Indian Hotels Experience Strong Quarter Due to Corporate Travel and Weddings

The Indian hotel industry is off to a strong start in 2024, with a robust first quarter performance driven by an increase in corporate travel and weddings. According to a report by real estate services company JLL, there was a high demand for hotel rooms in both business and leisure destinations, leading to strong occupancy levels in key markets.

The momentum from the first quarter is expected to continue into the April-June period, with business travel, conferences, meetings, and weddings driving the busy season. JLL’s managing director for hotels, Jaideep Dang, stated that healthy consumer sentiments and domestic corporate travel will be key drivers for the sector’s performance throughout the year.

In the first quarter of 2024, 9,710 rooms across 90 branded hotels were signed, with an additional 13 hotel conversions also signed. Interestingly, 75% of the total keys opened during the quarter were in tier-2 and tier-3 cities, highlighting the growing hotel boom in smaller urban areas.

The industry’s revenue per available room (RevPAR) saw an annual growth of over 11% during the quarter, indicating a positive trend for the sector. Hospitality advisory firm HVS Anarock reported that the average RevPAR in March 2024 was between INR 5,103 – INR 5,395 ($61.28 – $64.79), a 10% increase from the previous year.

Furthermore, Radisson Hotel Group has announced a strategic partnership with NILE Hospitality to expand its midscale brand Park Inn and Suites by Radisson in Rajasthan and Gujarat, catering to smaller market segments in tier-2 to tier-5 cities. This move aligns with Radisson’s goal to double its portfolio to around 300 hotels by 2025.

Overall, the Indian hotel industry is poised for continued growth and investment, with tourism and hotels expected to drive private sector investments in the coming months. With a focus on smaller cities and key market segments, the sector is set to capitalize on the strong performance seen in the first quarter of the year.