It’s that time of the year when everyone is planning their year-end holidays, and Motilal Oswal believes the Indian hotel business is currently benefiting from a rare combination of visible demand and restrained supply.
In its recent sector note, Motilal Oswal sees room rates and profitability staying firm over the near to medium term. Within this setup, the brokerage has reiterated positive views on select hotel stocks with strong regional exposure and pricing strength.
Motilal Oswal on why hotel stocks look attractive
Motilal Oswal’s research team maintains a constructive stance on the hotel sector for the near to medium term. The firm cites sustained domestic travel, a busy wedding calendar, rising conference activity, and international events as key demand drivers. Interactions with industry participants indicate that 3QFY26 RevPAR is expected to grow in the 12–15% range year on year.
The brokerage also points out that infrastructure upgrades, including new airports and better urban connectivity, are feeding directly into hotel demand without a matching surge in new supply. This imbalance continues to support pricing discipline across major markets.
Motilal Oswal on Indian Hotels Company: ‘Buy’
Motilal Oswal has reaffirmed its Buy rating on Indian Hotels Company, setting a target price of Rs 880. From the current market price of around Rs 729, this implies an upside potential of roughly 21%.
The brokerage notes that IHCL delivered 21% year-on-year standalone revenue growth in 1HFY26, outperforming most peers in the sector. Feedback from channel checks indicates that higher room rates, improved occupancy, and a strong showing from food, beverage, and banqueting segments drove this performance. Renovated properties, in particular, have begun to command materially higher tariffs.
Motilal Oswal also draws attention to IHCL’s exposure to the Mumbai Metropolitan Region. With the Navi Mumbai International Airport scheduled to open on Christmas Day 2025 and only about 1,539 branded hotel rooms currently available in Navi Mumbai, the brokerage expects established players to gain pricing power. Given IHCL’s existing footprint and brand strength in the region, the firm sees it as a prime beneficiary of this demand build-up.
Motilal Oswal on Lemon Tree Hotels: ‘Buy’
Motilal Oswal has reiterated a ‘Buy’rating on Lemon Tree Hotels with a target price of Rs 200. Based on the prevailing market price of about Rs 161, this indicates an upside of nearly 24%, translating to approximately Rs 39 per share.
The brokerage explains that Lemon Tree’s positioning in the mid-scale and upper mid-scale segments places it directly in the path of domestic business travel, airline-linked stays, and wedding demand.
Internal assessments by the brokerage suggest that Lemon Tree is approaching a phase where operating leverage becomes meaningful. As occupancy rises, incremental revenue is expected to convert into profit at a faster pace. The firm also highlighted the company’s planned addition of around 400–500 rooms in Navi Mumbai, which gives it early exposure to airport-driven demand in a market with limited existing supply.
Motilal Oswal believes this mix of volume growth, controlled expansion, and improving room rates supports Lemon Tree’s earnings visibility over the next few years.
Motilal Oswal on EIH
According to Motilal Oswal, EIH represents a premium-end play on the hotel cycle. The brokerage notes that EIH’s Oberoi and Trident brands operate in the luxury and upper upscale segments, where guest spending and service-led pricing play a larger role than sheer room count.
As per the brokerage’s view, EIH benefits from a diversified revenue mix, with food, beverage, and events contributing meaningfully to overall income.
The brokerage also points out that EIH’s conservative financial structure limits downside risk during periods of uneven demand.
Motilal Oswal on Chalet Hotels
As per Motilal Oswal’s sector coverage, Chalet Hotels offers exposure to business-centric hotel demand in metro markets. The brokerage notes that Chalet’s properties are closely linked to corporate hubs, convention centres, and commercial districts, where weekday occupancy remains dependable.
According to Motilal Oswal, improving corporate travel and conference activity is supporting a steady recovery in occupancy across these assets. The brokerage adds that such properties benefit from repeat bookings and longer stays, which provide earnings stability even outside peak leisure seasons.
Motilal Oswal on SAMHI Hotels
Motilal Oswal identifies Samhi Hotels as a direct beneficiary of the demand increase expected after the Navi Mumbai International Airport begins operations in December 2025. In its sector commentary, the brokerage lists SAMHI among operators positioned to gain from airport-led travel growth in a market where branded hotel supply remains limited.
The brokerage points to SAMHI’s planned expansion in Navi Mumbai as a key factor supporting this view. The company has announced its largest hotel project so far, with a total planned capacity of 700 rooms. The first phase is expected to include around 400 rooms, with the full project to be developed over the next three to four years. Motilal Oswal estimates the total investment for this project at about Rs 650 crore.
On recent performance, Motilal Oswal notes that SAMHI delivered the highest EBITDA growth of 30% year-on-year in 1HFY26 among the tracked hospitality companies.However there is no stock-specific rating or target price that has been assigned to thr share price.
Motilal Oswal on JUNIPER Hotels
Motilal Oswal tracks Juniper Hotels as part of its hospitality basket, which reported aggregate revenue and EBITDA growth of about 15% year-on-year in 1HFY26. Within this group, JUNIPER recorded EBITDA growth of 28% year-on-year, placing it among the stronger performers during the period.
Motilal Oswal’s hotel sector view rests on strong demand visibility and controlled supply additions across key markets. Indian Hotels Company and Lemon Tree Hotels stand out with clear ratings and upside potential, while players such as SAMHI, EIH, Chalet, and JUNIPER feature as operational beneficiaries of the same cycle. For investors, the brokerage’s stance favours selectivity, focusing on companies with pricing strength, regional exposure, and disciplined expansion rather than a broad sector-wide bet.