J.P Morgan sees India's hospitality sector gaining from GST cuts

Brokerage J.P. Morgan sees India's hospitality sector gaining from proposed cuts to the nation's goods and services tax

Sees tax cuts driving up demand in mid-scale hotels which have lagged in performance

Luxury segments that see seasonal fluctuations could get higher occupancy levels in lean months, brokerage adds

Shares of Indian Hotels Company IHTL.NS rise as much as 1.5% to 770 rupees; Lemon Tree Hotels LEMO.NS up 1.7% to 167 rupees

JPM says IHTL's brand Ginger to be a key beneficiary

Since the announcement of GST reform plan on August 15, IHTL up nearly 1%, Lemon Tree Hotels LEMO.NS rises around 14%

On avg both IHTL and LEMO rated "buy"; median PT at 875.50 rupees and 175 rupees respectively- data compiled by LSEG

YTD, IHTL down around 11%, LEMO up about 9%