Why India’s hotel companies kept growing despite a year of travel disruptions

Elara Capital Vice President (Institutional Equity) Prashant Biyani said the sector’s earnings remained healthy but fell short of the high expectations set by investors on valuations at the start of FY26. “With the increasing number of hospitality companies tapping capital markets and the loss of momentum in hotel stocks, valuation multiples have put pressure on the industry-wide,” he added.

However, Akash Datta, managing director (South Asia) of hospitality consultancy HVS Anarock, said the recent moderation in hotel stock prices should not be misinterpreted as a weakening of underlying sector fundamentals. Investors are becoming more selective as the sector transitions from a spectacular post-pandemic recovery phase to a more normalized growth cycle, he said.