The Indian hotel industry has seen a strong performance in the first quarter of 2024, with an increase in corporate travel and weddings driving demand for hotel rooms in both business and leisure destinations. The occupancy levels in key business markets were particularly strong during this period. The momentum from the first quarter is expected to continue into the second quarter, with business travel, conferences, meetings, and weddings anticipated to drive the busy period. The overall outlook for the hotel sector in India in 2024 looks positive, with healthy consumer sentiments and domestic corporate travel remaining key drivers.
During the first quarter of 2024, there were 9,710 rooms signed across 90 branded hotels, along with 13 hotel conversions. A total of 36 hotels were opened during this period, with 75% of the total keys opened in tier-2 and tier-3 cities, which are driving the hotel boom in India. The industry’s revenue per available room (RevPAR) saw an annual growth of over 11%, according to reports from JLL. Additionally, HVS Anarock’s monthly report for March 2024 showed an average RevPAR increase between INR 5,103 – INR 5,395 ($61.28 – $64.79), up 10% compared to March 2023, with an average occupancy rate of 70%.
Radisson Hotel Group has announced a strategic partnership with NILE Hospitality to expand its midscale brand Park Inn and Suites by Radisson in Rajasthan and Gujarat. The brand is focused on smaller market segments in tier-2 to tier-5 cities. Park Inn and Suites by Radisson has been tailored to cater to the needs of the Indian market, particularly in smaller cities. Radisson aims to double its portfolio to around 300 hotels by 2025, with over 165 trading and developing hotels across various brands.
Private sector investments in India are expected to be driven by the tourism and hotel industries in the second half of the 2024-25 financial year, according to Kotak Mahindra Bank’s chief economist Upasna Bhardwaj. Bhardwaj noted that these sectors have not seen significant capacity expansion in recent years, making them ripe for private sector investments. The travel and tourism industry accounted for 6% of India’s GDP in 2022 and is expected to generate revenue of nearly $24 billion in 2024, prompting both government and private players to focus on boosting tourism in the country.
The Jordan Tourism Board has unveiled a brand film specifically targeting Indian travelers, showcasing the country’s food, culture, history, adventure, and luxury experiences. The video combines elements of Bollywood, BOHO styling, and indigenous Jordanian culture to create a captivating connection with Indian travelers, inviting them to explore the treasures of Jordan. The film features Indian influencers and travel enthusiasts in an effort to expand its reach to Indian audiences and promote tourism to Jordan. Overall, these developments point to a positive outlook for the hospitality industry in India and the potential for continued growth and investment in the sector.
