Skift’s Post

The Indian hospitality sector is undergoing a remarkable transformation, with leading chains like Oberoi Hotels & Resorts , Taj Hotels and ITC Hotels setting new benchmarks in luxury, service excellence, and financial performance. For instance, Oberoi Hotels & Resorts recorded a stellar fiscal year 2022-23 with revenues of ₹2,096 crore—a 101% growth year-on-year—and profits of ₹329 crore, marking an impressive 446% jump (TOI). Similarly, the The Indian Hotels Company Limited (IHCL) -> Taj Hotels achieved a historic milestone with ₹5,000 crore in revenue for FY23, showcasing its robust growth and enduring brand loyalty (Economic Times). Not far behind, ITC Hotels continues to excel, leveraging its unique blend of sustainability and luxury to capture growing market demand in India and beyond. The broader hospitality industry in India reflects these successes, with the market projected to reach USD 247.31 billion in 2024 and grow at a CAGR of 13.96%, hitting USD 475.37 billion by 2029 (Mordor Intelligence). Revenue Per Available Room (RevPAR) also grew by 15.8% year-on-year in Q4 2023 (Economic Times). What’s even more inspiring is the strategic pivot these brands are making—moving from competition-driven approaches to carving unique niches that resonate with rapidly evolving consumer preferences. Taj Hotels for example, is capitalizing on its heritage properties and culinary excellence to offer authentic Indian luxury experiences, while ITC Hotels focuses on sustainable luxury through its “Responsible Luxury” philosophy. Meanwhile, Oberoi Hotels & Resorts continues to emphasize personalized service and exclusivity, setting new standards in guest satisfaction. This shift aligns perfectly with changing traveler behavior, where guests now prioritize unique, curated experiences over standardized luxury. Domestic tourism has surged, fueled by India’s growing middle class, while the return of international travelers post-pandemic has bolstered premium hotel demand across all major chains. Together, these hospitality giants are not only elevating their brands but also putting India firmly on the global luxury hospitality map. By focusing on guest-centric innovation and differentiated value propositions, they’re shaping a future where Indian hospitality stands as a gold standard for the world.

What is the current scenario of branded inventory in Indian Hospitality Landscape? Over the past decade, the penetration of branded hotels in India has seen a steady climb, culminating in a significant leap over the last two years. By December 2022, the market’s brand penetration was 48%. By December 2023, it reached a peak of 52%, the highest in a decade, with a notable 27% year-on-year growth in new openings by key count according to JLL. The landscape of consumer behavior and preferences in the hotel industry has undergone significant transformation over recent years. This shift is particularly evident in the changing perception of branded hotels, which have transitioned from being viewed primarily as a luxury option to being considered an essential choice for many travelers. This evolution in consumer preferences can be attributed to several key factors, including heightened expectations for safety, security, hygiene, and quality of service, as well as broader trends in brand awareness and the pursuit of premium experiences. Read our latest blog to have a deeper insight! #luxurytravel #brandedhotels #hotelconsultant #hospitalityindustry https://lnkd.in/giN3__SZ

HOSPITALITY NEWS #768 KKR and Marriott International to Launch Midscale Hospitality Segment in Japan with Four Points Express by Sheraton Conversion of 14 hotels marks Marriott International’s debut of affordable midscale segment in Asia Pacific TOKYO--(BUSINESS WIRE)--KKR, a leading global investment firm, and Marriott International, Inc. (Nasdaq: MAR) today announced the launch of each company’s foray into the midscale hospitality space in Japan, which follows KKR’s completion of the acquisition of Unizo Hotel Company, Limited and a portfolio of 14 hotels in Japan from Unizo Holdings. The 14 hotels will be converted to Four Points Express by Sheraton. This marks Marriott’s entry into the affordable midscale segment in Japan and the brand’s debut in Asia Pacific following its global launch in this space in 2023. The portfolio of 14 hotels is located in major tourist destinations in 10 cities across Japan, including Hakodate, Morioka, Utsunomiya, Yokohama, Kanazawa, Nagoya, Osaka, Kyoto, Kobe, and Hakata. The properties are expected to open in the second half of 2024, adding more than 3,600 new rooms to KKR’s and Marriott’s respective hotel portfolios in Japan. Four Points Express by Sheraton will offer value-conscious consumers a seamless hotel experience in convenient locations throughout Japan, with principles of reliability, simplicity and value in both the design and guest experience. The brand has been tailored to meet guests’ needs, and the brand standards contemplate an efficient cost model that is intended to provide an effective pricing strategy for franchisees and help drive meaningful growth for Marriott. Sources: GK

