Hotel Signings Remain Strong in India Despite Slow May

13.07.2024 - 01:25 / skift.com / Mark Hoplamazian / Ras Al-Khaimah / Sébastien Bazin / Jim Corbett / Bulbul Dhawan

The Indian hotels industry signed a total of 146 branded hotels between January and May this year. This was up from 110 branded hotels signed during the same period last year. More than 14,000 keys are now under development, a monthly report by hospitality advisory services firm HVS Anarock showed.

Among the hotels signed during this period are Sofitel Jaipur Jawahar Circle, Vivanta Indore, Gateway Sarnath, and a Taj-branded hotel in Pushkar.

As many as 49 hotels with over 3,000 rooms opened during the period, down from 58 hotels between January and May 2023. These include hotels such as voco Jim Corbett, Park Inn by Radisson Ayodhya, Hyatt Centric Ballygunge Kolkata, Radisson’s Pramod Lands End Resort, Ronil Goa, Radisson Collection Hotel & Spa, Riverfront Srinagar, and Ginger Nagpur.

Key Metrics Decline: The industry witnessed a marginal decline in occupancy from April to May. It was also 1-3 percentage points below May 2019 occupancy levels. Overall, the hospitality industry recorded an occupancy rate of 59-61%. 

New Delhi, Chandigarh, Goa, Chennai, Bengaluru, and Kochi witnessed the most significant increases in occupancy rates. Meanwhile, there was a decline in occupancy rates in Mumbai, Kolkata, Hyderabad, and Pune. 

Meanwhile, there was a significant decline in average daily rates (ADR) and revenue per available room (RevPAR) in May as compared to April. While ADR declined by 6-8%, RevPAR witnessed a reduction of 9-11% as compared to April.

Positive Sentiments: Hotel brands are bullish on the Indian market, which is leading to an increase in hotel development across the country.

During his recent visit to India, Accor CEO Sébastien Bazin said that a significant portion of success of hotel companies depends on demography and emerging middle class. This is especially true for India, he said, adding that the country is an untapped market. “India has been taking the lead in terms of economy and is the fastest growing country in the world right now.”

Hyatt Hotels CEO Mark Hoplamazian also said recently that it is a positive time for India, especially as there is an increased interest in investments in the industry. He said, “If you’re willing to put up with that barrier to entry, your returns can be very high. That is coming true, because India is ascending in terms of its demographic profile, economy, and spending power of Indians.”

The Ras Al Khaimah Tourism Development Authority (RAKTDA) has introduced complimentary visas for MICE (Meetings, Incentives, Conferences, and Exhibitions) and wedding events for Indians. The initiative will run from July this year to March 2025, and it aims to attract groups to hold weddings and corporate events at the United Arab Emirates destination. 

“This