Shares of the toll booth and hotel companies were trading higher today, ahead of the long weekend. With the financial market shut on August 15, Monday, participants believe a long weekend would bump up sales for toll both companies and hotels.
As fare prices have soared for airlines while railways have a lengthy waiting list on popular destinations, long weekends present the perfect opportunities for people to travel to nearby destinations by road. Therefore, toll booth and hotels both will have a gala weekend, according to Kush Ghodasara, an independent market expert.
Today, shares of Dilip Buildcon, Ashoka Buildcon, PNC Infratech, Bharat Road Network, Lemon Tree Hotels, EIH, Chalet Hotels, Taj GVK Hotels and Resorts ended about 1-2 percent higher.
Ghodasara added, “I would prefer going with hotel stocks over toll booth stocks because later ones have huge expenses generally this quarter as monsoon have just left roads damaged. So hotel industries that are charging huge premiums will have more margin over the booth stocks. I would prefer buying ITC for a target price of Rs 345 with a stop loss of Rs 289 for 2-3 months”.
The last couple of quarters, drive-to destinations have been doing well and we are expecting these long weekends to help inch up their revenues for the current quarter, said an analyst that tracks hotel stocks. July so far has been good for hotel companies and better demand would help improve the average room rate for hotel companies, he added.
Talking about the hotel sector, Managing Director and Chief Executive Officer of Indian Hotels Company, Puneet Chhatwal, told CNBC-TV18 today that demand will outpace supply and rates are expected to rise.
He added that the demand to travel domestically has become strong.
First Published: Aug 10, 2022 4:12 PM IST
