India Adds 243,000 Sq. Ft of Hotel-based Meeting and Banquet Space in H1 2024: SKYE
Adds 2,706 New Rooms in Upscale & Premium Segment in H1 2024
SKYE Hospitality, an end-to-end hospitality & strategy consulting company has released its maiden market analysis on the pulse of the Indian hotel industry for the first six months of 2024.
The analysis has shared some interesting insights and perspectives on the Indian hospitality sector. As per the analysis, 2,706 rooms have entered the market in H1 2024. Out of these 994 rooms (~ 37%) consisted of upscale rooms while the remaining (63%) consisted of premium inventories. A total of 22 new projects have opened in H1 2024. Major hospitality brands such as IHCL, ITC, Radisson, Hyatt, ROHL, Bharat Hospitality, Wyndham, etc. have opened new projects.
34% of the new supplies were located in the West, followed by East (28%). North and South contributed to 26 and 12% respectively.
“Indian hospitality industry is on a strong footing marked by a rise in occupancy, new projects opening, and a bullish pipeline for the future. In the first half, Average occupancy in major hotels ranged between 70-75%. Occupancy has risen by around 15-20%, compared to the same period, previous year,” said Ankit Kansal, MD, SKYE Hospitality.
“The Indian hotel industry is witnessing a robust rebound backed by rise in business events, leisure travels, wedding season, etc. Other factors such as growing trend of staycations, surge in experiential travel trends amongst millennials & Gen-Z, and rise in wellness tourism packages are also fuelling demand for hospitality business in India. The concept of revenge travel is also there, as most of the hotels operate at 100% occupancy during extended weekends,” Kansal.
During the same time period, around 243,000 Sq. Ft of hotel-based meeting and banquet space entered the market, as per the SKYE analysis. Eastern parts of India accounted for highest supplies (47%) followed by North (25%). The Indian event and meeting industry are growing at a steady rate of 8-10%. India is becoming a reputed MICE destination internationally stemmed by growth in infrastructure, rise in economy, and rich cultural heritage.
Commenting on the future outlook of the industry, Kansal said, “The next 3-5 years will see aggressive expansion in the industry, as both domestic and international brands will extend their footprint across segments.”
Taj is presently working on over 20 projects while Vivanta is invested in around ~ 50 new projects. International hospitality brand Accor is planning to add 5500 new rooms across various brands such as Pullman, Novotel, IBIS, etc. Oberoi Groups is also planning to add around 50 projects in the next 5 years across Oberoi Hotels and Trident. The group is also planning to introduce a new brand, “Oberoi Nature”, which will be a smaller format hotel.
