September 29, 2022

India’s hotel market has staggering growth potential

Quadintel has published a new report on the Hotel market in India. The research report contains detailed information about demand, growth, opportunities, challenges and restraints. Also, it provides an in-depth analysis of the structure and possibility of global and regional industries.

The hospitality sector in India thrives mainly on tourism, which is a major source of foreign exchange and employment. The government has taken several initiatives which play a major role for the growth of the hospitality industry.

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Market overview:

The hotel market The industry in India is part of the travel and tourism industry. Business travelers are increasing due to the rapid growth of the IT industry and the emergence of several global companies.

The key performance indicators (KPIs) used by the industry to measure business expansion and manage hotels are average rate per room (ARR) and revenue per available room (RevPAR). The ARR stood at INR 5,458.68 in FY 2020 compared to INR 5,671.00 in FY 2017. It is expected to reach INR 6,292.85 by FY 2025, while increasing at a compound annual growth rate (CAGR) of approximately 2.49% between FY2021 and FY2025. In FY2020, RevPAR was approximately INR 1,951.34 and is expected to reach INR 3,336.28 by FY2025. The hospitality industry is expected to grow at a promising pace as India will host the ICC Men’s World Cup in 2023. It has been speculated that this event would increase the attendance of foreign tourists in the country.

Managing employees is a major challenge facing the industry. The attrition rate has increased due to the lack of quality of the workforce and increased competition for trained employees from competing service sectors, such as aviation.

Segment information:

Based on hotel type, the hospitality industry can be segmented into independent/unbranded hotels, alternative accommodations, new-age hotel chain, and branded or traditional hotels. The independent/unbranded segment accounts for approximately 70% of total hotel room availability. The second largest segment includes alternative accommodations. This is due to the growing popularity of homestays among tourists. The new-age hotel chain is expected to own almost 6% of the total available hotel rooms in India in FY 2025. Additionally, the branded/traditional hotel segment, along with most of the organized sector , accounts for approximately 5% of the entire hotel industry in terms of room supply.


Government actions:

The industry depends on the tourism sector for its business. The Ministry of Tourism, along with the Ministry of Railways and the Ministry of Civil Aviation, promotes tourism in the country. Hence, government initiatives play a crucial role in its growth.

The Ministry of Tourism has undertaken programs, such as PRASHAD (National Pilgrimage, Rejuvenation and Spiritual Mission, Heritage Augmentation Drive), SWADESH DARSHAN (Integrated Development of Tourism Tours around specific themes) and the promotion of electronic visa for encourage the influx of tourists.

NABH Nirman, UDAN Ude Desh ka Aam Nagrik and Vision 2040 are some of the initiatives undertaken by the Ministry of Civil Aviation to improve air connectivity which would bring hotel guests even to the remotest corners of the country.

The Ministry of Railways focuses on the development of railway infrastructure to facilitate internal travel. Domestic travelers make up the largest share of customers in the hospitality industry.

Competition analysis :

The hotel industry is very fragmented. It is dominated by several small, unorganized players. He observed a shift in favor of the midsize and budget hotel segments. The development of hotel aggregators in the economy segment has driven the massive and unorganized hotel industry towards consolidation.

Companies covered:

Bharat Hotels Limited
Hotel Leelaventure Limited
ITC Hotels Limited
Lemon Tree Hotels Limited
The Indian Hotel Company Limited
Sarovar Hotels Private Limited
Park hotels
Hyatt Hotels and Resorts
Marriott India Private Limited Hotels
Private company Radisson Hotels Asia

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  • Market overview
  • Market definition and scope
  • Market dynamics
  • Market industry analysis
  • Market, regional analysis
  • Analysis of leading companies
  • Competitive intelligence
  • Research process
  • Market analysis and forecast, by product type

What aspects regarding the regional analysis market are included in this report?

  • Geographical regions covered in the report include North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa region.
  • The report consists of a detailed analysis by region of current and future market trends, providing information on product usage and consumption.
  • The growth rate of the market in each region including their countries during the forecast period is included in the market report.
  • On the basis of what factors are the major market players assessed in this report?
  • The report offers a detailed analysis of the major companies in the market across the globe.
  • It provides details of major vendors involved in the market including key players
  • A comprehensive overview of each business, including company profile, revenue generated, commodity prices and
  • the products produced are included in the report.
  • Facts and figures about market competitors along with the viewpoints of major market players are presented in the report.
  • Recent developments, mergers and acquisitions related to the major players mentioned are provided in the market report.

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