5 hotel stocks in terms of market capitalization in 2021: India's best hotel companies | Hotel industry

In this article about the major activities of the hotel sector, we have compiled a list of the top 5 hotels through market capitalization and analyzed the hotel industry, the impact of the Coronavirus crisis on the hotel sector, and the hotel in detail. Told from The basics of the best stock.

5 hotel stocks in 2021 through market capitalization

Hello friends! In 2020, businesses were negatively affected by the code. The department (from the code) was the most affected by the hospitality department. Today we are going to talk about the hospitality sector. We will discuss business as a whole, the implications of regulation, and the current situation in the sector.

In the second part of the article, we will talk about 5 stocks that will come out of the Indian hotel sector and be listed in the stock market. We will inform you about this type of stock trading and discuss some financial numbers so that you can get complete information about the hospitality sector.

Indian Hospitality Department

Without further ado, let's first talk about the Indian hospitality sector.

The Indian hospitality industry is important for many things. It employs a lot of people and the income from this sector is well distributed. Many companies rely directly on this sector. For this reason, the hospitality sector is very important.

Whenever we talk about hospitality, number one is very important. This is FTA (Foreign Tourist Arrival). Shows the number of foreign tourists visiting India last year. A higher TLC is considered better for the hotel sector. The government will also have a stockpile of electronic visas for tourist arrivals. It will also benefit the hospitality and hospitality sectors.

We won't talk about 2020 here because it was heavily influenced by the code.

All the numbers I will talk about are from 2019 so you can get a better idea of ​​the hospitality sector. In 2019, about 10. 10.28 million worth of free trade agreements reached India. In other words, the number of foreign tourists visiting India in 2019 was more than 10.28 million. Nafta's growth rate is about 3.3% compared to last year. This is a huge number for NAFTA in 2019.

Another important number that has emerged is the collection of e-visa fees. In one year in 2019, e-visa collections saw a growth rate of 23%. Foreign direct investment (FDI) in the hotel sector was over ہزار 15,015 billion between April 2020 and June 2020. This suggests that from April 2020 to June 2020, the hospitality sector There has been an extraordinary flow of FDI.

Effects of the Code in the field of hospitality

Let's talk about the implications of the code in the hospitality industry. I will talk about this point at some point.

The first major impact is on the revenue of the hotel sector. We say there is a hotel (in the hospitality sector). Where will you earn income? Total income will be earned when people reserve a room in a hotel and stay there.

As you may know, Coved has made a huge impact on the entire hospitality industry. The loss of revenue in the hotel sector costs Rs. 1 lakh. Rs. 90,000 cr (due to code)

The second point is an important metric for the hotel industry. This is a product in a room. The number is just as good. When there is more revenue from a room, hotels will also get more revenue/profit. With the advent of the code, there was a significant reduction in revenue in the available room.

In Mumbai, revenue per available room declined by 7.7% in the third quarter compared to the same quarter of 2019. From this, you can understand that a major hospitality industry metric was badly affected by a code. When it happens unexpectedly, the perceptions and preferences of different industries change.

Here, when we talk about the hospitality sector, we will definitely talk about the ANROC report. The report says that perceptions and preferences about the entire hospitality industry have changed dramatically.

In recent times, the priorities have shifted to safety and hygiene. Many hotels are moving towards cleanliness, hygiene, and safety. The report also claims that domestic travel has increased in recent days.

But the demand for the business sector, which depends on the hotel sector, is low. Business people still use virtual mode for meetings. Therefore, the overall demand for this business is low; While domestic demand has improved slightly.

Demand in the business sector is declining. Capacity is expected to reach 11,500 rooms in the fiscal year 2020 or 2021. But the code has only increased the capacity by 10-15%. The remaining number is in position after 2020.

So this was a discussion about the effect of the code, which we discussed in detail. In the future, the demand will be known. We can't speculate on that. The vaccine has just been released.

Only deployment, distribution, and public confidence can increase travel and demand. But it is wrong to speculate on this timeline. We should not do that.

5 hotel shares and Indian hotel share price

Now we move on to the second part, where we will talk about the 5 stocks in the hotel sector which are listed on the Indian Stock Exchange. We will talk about each of them and also discuss their financial statistics.

Indian Hotel

The first action in today's discussion is of The Indian Hotels.

We discussed this in an article in the Tata Group of Companies. This is a Tata company. Let me tell you an interesting fact here. It is the oldest company of Tata Sons which was started in 1889.

Hotels in India There are 93 hotels in India. They run and hang them. It is divided into 55 locations. Its 16 overseas hotels are operating in different locations.

Indian hotel revenue fell 75% (YoY) in the second quarter, but we found it to be 79 up lower than in the previous quarter. Your income has begun to increase. But if you compare last year's figures, they are still significantly lower.

The target segment of Indian hotels is spread across different brands. It aims to target different segments through the Taj Hotel, Vivanta, and Ginger Hotels.

