Hotel Stocks Fall Up To 5% After PM Modi Calls For Lower Foreign Travel

Hotel and travel-related stocks declined by up to 5% on May 11 after Prime Minister Narendra Modi urged citizens to avoid non-essential foreign travel and reduce fuel consumption to help conserve foreign exchange reserves amid rising global energy prices.

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The decline came during a broader market selloff triggered by concerns over the ongoing West Asia conflict and rising crude oil prices.

Praveg fell 4.6% to ₹289.40 on the National Stock Exchange (NSE), while Thomas Cook declined more than 3% to ₹93.53. Orient Hotels dropped over 3% to ₹104.50, ITC Hotels slipped over 3% to ₹159.58, and Apeejay Surrendra Park Hotels declined over 3% to ₹125.53. Wonderla Holidays also fell more than 3% to ₹491.05 during intraday trade.

Other hospitality stocks also traded lower. Taj GVK Hotels & Resorts declined to ₹322.35, EIH Associated Hotels fell to ₹326.50, Samhi Hotels slipped to ₹154, and The Indian Hotels Company traded at ₹665.

EIH declined to ₹328.50, Chalet Hotels fell to ₹778.85, Leela Palaces Hotels & Resorts traded at ₹414.30, Lemon Tree Hotels slipped to ₹117.84, Mahindra Holidays traded at ₹235.35, while Juniper Hotels declined to ₹209.55.

The selling pressure followed PM Modi’s remarks at a public gathering in Hyderabad on May 10, where he urged citizens to postpone foreign holidays and destination weddings abroad for one year due to rising pressure on foreign exchange reserves. “We have to save foreign exchange by any means,” the Prime Minister said during the event.

He also urged citizens to reduce petrol and diesel consumption by using public transport, metro rail services and carpooling wherever possible.

The remarks came as global crude oil prices remained elevated due to the ongoing conflict in West Asia. Brent crude was trading above $100 per barrel on May 11.

According to Reserve Bank of India (RBI) data, India’s forex reserves declined by $7.794 billion to $690.693 billion for the week ended May 1. In the previous reporting week ended April 24, reserves had fallen by $4.82 billion to $698.487 billion.

The broader market also traded lower during the session, with hotel, travel and tourism-related counters witnessing additional pressure after the Prime Minister’s comments on overseas travel and fuel conservation.