Hotels are still trying to recover from recession shock they experienced. All major hotels stocks including Indian Hotels , Leela Venture and Asian hotels are well off of their lows but compared to other sectors gain in hospitality has been very low. Prime concern , are businesses ready to spend again .

These hotels gets most of their busienss from Internatoin Tourist and Business Travelers. Both have been hit hard by credit crunch. Tourist business is not expected to recover soon as job market in US and Europe is still very poor. I am cautiously optimist about hotel sector as a whole, net technologies like video conferecning etc giving business extra tool which elimiate need to travel.

On the bright side, Indian consumer have good spending power compared to their american counter part due to robust local economy and strong job market. Hotels in Thailand and Malaysia, Dubai are doing good business thanks to INdian tourists.

Now can the hotels recover , I think hotels industry added lot of capacity recently and businesses got efficient with travel plan, hence demand may remain subdued and we will have to wait for next business cycle to really make monet in hotel stocks.There is hardly any pricing power hotelier left with.

Indian Hotels  CMP  86

Asian Hotels CMP 422

Hotel Leela CMP 39