Synopsis
In 2024, hotel transactions in India reached about Rs 2,900 crore, with tier 2 and 3 cities contributing significantly. The midscale segment led while Hyderabad recorded the highest RevPAR growth. New hotspots are emerging, indicating a robust outlook for the Indian hospitality market.Key Takeaways
- Hotel transactions in India reached Rs 2,900 crore in 2024.
- Tier 2 and 3 cities accounted for 50% of transactions.
- Hyderabad showed the highest RevPAR growth at 23.3%.
- New hotel signings totaled 99 hotels with 11,943 keys.
- The midscale segment comprised 53% of openings.
Mumbai, March 25 (NationPress) In 2024, hotel transactions in India reached an estimated Rs 2,900 crore, with tier 2 and tier 3 cities making up 50 percent of these transactions, primarily involving unbranded midscale properties, as indicated by a recent report released on Tuesday.
The investment sector showcased varied participation, with high-net-worth individuals (HNIs), family offices, and private owners accounting for 51 percent of the total investment volume, according to a report by JLL.
In the fourth quarter of 2024, the Indian hospitality industry exhibited remarkable growth, with the leading six markets recording year-over-year rises in both average daily rate (ADR) and revenue per available room (RevPAR).
Hyderabad emerged as the top performer, showcasing the highest growth in RevPAR at 23.3 percent, primarily fueled by a substantial increase in ADR.
Bengaluru also demonstrated notable resilience, with high RevPAR growth backed by enhancements in both ADR and occupancy rates.
The quarter witnessed significant activity in hotel signings, with 99 new hotels totaling 11,943 keys signed.
“In the previous year, we recorded 367 new hotel signings and 154 new hotel openings. This signifies a 14 percent growth compared to 2023. This is promising news for the hotel industry ecosystem as it will stimulate construction activities, lending operations, and ultimately create jobs across various sectors,” stated Jaideep Dang, Managing Director of the Hotels and Hospitality Group at JLL.
This also signifies sustained investor confidence and expansion in the Indian hospitality sector.
The midscale category dominated, constituting 53 percent of hotel openings and 44 percent of signings. Uttar Pradesh led in signings with 1,744 keys.
New hotspots are emerging in Delhi's Yashobhoomi and Mumbai's airport district, indicating potential for future growth in these regions, as highlighted in the report.
Overall, Q4 2024 illustrated a flourishing and expanding Indian hospitality market, with growth distributed across various cities, tiers, and segments, suggesting an optimistic outlook for the industry.
“The hospitality markets in India experienced unprecedented activity in 2024. Supported by strong domestic travel demand in both business and leisure sectors, hotel investments attracted several new groups interested in establishing new hotels, especially in tier 2 and tier 3 towns,” added Dang.
