India’s branded and organised hotel sector achieved a decade-high occupancy rate of 67.5% in 2023-2024, with an all-time record average daily rate of INR 8,055, according to Hotelivate‘s͏͏ 27th͏͏ edition͏͏ of͏͏ the͏͏ Indian͏͏ Hospitality͏͏ Trends͏͏ &͏͏ Opportunities͏͏ Report.
Strong͏͏ RevPAR͏͏ Performance:
This͏͏ led͏͏ to͏͏ a͏͏ RevPAR͏͏ (revenue͏͏ per͏͏ available͏͏ room)͏͏ of͏͏ INR͏͏ 5,439,͏͏ slightly͏͏ below͏͏ the͏͏ lifetime͏͏ high͏͏ recorded͏͏ in͏͏ 2007-2008.
Mumbai͏͏ topped͏͏ the͏͏ occupancy͏͏ rates͏͏ at͏͏ 79%,͏͏ followed͏͏ closely͏͏ by͏͏ New͏͏ Delhi͏͏ at͏͏ 78.7%͏͏ and͏͏ Hyderabad͏͏ at͏͏ 75.1%.
Hyderabad͏͏ achieved͏͏ one͏͏ of͏͏ the͏͏ highest͏͏ RevPAR͏͏ growths͏͏ in͏͏ the͏͏ country͏͏ for͏͏ the͏͏ second͏͏ consecutive͏͏ year,͏͏ driven͏͏ by͏͏ a͏͏ 26.2%͏͏ rise͏͏ in͏͏ average͏͏ rates.
Five-Star͏͏ Hotels Dominate͏͏ RevPAR͏͏ Growth:
According͏͏ to͏͏ the͏͏ report,͏͏ five-star͏͏ deluxe͏͏ hotels͏͏ recorded͏͏ a͏͏ substantial͏͏ 147.4%͏͏ increase͏͏ in͏͏ RevPAR͏͏ over͏͏ a͏͏ 24-month͏͏ period,͏͏ the͏͏ highest͏͏ among͏͏ all͏͏ categories.͏͏ Five-star͏͏ hotels͏͏ followed͏͏ with͏͏ a͏͏ robust͏͏ 131%͏͏ growth,͏͏ while͏͏ four-star͏͏ hotels͏͏ experienced͏͏ a͏͏ notable͏͏ 99.3%͏͏ rise.
Hotels͏͏ with͏͏ average͏͏ rates͏͏ of͏͏ INR͏͏ 7,500͏͏ or͏͏ higher͏͏ increased͏͏ from͏͏ 23%͏͏ (354͏͏ hotels)͏͏ in͏͏ 2022-23͏͏ to͏͏ 30%͏͏ (517͏͏ hotels)͏͏ in͏͏ 2023-24.
The͏͏ report͏͏ was͏͏ based͏͏ on͏͏ a͏͏ participation͏͏ base͏͏ of͏͏ 1,742͏͏ hotels,͏͏ which͏͏ had͏͏ a͏͏ combined͏͏ inventory͏͏ of͏͏ 180,403͏͏ rooms.
Continue͏͏ Exploring:͏͏ From͏͏ sparkling͏͏ wines͏͏ to͏͏ spa͏͏ treatments:͏͏ Indian͏͏ hotels roll͏͏ out͏͏ deluxe͏͏ offers͏͏ for͏͏ business͏͏ travelers
Manav͏͏ Thadani,͏͏ founder͏͏ chairman͏͏ of͏͏ Hotelivate,͏͏ described͏͏ the͏͏ anticipated͏͏ 49%͏͏ increase͏͏ in͏͏ hotel͏͏ room͏͏ supply͏͏ in͏͏ India͏͏ as͏͏ ‘remarkable’͏͏ and͏͏ indicative͏͏ of͏͏ ‘significant’͏͏ growth͏͏ in͏͏ the͏͏ hospitality͏͏ sector.͏͏ He͏͏ noted͏͏ that͏͏ key͏͏ markets͏͏ like͏͏ Bengaluru,͏͏ Mumbai,͏͏ and͏͏ Goa͏͏ are͏͏ at͏͏ the͏͏ forefront͏͏ of͏͏ this͏͏ expansion,͏͏ with͏͏ 77%͏͏ of͏͏ the͏͏ proposed͏͏ supply͏͏ currently͏͏ under͏͏ active͏͏ development.͏͏ “This͏͏ trend͏͏ highlights͏͏ a͏͏ positive͏͏ outlook͏͏ for͏͏ the͏͏ industry,͏͏ driven͏͏ by͏͏ increasing͏͏ tourism,͏͏ business͏͏ travel,͏͏ and͏͏ enhancements͏͏ in͏͏ infrastructure,”͏͏ he͏͏ stated.
“As͏͏ of͏͏ March͏͏ 2024,͏͏ the͏͏ branded͏͏ pipeline͏͏ for͏͏ the͏͏ next͏͏ five͏͏ years͏͏ consists͏͏ of͏͏ 88,706͏͏ keys,͏͏ regardless͏͏ of͏͏ their͏͏ current͏͏ construction͏͏ status,”͏͏ he͏͏ noted.
Achin͏͏ Khanna,͏͏ managing͏͏ partner͏͏ of͏͏ strategic͏͏ advisory͏͏ at͏͏ Hotelivate,͏͏ stated͏͏ that͏͏ the͏͏ industry͏͏ is͏͏ continuing͏͏ to͏͏ perform͏͏ strongly.
“With͏͏ half͏͏ of͏͏ fiscal͏͏ 2024-25͏͏ already͏͏ behind͏͏ us,͏͏ there͏͏ has͏͏ been͏͏ overall͏͏ growth͏͏ compared͏͏ to͏͏ the͏͏ remarkable͏͏ performance͏͏ of͏͏ 2023-24,͏͏ especially͏͏ with͏͏ the͏͏ stronger͏͏ winter͏͏ months͏͏ approaching.͏͏ However,͏͏ in͏͏ many͏͏ markets,͏͏ growth͏͏ has͏͏ slowed,͏͏ and͏͏ in͏͏ some͏͏ cases,͏͏ it͏͏ has͏͏ even͏͏ declined,”͏͏ he͏͏ noted.
