Strong demand for cultural and spiritual hubs is expected for destinations like Varanasi, Kolkata during Durga Puja, and Pushkar for the camel fair, besides leisure destinations like Goa, Udaipur, Jaipur and Coorg.
The primary drivers: Geopolitical disruptions inflating fuel and operational costs, and a surge in travel demand.
India's hospitality sector is rolling out the red carpet for investors. A flurry of upcoming IPOs, or initial public offerings, the entry of new players, and ambitious expansion plans by Indian and global hotel brands are ushering in what could be the industry's most formalised era yet. Leading the charge are real estate titans, who are turning their hotel arms into global hospitality chains.
The hospitality industry has around 212,000 rooms, with an industry size of about Rs 82,000 crore. The industry could grow at an annual rate of 10.5 per cent for the next three financial years, despite a quiet Q1FY25. The demand will be driven by domestic travellers, who will contribute roughly 50 per cent of the growth, while foreign tourists will account for 30 per cent.
The move to demerge the hotel business into a separate entity by ITC has brought back focus on hotel stocks, which have already seen a good run thus far in fiscal 2023-24 (FY24). Analysts believe there could be more gains in store over the next one year for the stocks in this sector, but suggest investors put in money on a correction only from a long-term perspective. Hotel stocks, according to A K Prabhakar, head of research at IDBI Capital, have seen a good run as travel picked up post Covid in India. Not only have the room rents increased, the occupancy, too, has surged.
Hotels are using a combination of platforms to reach out to the guests. These include online travel agents among others. hotels in India are offering guests an option to pay now and stay later.
In a bad start to the new year, hotels are counting their losses again. Weddings and corporate events for this month have either been called off or postponed. The blow has throttled the nascent recovery which had kicked in around August. It is primarily hurting the banquet-driven hotel chains, some of which are seeing cancellations running into lakhs for a single day.
'On an average we have been getting four to five such proposals a month, but we aren't pursuing them as they don't tick the boxes.'
The group has a total inventory of 6,582 rooms and another 4,857 in pipeline.
Many leading hospitality companies looking at expansion are either deferring launches or stalling projects on the back of various challenges including fund crunch and roadblocks in getting permits.
Diamond prices vary purely on demand and supply. You can make extraordinary returns within six months or it can even take years.
Betting on the growing demand for hospitality services in Asia Pacific, especially in India and China, global real estate services firm Cushman & Wakefield has acquired two hotel consultancies to launch Cushman & Wakefield Hospitality, Asia Pacific.
Experts are of the view that the trend of serviced apartments is beginning to catch on in India.
A booming economy has every chain worth its salt building for the future, but there's little to show for it this year and next.
Helped by robust growth in tourist inflow in the country, the Indian hotel industry saw their occupancy levels rising to 59.7 per cent in 2003-04, an increase of 4.9 per cent over the occupancy level of the previous year.
Marriott-Starwood, Carlson Rezidor and others are winning the tug-of-war for customers with local hotel chains as they add new properties at a breakneck speed.
About Rs 12,000 crore are stuck in India's first hotel district, Delhi's Aerocity, because of red tape.
While Mumbai (including Navi Mumbai) registered the highest average rate (Rs 7,105), Goa had the highest revenue per available room at Rs 4,778.
GVK Skycity's 20-million sq ft commercial space will be bigger than that in BKC; bids invited for first phase.
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