, Sikkim, among others. Its subsidiaries include Holiday Club Resorts Oy, Holiday Club Sweden A, Ownership Services Sweden Ab, Holiday Club Sport and Spa Hotels AB, and others. 

• Close Price ( ₹ ): 322.75
• Market Cap ( Cr ): 6507.69
• 1Y Return %: -18.49
• 6M Return %: -29.38
• 1M Return %: -9.89
• 5Y CAGR %: 15.35
• % Away From 52W High: 56.47
• 5Y Avg Net Profit Margin %: 1.09

Juniper Hotels Ltd

Juniper Hotels Limited is a leading luxury hotel development and ownership company in India. The company’s portfolio includes seven hotels with a total of 1,836 keys, including 245 serviced apartments, located in strategic locations across the country. 

Juniper Hotels is a collaboration between Saraf Hotels, a renowned hotel developer with over 40 years of experience, and Hyatt, an international hospitality brand. This partnership focuses on active asset management and delivering quality guest experiences. Key properties include Grand Hyatt Mumbai, Andaz Delhi, and Hyatt Regency in several cities.

• Close Price ( ₹ ): 280.45
• Market Cap ( Cr ): 6240.08
• 1Y Return %: -30.15
• 6M Return %: -34.79
• 1M Return %: -17.38
• % Away From 52W High: 91.92
• 5Y Avg Net Profit Margin %: -33.96

Samhi Hotels Ltd

SAMHI Hotels Limited, an India-based company, offers a hotel ownership and asset management platform, operating in the Upper Upscale, Upscale, Upper Mid-scale, and Mid-scale segments. The company currently manages a portfolio of 31 operating hotels with a total of 4,801 rooms spread across 14 cities in India, such as National Capital Region (NCR), Bengaluru, Hyderabad, Chennai, and Pune.

 Additionally, it has two hotels under development in Kolkata and Navi Mumbai, comprising a total of 461 rooms. Some of its operating hotels include Courtyard by Marriott and Fairfield by Marriott in various cities like Bengaluru, Chennai, and Goa, as well as Four Points by Sheraton in Vishakhapatnam.

• Close Price ( ₹ ): 179.90
• Market Cap ( Cr ): 3958.75
• 1Y Return %: -2.97
• 6M Return %: -2.74
• 1M Return %: -4.12
• % Away From 52W High: 32.21
• 5Y Avg Net Profit Margin %: -104.35

Oriental Hotels Ltd

Oriental Hotels Limited (OHL) is a holding company based in India that specializes in owning, operating, and managing hotels and resorts. Its clientele includes business travelers, tourists, attendees of events and conferences, wedding guests, dining customers, crew members, and long-term guests. 

Among its properties are the five-star Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai, Taj Malabar Resort & Spa near Willingdon Island in Kochi, Vivanta Coimbatore in Coimbatore, The Gateway Hotel Pasumalai in Madurai, Gateway Coonoor – IHCL SeleQtions in Coonoor, and The Gateway Hotel Old Port Road in Mangalore. 

• Close Price ( ₹ ): 149.80
• Market Cap ( Cr ): 2675.42
• 1Y Return %: 21.44
• 6M Return %: 4.64
• 1M Return %: -12.12
• 5Y CAGR %: 36.12
• % Away From 52W High: 34.85
• 5Y Avg Net Profit Margin %: -8.79

EIH Associated Hotels Ltd

EIH Associated Hotels Limited specializes in owning, managing, and operating luxury five-star and deluxe hotels. The company currently oversees a portfolio of around 20 properties under the Oberoi Hotels & Resorts brand and 10 luxury establishments under the Trident Hotels brand. 

Some notable properties include the Clarkes Hotel in Shimla, the Maidens Hotel in New Delhi, The Oberoi Cecil in Shimla, and The Oberoi Rajvilas in Jaipur. Trident Hotels are located in various cities such as Agra, Bhubaneswar, Chennai, Cochin, Jaipur, and Udaipur. The amenities at these hotels range from outdoor dining options and tea lounges to bars offering a mix of European and Asian cuisine. 

• Close Price ( ₹ ): 372.10
• Market Cap ( Cr ): 2267.44
• 1Y Return %: 17.62
• 6M Return %: -20.97
• 1M Return %: -11.93
• 5Y CAGR %: 20.24
• % Away From 52W High: 46.18
• 5Y Avg Net Profit Margin %: 6.95

Long Term Hotel Stocks – FAQs

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.