Partner at Exencial Research, Exencial Research

Viral Kishorchandra Shah

Partner at Exencial Research

Exencial Research

Thematic (Sector/Industry)

India Hotels, restaurants and leisure / Thematic (Sector/Industry)

<ul>
<li>The hotel sector has seen robust room additions post-Covid, with a record high of 10,897 rooms projected for 2024-25, driven by domestic travel demand.</li>
<li>Occupancy rates have remained steady at around 64.5%, despite significant room capacity increases, while average room rates rose by 13.5% to Rs.7,608 in 2023-24.</li>
<li>The industry's asset-light expansion strategy, including franchise and lease agreements, has facilitated rapid room inventory growth, with ongoing new project announcements remaining strong.</li>
</ul>


The hotel sector has seen robust room additions post-Covid, with a record high of 10,897 rooms projected for 2024-25, driven by domestic travel demand.
Occupancy rates have remained steady at around 64.5%, despite significant room capacity increases, while average room rates rose by 13.5% to Rs.7,608 in 2023-24.
The industry's asset-light expansion strategy, including franchise and lease agreements, has facilitated rapid room inventory growth, with ongoing new project announcements remaining strong.


India’s Hotel Boom: How Spiritual Travel and Smart Expansion Are Redefining Hospitality