Hotel Stocks Rally as GST Cut Boosts Hospitality Outlook

New Delhi, 4 September 2025: The shares of hotel companies gained in Thursday’s trade after the GST Council decided to reduce tax on hotel tariffs up to ₹7,500 per night to 5% from 12%, effective September 22. The move, which is aimed at generating tourism and encouraging domestic travel, boosted sentiment across the hospitality space.

Hospitality Stocks Rally: Apollo +2.58%, Sinclairs +8.43%, Blue Coast Upper Circuit

Apollo Sindoori Hotels Ltd gained 2.58% to ₹1,425, reaching an intraday high of ₹1,479. The stock, which has a market capitalization of ₹374 crore, has seen a broad range over the past year, trading between a low of ₹1,160 and a high of ₹2,224.

Sinclairs Hotels Ltd stood out as a strong performer, rallying to ₹107.80, up 8.43% after earlier hitting ₹109 intraday. Supported by a firm’s market cap of ₹537 crore, the stock saw decent buying momentum, with over 32,000 bid quantities, showing strong investor appetite. Blue Coast Hotels Ltd also rallied and surged 5% to ₹59.46, locking in the upper circuit due to heavy demand, with no sellers present. The scrip has also exhibited extreme volatility with its 52-week range from ₹8.68 to ₹86.31.

Kamat Hotels (India) Ltd, the stock moved 0.50% higher to ₹314.65 with a volume of over 3.3 lakh shares. The stock remains under its 52-week high by 0.50% to ₹353.60, which indicates stability in the share’s interest among traders. Taj GVK Hotels & Resorts Ltd moved 1.35% higher to ₹437.95 with a day high of ₹443.70, the stock backed by a market cap of more than ₹2,752 crore, remains one of the most tracked counters in the hospitality sector.

GST Cut Likely to Boost Hotel Occupancy and Domestic Tourism

The tax cut is likely to reduce costs for mid-range and upper mid-scale hotels, helping to increase occupancy during festive and wedding seasons. Industry leaders say this move will boost tourism, employment, and make India competitive in the global travel market.

Hospitality Sector Outlook Strengthened by 5% GDP Contribution and GST Move

With hospitality already contributing upwards of 5 percent to the GDP of India, the reduction in the GST is perceived as a structural positive for the sector. A conclusive positive sentiment in the market materializes for hospitality counters following alignment with the GST-led rally in consumer-facing sectors.

T͏he GST r͏ed͏͏ucti͏on͏ t͏o 5% for h͏o͏tel ͏ta͏riff͏s under ₹͏7,500 is dr͏i͏ving not͏able͏ movemen͏ts across͏ ͏hosp͏itality stocks,͏ li͏fting intraday ͏highs an͏d volumes. ͏͏Mid-͏ran͏ge a͏͏nd ͏u͏pper mid͏-s͏c͏͏al͏e͏ hotels͏ are͏ expected to bene͏fit f͏rom increased demand,͏ wh͏ile market ͏capita͏lization a͏nd tradin͏g͏ ranges ͏highlig͏h͏t sec͏͏to͏r-wi͏de͏ attention.͏͏ The mov͏e also ͏sign͏als structur͏al͏ sup͏por͏t for t͏ou͏rism, ͏e͏mp͏loyment͏, a͏nd broad͏e͏r GDP c͏ontributi͏on͏.

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