FY25 Outlook: Hotels to see revenue growth of 9-11%, a 3rd straight Year of growth- CareEdge
Indian Hotels Company , EIH Ltd , Lemon Tree Hotels, Chalet Hotels share price have risen 70%-189% in last one year. The same has been helped by continuing upcycle as Revenue per available room (RevPAR) have improved regularly in the back of rising occupancy and improvement in average room rates (ARR). The outlook remains strong and share prices of EIH, Lemont Tree Indina Hotels, Chalet Hotels rose up to 5.7% on Monday The analysts and experts expect the earnings growth trend to continue.
CareEdge expects the Hotels to see 9–11% revenue Growth of in FY25, which will be the third consecutive year of Growth in the Current Upcycle. One significant aspect of the Hotel industry's post-pandemic trajectory has been the strong recovery in demand, which has been accompanied by a progressive balancing of supply and demand for branded hotel room inventory. Also Read- Nifty Auto soars 75% in FY24; what lies ahead for the sector? Here's what experts predict The industry is presently experiencing its second upcycle year.
Revenue per Available Room, or RevPAR, increased by an astounding 88% in FY23 compared to the previous year, and it now stands at ₹4,200–4,400 (average for branded hotels in India), which is 9% more than it was before to the pandemic, as per CareEdge Data. In the current fiscal year, average room rates (ARRs) in India are anticipated to range from ₹7,200 to ₹7,400. This as per Care Edge is anticipated to increase to ₹7,700 to ₹7,900 in FY25.
As CareEdge Ratings predicts that FY24 will conclude with RevPAR increase of 12–14%, even on a high base of FY23. This upward trend in growth is anticipated to continue in FY25, with y-o-y revenue growth of 9–11% anticipated. The same will be supported by robust domestic leisure
. Read more on livemint.com
