Indian Economy News

Investments in the Indian hospitality industry to exceed US$ 2.3 billion over 2-5 years: CBRE

A report titled, ‘Indian Hospitality Sector: On a Comeback Trail,’ released by the real estate consultancy company CBRE South Asia predicts that over the next 2-5 years, investments in India's hospitality sector would surpass US$ 2.3 billion.


The report claims that the hospitality sector's route to recovery is becoming clearer as more than US$ 400 million in investments are anticipated between 2020-23. Additionally, it forecasts the addition of about 12,000 new rooms in 2023, with numbers likely to increase at a compounded annual growth rate of 3.3% by the year 2025.


Furthermore, it has been suggested that the demand recovery might outpace supply and the demand in the coming years will be evenly distributed across various cities and markets. Moreover, the steady growth in supply is expected to continue, thereby attracting increased interest from investors in the Indian hospitality sector.


All industry key performance indicators (KPIs), including occupancy rate, average rental income per occupied room, and revenue per available room, are anticipated to reach pre-pandemic levels this year, the report further highlighted. India saw a 94% increase in revenue per available room in 2022 compared to 2021, demonstrating a smooth recovery from the pandemic's effects.


CBRE’s report shows the hospitality industry in India is on the rise, which has been driven by investments, increased demand, and changing customer preferences. According to the predictions, India's tourism and hospitality sector might generate US$ 50.9 billion in visitor exports by 2028 as a result of the government's continuing focus on reforms.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.