Hospitality stocks EIH, India Hotels slump

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Mumbai, Nov 28 (UNI) The hospitality sector was badly pounded today, as the terrorist attacks in the metropolis put an additional strain on nerves, frayed by the global financial turmoil.

Shares of Indian Hotels and East India Hotel (EIH) were under severe pressure after their main hotels -- Taj Mahal Hotel and Oberoi-Trident were hit by the attacks.

Creating a fear psychosis among visitors to the country, hoteliers are expecting large scale cancellation of bookings, especially from overseas visitors.

All the hotel association members are likely to meet the Tourism and Culture Minister Ambika Soni next week, to draw a strategy to deal with the consequences of such incidents, sources said.

This is the busiest tourists season (October to March) and the profit of the hospitility sector is likely to get hampered by the attack in the middle of the peak season.

East India Hotel (EIH) was down 5.65 per cent at Rs 87.65, Indian Hotels slumped 10.84 pc at Rs 43.20 and Taj GVK Hotel lost 7.03 pc to Rs 41.65, a leading broker said.

Aviation stocks also took a beating, with airlines cancelling/ rescheduling flights, on account of the terror attacks.

Kingfisher Airlines fell 6.32 per cent to Rs 27.40 and Jet Airways was down 4.28 per cent.

Tourism stocks, Thomas Cook lost 4.44 per cent and Tourism Finance Corporation of India declined 2.7 per cent to Rs 14.40.

UNI AR LY NP2319

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