HotelNewsNow.com recaps hotel-related financial news each week. Following are updates for: EIH Limited and InterContinental Hotels Group.

The Baird/STR Hotel Stock Index was at 1986.13 as of 10 a.m. today. It closed Thursday at 1949.06.

EIH Limited

Reliance Industries Limited (BOM: 500325) of Mumbai purchased a partial stake in Mumbai-based EIH Limited (BOM: 500840) for INR10.2 billion (US$217 million).

The investment, made by Reliance wholly owned subsidiaries Reliance Industries Investment and Holding Private Limited, amounts to a 14.12% stake in EIH Limited.

EIH shares are up 11.6% during the past five days, closing Friday at INR150.85 (US$3.23) per share. The purchase hasn’t worked out as well for Reliance’s stock price, at least in the short term, as shares are down 2.5% during the past five days. The stock closed Friday at INR925.60 (US$19.84) per share.

The purchase, though, immediately boosted the prices of other Indian hotel companies as investors bet on a potential upswing of the industry in the country, according to The Economic Times.

InterContinental Hotels Group

InterContinental Hotels Group (NYSE: IHG) was upgraded this week to “overweight” from “equalweight” at Morgan Stanley, according to MarketWatch.com.

According to Morgan Stanley, shares of the England-based company are now trading at an “unjustified discount to peers.”

IHG shares are up 2.5% over five days, closing Thursday at US$16.34 per share.