The Indian hotel sector is on track for a double-digit revenue growth in FY24 powered by robust domestic and international tourism, states a recent report by ICRA Limited. The growth got a boost from global events like the G20 Summit and ICC World Cup 2023 held in India. ICRA anticipates a 70-72% occupancy rate in premium hotels across India in FY24, with average room rates expected to hover around Rs 6,000 to Rs 6,200. The report highlights improved infrastructure, enhanced air connectivity, and a rise in MICE (Meetings, Incentives, Conferences, and Exhibitions) events as key drivers behind this optimistic outlook, indicating a resilient rebound for the industry post-pandemic.
As per a promising forecast by ICRA, a rating agency, the Indian hotel industry is set to mark an impressive rebound with a double-digit revenue growth in the Financial Year 2024 (FY24). This optimistic projection stems from a steady flourish in both domestic and international travel, catalysed further by notable events hosted on Indian soil.
The continuous stream of domestic leisure and business travel, coupled with a surge in overseas tourist influx, lays a solid foundation for this predicted revenue ascent. The nation's hospitality sector has already started reaping benefits from significant global events such as the G20 Summit and the ongoing ICC World Cup 2023, which have significantly contributed to the upswing.
ICRA estimates the occupancy rate of premium hotels across India to hover around 70-72% in FY24, a marked improvement from the 68-70% observed in the previous financial year. In addition, the average room rates (ARRs) for these premium accommodations are anticipated to range between Rs 6,000 to Rs 6,200 in FY2024, painting a favourable picture for the industry's revenue outlook.
A blend of conducive factors is cited as the driving force behind the medium-term demand sustenance. Noteworthy among these are enhanced infrastructure, better air connectivity, favourable demographic trends, and an uptick in large-scale corporate and social events. The blossoming MICE (Meetings, Incentives, Conferences, and Exhibitions) segment, fuelled by the inauguration of several state-of-the-art convention centres in recent times, is particularly seen as a lucrative avenue for the hotel industry.
In conclusion, the ICRA report elucidates a hearty revenue growth trajectory for the Indian hotel industry, steered by a confluence of supportive domestic and global factors. As the nation continues to host prestigious global events and bolster its infrastructural and connectivity frameworks, the hospitality sector is well-placed to embrace a prosperous FY24. This upward trend not only symbolizes the industry's robust comeback post-pandemic but also underscores India's escalating prominence on the global tourism and business events map.
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