The Horwath HTL report, unveiled at the Global Hospitality Conference on February 5th at the Grand Hyatt Mumbai, provided a comprehensive analysis of the Indian hospitality market in 2024. Despite a year marked by the absence of major events like the G20 summit or cricket world cups, the sector demonstrated robust growth. The national occupancy rate reached 63.9%, with an Average Daily Rate (ADR) of INR7,951 and a Revenue Per Available Room (RevPAR) of INR5,000, reflecting a 10.7% growth in RevPAR.
The sector expanded by adding 14,400 chain-affiliated rooms, pushing the total supply beyond 200,000 rooms. With a pipeline of 113,000 rooms, including 105,000 expected by 2029, demand surged, with daily room demand increasing by 30% since 2019. Key cities like Mumbai, Delhi, and Indore reported occupancies above 70%, with Udaipur leading the luxury ADR category at INR15,946.
The report also addressed the need to balance visitor numbers with sustainability, particularly in leisure destinations like Goa. It highlighted the growth of small hotels, raising concerns about quality and financial viability. A focus on developing high-end leisure destinations and experiential offerings is seen as essential for sustained growth in India’s hospitality sector.
