The Horwath HTL report, unveiled at the Horwath HTL Global Hospitality Conference on February 5th at Grand Hyatt Mumbai, provides a comprehensive analysis of India’s hospitality market for 2024. Despite economic challenges and the absence of major events, the sector saw strong growth, with a national occupancy rate of 63.9%, an Average Daily Rate (ADR) of INR7,951, and a 10.7% RevPAR increase.
India added 14,400 chain-affiliated rooms, pushing the total supply past 200,000. The pipeline includes 113,000 rooms, with 105,000 set to open by 2029. Daily room demand surged by 30% from 2019, effectively absorbing supply growth. Seven cities, including Mumbai, Delhi, and Indore, reported occupancies above 70%, while Udaipur led luxury ADR at INR15,946.
The report highlights sustainability concerns in leisure markets like Goa and stresses the need for high-end leisure destinations to retain domestic and attract international travelers. The rapid rise of small hotels raises concerns about quality and financial viability. A strategic focus on premium experiential offerings is vital for sustained industry growth.
