India's Hotels Project Cautious 14% Revenue Growth in 2025

Memories of the Covid-19 pandemic had investors in India shaken up after the first three cases of Human Metapneumovirus were reported in the country, with hotel and airline stocks taking the big hit. HMPV is not Covid-19 as it has been around, mostly in China, for many years, but you can't blame investors for being concerned after they brushed off Covid-19 when it first appeared.

The concern is that HMPV could upset all the rosy forecasts for the coming year. Crisil Ratings is projecting double-digit revenue growth for India's branded hotels, driven by surging demand and outstripping supply. Key contributors include domestic travel, MICE activities and rising foreign tourist influx. The agency forecasts a 13%-14% revenue rise for the year, followed by 11% to 12% growth in 2026. This follows 17% growth in the previous fiscal year. Crisil is anticipating a 20% cumulative rise in supply across this fiscal and the next, with operating margins projected to improve by 100-150 basis points. They expect the demand surge to drive up average room rates by 6%-7% this fiscal, slowing to 3% to 4% in the next fiscal year as new room capacities emerge. A rise in branded hotel rooms is anticipated at 8%-9% this fiscal year and 11%-12% the following year, with leisure and non-metro areas accounting for 65% of the new additions.

The Cambodian government lowered e-visa fees for tourists, business visitors and other travelers as of January 1. They are trying to bring in more visitation and investment from key primary markets in Southeast Asia. Tourist visa prices have dropped to $30 from $36, and regular visas now cost $35, down from $42. Does any country really want tourists who actually make decisions to travel based on a $6 decline in visa prices? Industry experts are urging for better visa measures for the main countries contributing to its international arrivals. International tourism was up 22% in the first 10 months of 2024 in Cambodia, with most arrivals from Thailand, Vietnam, China, Laos, and the United States. Chinese tourist arrivals rose nearly 53% in the first 10 months of 2024 to 692,000. Cambodian officials predict there will be 2 million Chinese tourists this year, which will total 7 million.

Minor International's Anantara Bophut Koh Samui Resort in Thailand has unveiled its newly refurbished rooms following an extensive four-week renovation. The US$2 million investment includes a comprehensive room redesign, complemented by the addition of a new Kids and Teens Club and state-of-the-art Technogym fitness facility set to launch in Q1 and Q2 2025, respectively. The redesigned rooms, nestled within a well-established coconut plantation, now embody a seamless blend of indoor comfort and outdoor serenity through earthy wood tones and subtle greens. The third-floor rooms now feature vaulted ceilings, creating a more expansive and inviting ambiance. Larger balcony doors flood rooms with natural light and there are updated interiors in all the Premier Garden View, Deluxe Garden View and Deluxe Sea View Room categories. In March 2025, a 150 square-meter state-of-the-art Technogym fitness facility will open in a new space next to the resort's Spa. In 2Q25, what will be the island's leading Kids' and Teens' Club experience will open, housed in a newly renovated space with its own terrace.

Banyan Group is set to welcome its 100th resort for its debut in Singapore in April this year, along with the opening of new properties in destinations beyond Asia, including Tanzania and the Dominican Republic. They have 15 new hotel and resort openings and five new branded residence developments expected this year. This includes the debut of the Mandai Rainforest Resort, a nature-inspired property within the Mandai Wildlife Reserve in Singapore, and the first standalone development in Bangkok, and the opening of new properties in Zhuhai, Busan, Jeju, Bangkok and Cebu. In 2024, Banyan Group expanded its portfolio with 18 new hotel and resort openings, including six in Japan and South Korea and eight in China.

Sangu Chakra Hotels Pvt Ltd announced plans to double its room inventory over the next 4-5 years, with Sangam Hotels planning to invest Rs400 crore in developing new properties in Tiruchi, Rameshwaram and Chennai to address the rising demand in Tamil Nadu's key destinations. Sangam is celebrating its 50th anniversary in the Indian hospitality sector and currently operates four properties in Tamil Nadu, including two under the Marriott brand in Tiruchi and Madurai, offering about 290 rooms. The group is set to open a 125-room hotel in downtown Tiruchi and a 130-room luxury resort in Rameshwaram. The group is also working on a business hotel in South Chennai that caters to corporate travelers.

Indian Hotels Company announced the launch of Taj Cochin International Airport, which was developed in partnership with CIAL. This expands IHCL's portfolio to 19 hotels in Kerala, with 3 in the pipeline. The 111 key Taj Cochin International Airport includes an all-day diner and IHCL's holistic wellness brand J Wellness Circle, a state-of-the-art fitness center and a swimming pool. The hotel includes a banquet space of over 5,000 square feet.

Personnel Moves

Robinsons Land Corporation announced Lance Gokongwei will step down as President and CEO on February 1, 2025. He will be replaced by Maria Socorro Isabelle "Mybelle" V. Aragon-GoBio. Gokongwei had been in this position since January 2024, stepping in to replace his cousin Frederick Go who stepped down after accepting an invitation from Philippines President Marcos Jr to become the government's Special Assistant to the President for Investment and Economic Affairs. Gokongwei remains as CEO of the parent JG Summit Holdings. He will continue to serve as Executive Chairman of Robinsons Land. Ms. Aragon-GoBio will become the first female President and CEO of RLC. She began her career with RLC in 1993, previously serving as President and CEO of Robinsons Logistix and Industrials, Bonifacio Property Ventures Inc. and Bacoor R&F Land Corporation.

The Fern Hotels & Resorts announced the appointment of Ashish Tomar as the new General Manager – Business Development. Tomar will be responsible for spearheading the company's hotel acquisition and development initiatives. Prior to joining Fern Hotels & Resorts, he held development roles at brands such as Apeejay Surrendra Park Hotels, HCL, Infosys and others.