Hospitality Boom Continues - Indian Hotels Prepare for Record Growth in 2024

New Delhi:

The Indian hospitality market, buoyed by a remarkable year in 2023, anticipates even greater strides in 2024 as the industry gears up for what could potentially match or exceed the record-breaking hotel room additions witnessed last year, according to industry experts. Notable hotel chains such as the Indian Hotels Company (IHCL), Marriott International, and Lemon Tree Hotels played a pivotal role in this surge, contributing significantly to the increased room count in 2023.

IHCL, leading the pack, proudly announced the inauguration of 18 hotels, adding a total of 1,800 rooms to its portfolio from January to December 2023. The chain's ambitious plans for this year project an additional 2,400 rooms to be unveiled across 24 hotels.

A spokesperson from Lemon Tree Hotels revealed that in the previous calendar year, the chain successfully opened 1,375 rooms spanning 14 hotels in India. They confidently stated, "We are scheduled to open over 1,900 rooms in 2024."

Marriott International, a prominent player in South Asia, is poised to make its mark in 2024 with the launch of 14 hotels, offering approximately 1,842 rooms. Notably, this includes the introduction of the Moxy brand in South Asia, with Moxy Bengaluru Prestige Cloud and the Moxy Mumbai Andheri West making their highly-anticipated debuts.

Kiran Andicot, the Regional Vice President for Hotel Development at Marriott International, reported that the chain celebrated the opening of 12 hotels, totaling 1,431 rooms, in India last year. He expressed optimism that the numbers for India could closely mirror those of 2023.

Jaideep Dang, the Managing Director of the Hotels and Hospitality Group at JLL, affirmed that 2023 marked a historic milestone in terms of hotel openings. "The hotel supply in 2023 was 25% higher than 2022, which was the highest thus far," he noted. Dang highlighted that 2019 had been a pivotal year, witnessing the tipping point in hotel supply in India with 115 hotels and 8,712 rooms. According to JLL, until November of the previous year, over 12,400 keys were launched in India, up from 9,854 keys in 2022.

Dang further elaborated, mentioning that many unfinished and underdeveloped hotels, which had paused or been deferred due to two years of Covid, witnessed a revival in financing and development. He added that most of these hotels had opened during 2023 and 2022. He also expressed the expectation of a similar momentum in hotel supply being added in 2024 as real estate developers, family offices, and funds were actively engaged in completing their assets to cater to the buoyant demand in the hotel sector across India.

Projections from Noesis Capital Advisors are even more optimistic. Nandivardhan Jain, CEO of hospitality advisory firm Noesis Capital Advisors, revealed that in 2023, India's standardized hotel inventory experienced growth with over 16,000 new operational rooms. Looking ahead to 2024, the hospitality sector anticipates a continuation of this growth, with projections ranging from 20,000 to 25,000 new standardized rooms.

Jain emphasized that the expansion encompassed brownfield projects and the transformation of standalone hotels into branded establishments through affiliations with national and international chains, primarily achieved through operations and management contracts.

The Indian hospitality market's resilience and ability to adapt are evident as it charts a course for a promising year ahead, continuing to attract both domestic and international travelers in an ever-evolving landscape.