Hotel, restaurant stocks under selling pressure amid fresh COVID-19 restrictions over Omicron

Lemon Tree Hotels Deputy Managing Director Rattan Keswani said in an interaction with CNBC-TV18 that the company is hoping for a strong Q4, but is in a 'wait and watch' mode over the COVID situation.

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"The hotel industry is trying to recover from the challenges it has faced on account of the first and second waves of the pandemic... In the last six months, we have seen some revenge traveling. The hotel industry is trying to get back to normal but again this third wave may impact it... Night curfew restrictions will not majorly impact the hotel industry but a major lockdown will," Yash Gupta, Equity Research Analyst at Angel One, told CNBCTV18.com.

Night curfews in some states will slightly impact restaurants' dine-in business, he said.

Among restaurant stocks, Coffee Day, Devyani International, Barbeque Nation, Speciality Restaurants, Burger King and Vidli Restaurants fell between 0.5 percent and 4.3 percent. On the other hand, Jubilant FoodWorks, Westlife and Sapphire Foods rose between 0.5 percent and 2.5 percent.

Gupta of Angel One believes a third wave of the pandemic in India may cause a slight impact on the the hotel and restaurant industry due to the night curfews or weekend lockdowns.

Here's how some of the hotel and restaurant stocks have performed in the last one year:

"We have a neutral view on the hotel industry and are not recommending any fresh buy positions in hotel stocks," said Angel One's Gupta.

Anjan Chatterjee, Chairman and Managing Director of Speciality Restaurants, told CNBC-TV18 the current COVID-19 restrictions have been a dampener. The company has been impacted this month, he said.