New Delhi [India], May 26 (ANI): With the government’s continued push for reforms, experts said the Indian hospitality sector is thriving and the outlook for 2023 is bullish.
Aditya Kushwaha, Chief Executive Officer and Director, Axis Ecorp, said the Indian hospitality sector had been thriving, and the outlook is bullish for 2023.
He said domestic tourism was the industry’s principal growth driver. “Holiday goers are keen to explore new places and are always on the lookout for comfortable stays and great deals. We had recently forayed into the sector with the launch of Deefellows and our first property in Jim Corbett. We aim to have 10-15 holiday locations and garner revenue of over Rs 50 crore in the first year of operation,” Aditya Kushwaha said.
A noteworthy projection made by a recent report indicated the addition of approximately 12,000 rooms in 2023 alone. Moreover, the report anticipates a compound annual growth rate (CAGR) of about 3.3 per cent in the number of rooms by 2025.
The report compiled by CBRE South Asia said the recovery in demand is expected to outpace the rate of supply expansion, resulting in positive performance indicators for the hotel sector.
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE, said, “In recent years, several international hotel chains have made significant investments in the country, looking to tap into the growing demand for hospitality services.”
Magazine said several private equity (PE) funds have also invested in domestic and international hospitality operators looking to expand their footprint in the country.
“The sector has also benefited from the government’s continued focus on reforms, as a result, the government expects the country’s tourism and hospitality sector to earn USD 50.9 billion as visitor exports by 2028,” he added.
Visitor exports is the spending within a country by international tourists for leisure and business travel. This includes spending on transport.
Another real estate expert said there is a greater demand for experiential and boutique properties that cater to the needs of new-age travellers.
Ankit Gupta, Founder and Director of Business Development, at Roostels India, said, “We believe that there is immense growth potential in the Indian hospitality market. In this post-pandemic world, guests are looking to explore new places and focusing more on the experience. We are seeing greater demand for experiential and boutique properties that cater to the needs of new-age travellers.
To cater to the demand of this segment, Gupta said, “We are launching Roadies Rostel. This will be a one-of-its-kind theme hotel where adventure junkies will be able to indulge in various indoor and outdoor sports. Our first property will be launching in Ahmedabad in July and are looking to expand our presence through franchisee routes in 15 top holiday destinations in this financial year.”
The CBRE report also emphasised that the sector’s outlook has experienced a remarkable upturn following a successful vaccination campaign, the reopening of borders, the lifting of travel restrictions, and sustained economic growth. Encouragingly, the report predicted an influx of investments surpassing USD 2.3 billion over the next 2-5 years, with an additional investment of over USD 0.4 billion expected between 2020 and 2023.
According to the report, religious tourism has long been a consistent revenue generator for the hospitality sector in India. It said leading hotel chains are recognising the evolving preferences of religious tourists and catering to their needs by offering clean, hygienic, and family-friendly accommodations. These accommodations often command a premium price due to the increased value placed on comfort and amenities, it added.