The performance of the Indian hotel sector in 2023 mirrored optimism, with key performance indicators such as occupancy rate, average rate (ARR), and Revenue Per Available Room (RevPAR) witnessing significant growth. The sector closed the calendar year 2023 with a nationwide occupancy rate in the range of 63-65%, up 3-5 percentage points (pp) from the previous year and nearly reaching the pre-pandemic level of 65-67% in 2019.
The ARR for 2023 reached an impressive INR 7,400-7,600, which surpassed the figures from 2022 by 21-23% and 2019 by 24-26%, highlighting the sector’s ability to push rates driven by the buoyant demand. The growth in average rates helped RevPAR to reach INR 4,662-4,940 in 2023, indicating a significant increase of 29-31% from 2022 and 19-21% in 2019.
Destinations across the spectrum, from bustling metros like Mumbai and Delhi to popular leisure destinations like Goa and Jaipur, and serene, lesser-explored locations such as Rishikesh and Kashmir emerged as stalwarts of this growth, each telling its unique story of recovery and opportunity. The year also marked a record number of brand signings, underlining the sector’s confidence in the Indian market’s potential. This growth was not just quantitative but strategic, with a keen focus on expanding into smaller cities and underserved markets. These developments reflect a sector that is not just recovering but reimagining its future.
Looking ahead to 2024, the outlook for India’s hospitality sector is imbued with a sense of optimistic realism. HVS ANAROCK anticipates continued growth, driven by sustained domestic demand, the return of international travel to its full glory, and the growth of niche tourism segments coupled with the gigantic growth taking place in travel infrastructure across the country.
Mandeep Lamba, President & CEO (South Asia), HVS ANAROCK said: “We expect India-wide occupancy to improve to 66-67% in 2024, coupled with a 6-8% increase in ARR will push RevPAR to INR 5,281 during the year, almost 31-33% higher than the pre-pandemic RevPAR recorded in 2019.”
In this annual report “India Hospitality Industry Overview 2023 by HVS ANAROCK”, they have looked at the Indian Hospitality sector on various parameters such as Airline Traffic, Grade A Office space & Population with other developed markets.
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