Dr. Prasanth Kumar M’s Post

Hospitality sector sees 4.8% RevPAR growth in Q2 ’24: JLL The Indian hospitality sector experienced a 4.8 percent YoY growth in Revenue Per Available Room (RevPAR) for Q2 2024, according to a report by JLL’s Hotel Momentum India. This growth was due to an increase in average daily rates across key markets, despite a decline in occupancy levels. Read More:- https://lnkd.in/gwNe_C6X #IndianHospitality #RevPARGrowth #HospitalityTrends #JLLReport #HotelIndustry #RevenueGrowth #Q22024 #HospitalitySector #HotelMomentum #ADRIncrease

India’s hospitality sector witnessed a promising start to FY24, with hotel transaction volumes in Q1 FY24 at US$78 million. In 2023, hotel investments in India reached US$401 million, which was nearly four times the volume witnessed in 2022. Last year also achieved a significant milestone of 22 hotel transactions, which is the largest number of assets traded in the last decade. In a conversation with The Economic Times, Jaideep Dang shared his perspective on how the diversified avenues of growth, such as expanding commercial office markets and rapid development of infrastructure throughout India, are playing a catalyst to the positive growth story of Indian hotels. #Hotels #Hospitality #IndiaRealEstate Anumeha Chaturvedi

The Indian hospitality sector’s performance in Q3 2024 (July-September 2024) was primarily driven by a rise in Average Daily Rate (ADR), resulting in a RevPAR growth of 10.8%. In terms of quarterly growth, the sector continued to mark its ascendancy, registering a positive RevPAR growth of 2% Q-o-Q in Q3 2024, compared to Q2 2024. For more insights, read JLL’s Hotel Momentum India (HMI) Q3, 2024. https://lnkd.in/g3VZ9X9D Jaideep Dang Harmeet Singh Bedi Roopa George Mehar A. #Hotels #Hospitality #Investments

It is promising to observe that overall Feb 2024 report highlights a thriving trend in the Indian Hospitality market, displaying significant growth in key metrics such as rates, Average daily rates (ADRs), and Revenue per Available Room (RevPAR). Despite minor fluctuations in the occupancy, the market has indicated resilience with substantial increase in ADR and RevPAR across various city markets. The outstanding increases in hotel rates witnessed in Hyderabad and New Delhi, alongside Goa's capacity to achieve ADR growth despite marginal drops in occupancy, are particularly remarkable. Collectively these trends indicate a promising outlook for the Indian hospitality industry in the coming months. 

Spaces like hotels, resorts and entertainment park were hot in FY23 with the businesses coming out of Covid. They were most affected during Covid and thus reported immense pace of sales growth in FY23 compared to the two previous Covid years. We see reasonable growth so far in FY24 over a high base in FY23. But the pace of growth has started to come down. The stocks have experienced PE expansions because the pace of growth was high. it may be hard to make money at that pace in future at a high PE when the pace of growth shall keep falling. Let's understand pace of growth with an example: Indian Hotels Sales Figures: Q3FY21: Rs 560 CR Q3FY22: Rs 1111 CR YOY Pace of growth: 100% Q3FY22: Rs 1111 CR Q3FY23: Rs 1686 CR YOY Pace of growth: 51% Q3FY23: Rs 1686 CR Q3FY24: Rs 1964 CR YOY Pace of growth: 15% Observe that the pace of sales growth is coming down from 100% to 15%. Stock prices are a slave to the change in pace of growth in a business. Businesses like Indian Hotels become a mediocre investment in the future with a 10-15% growth in sales trading at 70x FY24 earnings.

Led by its iconic hospitality brand Taj, the Indian Hotels Company Limited (IHCL), India’s largest hospitality company, has announced its comprehensive strategy for 2030. Under the plan, IHCL will expand its brandscape, deliver industry- leading margins, double its connsolidated revenue to Rs 15,000 crore (with a 20% return on capital employed) and grow its portfolio to 700+ hotels (from present 350 hotels)while building on its world-renowned service ethos. India's largest hospitality company by market cap has earmarked Rs 5000 crore to achieve these goals in the next 5 years. Announcing the comprehensive strategy for 2030 in Mumbai, Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL said, “IHCL has surpassed its guidance by achieving a portfolio of 350 hotels, with over 200 hotels in operation and delivered ten consecutive quarters of record financial performance. This strong performance, coupled with a robust balance sheet, positions us well to accelerate our growth momentum. Enabling this vision are long term structural tail winds for the sector including India’s forecasted GDP growth of over 6.5%, government’s continued focus on infrastructure spend, hotel demand outpacing supply and the rising affluence of the consumer base.” #hospitality #Indianeconomy The Indian Hotels Company Limited (IHCL)

