Hotel stocks could remain in focus ahead of the Diwali and holiday season, with JM Financial maintaining a constructive view on the sector on the back of resilient domestic travel demand, favourable demand-supply dynamics and sustained pricing power.
According to the brokerage, the hotel industry’s RevPAR (revenue per available room) is expected to grow 12–13% year-on-year in Q2 FY27, extending the momentum seen in the previous quarter. The growth is expected to be driven by resilient discretionary spending on leisure, staycations and social events, along with robust MICE demand and sustained corporate travel.
JM Financial’s channel checks suggest that Delhi-NCR could emerge as the standout market in Q2 FY27, supported by an uptick in demand around the 2026 BRICS summit. Mumbai, meanwhile, is expected to benefit from robust corporate and event-led demand, including GFF 2026.
The brokerage said business on the books for October 2026 remains healthy, setting the sector up for a seasonally strong second half of FY27. Demand momentum is expected to remain firm through the rest of the year, supported by a strong events pipeline, a favourable wedding season and resilient domestic leisure demand.
JM Financial noted that the number of auspicious wedding dates is expected to be higher this year, with more than 90 days in FY27 compared with around 70 days in FY26.