India hotel sector performance – November 2024
- The Diwali glow arrived a month later, with November showing an 8-10 percentage point year-on-year (y-o-y) occupancy growth and 10-12 percentage point improvement over pre-pandemic levels (November 2019).
- Average Room Rates (ARR) recorded an 11-13% increase compared to the previous year, driving overall performance upward.
Key Metrics:
| Metrics | November 2024 | November 2019 | YoY Change (%) | Change over 2019 (%) |
|---|---|---|---|---|
| ARR (₹) | 9,300 – 9,500 | 6,417 – 6,745 | +11 – 13% | +37 – 39% |
| Occupancy (%) | 69 – 71 | 37 – 39 | +8 – 10 pp | +28 – 30 pp |
| RevPAR (₹) | 6,417 – 6,745 | 1,937 – 2,086 | +15 – 17% | +36 – 38% |
Source: HVS Research; Data for Calendar Year.
Occupancy trends across key Indian markets (Change over November 2023)
- Mumbai: Leading with over 80% occupancy, boosted by the MICE segment and high-profile events like Dua Lipa’s concert.
- Pune: Recorded the highest growth with a 12-14 percentage point increase, driven by the India International Travel Mart 2024.
- Other markets like Bengaluru, Jaipur, and Chandigarh also saw double-digit growth.
ARR trends across key Indian markets (Change over November 2023)
- Mumbai maintained the highest ARR at ₹13,500 – ₹15,000.
- Hyderabad posted the most significant growth with a 28-30% y-o-y increase.
- Strong growth was also observed in Bengaluru, Kochi, and Gurugram (20%+ ARR growth).
- In contrast, Ahmedabad and Kolkata experienced declines due to high rates during last year’s ICC Cricket World Cup.
Key industry updates
- ITC acquires stakes in Oberoi and Leela chains
- ITC Ltd has acquired a 2.44% stake in EIH and 0.53% stake in Leela through Russell Credit Ltd, ahead of its hotel business demerger in January 2025.
(Dec 19, 2024)
- ITC Ltd has acquired a 2.44% stake in EIH and 0.53% stake in Leela through Russell Credit Ltd, ahead of its hotel business demerger in January 2025.
- Adani announces $2 billion international convention centre
- Set to become Mumbai’s largest ICC, competing with Jio World.
(Nov 20, 2024)
- Set to become Mumbai’s largest ICC, competing with Jio World.
- Indian aviation milestone: 5 lakh passengers in a day
- Indian airlines set a record on November 17, 2024, with 5,05,412 domestic passengers across 3,173 departures.
(Nov 18, 2024)
- Indian airlines set a record on November 17, 2024, with 5,05,412 domestic passengers across 3,173 departures.
Branded hotel market analysis
Signings (YTD November 2024)
- By Keys: 37,105 | By Properties: 295
- Distribution by City Tiers:
- Tier 1: 20.2%
- Tier 2: 25.7%
- Tier 3 & 4: 48.2%
Openings (YTD November 2024)
- By Keys: 10,042 | By Properties: 139
- Distribution by City Tiers:
- Tier 1: 29.6%
- Tier 2: 24.1%
- Tier 3 & 4: 32.0%
Source: HVS Research; Data for Calendar Year.
