Sunday, October 29, 2006
For some time now, I have been reading about the hotel situation. There is an acute shortage of quality hotel rooms in the country, and we are currently experiencing a period when there is sufficient demand. Rates have been going up over the past 2 years, and the rates are currently pretty high. From personal experience in the Delhi market, I have seen people getting charged fairly high rates and having problems in getting bookings. The situation is far worse in cities like Bangalore and Bombay. And these are the same hotels that would have given discounts on the rack rate and been able to pretty much offer confirmed bookings easily just a couple of years back.
Hotel chains are currently investing in getting more rooms onto the market, and there is starting to be a buzz about the hotel sector. The hotel stocks don't yet reflect this buzz, and they did fall in the May crash along with other stocks. They are slowly recovering, but are still pretty much depressed from all their all time highs.
Some of the stocks that I am tracking (and am invested in some of them) are: Kamat Hotels, Leela Hotels, Taj GVK, EIH Associated Hotels, Viceroy Hotels. Right now these stocks are pretty much rangebound, but from what I have read, I believe that there is plenty of scope for upward movement of these stocks in the 1 year range.
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