3 Hotel Stocks to Track During the Festive Season

With domestic tourism and experiential travel gaining prominence, select listed hotel companies could attract market attention this festive season. Here are 3 hotel stocks you could watch ahead of the festive season.  #1 Indian Hotels First on the list is Indian Hotels. Indian Hotels Company, part of the Tata Group, is India’s largest hospitality company and operates under top brands including Taj, SeleQtions, Vivanta and Ginger.

Recently, Indian Hotels announced a merger with Oriental Hotels, which should boost revenues and profitability. Oriental Hotels' portfolio includes iconic assets like Taj Coromandel, Chennai, Taj Fisherman’s Cove Resort & Spa, Chennai, and Taj Malabar Resort & Spa, Cochin. Source: Investor Presentation, July 2026 On the financial front, in Q1FY27, Indian Hotels reported consolidated revenue growth of 15% year-on-year to Rs 24.19 bn.

EBITDA grew 18% year-on-year to Rs 7.53 bn, yielding an EBITDA margin of 31.1%. Net profit grew 21% to Rs 3.58 bn. Hotel segment revenue and domestic RevPAR grew at 17% and 14%, respectively. Overall, Indian Hotels Company could benefit from the festive season, as holiday travel, weddings, family gatherings and leisure demand support hotel occupancy and room rates. Its diversified portfolio, spanning luxury Taj hotels to budget-friendly Ginger properties, provides multiple growth opportunities.  #2 EIH Ltd  Next on the list is EIH Ltd.

EIH Limited is the flagship company of the Oberoi Group and a leading luxury hospitality company. It operates hotels under the Oberoi, Trident and Maidens brands, serving both leisure and business travellers. EIH is well positioned to benefit as the festive season, ushers in higher hotel occupancy, room rates, and spending. EIH Ltd Financial Snapshot Year EndingMarch 24March 25March 26Net Sales (m)25,11327,43129,396Operating Profit10,41611,53411,899Net Profit (m)6,7777,6996,573Net Margin %27.028.122.4 Source: Equitymaster On the financial front, EIH continued to grow revenue, EBITDA, and net profit.

For Q1 FY27, the company’s revenue was Rs 6.98 bn, compared to Rs 6.09 bn last year, a healthy 15% growth in revenue. EIH Ltd also grew EBITDA from Rs 1.95 bn to Rs 2.07 bn. Profit after tax growth was much higher, but last year was not comparable because the company had a one-time impact from Mashobra. EIH has developed a comprehensive expansion plan to establish 30 new properties worldwide and in domestic markets by 2031.

These properties will be operated by EIH Limited through direct ownership, joint ventures, or management contracts. #3 ITC Hotels Next on the list is ITC Hotels. ITC Hotels Ltd is one of India's leading hospitality companies. Established in 1975 as part of the ITC Group, it became an independent listed company following the demerger of ITC's hotel business. Like most large hotel chains, this company is likely well positioned for the festive season.

The Company delivered a robust performance in Q1 FY27. 4 Sectors That Could Feel it First Revenue from operations (ex-Branded Residences) grew 10% YoY. Room Revenue grew 8% YoY led by strong performance in the retail segment, offsetting the high base effect in the MICE and Weddings segments in the previous year. EBITDA margin (ex-Branded Residences) expanded by 125 bps to 31%, reflecting steady growth in Rooms and F&B, higher management fees and cost management initiatives.

During the quarter, 8 new hotels were signed in Jaipur, Manesar, Bhubaneswar, Sonipat, Shirdi, Shahjahanpur and Zirakpur, enhancing the Company's presence across business, industrial, pilgrimage and leisure destinations. The quarter also marked the signing of the 25th Storii property at Amchong Tea Estate, Guwahati, reinforcing the brand's focus on immersive and experience-led destinations. Source: Investor Presentation, July 2026 The company plans to undertake a substantial expansion going forward.

In its owned portfolio, the company plans to expand from 5,700 keys in FY26 to 7,500 keys by 2031. The managed portfolio is likely to jump from 5,300 keys in FY26 to 15,000 keys by 2031. Conclusion While the festive season could provide a near-term boost to the hospitality sector, investors should remember that seasonal demand is temporary. Higher occupancy and room rates during festivals do not necessarily translate into sustained earnings growth throughout the year.

Once the festive rush subsides, hotel companies must demonstrate their ability to maintain demand, protect margins and generate consistent cash flows. Investors should therefore look beyond short-term market excitement and examine fundamentals such as revenue growth, debt levels, return ratios, expansion plans and valuations. A strong festive season may improve sentiment, but long-term investment returns ultimately depend on business performance, not seasonal optimism.

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