HSBC Recommends Six Hotel Stocks for Up to 45% Upside Amidst Hospitality Boom

• HSBC identifies the Indian hospitality industry as a 'sweet spot' due to strong, broad-based demand and insufficient room supply.
• Room rates have consistently risen for four years, occupancy is at record highs, and both foreign and domestic travel are robust.
• HSBC initiated 'Buy' ratings on Chalet Hotels, ITC Hotels, Leela, Lemon Tree Hotels, and Samhi Hotels, with Lemon Tree offering the highest potential upside of 44.6%.
• Indian Hotels maintained its 'Buy' rating, while Ventive was downgraded to 'Hold' despite a 15.8% upside potential.
• The brokerage expects industry-wide EBITDA to grow at a 16-21% CAGR (FY25-FY28e), driven by rising room rates, improved occupancy, and high-margin managed inventory.

Why It Matters: HSBC sees significant upside in Indian hotel stocks due to strong demand, limited supply, and healthy financials.