Indian hotels to witness decadal-high occupancy of 70-72% in FY24

livemint.com:

₹6,000-6,200 in this fiscal and the occupancy is expected to be at decadal highs. The RevPAR is expected to remain at a 20-25% discount to the FY08 peak. Consistent improvement in consumer sentiments despite the inflationary environment, stable corporate performance, and domestic air passenger traffic inching above pre-covid levels augur well for travel and hotel demand.

The demand recovery has been strong in the last one year, and it anticipates it to continue in this fiscal as well. Sustenance of domestic leisure travel, higher bookings from meetings, incentives, conferences, and exhibitions (MICE), and business travel, along with an increase in foreign tourist arrivals (FTAs), would support demand. The industry is also likely to benefit from specific events like the G20 summit and the ICC World Cup 2023.

While the G20 summit would support occupancy across cities in FY24, improved economic activity and business associations stemming from these meetings are likely to translate into incremental demand for hotels over the medium term. It expects an improving trend in ARRs as well across markets in FY2024, driven by healthy occupancy. Further, mid-scale hotels have also witnessed traction across cities and are likely to continue reporting healthy ARRs and occupancy this year, observed Vinutaa S, vice president and sector head, corporate ratings at the firm said It estimates a 13-15% revenue growth for the Indian hotel industry in FY24, notwithstanding the potential impact on demand from exogenous shocks, if any.