Sayantan Saha’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

The hospitality sector in India experienced muted growth in the fourth quarter of FY24, particularly in terms of room revenues. While the sector saw new hotel signings in tier-II and tier-III cities, operational growth remained limited. RevPAR (revenue per available room) showed an 11.4% year-on-year increase in Q4 FY24, but the quarter saw only a 5.5% sequential growth, down from the 100.8% growth seen in FY23 due to the pandemic recovery. Hotel signings and occupancy levels remained strong, with significant contributions from branded hotel conversions and new hotel openings in smaller cities.

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)

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

Excited to share insights from the Annual India Hotel Market Review Report 2023 by Horwath HTL India! Delighted to have contributed to this comprehensive analysis, offering key perspectives and trends shaping the hospitality industry. Let's navigate the evolving landscape together. #HospitalityInsights #IndiaHotelMarket #IndustryAnalysis The 2023 Annual India Hotel Market Review Report, is an analysis of the Indian Hotel market performance for 2023 prepared by Horwath HTL India which is based on data sourced from STR. India’s hotel sector is enjoying an Amrit Kaal (Era of Elixir), with another year of record results and growth. -All India Occupancy at 63.6%; near complete RevPAR recovery on all India level compared to 2019 and growth of 30% over 2022; -All-India ADR of Rs. 7.5k; 3 markets with ADR over Rs 10k. On market-wide basis, Udaipur and Goa occupied the top 2 spots, followed by Mumbai -Eight markets with 5-digit Lux-UpperUp ADR -Supply growth by 14k rooms, the highest in any year; net pipeline up by 23k -Current + pipeline inventory crosses 250k rooms; 2,553 hotels; 403 destinations -Rooms demand per day up 65% and 19% respectively compared to 2015 and 2019 -Sectoral Market capitalisation at Rs 1,282 billion on 31 Dec 2023, up 473% from 31 Dec 2015.

The Indian hotel industry witnessed a marginal growth of around 2% in YoY RevPAR during October 2024. Overall occupancy declined by 100-300 bps Y-O-Y to 58-60%, states a report by HVS India & South Asia-ANAROCK. The RevPAR growth was driven by an increase in ARR by approximately 6% even as the industry witnessed a drop in occupancy. While Q1FY25 witnessed a sluggish start to the financial year with India’s hotel industry RevPAR growing at a mere 4-5% at industry level, July 2024 saw a strong bounce-back in demand with industry ARR growing by 8-10% YoY to approximately Rs 7000, and occupancies rising 3-5% YoY, leading to YoY RevPAR growth of around 15% Mandeep Singh Lamba #indiahotels #hospitalityindustry

The Indian Hotels Company Limited (IHCL), a Tata Group enterprise, is undergoing a massive transformation under CEO Puneet Chhatwal. Here are key takeaways from IHCL's current strategy and trajectory: 𝗔𝗴𝗴𝗿𝗲𝘀𝘀𝗶𝘃𝗲 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 IHCL plans to double its revenue to ₹15,000 crore and the number of hotels by 2030. It plans to increase its hotel portfolio to over 700 properties globally, up from the current 232 operational hotels (214 in India).118 properties are under development across 13 countries on four continents. 𝗗𝗶𝘃𝗲𝗿𝘀𝗲 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 The company operates across luxury, mid-scale, and budget segments under eight brands, including Taj, Vivanta, Ginger, and amã Stays & Trails. IHCL has introduced new verticals like Qmin (food delivery) and The Chambers (club memberships). Taj, its luxury brand, will grow from 50 to 120 hotels. Ginger, its midscale brand, will expand from 46 to 100 hotels 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗥𝗲𝘀𝘂𝗿𝗴𝗲𝗻𝗰𝗲 Revenue recovered strongly post-pandemic, reaching ₹6,768.7 crore in FY24, up from ₹1,575 crore in FY21.Profitability has also returned, with ₹1,330.4 crore in FY24, compared to a loss of ₹795.6 crore in FY21. 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗔𝗵𝗲𝗮𝗱 The rapid expansion has raised concerns about maintaining quality, particularly in mid-scale and budget properties like Ginger. Competitors like Marriott International are leading in room count. Global expansion faces stiff competition from established luxury brands 𝗠𝗮𝗿𝗸𝗲𝘁 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 IHCL has seen its stock price rise over 400% in five years, with a current market cap of ₹1 trillion, outpacing rivals like Marriott and Oberoi Hotels The company’s ambitious goals reflect its leadership's confidence in India’s growing hospitality market, but sustaining quality and addressing service inconsistencies will be critical to its long-term success. IHCL CMP Rs 751.5 Market cap Rs. 1.07 Trillion Rishabh Kale

Would you still want to invest in Goa's luxury hotel market? Attention investors and hospitality leaders! The latest data from Goa's luxury hotel sector is in, and it offers a compelling narrative for strategic growth and investment. 🌟 Occupancy Insights: April’s occupancy rate hit 67%, a robust indicator of sustained market demand. Notably, the Year-To-Date (YTD) average is even stronger at 73.5%. These figures highlight consistent high performance and an opportunity to capitalize on the market’s stability. 💼 Revenue Highlights: The Average Daily Rate (ADR) for April stands at ₹17,820.35, demonstrating the market's capacity to command premium pricing. YTD, the ADR peaked at ₹23,408.08, reinforcing the luxury segment’s profitability. 💡 Key Takeaway for Investors: RevPAR for April reached ₹11,944.53, with a stellar YTD figure of ₹17,205.09. This robust revenue per available room underscores the market’s efficiency and potential for lucrative returns. The significant metrics tell a story of a thriving market ripe with investment opportunities. As an investor, are you considering expanding your portfolio in this resilient and growing sector? How are you planning to leverage these trends to maximize your returns? 📊 Strategic Questions: - How can we further enhance revenue strategies to maintain high ADRs? - What innovative approaches can drive occupancy rates even higher? - Are there emerging market trends we should tap into to stay ahead? Let's dive into these questions and explore the untapped potential in Goa’s luxury hospitality market. Share your thoughts, strategies, and insights—together, we can shape the future of luxury hospitality! #InvestmentOpportunities #LuxuryHospitality #GoaHotels #MarketTrends #StrategicGrowth #HospitalityInvestment #Goa #Hopspitality

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

The future of hospitality in India is incredibly promising. With increasing domestic travel driven by a growing middle class and enhanced connectivity, alongside rising global tourism attracted by India's rich culture and heritage, the industry is poised for exponential growth. The demand for diverse offerings—ranging from luxury experiences to budget-friendly options—continues to expand, catering to varied consumer preferences. This momentum is further fueled by India's emergence as a major global hub for business travel, events, and leisure tourism. As the sector grows, so does the need for trained professionals who can uphold global standards in service, food safety, and compliance. At IFSTSN, we are committed to empowering the workforce in the hospitality industry by providing world-class food safety training and certifications. Whether it’s ensuring regulatory compliance, upskilling professionals, or fostering innovation in food handling and safety practices, we aim to play a pivotal role in supporting this booming sector. The hospitality industry’s future lies in its ability to adapt and innovate, and a strong foundation in food safety and operational excellence is crucial for sustainable growth. Through IFSTSN, we’re helping create a skilled and confident workforce ready to meet the evolving demands of this dynamic industry.