Hotel sector stocks represent companies that own and operate hotels, restaurants, food outlets and other dining establishments. The sector flourishes on the demand for luxury services and is associated with the tourism and hospitality industry. The performance of these stocks is highly dependent on travel trends and consumer spending patterns, especially in terms of accommodation and dining.
The sector also contributes extensively to employment generation and is a key source of foreign exchange for a country. While the hotel sector stocks carry the potential to offer higher dividends and better returns, they are highly vulnerable to economic shocks and travel disruptions due to incidents like natural disasters or COVID-19.
Here are all the details you need to know about hotel sector stocks.