Indian Hotels Fundamental Analysis: Is the 25% Discount Coupon Worth it? Have you ever been to the Hotel Taj or the magnificent Vivanta? We have all heard their names since childhood, and many of us dream of indulging in the regal experience these hotels offer. It’s no secret that being pampered by the unparalleled services and soulful moments at these luxurious hotel chains is on many of our bucket lists. Imagine rejuvenating in royal suites and opulent rooms with sea views after long work weeks—it provides an exquisite experience like no other. To add a cherry on top, Indian Hotels Co Ltd honours its shareholders during their sojourns at these luxurious hotel brands. It offers a 25% discount on stays, dining, spa, and salon services to IHCL shareholders. Now, from an investor’s perspective, is this 25% discount coupon a compelling reason to invest in the company’s shares? Let’s delve into the Indian Hotels Fundamental Analysis to find the answer. #Indianhotels #Hotels #Hoteltourism #Tourism #Investing #Finance #ESG #Luxury #Stockmarket #Economy #Indianeconomy #Sustainabledevelopment #DailyStocksDekho

A strong rebound in #India's hotel market has investor confidence growing, while international brands are looking to grow their market presence signing #hotels in second and third tier Indian cities. #Hotels #IndustryOutlook #ProjectPipeline #HotelsInIndia

The Hotel business... *Tata owned Indian Hotels (IHCL) leads the others in market capitalisation.* EIH is 2nd. India's top 3 hotel conglomerates 1.      The Indian Hotels Company Limited: A company that offers a variety of brands, including Taj, SeleQtions, Vivanta, Ginger, and amã Stays & Trails. Taj is considered one of the world's strongest hotel brands.  2.      EIH: A company that owns and manages luxury hotels and cruises under the Oberoi, Trident, and Maidens brands. EIH also has a presence in Indonesia, Mauritius, Egypt, and the UAE. 3.      ITC Hotels: A hotel chain that offers luxury experiences that are in harmony with the environment and society. ITC Hotels are certified with a LEED (Leadership in Energy and Environmental Design) Platinum rating India's top hotel companies 1.      Lemon Tree Hotels: India's largest mid-priced hotel chain, with over 100 hotels and around 9,700 rooms. It operates in a variety of segments, including upscale, mid-market, upper-midscale, and economy.  2.      Marriott International: As of August 2023, Marriott International had a market share of about 14% in India based on inventory.  3.      IHCL: As of August 2023, IHCL had a market share of about 11.37% in India based on inventory.  4.      Taj Hotels Resorts Palaces Safaris: Has 14,100 rooms.  5.      Carlson Rezidor Hotel Group: Has 9,500 rooms.  6.      Accor Hotels: Has 9,000 rooms.  7.      ITC Hotels: Has 8,000 rooms.  8.      Hyatt Hotels Corporation: Has 6,100 rooms.  9.      Intercontinental Hotels Group: Has 5,900 rooms.  10.  Sarovar Hotels and Resorts: Has 4,150 rooms.  11.  Oberoi Hotels and Resorts: Has 3,900 rooms. 

🏨 Competitive Pressures on Jakarta’s 5-Star Hotels: Insights from Cycle Analysis 🌆 In Jakarta’s luxury hospitality sector, understanding cyclical pressures and long-term trends is essential for hotel operators, investors, and developers. Advanced cycle analysis using Hodrick-Prescott filtering, harmonic regression, and Seasonal-Trend Decomposition (STL) reveals notable insights into the competitive landscape affecting Jakarta’s 5-star hotels, highlighting periods potentially influenced by increased supply in the market. Key Analytical Highlights: Identified Downturn Periods: Analysis reveals three major downturn cycles in Jakarta’s 5-star hotel market since 2005, likely driven by rising competitive pressures and increased supply: 1️⃣ January 2005 to March 2007: This initial downturn period marked a foundational phase of competitive pressure lasting 26 months, as new supply entered the market. 2️⃣ January 2011 to October 2020: The longest downturn on record, spanning 118 months. This extended period likely reflects an era of rapid hotel development which intensified competitive pressures. 3️⃣ June 2022 to September 2024: The current downturn, at 28 months and counting, began with one of the steepest declines observed since 2005. Increased supply, coupled with shifts in consumer demand, may be contributing to these pressures as operators face heightened competition for occupancy. Seasonal and Cyclical Patterns: STL decomposition reveals recurring seasonal fluctuations within each year, likely reflecting established demand patterns. Recognizing these seasonal cycles allows operators to adapt strategies to capture demand more effectively during peak periods. Emergence of Short-term Cyclical Patterns: Harmonic regression highlights both short-term and long-term cycles. Shorter cycles may indicate temporary fluctuations due to market adjustments, while longer cycles reflect enduring competitive dynamics within the sector. Actionable Insights for Stakeholders: Operators: Adopt flexible pricing strategies and adjust marketing efforts to respond to seasonal and cyclical shifts in demand. Targeted campaigns during peak demand periods can help offset competitive pressures. Investors: Insights into long-term trends provide valuable context on market saturation and periods of intensified competition. The prolonged negative phase since June 2022, potentially tied to new supply, suggests a cautious approach, but understanding cycle behavior can help in timing investments to benefit from future demand upturns. Developers: Align project timelines with favorable periods in the demand cycle and consider market saturation when planning new developments. Monitoring the effects of increased supply on competitive pressures can help optimize project success in a dynamic market. Strategic Takeaway: For Jakarta’s luxury hotel stakeholders, advanced cycle analysis offers insights into market dynamics shaped by both demand fluctuations and increased supply.

