![Indian Hospitality Sector Moves to High Growth Trajectory; Investment Flow in the Sector is Projected at USD 2.8 Billion During 2018-2022 - A Report by Meraqi](media/blog/min/26242-vQ6wd17DjDAN0CCazvh7MvfNDXCa8veA.jpg)
BENGALURU, January 18, 2019 /PRNewswire/ --
Indian Hospitality Sector has been witnessing considerable signs of recovery since 2016, primarily boosted by a strong economy, increased inflow of business travellers and rising demand for experiential services. 'Focus: India Hospitality Industry', a comprehensive report released by Meraqi, outlines the performance of hospitality sector across major cities, forecasts demand and analyses the impact of disruptive changes in the market dynamics.
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According to the report, a total room requirement of 32,400 additional rooms is projected across the Top Seven Cities by 2022. Of which 44% will be added in the midscale segment and is expected to grow at a CAGR of 12% by 2022. With increased urbanisation and rising affluence, tier II & III cities are expected to witness 19,500 total room additions by 2022, thereby increasing inventory market share from the current 44% to 48%.
During 2016-2017, investments in to the sector revived and was recorded at USD 0.68 billion. "With increased interest from PE/VC players, the sector is likely to witness USD 0.5-0.6 billion annual investment during 2018-2022. The sector is likely to expect an investment of USD 2.8 billion by 2022. Most of the investments are likely to be in midscale chains with multiple properties which can eventually be eligible for REIT listings, acquisitions and buy-outs of operational properties as well as follow-up investments in hotel room aggregators. Major investment likely to be in Bangalore, Chennai & Hyderabad as these cities constitute for almost 65% of the total demand for additional rooms," says Gorakh Jhunjhunwala, Managing Director, Meraqi.
Key highlights:
- Indian Hospitality Sector is set to witness addition of 30,000 rooms by 2022 to the existing inventory of 128,000 rooms.
- 65% of the upcoming supply at 19,500 rooms is expected in Tier II and III cities. Players like Marriott, Intercontinental, Radisson, Lemon Tree, Ginger are looking into expanding their operations in tourism driven tier II & III cities.
- Midscale segment to record highest growth in ARR at a rate of 5% CAGR by 2022.
- Bangalore and Hyderabad to witness high ARR at 7.3% and 14.1% respectively in 2017.
- Mergers, acquisitions and buy-outs will increase as major hospitality developments are up for sale.
- Post 2016, the disruptive concepts have changed the face of hospitality industry in the country. New concepts like 'vacation homes' and 'capsule hotels' are being explored by players like Airbnb, VRBO and Urban Pod.
- International operators are exploring 'Millennial Focused Concepts' with open lounges and social spaces to cater to the tech savvy, budget conscious customers.
About Meraqi
Meraqi is a leading strategic real estate advisory firm. We, at Meraqi, transform ideas and possibilities into reality for our clients. With us clients get a wide range of alternatives, curated solutions and experience an absolute ease of use during the delivery process.
We provide end to end real estate services to investors, owners and developers. Our Services include:
- Investment Management,
- Capital Markets,
- Transaction Services,
- Advisory, Valuation & Due Diligence Services.
We offer services across real estate asset classes including Residential, Commercial, Hospitality, Warehousing and Alternative Assets (Student Housing, Rental Housing and Senior Housing). Meraqi is a trusted name when it comes to Real Estate Services for UHNIs, Corporates, Private Equity/ Institutional Funds, Family Offices, Developers and Landowners.
For more information:
Website: http://www.meraqiadvisors.com
Linkedin: Linkedin/Meraqi | Facebook: http://www.facebook.com/Meraqi | Twitter: twitter.com/MeraqiAdvisors
Media Contact:
Piasi Sinha
piasi@meraqiadvisors.com
+91-9831439629
Manager, Meraqi Advisors Pvt. Ltd.
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