India's Hotel Rates May Rise Over 8% in 2025

Holiday Schedule: The final Daily Lodging Report – Asia Pacific of 2024 will be Tuesday, December 24th. The first DLR – APAC of 2025 will be January 2, 2025. There will be no newsletters in-between these dates. We hope you all have a Happy and Healthy Holiday Season and a Happy New Year!

Laos, Cambodia and Vietnam have collectively welcomed 25 million tourists this year, with projections suggesting their combined tourism revenue could surpass US$30 billion by the end of 2024. Lonely Planet is helping Indochina, naming Luang Prabang in the Laos as the most thrilling destination, followed by Bangkok, Angkor Wat and Hoi An in Vietnam. More than 1.9 million international travelers have explored Luang Prabang, nestled among the Mekong River. Laos' tourism sector alone is on track to generate over US$1 billion in tourism revenue this year. Vietnam is projected to receive 16 million international arrivals by the end of 2024.

Hotelivate said they expect hotel room rates in India to rise further in 2025 after rates set a new record high in 2024. The firm is projecting a surge of demand of 7%-8% across segments. Hotels are said to be fully booked at the end of this year despite foreign tourist arrivals still being below pre-Covid levels. A 7%-8% rise in ADR growth in 2025 is what they are expecting. EaseMyTrip said the rise in rates next year will be driven by the dynamic interplay of rising demand across luxury, midscale and budget segments. Noesis Capital Advisors is expecting rates to rise by 8%-10% in 2025, driven by strong travel demand, limited new supply and inflationary pressures. Radisson Hotel Group said they expect at least a 10% increase in room rates while Crimson Hotels is expecting a 15% rise.

Wyndham Hotels & Resorts announced the opening of Ramada Encore Bhiwadi and Ramada Encore Viramgam. Ramada Encore Bhiwadi is located at Phool Bagh Chowk, just 75km away from Delhi and has 108 rooms, an all-day dining restaurant, bar lounge, fitness center, outdoor swimming pool, banquet halls, meeting rooms and a fully-equipped business center. The hotel is owned by SS Enterprises. Ramada Encore Viramgam is located just as short drive from Sanand, Vitthalpur and Becharagji. The hotel offers 60 rooms, an all-day dining restaurant, fitness center, banquet space, meeting rooms, spa and a salon. The hotel is owned by Dhruvi Restaurant and Hotel LLP.

Marriott International's Four Points by Sheraton brand announced the opening of Four Points by Sheraton Nashik, marking the debut of the Four Points by Sheraton brand in Nashik, India. The hotel is located just a 30 minute drive from Nashik International Airport and features 125 rooms. Dining options include Intermezzo, A Lounge Bar; all-day dining Arbor Kitchen; and HYGH Note. The hotel includes over 8,300 square feet of meeting and event spaces, an infinity pool, and fitness center.

The Economic Times reported OYO is planning to lay off 2,000 people at the end of January. While OYO maintains it is "one of the best places to work" ET said they are removing 2,000 people from the payroll by automating processes. Meanwhile ET said once again hotel owners are complaining that they are not being paid by OYO while others are reporting they are unhappy with the contracts they are offered as well. They highlighted a lawsuit by one owner, claiming OYO was supposed to pay him INR 7 lakh a month but failed to do so since, get this, May 2019. ET said a commercial agreement between MakeMyTrip and OYO is being investigated by the Competition Commission of India for the possible dominant position they could enjoy. Skift, parent company of this publication, also reported that several hotel owners in the US have complained OYO's partner management system does not work properly and also said they are not being paid what they are supposed to be. ET also said hotel owners in China are complaining and in China, owners are saying they are getting paid far less than what they were promised.

Mayapada Hospitality Holdings announced the grand opening of voco Bali Seminyak, the first voco premium brand hotel in Indonesia. The hotel is managed by IHG Hotels & Resorts and is the ninth hotel in India and fourth in Bali under IHG's management. The voco Bali Seminyak offers 162 rooms and suites, an all-day dining restaurant, rooftop bar, lobby lounge, fitness center and an outdoor pool.

Accor said the Pullman Danang Beach Resort unveiled their newly renovated grand ballroom and MICE facilities. The hotel is located in the heart of Danang City in Vietnam. The upgraded indoor venue spans nearly 800 square meters and features a grand ballroom that can be divided into three versatile function rooms and an additional meeting room.

Accor and DOJI Group announced the signing of Sofitel Diamond Crown Hai Phong in Vietnam, a new luxury hotel being developed. The first international acclaimed hotel located in the Diamond Crown Hai Phong complex will open in 2026. The complex includes a 45 story hotel tower and a 39 story high end residential tower. The Sofitel hotel will comprise 231 rooms, 180 serviced apartments and exclusive services including an infinity pool, golf simulator, gym, restaurants, spa, conference center and other luxury facilities.

Following its takeover by Sunset Hospitality Group, Singapore's Hotel Fort Canning, rebranded as Mett Singapore, is about to become a vibrant lifestyle destination. Sunset sees strong potential to elevate the guest experience at the historic hotel with the revamp. The reimagined hotel will have redesigned guestrooms, public spaces and meeting facilities. Sunset Hospitality will also introduce three to four of its own dining concepts. The new Mett Singapore is set to open on October 1, 2025. They are also planning to open a second hotel in Singapore, along with several properties across Asia, looking at Bangkok, Koh Samui, the Maldives, Osaka, Vietnam and Indonesia. Beyond Asia, Dubai-based Sunset Hospitality Group is also looking at key destinations in the US and Europe with their goal being to grow to 40 hotels in the next three to four years.