Panaji : With the luxury travel market showing robust growth in Goa, its no wonder that international hospitality chains are investing heavily to expand their footprint in the tourist state . The Indian Hotels Company Ltd (IHCL) announced that it is setting up a new resort in Anjuna, North Goa, while its competitor Marriott International has opened up a resort at Colva, South Goa, both in June. With an estimated investment of Rs 421 crore, the Oberoi Group is also keen to grab a foothold in Goa’s hospitality sector by 2027.
Last Dec, the luxury segment recorded occupancy upwards of 90% with the average daily rates (ADRs) shooting up significantly even as the rest of Goa’s tourism sector reported muted performance. The ADR is one of the three key hotel performance indicators along with occupancy and the revenue per available room (RevPAR). “The region overall, has seen an increasing trend of destination weddings and premium leisure travel,” said Ranju Alex, the area vice president, South Asia, Marriott International.
Meanwhile, the IHCL has partnered with Bharat Realty Venture Pvt Ltd to build a 170-key resort close to the Anjuna beach. The new resort is coming up on land that has been taken on a long-term lease from the Goa Tourism Development Corporation. Once operational, the IHCL will have 16 hotels in Goa.
The IHCL has not given a timeline for the inauguration of the resort at Anjuna. “This expansion underscores the IHCL’s commitment to enriching Goa’s hospitality landscape, said Puneet Chhatwal, the managing director and chief executive officer of IHCL. Industry stakeholders say that Goa saw the greatest increase in hotel demand among India’s tier II cities.
“Goa remains a promising destination for growth for the luxury segment. The destination has also gained a lot of steam as a preferred wedding destination among millennials, and its appeal as a holiday spot has cascaded further to the upwardly mobile explorer segment of travellers as well as high net-worth individuals. Following a resilient comeback to pre-Covid occupancy levels as early as the start of this year, Goa over the last 12 months has grown by a 4% RevPAR as compared to last year, while the luxury segment hotels in Goa have grown (Jan – May 2024) at 6.
4% in RevPAR in the first five months of the year vs last year. We anticipate the market to continue its steady pace of growth in the months ahead,” Alex told TOI . Marriotts chose Colva for the group’s 11th property in order to meet the growing demand for luxury accommodation in South Goa, he said.
“In addition to catering to leisure travellers seeking premium luxury, we are strategically targeting the corporate and business-leisure travel segments as well. Furthermore, the hotel is poised to serve as an ideal venue for intimate social gatherings, including weddings and personal milestone celebrations,” said Alex. Given that big fat Indian weddings have become popular in Goa, both the hospitality chains are keen to consolidate their market share in the destination wedding industry.
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