Motilal Oswal Recommends Indian Hotels, Lemon Tree, Ventive for 2026-27

Motilal Oswal Financial Services has identified key players in India’s hospitality sector as promising investment opportunities for the financial year 2026-27. The brokerage has assigned 'Buy' ratings to Indian Hotels Company Limited, Lemon Tree Hotels Limited, and Ventive Hospitality Limited, citing a strong outlook driven by increasing domestic travel, corporate events, and a healthy wedding season.

The hospitality industry in India is currently experiencing a surge in demand. This growth is propelled by a combination of factors including rising leisure travel, a packed calendar of Meetings, Incentives, Conferences & Exhibitions (MICE), cultural festivities, and especially the wedding season, which traditionally boosts hotel bookings across the country.

According to Motilal Oswal’s recent report, the second quarter of FY27 closed on a robust note with the industry benefiting from heightened corporate travel and large-scale events. This momentum is expected to sustain through the remainder of the financial year, supported by resilient demand in urban centers and continued pricing power for hotels. The brokerage highlights that October’s strong booking figures and an active schedule of weddings and conferences provide clear visibility for growth in the second half of FY27.

Indian Hotels Company Limited, one of the largest players in the sector, received a target price of ₹870 per share. The stock recently traded at ₹729 on the BSE, reflecting a market capitalization exceeding ₹1.03 lakh crore. Over the past six months, Indian Hotels has delivered a notable 27% return, underscoring investor confidence in its growth prospects.

Lemon Tree Hotels was given a target price of ₹140 per share. Despite the stock closing steady at ₹104.25 on the BSE, with a market cap of around ₹8,259 crore, it has experienced some volatility, showing a negative 37% return over the past year but a 14% gain over two years. The brokerage’s positive stance suggests an expectation of recovery aligned with sector-wide growth.

Ventive Hospitality also attracted a 'Buy' recommendation, with a price target set at ₹750 per share. The stock last traded near ₹559 on the BSE, holding a market capitalization of about ₹13,055 crore. Although Ventive’s share price has declined by nearly 20% over the last year, Motilal Oswal’s outlook points to potential upside as demand dynamics improve.

The broader hospitality and tourism sector in India stands at an encouraging juncture. Rising domestic travel is a significant driver, particularly as more Indians opt for leisure trips and participate in corporate and social events. The MICE segment has gained momentum, creating additional avenues for hotel occupancy and revenue growth. Moreover, the wedding season remains a vital contributor, with large-scale ceremonies requiring extensive accommodation and event management services.

Investors looking at hotel stocks should consider these structural trends that favor sustained demand. The combination of increased travel, a vibrant event calendar, and the ability of hotels to maintain pricing power are factors expected to support healthy financial performance across the industry.

Motilal Oswal’s bullish stance on Indian Hotels, Lemon Tree, and Ventive Hospitality reflects confidence in their operational capabilities and market positioning. As the financial year progresses, these companies are well placed to capitalize on the positive market environment and deliver value to shareholders.