Skift Take
We have been tracking the Indian hotel industry's strong performance in the first quarter and this momentum is expected to continue. What is also interesting is that smaller cities continue to account for the majority of new developments.
Bulbul Dhawan
The Indian hotel sector delivered a strong first quarter on the back of increased corporate travel and weddings, real estate services firm JLL said in its Hotel Momentum India report.
“We saw strong demand for hotel rooms across both business and leisure destinations during the quarter. Occupancy rates in key business markets were strong,” the company said in a statement.
The momentum from the first quarter is expected to continue into the April-June period, with business travel, conferences and meetings, and weddings driving the busy season.
“The first quarter was key to the hotel sector's strong performance throughout 2024. Healthy consumer sentiment and domestic corporate travel will continue to be key drivers.” A prime location for business and leisure We are seeing strong demand,” said Jaideep Dhan, Managing Director, Hotels, JLL.
Hospitality Industry Overview: 9,710 rooms across 90 branded hotels were signed in the first quarter of 2024. An additional 13 hotel conversion deals were also signed, accounting for 12% of first quarter signings.
The quarter also saw the opening of 36 hotels, with 75% of the total rooms being opened in tier 2 and 3 cities, markets that are driving India's hotel boom.
Strong metrics: According to JLL, the industry's revenue per available room (RevPAR) grew more than 11% year over year during the quarter.
According to hospitality consulting firm HVS Anarock's monthly report for March 2024, average RevPAR for the month ranged from INR 5,103 to INR 5,395 ($61.28 to $64.79), an increase of 10% compared to March 2023.
Additionally, the average occupancy rate for the quarter was 70%.
Radisson enters into strategic alliance with Nile Hospitality
Radisson Hotel Group has entered into a strategic partnership with Nile Hospitality to expand its mid-sized brand 'Park Inn and Suites by Radisson' in Rajasthan and Gujarat. The brand targets smaller market segments across tier 2 to 5 cities.
Park Inn and Suites by Radisson serves smaller cities to meet the needs of the Indian market.
Radisson currently has over 165 hotels in transaction and development across multiple brands, and upon the launch of Park Inn and Suites by Radisson in 2022, the company shared its goal of doubling its hotel portfolio to approximately 300 hotels by 2025.
Tourism, hotels drive private sector investment
Upasna Bhardwaj, chief economist at Kotak Mahindra Bank, said the tourism and hotel industry will drive private investment in the second half of 2024-25.
Bhardwaj said the hotel and tourism sector has not recorded any significant capacity expansion in the last few years, hence, she believes the sector will start attracting more private sector investment.
The travel and tourism industry accounts for 6% of India's GDP in 2022, hence there is a huge focus from the government and private sector on promoting tourism in India. The industry is expected to generate a revenue of around $24 billion in 2024.
Jordan Tourism Board launches branding film targeting Indian travellers
Jordan Tourism has launched its latest branded film dedicated to Indian travellers, which highlights the food, culture, history, adventure and luxury experiences the country has to offer.
“The video combines elements of Bollywood, BOHO style and indigenous Jordanian culture to create a captivating connection with Indian travellers, inviting them to explore the treasures of our Kingdom,” the tourism department said in a statement.
The video also features Indian influencers and travel enthusiasts to expand its reach to the Indian audience.
Photo credit: The momentum from the first quarter is expected to continue in the April-June quarter.
