New Delhi,  Shares in the hotel and hospitality business witnessed a rally on Monday, with Chalet Hotels hitting the 20 per cent upper circuit.

Analysts believe declining Covid caseload is a positive for the contact-intensive sector, which has been badly impacted due to the pandemic.

Paring some gains, chalet Hotels settled 12.6 per cent higher at Rs 283.6 per share.

The company's shares rose 30 per cent since the start of the current calendar year.

Besides, shares of Specialty Restaurant, Mahindra Holidays and Resorts India, Taj GVK Hotels & Resorts, EIH Associated Hotels, and Indian Hotels Company rose 1-5 per cent on Monday, data showed.

The recently tabled Economic Survey for FY22 said the sub-sector of the services sector which is contact intensive in nature was still below the pre-pandemic level.