CBRE South Asia Pvt Ltd, India’s leading real estate consulting firm, today announced the findings of its first-ever hospitality report, ‘Indian Hospitality Sector: On a Comeback Trail’. The report highlights the occupancy trends and growth in the hospitality sector in India.
It is estimated that a recovery in demand will remain ahead of supply addition, which will augur well for the key metrics of the hotel sector’s performance. Demand over the next few years is likely to be more equilateral and broad-based rather than being centered across only select cities/ markets. CBRE expects this steady supply growth to continue for the next few years.
Increasing investor interest has been one of the significant drivers of growth for the Indian hospitality space in the past couple of years. In addition, Indian companies are also participating actively in this segment by way of investing or expanding their presence. The international presence and acceptance of Indian chains have established the service level and visibility of these brands.
Further, the report states that all industry KPIs such as percentage of rooms occupied / occupancy rate; average daily rate (ADR) / average rental revenue per occupied room at a given time; and revenue per available room (RevPAR) / revenue generated by one room are expected to surpass pre-pandemic levels this year. RevPAR witnessed 94% growth in India in 2022 as compared to 2021. According to the report, in 2022, the hotel sector in India saw renewed footfalls and a steady rise in revenue, indicating a smooth recovery from the pandemic.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “In recent years, several international hotel chains have made significant investments in the country, looking to tap into the growing demand for hospitality services. Several PE funds have also invested in domestic and international hospitality operators looking to expand their footprint in the country. The sector has also benefited from the Government’s continued focus on reforms, as a result, the Government expects the country’s tourism and hospitality sector to earn USD 50.9 billion as visitor exports by 2028.”
