[ad_1]
Global chain stores expand, spiritual tourism surges, analysts optimistic about growth The Indian hotel industry, currently worth about $24 billion, is experiencing strong growth and is expected to reach about $31 billion in the next five years. International hotel chains are expected to launch new brands in India, where foreign tourist arrivals are expected to rise and Indian tourists will spend more on holidays, weddings and corporate events in the country’s booming hotel industry. With the Indian hotel market recovering, several hotel companies like Hilton, Marriott, India Hotels, ITC Hotels, Hyatt, AccorHotels, IHG and many other blue-chip brands are launching new brands to cater to the diverse demographics of the country.
While international hotel brands have historically had a limited presence in the country, they are now becoming more aggressive in their approach. Spiritual tourism is proving to be a very big opportunity for hotels in the country, with bookings booming in places like Ayodhya, Ujjain, Varanasi, Bodh Gaya and Mathura. Interestingly, Indians are exploring diversity, spirituality, health and leisure in their own country. The travel and tourism industry is growing strongly as spiritual and wedding tourism expand and outbound travel spurs hotel demand. Even online booking companies like booking.com, which has more than 70,000 registered hotels on its platform, are bullish on India.
Domestic tourism is growing due to easier booking process, competitive packages, easy credit, higher disposable income, large population, rising middle class, increasing desire to travel, access to language education and technological developments The development momentum is strong. India’s lifestyle space lacks adequate hotels and hence global hotel majors are looking at accelerating investments in the country. Radisson Hotel Group, the second-largest international hotel operator with brands such as Radisson, Park Inn and Suites, is currently investing in the country and is developing about 60 new hotels. The company has been operating in India for the past 25 years and has set a target of opening 30 new hotels per year over the next five years to capture the booming tourism industry in India. Other global hospitality giants such as Hilton attribute their recent success in the country to strong demand, consumer confidence and infrastructure development as key factors.
The hotel chain has experienced exponential growth and is expected to see a cycle of sustained growth over the long term, assuming the current boom becomes the new normal. The management of Bengaluru-based Royal Orchid Hotels recently announced that they will launch a five-star hotel brand at the Mumbai International Airport. In addition to the five-star brand, the company also plans to launch Smart Basic brand and Boutique brand. Currently, Royal Orchid Hotels owns brands such as Regenta Central and Regenta Inn, and currently has 100 hotels and nearly 6,000 rooms. Hyatt, on the other hand, has 48 hotels in the country and is expected to open another 50 hotels in places like Goa, Bengaluru and Bhopal in the next five years. High-net-worth individuals and institutions have been major investors in India’s hospitality sector, with investments set to exceed $400 million in 2023, four times last year’s levels, according to analysts tracking the industry. French multinational hotel chain ACCOR has 62 hotels in India. India has 11,000 rooms, which management says is not enough for a country like India. AccorHotels expects to open 30 hotels with 5,500 rooms in the next five years. It owns luxury brands such as Fairmont, Sofitel and Raffles, and is currently ranked second in the world in luxury lifestyle, behind Marriott.
While hospitality and tourism-related stocks have performed well on the exchanges over the past two years, analysts tracking the industry are extremely optimistic and expect the industry to grow by leaps and bounds in the next five years. In the local hospitality sector, ITC Limited owns the blue-chip brand ITC Hotels, which they will demerge and list separately on the stock exchange this year. Portfolio investors focused on solid fundamentals can bet on ITC Ltd and look forward to handsome returns when ITC Hotels gets listed on the exchanges. The ITC Ltd stock is currently quoted at Rs 427 and investors can buy it to reap substantial long-term gains.
[ad_2]
Source link