HOSPITALITY NEWS #767 KKR and Marriott International to Launch Midscale Hospitality Segment in Japan with Four Points Express by Sheraton Conversion of 14 hotels marks Marriott International’s debut of affordable midscale segment in Asia Pacific TOKYO--(BUSINESS WIRE)--KKR, a leading global investment firm, and Marriott International, Inc. (Nasdaq: MAR) today announced the launch of each company’s foray into the midscale hospitality space in Japan, which follows KKR’s completion of the acquisition of Unizo Hotel Company, Limited and a portfolio of 14 hotels in Japan from Unizo Holdings. The 14 hotels will be converted to Four Points Express by Sheraton. This marks Marriott’s entry into the affordable midscale segment in Japan and the brand’s debut in Asia Pacific following its global launch in this space in 2023. The portfolio of 14 hotels is located in major tourist destinations in 10 cities across Japan, including Hakodate, Morioka, Utsunomiya, Yokohama, Kanazawa, Nagoya, Osaka, Kyoto, Kobe, and Hakata. The properties are expected to open in the second half of 2024, adding more than 3,600 new rooms to KKR’s and Marriott’s respective hotel portfolios in Japan. Four Points Express by Sheraton will offer value-conscious consumers a seamless hotel experience in convenient locations throughout Japan, with principles of reliability, simplicity and value in both the design and guest experience. The brand has been tailored to meet guests’ needs, and the brand standards contemplate an efficient cost model that is intended to provide an effective pricing strategy for franchisees and help drive meaningful growth for Marriott. Rajeev Menon, President, Marriott International, Asia Pacific excluding China, said, "There's a growing consumer demand for reliable-yet-affordable accommodation in the region. Our goal is to be everywhere our guests want us to be, with the right property in the right location, at the right price point. This collaboration with KKR will expand our ability to do exactly that – starting in Japan, with opportunity to grow our midscale presence in the region. Our new midscale brand will offer hotel owners an affordable conversion opportunity with an efficient operational design, access to Marriott International’s expansive distribution systems and the backing of our powerful award-winning Marriott Bonvoy travel program.” Sources: BW

NEWS:  Planning a multi-city adventure in India? Radisson Hotel Group is making it easier than ever! They aim to have a hotel within a 2-hour drive of each other, making road trips a breeze. Plus, they're signing tons of new hotels! But that’s not just all. More global hotel chains are set for expansion in India.   Click below to learn more 👇 https://lnkd.in/erig9TQ2 Sonali Priy Kapoor  #News #GlobalHotels #TravelIndustry #HotelIndustry   #pr #pragency #digitalmedia #digitalmediamarketing #digitalmediamarketing #socialmediamarketing  #thehatchproject

On Oberoi Hotels & Resorts planning to go big by going small. Having worked with a pioneer of small (& sustainable) hotels in an advisory capacity for almost a decade, I know how exciting a space it is. Customer preferences too seem to be shifting to smaller, more intimate hotels from the something-for-everyone hotels. Covid and the scare around being with strangers in crowded places (and hotels) seems to have accelerated this change in customer preferences and hotel chains seem to be responding too. The Postcard Hotel chain was born of an idea to create bespoke, intimate luxury stay experiences for discerning and well-heeled guests. Its birth around the time of Covid helped it gain customer traction quickly and that's helped fuel its growth and attract others to emulate its model. The Taj too has focused on expanding its footprint of luxury homestays, villas and bungalows via its Ama Trails & Stays brand, and just celebrated opening its 100th villa. Clearly, going big on going small is good for business. What kind of hotel / stay experiences do you prefer when you travel on holiday?