HVS India has released the Trends & Opportunities Report for Indian hospitality sector. The report also outlines existing and future opportunities in the hospitality industry of specific interest to investors, developers and hotel operators.
This report is based on the results of the survey which is conducted by HVS annually. The survey participant base has registered a significant rise since 1995-96 from 120 hotels with 18,160 rooms to a record 717 hotels with room count of 86,122 in 201213. It indicates an increase of an additional 166 hotels and approximately 16,200 rooms since the last survey.
The key highlights of the Trends & Opportunities in India Hospitality Sector report are as follows:
- Room supply in the organized sector has almost quadrupled to over 93,000 at the end of 2012-13 from about 25,000 in 2000-01.
- Despite supply growing at 17.8% CAGR, demand kept pace and grew at a 17.3% CAGR between 2008-09 and 2012-13.
- A majority of the branded hotels in the country are less than five years old, which basically means that a majority of our hotel room inventory came online during the last five years of the worst financial crisis the world has seen since the Great Depression.
- Budget and mid-market hotels are increasingly forming a larger percentage of the total inventory and now accounting for nearly half of all existing hotel rooms and close to 60% of the future supply.
- A little over 50,000 branded rooms will be developed over the next five years, taking the total supply to about 144,000 rooms by 2017-18.
- In 2012-13, only 5% of hotels surveyed attained an average rate of over US$200 and no city hotels in the country attained an average rate in excess of US$300.
- The nationwide RevPAR recorded a 5.2% drop in 2012-13 over the previous year with the five-star segment registering the maximum decline.
- Budget and economy hotels registered the highest RevPAR growth (10.4%) on the back of a 14.7% increase in average rate (ARR).
- Mumbai has the highest existing supply of branded rooms in the country (12,807), followed closely by Delhi (11,338) and Bengaluru (8,536).
- Kolkata emerged as the best performing hotel market in terms of occupancy (69.5%) in 2012-13, while Mumbai registered the highest average rate (INR 7,646) and RevPAR (INR 4,881).
- Agra, Pune, Goa and Jaipur were the only major hotel markets in the country to record notable RevPAR growths in 2012-13. Whereas NOIDA (including Greater NOIDA) witnessed the maximum decline in RevPAR (27.5%) in 2012-13.
You can download the full report on the Indian hospitality sector published by HVS below.