The share price of Indian hotels is approximately Rs. 23,123. Last year, it gave its investors 10 negative returns. In the last 6 months, the company has given a positive return of 55% to its investors. The market capitalization of Indian hotels is Rs 14,500 crore. Its debt-to-capital ratio is more than 1. This company has a reasonable debt.

EIH Hotels

Now let's talk about another company that is emerging from the hospitality sector.

Its name is EIH Hotel. It is a flagship company of The Oberoi Group. It is one of the largest hotels in India. The company operates its brand through two hotels in India.

The first Oberoi Group and the second Trident. I'll take you to my screen and explain your business overview. The company's two main brands are Oberoi and Trident.

It includes a total of 4572 rooms, 30 hotels, and 2 tours. Let's analyze the distribution of the two brands. The Oberoi and Trident brands have 2,340 and 2,232 rooms, respectively. A total of 19 hotels operate under the Oberoi brand. While 11 hotels are managed under the Trident brand. Not only in India but also EIH hotel brands are spread outside India. Its brand is spread across Bali, Lombok, and Mauritius.

The current share price of EIH Hotels is Rs. 98. Last year, it gave its investors a negative return of 30A. But in the last six months, investors' profits have been more than 60%. The market capitalization of the company is around Rs. Rs Rs Rs Rs Rs. Rs. Its debt-to-equity ratio is about 0.25.

An interesting fact is that the company has a lower debt capital ratio than other players in the hospitality sector. This is a noteworthy point.

Chat hotels

Now we come to the part where we talk about the middle ground. These are called chat hotels.

The company builds and operates properties. Its main commercial activity extends to cities like Bangalore, Hyderabad, and Mumbai.

The company has more than 2000 rooms. The real strength of this company is its strategic location. This company is strategically located in all corporate cities. This company benefits from it.

In the financial year 2021, the total revenue of this company was Rs. 57 million. But in FY14, the company's revenue was Rs 23,535 crore. From this, you can understand that the company's revenue has decreased in recent days. (But compared to that) the company's revenue in the first quarter was about $ 55 million. The second quarter has seen a slight jump, but its revenue is still lower than last year. The current share price of Chalet Hotels is approximately Rs. 83.1783. Last year, the company gave its investors a negative return of 40A.

An interesting fact here is that in the last 6 months, the company has given its investors a positive return of 40%. The company has a market capitalization of about Rs 3.7.7 billion and a debt-to-equity ratio of around Rs 1.12 billion.

Lemon Tree Hotel

Now let's talk about the fourth company.

It is one of the companies on the list that has given the highest profit to its investors in the hotel sector in the last six months. It's called Lemon Tree Hotels. In the last 6 months, it has given its investors a positive return of 72%. The lemon tree is the hotel's biggest player in the middle of nowhere. Overall, it is India's third-largest player in the field of hospitality.

An interesting fact about lemon tree hotels is that they started in 2004 with 54 rooms. Currently, it has 8,100 rooms in 80 hotels. Its business is divided into 50 cities. Here you can see that it has increased rapidly in recent times. (For our investors).

Their total sales figures in the second quarter were around Rs 48 crore, but the same figure (revenue) last year was Rs. At present, its total sales of Rs. 153 crore have come down significantly. The current price of its shares is around Rs. Its market capitalization is Rs 3,300 crore. Last year, it gave its investors 26 negative returns.

The most interesting thing is that (as I said at the beginning) this hotel company has given 72% positive return to its investors in the last 6 months. The debt-to-equity ratio of the company is about 2.2.71. The company has significant debt compared to equity.

Mahindra Holiday & Resorts India Limited

Let's talk about the latest company in today's discussion. Its name is Mahindra Holiday and Resorts India Limited.

It is one of the leading Mahindra companies in the field of hospitality. The clients of this company are basically its members. After becoming a member, they take advantage of their hotels in the field of hospitality.

Now talk about tomorrow's members. There is a membership fee to become a member. Mahindra has more than 2.5 million members in India and abroad and more than 100 resorts.

The company's operating profit margin is over 50%. That's a lot. But the company's red flag owes you more. Your debt to equity ratio is above 4. This shows that the company has more debt than equity investment.

The company's second-quarter sales were Rs 451 million. Compared to the same period last year, its sales were Rs 50 million.

An interesting fact here is that when we compared last year's earnings with existing companies, we saw a significant delta. But in the case of this company, Delta is much smaller. Their income is low but not as low as other companies.

The current Mahindra Holidays shares are priced at around Rs. Last year, it gave its investors a negative return of 8A. In the last 6 months, the company has given a positive return of 29% to its investors. The company has a market capitalization of about Rs 2,800 crore. Its debt-to-equity ratio is close. Therefore, we can understand that the company has a huge debt.

We are talking about the serious effects of the code in the field of hospitality. In addition, we talk about 5 steps in this regard. We do not recommend buying/selling stock.

We create all topics for educational purposes. Hope you enjoyed today's article.

Comment below the stock name where you should invest (if you plan to invest in hotels)

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