Hospitality Stocks Rally as Domestic Tourism Demand Surges

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IHCL shares rally near ₹810 after a strong chart breakout, with analysts highlighting targets up to ₹920

By S JHA

MUMBAI, August 21, 2025 — Hotel stocks have turned hot with shares of leading hospitality chains gaining firm on bourses. A boom in the ongoing domestic tourism is stepping up investors’ interests in hotel stocks.

Successful visit of China’s foreign minister Wang Yi to New Delhi also has spurred hope that India may gain from inflow of Chinese tourists. India and China have agreed to resume direct flights, according to statements issued by New Delhi and Beijing.

Shares of Chalet Hotels gained 4.55% on Wednesday. Shares of Indian Hotels also gained 4.08% on Wednesday. Shares of Lemon Tree Hotels gained 4.77% on Wednesday.

The stock action on Wednesday showed the investors chasing shares of the hotel companies. Shares of Indian Hotels gained spotlight with chart action. Shares of Indian Hotels Company Limited (IHCL), the parent of the Taj Group, climbed to around ₹810, breaking out of a consolidation pattern and attracting strong attention from traders and investors.

Stock market educator Amit Seth noted in a post in his Telegram channel that while many are now rushing into the stock, the ideal entry point was ₹764 a few days earlier. Technical analyst Preksha Baid pointed out an ascending triangle breakout with support near ₹720–758, while CA Arvind Mangal projected short-term targets of ₹860 and ₹920.

Veteran chartists also flagged a bullish pennant formation on the weekly chart, suggesting the possibility of a 30–40% rally if broader market conditions remain favourable.

The bullish technical momentum coincides with a positive business development: IHCL announced the opening of a luxurious beachfront resort in Odisha, adding to its diversified global portfolio across four continents, 12 countries, and over 100 cities.

With a market cap of over ₹1.14 lakh crore, a P/E of 66.9, and leadership status in India’s hospitality sector, IHCL continues to set the tone for the broader hotel industry.

Incidentally, the hospitality companies have been posting steady revenue gains in recent quarters. Unveiling of Q1FY26 results sent shares of Chalet Hotels soaring.

The chart of shares of Indian Hotels show that they were trading at the peak of ₹895 in December last year before sliding to the low of ₹800. The stock has since been ascending on price chart.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)