Hotel Stocks India Soar as Lemon Tree ITC Chalet Rally Up to 5 Percent

Hotel stocks India rallied boldly on Monday with Lemon Tree Hotels, ITC Hotels, Chalet Hotels and Samhi Hotels soaring up to 5 percent on the BSE as hospitality sector outlook improves significantly.

Shares of listed hotel companies surged between 3 percent and 5 percent on the BSE during intra-day trading on Monday. This extended the previous week's upward momentum. In comparison, the BSE Sensex rose only 0.65 percent to 77,302. Hotel stocks India are clearly outperforming the broader market on expectations of improving business conditions across the hospitality sector.

Hotel Stocks India Rally: Lemon Tree ITC Hotels Chalet and Samhi Surge

Hotel stocks India saw strong gains across all major listed hospitality companies. Lemon Tree Hotels stock, Samhi Hotels stock, ITC Hotels stock and Chalet Hotels stock all gained between 3 and 5 percent on Monday. In the past one week, these hotel stocks India outperformed the market by surging between 5 and 11 percent. The benchmark index rose only around 1 percent in the same period. However, over the past one year, hotel stocks have fallen up to 17 percent. The recent rally signals renewed investor confidence in India hospitality sector FY27 recovery. Read more India hotel industry news here.

India Hospitality Sector FY27 Outlook Remains Positive

India hospitality sector FY27 outlook is positive despite ongoing global challenges. FY2025-26 was volatile due to geopolitical shifts, extreme weather, trade limitations and airline disruptions. The West Asia conflict continues to impact fuel prices and inflation. However, Indian Hotels Company said the hospitality sector is expected to remain stable in FY27. Domestic leisure travel and MICE sector demand will support hotel stocks India through the year. Room rates are likely to remain firm across premium and mid-scale hotel segments.

ICRA Projects 7 to 9 Percent Revenue Growth for Hotel Stocks India

Hotel stocks India are backed by strong revenue growth projections. ICRA projects India hospitality sector FY27 industry revenues to grow 7 to 9 percent year on year. Occupancy and average room rates are expected to continue improving. Near-term performance may face some pressure from West Asia geopolitical developments. Over the medium to long term, rising discretionary spending, an expanding middle class, and continued business travel will support hotel stocks India. India's growing global prominence will also attract more foreign visitors and senior business executives.

Lemon Tree Hotels Stock Demerger Creates Two Focused Platforms

Lemon Tree Hotels stock got additional support from its announced demerger. Lemon Tree Hotels will become a pure-play asset-light hotel management company. Fleur Hotels will emerge as a dedicated hotel ownership platform with over 5,500 operational rooms. JM Financial analysts said this simplifies the group structure and enables independent capital raising. Warburg's capital commitment of ₹960 crore strengthens the growth runway. JM Financial has a BUY rating on Lemon Tree Hotels stock with a target price of ₹160. This demerger is a key catalyst for Lemon Tree Hotels stock performance in FY27.

ITC Hotels Stock and IHCL Deliver Strong FY26 Performance

ITC Hotels stock and IHCL both showed resilient performance in FY26. ICICI Securities analysts reported 16 percent revenue growth and 15 percent EBITDA growth for IHCL. IHCL delivered 18.6 percent revenue CAGR and 21 percent EBITDA CAGR over FY23 to FY26. As of April 2026, IHCL has approximately 33,100 operational keys with a pipeline of 31,300 more keys over the next 4 to 5 years. ICICI Securities retained its BUY rating on IHCL with a revised target price of ₹925, valuing the company on 30x June 2028 EV/EBITDA.

Why Hotel Stocks India Remain Attractive for FY27 Investors

Hotel stocks India are supported by strong structural drivers for FY27 and beyond. Rising disposable incomes, an expanding middle class, and India's status as the fastest growing large economy all support the sector. Chalet Hotels stock and Samhi Hotels stock are benefiting from these macro tailwinds. India hospitality sector FY27 revenue growth of 7 to 9 percent gives investors a clear positive earnings trajectory. Hotel stocks India remain attractive for medium to long term investors despite near term geopolitical uncertainties.

Disclaimer: Views and outlook shared on stocks belong to the respective brokerages and are not endorsed by this publication. This article is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making investment decisions.

Originally reported by: Business Standard Official Website — Hotel Stocks: Lemon Tree, ITC Hotels, Chalet Soar Up to 5 Percent.