Saturday, August 10, 2024
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SKYE Hospitality’s new report shows that India’s upscale and premium hotel segment will add 2,706 rooms in the first half of 2024.
SKYE Hospitality, a comprehensive hospitality consulting and strategy firm, has released its first market analysis of the Indian hotel industry for the first half of 2024.
The report offers interesting insights into the Indian hotel sector. It shows that 2,706 new hotel rooms were launched in the first half of 2024. Of these, about 37% were upscale accommodations while the remaining 63% were premium rooms. In addition, 22 new hotel projects were launched during this period, including major brands such as IHCL, ITC, Radisson, Hyatt, ROHL, Bharat Hospitality and Wyndham.
Geographically, 34% of new hotel supply was concentrated in the West of India, followed by the East with 28%. The North and South regions contributed 26% and 12% respectively.
The Government of India has been instrumental in driving growth through targeted policy initiatives and attractive schemes such as Dekho Apna Desh, Incredible India, PRASHAD and Aayush. These efforts have boosted demand for hotels. Major infrastructure improvements such as expansion of highways, railway lines and airports have improved accessibility and prompted major hotel brands to explore previously underdeveloped regions such as North East India, Jammu and Kashmir, Andaman and Lakshadweep.
In terms of meeting and banquet space, SKYE analysis revealed that 243,000 sq. ft. was added during the same period, with the eastern region accounting for 47% of this supply, followed by the north at 25%. The Indian MICE (Meetings, Incentives, Conferences and Exhibitions) sector is growing at a steady rate of 8-10%, driven by infrastructure growth, economic progress and India’s rich cultural heritage.
Currently, Taj is involved in over 20 new projects, while Vivanta is pursuing around 50. International brand Accor plans to add 5,500 rooms for its Pullman, Novotel and IBIS brands. The Oberoi Group will expand with around 50 new projects over the next five years, including the launch of a new brand called ‘Oberoi Nature’, which will include smaller hotels.
