Investors Check into Hotel Stocks, Again
Numbers (million) one month, but stocks of hotel companies like the Indian Hotels, EIH and Leela Ventures have gained only 13-25%.
Even though hospitality companies have limited revenues and growth visibility in the near term, they can really take off. And an interesting thing about these companies is their attractive valuations at current rates. At present, all premium hotels companies, Indian Hotels, East India Hotels (EIH) and Hotel Leela Ventures, are trading below their 10-year average priceto-book value of 2.2, according to data provided by Bloomberg.
Going by the last 22 years’ trend, the hotel industry follows an 8year cycle, which covers the best and relatively weak periods of business. The worst four years in the current cycle are behind for the industry and this time the expectations are high.