#HotelivateReleases 𝗧𝗵𝗲 𝗦𝘂𝗽𝗽𝗹𝘆 𝗡𝗮𝗿𝗿𝗮𝘁𝗶𝘃𝗲 𝗶𝗻 𝟮𝟬𝟮𝟯-𝟮𝟰 From phenomenal recovery to record-breaking performances, the story of the hospitality industry in India over the past 24 months has been pathbreaking. This strong showing has attracted interest from across all sectors. Fuelled by robust demand, the supply side has also experienced significant growth. This article analyses hotel signings and openings during the fiscal year 2023/24. 𝗥𝗲𝗮𝗱 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗮𝗿𝘁𝗶𝗰𝗹𝗲 𝗵𝗲𝗿𝗲👇 #HospitalityConsulting #Hotelivate #hospitality #TravelandTourism #HospitalityInvestment #SouthAsianHospitalityTrends #HospitalityInvestmentOpportunities #HospitalityInvestmentAsia #hotelmanagementcontract #hoteldevelopment #hotelreports #hotelindustry #hotelresearch

The Indian hospitality sector is set for substantial growth, with room count expected to reach 3.1 million by 2029 and surge to 4.1 million by 2034, according to market projections by Hotelivate, authored by Harinya Sreenivas and Manav Thadani.  The report highlights India’s hospitality sector's steady comeback with a recent analysis showing the country now has 2.48 million operational lodging rooms as of June 2024. The analysis reveals that independent or unbranded accommodations still dominate India’s lodging market, accounting for 68% of the total supply. However, branded hotels are quickly growing in prominence, becoming the second-largest segment, thanks to increasing investment from both domestic and international players. This growth has been particularly evident in smaller cities and tier-2 markets, where branded hotels have gained traction due to rising demand for more standardized and reliable services. Another key trend the report highlights is the growing popularity of alternative accommodations, such as homestays and guesthouses. The report, which examines the full spectrum of accommodations from branded hotels to independent properties and aggregator chains like OYO, FabHotels, and Treebo, suggests the industry is on track for a strong rebound and continued growth in the coming years. Read more: https://lnkd.in/g24C8mQT Achin Khanna, MRICS #hotelivate #indianhospitality #hospitalityindustry

Thank you Hotel Investment Today, for publishing this interview with the CEO of Indian Hotels Company Limited (IHCL). Readers may choose to read the content at their leisure, but at its core, the takeaways are refreshing! The success of the group has a lot to do with 'Tajness' which is possibly built in their staff's DNA, but my comments are more in support of the group's intention to not close their eyes towards asset ownership as well as increase the depth of brands/positioning, that real estate developers can choose from. Legacy Indian hospitality brands such as Taj (IHCL), Oberoi Hotels (EIH Ltd) and ITC had gradually lost out to international brands such as Marriott, Hyatt, Hilton etc. when it came to signing on new assets in Indian cities, primarily due to the depth of (brand) positioning that international operators offered developers. International operators generally had a brand that could 'fit' into certain construction cost per key that owners shelled out (and return expectations, possibly) - this was not always an upscale or a luxury positioning where Taj, ITC and Oberoi would historically operate, but could cater to the mid-scale and budget travelers too. Shareholder pressure, RE ownership regulations and risk management dictated that international brands expand using an 'asset lite' approach, and soon such brands grew to have significant presence in a 'cost-conscious' (read lower $ ADR) market, like India. It brings in management or franchise fees, fair enough, but does it add as much value as it might have done, had ownership of assets been involved? Owning an asset in a city that has robust fundamentals, does make a lot of sense for one's balance sheet. IHCL's CEO is of the perspective that it does make sense to own, as well as manage. He doesn't outrightly reject the ownership question, which one can understand, given the financial muscle of the Group and its Parent Co. This is a welcome remark, specially when most established operators, nowadays, prefer not to take development exposure. Happy reading! #rsm #rsmuae #hotels #hotelinvestment #hospitalityindustry #realestateinvestments #realestate #assetmanagement #hotelmanagement #hoteldevelopment #ceo #ceoinsights #riskmanagement

94,000 new branded hotel rooms by 2029. That’s the scale of transformation India’s hospitality sector is undergoing—an incredible 50% growth over today’s inventory of 192,000 rooms. Here’s how the key players are driving this revolution: ➙  IHCL: Growing from 350 to 700+ hotels by 2030 with their ACCELERATE 2030 strategy. ➙ Marriott: Adding 6,500 rooms across 40 hotels to its current portfolio of 29,000 rooms in India. ➙ Radisson: Expanding into tier 2 and 3 cities with a pipeline of 81 hotels (7,985 keys). ➙ ITC Hotels: Scaling luxury and boutique properties to 200 hotels with 18,000 keys by 2030. ➙ Lemon Tree Hotels: Focusing on midscale and economy segments with 70 new hotels and 4,700 rooms. ➙ Hilton and Accor: Bold plans include Hilton’s Spark by Hilton launch and Accor’s ventures into emerging cities. What’s driving this boom? ➙ Rising demand in tier 2 and 3 cities from both domestic and international travelers. ➙ Diversification across luxury, boutique, experiential, and economy segments. ➙ India’s emergence as a critical market for global hospitality brands. This isn’t just growth—it’s a golden opportunity for India’s tourism, employment, and economic development. But here’s the big question: Are we ready to support this scale sustainably? From infrastructure to workforce training, there’s plenty to consider. What’s your take on this unprecedented growth? Let’s discuss. ♻️ Repost to spread innovation in hospitality. And follow Yash Mehta for more insights. #Hospitality #IndiaGrowth #TravelIndustry #HotelDevelopment #FutureOfTravel