Indian Hospitality Sector Witnesses 11.4% YoY RevPAR Growth in Q1 2024: JLL
The Indian hospitality sector has demonstrated strong performance in the first quarter of 2024 (January-March), exhibiting a Year-on-Year (Y-o-Y) growth primarily attributed to an 8.5% increase in Average Daily Rate (ADR) compared to Q1 2023. This surge in ADR has resulted in a significant 11.4% growth in Revenue per Available Room (RevPAR).
The report by JLL further highlights the expansion of branded hotel openings, with 36 new hotels and 2,316 keys added to the inventory. Notably, 75% of these new keys were located in Tier II and III cities, indicating the growing demand for hospitality services beyond metropolitan areas.
Major factors contributing to this growth include an increase in corporate travel, weddings, and Meetings, Incentives, Conferences, and Exhibitions (MICE) demand. The sector also witnessed a healthy 5.5% Quarter-on-Quarter (Q-O-Q) growth in RevPAR in Q1 2024 compared to Q4 2023. This can be attributed to higher levels of corporate travel in Q1 2024 as opposed to Q4 2023, which typically experiences a seasonal decline.
The positive momentum from the first quarter is expected to continue into the second quarter, with business travel, MICE, and weddings driving the busy season. Additionally, the following quarter will also see a surge in leisure travel, particularly during the summer holidays.
Key Highlights:
* RevPAR growth of 11.4% in Q1 2024 compared to Q1 2023.
* 8.5% increase in Average Daily Rate (ADR).
* 36 new branded hotel openings with 2,316 keys.
* 75% of new keys located in Tier II and III cities.
* Chennai emerged as the RevPAR growth leader with a 21.7% increase.
The strong performance of the Indian hospitality sector in Q1 2024 is a testament to the resilience and growth potential of the industry. The sector is expected to continue its upward trajectory in the coming quarters, driven by increased demand for business and leisure travel.
