Analysts at IDBI Capital have issued "Buy" ratings for five prominent Indian hotel stocks, projecting significant upside potential for investors. The brokerage maintains a positive outlook on the domestic hospitality sector, anticipating continued recovery in average daily rates (ADR) and robust demand.
The recommended stocks include Indian Hotels Company Ltd (IHCL), Lemon Tree Hotels Ltd, Chalet Hotels Ltd, Apeejay Surrendra Park Hotels Ltd, and Brigade Hotel Ventures Ltd. The positive sentiment is fueled by healthy additions to hotel inventory, ongoing sector consolidation, and an expected surge in travel during the upcoming festive and wedding seasons.
Top Hotel Stock Picks and Price Targets
Indian Hotels Company Ltd (IHCL)
- IDBI Capital has a "Buy" rating with a target price of Rs 869, suggesting a 20.7% upside from its current price of Rs 720.
- ICICI Securities also maintains a "Buy" rating, setting a target of Rs 925, citing IHCL's strong pipeline and demand tailwinds. The company had approximately 33,600 operational keys as of June 2026, with plans to add another 32,600 keys over the next four to five years.
Lemon Tree Hotels Ltd
- Offering the highest potential upside among the five, IDBI Capital rates Lemon Tree Hotels a "Buy" with a target price of Rs 158 against its current price of Rs 106, implying a substantial 48.7% upside.
- In August alone, Lemon Tree added six new hotels, expanding its footprint across key leisure and business destinations like Manali, Madurai, and Visakhapatnam.
Brigade Hotel Ventures Ltd
- IDBI Capital recommends Brigade Hotels with a "Buy" rating and a target price of Rs 86, compared to its current price of Rs 58. This indicates a promising 47.6% upside.
- The brokerage anticipates that new inventory additions and industry consolidation will continue to bolster average daily rates.
Apeejay Surrendra Park Hotels Ltd
- Park Hotels receives a "Buy" rating from IDBI Capital, with a target price of Rs 138 against its Rs 112 current price, representing a 23.6% upside.
- The company is well-positioned to benefit from the festive and wedding seasons, alongside a rebound in corporate travel and MICE (Meetings, Incentives, Conferences, and Exhibitions) activities.
Chalet Hotels Ltd
- IDBI Capital gives Chalet Hotels a "Buy" rating, setting a target price of Rs 938 against its current price of Rs 897, indicating a 4.6% upside.
- The recovery in ADR, partly driven by higher rates around the Independence Day weekend, is expected to support healthy Revenue Per Available Room (RevPAR) growth in the first nine months of FY27.
Positive Outlook for the Hospitality Sector
The broader industry outlook remains supportive, with ICRA projecting Indian hospitality industry revenues to grow by 7-9% in 2026-27, building on an estimated 11% expansion in 2025-26. Premium hotel occupancy is expected to stabilize at 72-74%, while average room rates are forecast to climb to Rs 8,600-8,800 in 2026-27 from Rs 8,200-8,500 in 2025-26.
Key drivers for this sustained growth include the upcoming festive and wedding seasons, increased corporate travel, MICE activities, a persistent domestic demand-supply imbalance, and a general rise in consumer spending on travel.