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India’s Hotel Sector to Hit Decade-High for Revenue

Alan Woinski
February 21st, 2024 at 7:58 AM EST

Skift Take

The Indian hotel industry is expecting to report a 7-9 percent revenue growth in FY2025 with occupancy likely to be at decade highs.

Rating agency ICRA said the Indian hotel industry is expecting to report a 7-9 percent revenue growth in FY2025 with occupancy likely to be at decadal highs. ICRA believes this will be driven by sustenance of domestic leisure travel, demand from MICE, including weddings and business travel despite a temporary lull during the election period. They also believe spiritual tourism and tier-II cities will contribute meaningfully in FY2025. Domestic tourism has been the prime demand driver and they expect that to continue in the near term as foreign tourist arrivals have yet to recover to pre-Covid levels. ICRA estimates pan-India premium hotel occupancy was at decadal highs of 70-72 percent in FY2024 and FY2025 after recovering to 68-70 percent in FY2023. Pan-India hotel average room rates are expected to go up to around Rs 7,200-7,400 in FY2024 and rise to Rs 7,800-8,000 in FY25. The result will be RevPAR at an 8-12 percent discount to the peak FY2008 in FY2024, getting to the peak in FY2025. All this has boosted development of new hotels with ICRA expecting the premium supply pipeline for FY2024-FY2025 to increase by 25-30 percent. They expect supply to continue to lag demand.

Mitsubishi Estate Hotels & Resorts Co. Ltd announced the opening of its new establishment, The Royal Park Hotel Iconic Nagoya. The launch markets the fourth establishment under the ICONIC brand line and the second property for Mitsubishi Estate Hotels & Resorts Co Ltd. in Nagoya in Japan. The new hotel is located in the historic Chunichi Building, with the location including the 7th floor and 24th to 32nd floors of the redeveloped building. The hotel has 246 rooms with the rooms featuring three distinctive design concepts: History, Present and Timeless. The Standard floors provide comfortably-sized rooms featuring the charm of Japanese design while the 32nd Premium floor has particularly spacious rooms with over 55 square meters. Amenities include the Bar-Sou and restaurants such as The 7th Terrace, a rooftop dining venue. Others include Shunju and Sushi Ginza Onodera and the Ryurei Tea Room located within The Tea Lounge.

Lanson Place Hospitality Management Limited is reopening its flagship Causeway Bay property on March 1, 2024 following a substantial refurbishment. The new look Lanson Place Causeway Bay, Hong Kong offers an elegant and timeless residential feel across its 188 rooms and suites, including six penthouses. The hotel renovations were a work of world-class designer Pierre-Yves Rochon and includes freshly renovated rooms and suites in a variety of layouts, first floor restaurant and bar Salon Lanson, new meeting areas and zones for business travelers, a new gym and wellness area on the fifth floor and more. The property first opened in 2005 as the flagship of the home-grown Hong Kong brand founded as a subsidiary of Hong Kong-listed Wing Tai Properties.

The Courtyard Nusa Dua in Bali, Indonesia has added to its record pool area with a new lazy river. The hotel is the host of Bali’s longest pool within its prestigious ITDC (Indonesian Tourism Development Center) Complex, measuring 97 meters. The Courtyard Bali Nusa Dua is also home to three other swimming pools including the new Lazy River.

Hyatt Place Makassar, the first Hyatt Place hotel in Indonesia, has opened its doors. The hotel features 145 guestrooms, breakfast, The Market, The Placery (coffee, beer, wine, cocktails), the Necessities program, 360 square feet of Event Spaces and a fitness center. Hyatt Place Makassar is owned by PT Indonesia Paradise Property along with PT Rifai Maju Properti, which also owns several well-known hotels, apartments, and luxury malls in Indonesia including the Grand Hyatt Jakarta.

Oberoi Realty said it entered into an agreement with Marriott International for the management of two new hotels in Mumbai Metropolitan Region. The agreement marks the development of two Marriott properties in India – JW Marriott Hotel Thane Garden City and Mumbai Marriott Hotel Sky City in Borivali, both set to be completed in 2027-2028. The JW Marriott Hotel Thane Garden City will be set in Oberoi Garden City, Thane, the integrated development spread across 75 acres which will also consist of luxury residences and world-class amenities. The Mumbai Marriott Hotel Sky City will be part of integrated living development Sky City, spread across 25 acres in Borivali East. The project also consists of 8 luxury residential towers and a premium mall spread across 1.5 million square feet.

Radisson Hotel Group announced the signing of the 150 room Radisson Blu Hotel, Ayodhya. The greenfield project is being developed by Jeewani Hospitalityin partnership with EaseMyTrip and is expected to open in 2027. This will be Radisson Hotel Group’s second hotel in Ayodhya as it opened the Park Inn by Radisson Ayodhya this past January. The hotel will be located within two kilometers of Shri Ram Mandir, Ayodhya. Culinary venues along with recreational facilities like a swimming pool, fitness center, spa, and expansive banquet halls will be the amenities offered to guests.

Indian Hotels Company announced the opening of Ginger Ahmedabad, Changodar. This is IHCL’s seventh hotel in Ahmedabad in Gujarat. The 102-key hotel is centrally located, minutes away from the SG Highway. The hotel includes Qmin – the Ginger brand’s signature all-day diner. There is a fitness center and over 4,600 square meters of meeting and banquet facilities.

IHCL also announced the opening of the 113 key Ekante Bliss under SeleQtionsbrand in Tirupati, Andhra Pradesh, home of the sacred shrine of Tirumala Venkateswara Temple. With the addition of this hotel, IHCL will have six hotels across Taj, SeleQtions, Vivanta, and Ginger in Andhra Pradesh in India, including one under development.

IHG Hotels & Resorts announced a management agreement with Yuvaan Developers Private Limited for the Holiday Inn Guwahati in India’s North Eastregion. The hotel is scheduled to open in January 2028. IHG said the new-build 150-key hotel signifies a significant stride toward their expansion strategy in second markets. The hotel will offer three dining options, including all-day dining, a bar, and a lobby lounge. There will be a dedicated fitness center and a pool, along with four meetings rooms and a banquet hall.

Alan Woinski
February 21st, 2024 at 7:58 AM EST

Companies: Marriott International, Courtyard by Marriott, Holiday Inn, Hyatt Place, IHG Hotels & Resorts, JW Marriott Hotels & Resorts, Oberoi Group, Park Inn by Radisson, Radisson, Radisson Blu, SeleQtions, The Indian Hotels Company Ltd

Locations: Andhra Pradesh, Ayodhya, Bali, Gujarat, Hong Kong, Indonesia, Mumbai, Nagoya

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