A survey released on Monday revealed that 2,706 new rooms were added in the upscale and premium categories in the first half of this year, along with a noteworthy increase in infrastructure development. This news is good news for the Indian hospitality industry.
Of these, 994 rooms (or 37%) were considered upmarket, and the remaining rooms (or 63%) were made up of premium inventory.
In H1 2024, a total of 22 new projects were launched.
According to strategy consulting firm Skye Hospitality, well-known hotel brands like IHCL, Radisson, Hyatt, ROHL, Bharat Hospitality, and Wyndham launched new initiatives.
The West accounted for thirty-four percent of the additional supply, with the East coming in second with twenty-eight percent. The contributions from the North and South were 26% and 12%, respectively. Nowadays, major hotel chains are introducing new items in areas like J&K, Lakshadweep, the northeast, and the Andaman Islands.
Ankit Kansal, MD of SKYE Hospitality, stated, “The Indian hospitality industry is on a strong footing marked by a rise in occupancy, new projects opening, and a bullish pipeline for the future.”
Major hotels had typical occupancy rates in the first half of seventy to seventy-five percent. The occupancy rate has increased by approximately 15–25% as compared to the same time last year. The report claims that the Indian hotel sector is seeing a strong comeback, supported by an increase in business travel, leisure travel, the wedding season, etc.
The demand for the hospitality industry in India is also being fueled by other causes, such as the growing popularity of staycations, the rise in experiential travel among Gen Z and millennials, and the development in wellness tourism packages.
“The concept of revenge travel is also there, as most of the hotels operate at 100 per cent occupancy during extended weekends,” Kansal said.
The government is also making significant contributions through focused policy initiatives to improve infrastructure and roll out a number of alluring programs. The construction of infrastructure, such as roads, train lines, and airports, has improved accessibility all around. According to him, the market will experience rapid increase over the next three to five years as both domestic and foreign companies expand across segments.
