Saturday, August 10, 2024 The new SKYE Hospitality report reveals the addition of 2,706 rooms to India’s upscale and premium hotel segments in the first half of 2024. SKYE Hospitality, a comprehensive consulting firm specializing in hospitality and strategy, has published its inaugural market analysis of the Indian hotel industry for the first half of 2024. The report offers intriguing insights into the Indian hospitality sector.
It reveals that 2,706 new hotel rooms were added to the market in H1 2024. Of these, approximately 37% were upscale accommodations, while the remaining 63% comprised premium rooms. Additionally, 22 new hotel projects commenced during this period, with major brands like IHCL, ITC, Radisson, Hyatt, ROHL, Bharat Hospitality, and Wyndham among those launching new ventures.
Geographically, 34% of the new hotel supply was concentrated in the West of India, followed by the East at 28%. The North and South regions contributed 26% and 12%, respectively. The Indian government has been instrumental in fostering growth through targeted policy initiatives and attractive schemes, including Dekho Apna Desh, Incredible India, PRASHAD, and Aayush.
These efforts have bolstered hotel demand. Significant infrastructure improvements, such as upgraded highways, railway corridors, and airports, have enhanced accessibility, prompting major hotel brands to explore previously underdeveloped regions like North East India, Jammu & Kashmir, Andaman, and Lakshadweep. In terms of meeting and banquet spaces, the SKYE analysis shows that 243,000 square feet were added in the same period, with the Eastern region accounting for 47% of this supply, followed by the North at 25%.
The Indian MICE (Meetings, Incentives, Conferences, and Exhibitions) sector is expanding at a steady rate of 8-10%, driven by infrastructure growth, economic progress, and India’s rich cultural heritage. Currently, Taj is involved in over 20 new projects, while Vivanta is pursuing approximately 50. International brand Accor plans to add 5,500 rooms across its Pullman, Novotel, and IBIS brands.
The Oberoi Group is set to expand with around 50 new projects over the next five years, including the introduction of a new brand, “Oberoi Nature,” which will feature smaller-format hotels..
