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

The sector’s earnings remained healthy but fell short of the lofty expectations investors had built into valuations at the start of FY26, said Prashant Biyani, vice president (Institutional Equity) at Elara Capital. “Combined with a growing number of hospitality companies tapping capital markets and a broader loss of momentum in hotel stocks, valuation multiples have compressed across the sector,” he added.

However, Akash Datta, managing director (South Asia) at hospitality consultancy HVS Anarock said the recent moderation in hotel stock prices should not be misconstrued as a weakening of underlying sector fundamentals. He said investors are becoming more selective as the sector transitions from an extraordinary post-pandemic recovery phase to a more normalised growth cycle.