Skift Take
India’s booming aviation market coupled with sustained economic growth have made global hospitality titans check into the country with a robust pipeline of hotels over the next five years.
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Investments in India’s hospitality industry are likely to surpass $2.3 billion over the next two to five years, with the addition of approximately 12,000 hotel rooms in 2023 alone. Real estate consulting firm CBRE South Asia’s report, Indian Hospitality Sector: On a Comeback Trail, predicts that the hotel room numbers are expected to grow at a compound annual growth rate of around 3.3 percent by 2025. Last month, three international hotel chains announced the debut of their luxury brands in the country. Hilton’s Waldorf Astoria and Minor Hotels’ Anantara brand are set to make their India debut in Jaipur, while Radisson has picked Hyderabad for the launch of its Radisson Collection brand. The study further suggests that demand recovery is likely to outpace supply, benefiting key performance metrics of the hotel sector — such as occupancy rates, average daily rates, and revenue per available room — that are expected to surpass pre-pandemic levels in the coming year. For instance, occupancy in Indian hotels is expected to improve to 66 percent this year, according to hospitality research firm HVS Anarock’s latest report. India’s hospitality sector ended 2022 with occupancy in the 59-61 percent range — up 15-17 percentage points from the previous year, and a 94 percent growth in revenue per available room in 2022 compared with 2021. Some 166 new hotels with 14,885 rooms were signed