Macquarie flags occupancy risk for Indian hotel operators from Mideast tensions

Chalet Hotels

23/04/2026 07:18

** Macquarie says geopolitical tensions in the Middle East could weigh on foreign tourist arrivals and near-term occupancy for Indian hotel operators

** Shares of Lemon Tree Hotels LEMO.NS down 0.79% at 121.68 rupees, Chalet Hotels CHAL.NS drop 1.44% to 799.85 rupees, ITC Hotels ITCT.NS fall 1.34% to 161.40 rupees and Indian Hotels Co IHTL.NS drops 3.07% to 639.45 rupees

** Brokerage says March demand softened as the conflict disrupted inbound travel, which may drive a wobble in fourth-quarter FY2026 occupancies

** Notes foreign tourist arrival exposure is a key swing factor for Chalet, ITC Hotels, and Indian Hotels, which typically derive about 25%–40% of room nights from overseas travelers

** Adds domestic travel remains resilient and could partly cushion the impact

** YTD, LEMO down 23%, CHAL dropped ~7%, ITCT fell 17.2% and IHTL down 10.7%

(Reporting by Surbhi Misra in Bengaluru)

((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))