India’s hotel industry expected to grow by 13%

India: The country’s hotel industry is said to expand at a compound annual growth rate (CAGR) of 13 percent between 2018-2023.

Owing to the high arrival of tourists and business delegates in the country, a recent report by Netscribes has predicted that the hotel market will reach a value of IRN 1,210.87 billion by 2023.

The occupancy rate of the major hotels in India increased at a rate of 65 per cent between FY 2017 and FY 2018, due to increased demand from business and leisure travelers, and a slowdown in the addition of new hotel rooms across the country.

Kerala, a south-western state of India, is anticipated to be the leading provider of hospitality services with a total of 440 approved hotels.

Several factors influenced this estimate. Combined with the increased demand for rooms, along with the slowdown of additional new rooms, guest accommodation is said to have the largest share of hotel revenue.

In addition, hotel owners are increasingly relying on social media as a way to generate exposure, thereby leading to a higher volume of bookings.

The Indian government has also enforced a 100% foreign direct investment (FDI) in tourism construction projects to help drive expansion. This will involve the development of hotels, resorts, and recreational facilities across the country.

The major hotels that were operating throughout India in 2018 were:

  • Marriott International
  • The Indian Hotels Company Limited
  • Radisson Hotel Group
  • ITC Hotels
  • Accor Hotels
  • Hyatt Hotels
  • Sarovar Hotels
  • Intercontinental Hotels Group
  • Lemon Tree Hotels
  • Oberoi Hotels & Resorts
    • The Park Hotels

For more information, the full report by Netscribes can be downloaded here.

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