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India: Hospitality sector getting future ready

Aparna Dutt Sharma, Chief Executive Officer, IBEF

Feb 10, 2014 10:58

The hospitality sector in India is expected to add 52,000 new hotel rooms by 2017, translating into a 65 per cent rise in total hotel inventory in the country. Huge potential in the domestic market and improving global economic conditions are expected to result in better demand in the hospitality sector in coming years. The NCR region is expected to contribute around one-third to the total expected hotel rooms supply in the period. Presently the tourism and hospitality industry in India stands at US$ 117.7 billion and is anticipated to touch US$ 418.9 billion by 2022.

At 18,500 units, mid-scale hotels are expected to see the highest supply, followed by luxury segment at 10,300 units, contributing 36 per cent and 20 per cent, respectively, to the total expected supply. Other segments like budget (9,000 units), upscale (6,800 units) and upper upscale (6,900 units) are estimated to collectively contribute 44 per cent to the total supply by 2017. The expected phenomenal rise in the total inventory in the domestic hospitality sector is expected to make the sector future ready.