Double-digit growth marks a historic year for hospitality industry

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₹6,000 a night, according to ratings agency Icra. Hotel revenues saw a robust 20% increase over 2022 while operating margins surpassed the 30% mark. Occupancy rates for top hotel firms, with an inventory of 70,000 rooms, are expected to rise by 10% compared to the previous year, to 74%, according to Crisil.

This projection is well above pre-covid levels of 66%. Besides, room rates are expected to rise to ₹8,000 per night, up 8-10%. The big picture looks good.

“I don’t know how economies around the world will do in the next five years, but I believe it will be better, as there is a direct link between GDPs and travel. Around the world and in India, there will be more travellers, advancements in AI will make it easier to travel," said Booking Holdings chief executive, Glenn D. Fogel, in an earlier interview in November.

The key highlight, according to Chopra, is that the hotel business is still not surpassing the 30% year-on-year growth. Structurally, the Indian hospitality sector is not constructing truly inspiring and iconic luxury hotels that would attract visitors, instead, it is focusing on cookie-cutter properties, and missing the opportunity to showcase India’s splendour, he added. “For this kind of an economy, companies need to build aspirational products." Yet, a concerning aspect is that India continues to receive fewer international travellers than 2019, presenting a potential challenge.