Hotel Transactions In India Reach Rs 2,900 Crore In 2024, Tier 2 And 3 Cities Lead

(MENAFN- IANS) Mumbai, March 25 (IANS) Hotel transactions in 2024 reached approximately Rs 2,900 crore in India and interestingly, tier 2 and 3 cities accounted for 50 per cent of the transactions, predominantly involving unbranded midscale properties, a report showed on Tuesday.

The investment landscape saw diverse participation, with high-net-worth individuals (HNIs), family offices, and private owners contributing 51 per cent of the investment volume, according to a JLL report.

In Q4 2024, the Indian hospitality sector demonstrated strong growth, with the top six markets experiencing year-over-year increases in both average daily rate (ADR) and revenue per available room (RevPAR).

Hyderabad emerged as the standout performer, recording the highest RevPAR growth at 23.3 per cent, primarily driven by a significant increase in ADR.

Bengaluru also showed impressive resilience, with high RevPAR growth supported by improvements in both ADR and occupancy rates.

The quarter saw substantial activity in hotel signings, with 99 new hotels totalling 11,943 keys being signed.

“We witnessed 367 new hotel signings and 154 new hotel openings last year. This represented 14 per cent of growth over 2023. This is encouraging news for the hotel industry ecosystem as it will boost construction activity, lending activity and finally providing jobs across the spectrum," said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.

This also indicates continued investor confidence and expansion in the Indian hospitality market.

The midscale segment dominated, representing 53 per cent of hotel openings and 44 per cent of signings. Uttar Pradesh led in signings, with 1,744 keys.

New hotspots are emerging in Delhi's Yashobhoomi and Mumbai's airport district, signalling the potential for future growth in these areas, said the report.

Overall, Q4 2024 painted a picture of a robust and expanding Indian hospitality market, with growth spread across various cities, tiers, and segments, suggesting a positive outlook for the industry.

“Hospitality markets in India saw an unprecedented activity in 2024. Backed by a strong domestic travel demand both in business and leisure segments, hotel investments saw several new groups attracted towards building new hotels, especially in tier 2 and tier 3 towns,” Dang added.

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