“The year 2023 has been historically a strong year for many businesses including the tourism and hospitality space. The hospitality sector in the region and in particular, India has been strong. The most satisfying part is that this growth has majorly been driven by domestic travel due to the steady economic progress of our country supported by a stable geopolitical environment. In fact, international arrivals remained low compared to pre-pandemic time. Growth in the Indian Hospitality Industry is fueled by a strong GDP growth of the country and emergence of India as a Global Power.

In the current year, the demand patterns in the Indian Hotel sector are normalizing after the severe fluctuations and uncertainties of the past years. As a result, the sector witnessed an average nationwide occupancy rate of around 63-65% in the first half of the calendar year 2023 (H1 2023), showcasing an increase of around 6-8 percentage points (pp) from the same period in 2022. India’s average hotel rates saw a strong increase in H1 2023 compared to H1 2022 and were around 20% higher than in H1 2019. The steady rise in average rates helped the nationwide RevPAR to post a very healthy growth.

The Indian Hospitality Industry is expected to grow at a steady pace in 2024 as well, supported by healthy economic progress of the country. The demand is expected to be stable. Hotels will continue to witness growth in both occupancies and ADR.

As the industry continues to evolve, adaptability, innovation, and a proactive approach will be key to success. By embracing technology, fostering collaboration, and staying ahead of market trends, hotels can position themselves for a prosperous future in the dynamic world of hospitality.”