Wednesday, May 22, 2024 India’s hospitality Industry sees a robust 11.4% RevPAR growth in Q1 2024, driven by increased travel and new hotel openings. India’s hotel industry demonstrated continuous growth in the first quarter of 2024, as reported by JLL.
From January to March, the sector experienced an 8.5% increase in the Average Daily Rate (ADR) compared to the same period in 2023, leading to a 11.4% rise in Revenue per Available Room (RevPAR).
During this period, the industry celebrated the opening of 36 new branded hotels, adding 2,316 rooms to its capacity. Notably, three-quarters of these new rooms were located in Tier II and III cities such as Jaipur, Indore, Surat, and Ayodhya. The growth was largely fueled by heightened corporate travel, a spike in weddings, and increased activities in the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector, particularly as the financial year closed.
Comparing quarterly performance, there was a 5.5% increase in RevPAR in Q1 2024 over the last quarter of 2023. This was attributed to a seasonal uplift in corporate travel at the start of the year, which contrasts with the typical downturn seen during the end-of-year holiday season, according to JLL’s Hotel Momentum India (HMI) report for the first quarter of 2024.
The quarter also saw a strong demand for hotel accommodations in both business and vacation destinations, with average occupancy rates in major business locales reaching around 70%, buoyed by notable rises in.
