Hotel stocks tumble as earnings mood slumps
The share prices of Indian Hotels that runs the Taj chain of hotels fell by 17 pc, while East India Hotels' fell by 10 pc during the day before staging a smart recovery to close the day with a gain of 5.2 pc, reports HT Correspondent.business Updated: Nov 28, 2008 21:55 IST
The terror strikes in two leading hotels of Mumbai found reverberations in the bourses. The share prices of Indian Hotels that runs the Taj chain of hotels fell by 17 per cent on Friday, while East India Hotels' (EIH) fell by 10 per cent during the day before staging a smart recovery to close the day with a gain of 5.2 per cent.
The attack attracted widespread attention from the India Inc and most of the business leaders and experts have suggested that this will have an impact on the tourism industry and the business trips, which will impact the hotel industry and its revenues.
“The hotel industry was at the beginning of the tourist season and an event like this will impact the tourist flow and will impact the hotels business for the financial year 2008-09,” said gaurav Dua, head of research, Sharekhan.
Analysts said the companies' share prices are likely to remain under pressure.