Hotel stocks rally; Taj GVK, Royal Orchid, EIH zoom over 15%

Shares of hotel companies have rallied by up to 20% in otherwise range-bound market with 8 out of 15 top gainers from the hotel sector.
Taj GVK Hotels, Oriental Hotels, Royal Orchid Hotels, EIH, EIH Associated Hotels, Advani Hotels & Resorts (India), Kamat Hotels (India) and Viceroy Hotels were up between 12% and 20% on the BSE. On comparison, the S&P BSE Sensex was up 0.18% at 34,366 points at 02:01 pm.

Revenue per available room (RevPar) across premium hotels inched up by 5% year-on-year (YoY) to Rs 7,400 in February 2018, led by strong growth in demand and higher room rates.

RevPar across business destinations like Hyderabad (5% YoY), Delhi & NCR (7% YoY) and Pune (7% YoY) saw strong improvement, backed by strong demand from meetings, incentives, conferences and exhibitions (MICE) segment and increasing number of corporate travelers, Elara Capital said in hotel sector update.