Skift Take
Industry experts are very bullish on the revenue growth of premium hotels owing to better operational parameters, largely due to domestic demand and global events like the G20 Summit and the Cricket World Cup 2023.
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Just a day after budget hotel operator Oyo forayed into the premium resorts category with the launch of its new brand Palette, credit ratings agency ICRA estimates premium hotel occupancy in India to reach a decade-high of 70-72% with average room rates expected around $74-$76 in the financial year 2024.
“Gateway cities like Delhi and Mumbai are likely to top the occupancy chart at 75%+ in FY2024. Demand is expected to remain healthy across markets, although Bengaluru and Pune are likely to be laggards compared to other key cities,” said Vinutaa S, vice president and sector head of corporate ratings at ICRA.
Consistent improvement in consumer sentiments despite the inflationary environment, stable corporate performance, and domestic air passenger traffic inching above pre-Covid levels augur well for travel and hotel demand, ICRA said in a statement.
“The incremental premium supply is concentrated in select markets, with Mumbai and Bengaluru accounting for a bulk of the upcoming inventory,” Vinutaa said, adding there were sizeable supply announcements in tier-II and religious destination