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Brokerage house ICICI Securities has given a 'buy' call for hospitality stocks such as Indian Hotels Company and Lemon Tree Hotels.

Due to Covid waves in 2020 and 2021 globally and across India, the hospitality industry has seen a lot of volatility in terms of occupancies and room rates over the last two years.

Heading into FY23, the beleaguered hospitality sector, which has borne the brunt of multiple Covid waves impacting business, is seeing a confluence of positives with leisure demand remaining strong and business travel set to see a strong leg up with reopening of offices, resumption of international flights and events and conferences, the brokerage said.

However, key risks to the sector are fresh Covid waves globally and in India impacting demand and rise in operating costs denting margins.

For Indian Hotels Company, the brokerage pegged target price at Rs 285 per share, as against its current market price of Rs 252.

For Lemon Tree Hotels, the target price is pegged at Rs 80, against its current market price of Rs 66.