The Horwath HTL report was unveiled during the Horwath HTL Global Hospitality Conference, held on February 5th at the Grand Hyatt Mumbai Hotel & Residences. The report offers a comprehensive analysis of the Indian hospitality market for 2024, using data from CoStar. As global hospitality consultants, Horwath HTL highlighted key trends, opportunities, and challenges in the industry, providing valuable insights for investors, developers, and operators.
Despite economic challenges and a year devoid of major events like the G20 summit or cricket world cups, the Indian hospitality sector recorded robust growth in 2024. The national occupancy rate stood at 63.9%, with an Average Daily Rate (ADR) of INR7,951 and a Revenue Per Available Room (RevPAR) of over INR5,000, representing a 10.7% RevPAR growth.
The industry added 14,400 chain-affiliated rooms, bringing the total supply to over 200,000 rooms. The pipeline of 113,000 rooms includes 105,000 set to open by 2029. Daily room demand surged to 123,000, a 30% increase from 2019, effectively absorbing the 32% supply growth during this period.
Several key markets demonstrated remarkable performance. Seven cities, including Mumbai, Delhi, and Indore, reported occupancies above 70%. Udaipur led the luxury ADR category with INR15,946, followed by Mumbai at INR11,500 and Goa at INR10,900. Kochi had a record year, while Bengaluru showed promising growth.
The report emphasized the need to balance visitor numbers with destination sustainability, especially in leisure markets like Goa. Addressing outbound tourism trends and attracting inbound leisure travelers remain critical. Additionally, the rapid growth of small hotels in the pipeline raises concerns about quality, timeliness, and financial sustainability.
The report calls for a stronger focus on developing high-end leisure destinations and experiential offerings to retain customers domestic travelers and attract international visitors, ensuring the Indian hospitality sector’s sustained growth.
