/ -- - Approx. 8,574 keys to hit the market in 2019; nearly 19% increase over the last 2 years
- Revenue per available room (RevPAR) sees 17% growth between 2016 and 2018
- Average daily rates saw a 6.25% rise in 2018, faster than 4.5% long-term inflation rate
- Goa saw the largest signing of keys in 2018 at nearly 2,209 keys, eclipsing Bengaluru by just 192 keys
- Hotel transaction volume hit an all-time low in 2018 at INR 5,354 mn since 2007; 2019 likely to witness the sale of high-value hotel assets valued USD 800 mn across key markets
Mandeep Lamba, President (South Asia) - HVS ANAROCK says, "The ongoing general elections could dampen some of the sector's otherwise upbeat performance in 2019. However, the tide is set to change this year as market sentiments can recover with the aid of a stable Government post elections to support the required economic growth. Banking on this important factor and also considering the limited new supply in 2020, the hotel industry can record its highest-ever recorded occupancy and is expected to outpace 2006, which was a superlative year for the hotel industry."
Shobhit Agarwal, MD & CEO - ANAROCK Capital says, "In 2019, we expect the Indian hospitality market to see an upsurge in transaction volumes due to distress pricing of hotel assets. This year is likely to witness the sale of high-value hotel assets in almost all key Indian hospitality markets. The expected transactions volume is approx. USD 800 million, potentially setting a record for hotel transactions in the country. The successful listing of the Lemon Tree and Chalet IPOs, as well as the recent transactions of the Keys and Leela portfolio, can prompt further investments in the hospitality sector. The Chalet Hotels IPO issue early this year raised INR 1,641 crore - subscribed 1.57 times - on account of strong interest shown by institutional investors. This trend is likely to continue."
Rapid urbanization is increasingly making Tier 3 markets more relevant for hotel brands, with nearly a third of their new hotel signings emerging from these cities (despite hotels being smaller than the Tier 1 variants). More hotel management companies are setting up shop in smaller towns. Value-driven volume customers seeking full-service hotels continue to drive growth in mid-scale hotels space, which is the highest growth sector for new hotel and rebranded hotel openings and signings in the Indian market. The relatively 'new kids on the block' such as Oyo, Treebo and Fabhotels - previously considered outliers - now dominate the economy hotels segment, setting the stage for a further drift for mainstream brands. Download the report here https://api.anarock.com/uploads/research/hvs-anarock-india-hospitality-industry-review-2018.pdf
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