Monday, August 5, 2024 SKYE Hospitality, a comprehensive hospitality and strategy consulting firm, has released its inaugural market report on the Indian hotel industry’s performance for the first half of 2024. This analysis provides intriguing insights into the sector’s dynamics. According to the report, 2,706 new rooms were introduced to the market in the first half of 2024.
Of these, 994 rooms, or approximately 37%, were upscale, while the remaining 63% were premium. A total of 22 new projects were launched, with prominent hospitality brands like IHCL, ITC, Radisson, Hyatt, ROHL, Bharat Hospitality, and Wyndham among the key contributors. In terms of regional distribution, 34% of the new supply was concentrated in the West, followed by 28% in the East.
The North and South regions accounted for 26% and 12% of the new developments, respectively. “Indian hospitality industry is on a strong footing marked by a rise in occupancy, new projects opening, and a bullish pipeline for the future. In the first half, Average occupancy in major hotels ranged between 70-75%.
Occupancy has risen by around 15-20%, compared to the same period, previous year” Quoted Mr. Ankit Kansal, MD, SKYE Hospitality . “The Indian hotel industry is witnessing a robust rebound backed by rise in business events, leisure travels, wedding season, etc.
Other factors such as growing trend of staycations, surge in experiential travel trends amongst millennials & Gen-Z, and rise in wellness tourism packages are also fuelling demand for hospitality business in India. The concept of revenge travel is also there, as most of the hotels operate at 100% occupancy during extended weekends” Added Mr. Kansal .
Government initiatives have played a crucial role in stimulating growth in the hospitality sector, with targeted policies and schemes like Dekho Apna Desh, Incredible India, PRASHAD, and Aayush boosting demand. Significant infrastructure improvements, such as new highways, railway corridors, and airports, have enhanced accessibility, prompting major hotel brands to expand into previously underexplored regions like the North East, Jammu & Kashmir, Andaman, and Lakshadweep. During this period, approximately 243,000 square feet of hotel-based meeting and banquet space was added, with the Eastern region leading the way, contributing 47% of the new supply, followed by the North at 25%.
The Indian events and meetings industry is witnessing steady growth, with a reported 8-10% increase, positioning India as a prominent MICE (Meetings, Incentives, Conferences, and Exhibitions) destination on the global stage, driven by economic growth and rich cultural heritage. Commenting on the future outlook of the industry, Mr. Kansal said” the next 3-5 years will see aggressive expansion in the industry, as both domestic and international brands will extend their footprint across segments.
” Taj Hotels is currently developing over 20 projects, while Vivanta has around 50 new projects in progress. International brand Accor is also expanding, with plans to add 5,500 new rooms across its Pullman, Novotel, and IBIS brands. Oberoi Group is planning to add about 50 new projects over the next five years, including the launch of a new smaller-format hotel brand, “Oberoi Nature.
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