The escalating tensions between India and Pakistan have dealt a severe blow to India’s hospitality industry, with over 50% of hotel bookings canceled across key cities like Mumbai, Delhi, Bangalore, and Chennai. Corporate travel advisories and the suspension of the Indian Premier League (IPL) have exacerbated the crisis, leading to daily revenue losses for hotels and a projected 40% slump in May business, industry executives reported.
The Indian Hotels Company Limited (IHCL) and Ventive Hospitality are among those hardest hit, with potential daily EBIT losses of ₹1–1.5 crore and ₹50 lakh, respectively, due to the drop in international inbound tourism, according to HSBC Global. Event cancellations have also caused significant losses; one Mumbai luxury hotel reported a ₹1 crore loss in just two days.
The IPL suspension, which disrupted accommodation for teams and officials across 13 venues, added to the strain. To mitigate the impact, hotel chains are implementing cost-control measures, including hiring freezes and energy consumption optimization.
Mandeep S. Lamba of HVS ANAROCK highlighted the ripple effects on corporate travel and events. Industry leaders remain cautious, monitoring the evolving situation as they navigate declining demand and operational challenges.
Source: Financial Express
