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Thursday, February 06, 2025 | 07:46 PM ISTEN Hindi

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Increase in room rates, higher occupancy to drive gains for Indian Hotels

Domestic tourism will get a boost from key sporting events, and events like Bharat Mobility Expo, Aero India, Pravasi Bhartiya Diwas, and Mahakumbh

Hotel room rates in India have been trending at an all-time high and are expected to close the year at a peak, driven by a boom in domestic tourism, a record number of weddings in November and December, and a surge in short weekend vacations.
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Indian Hotels had 55 signings and 20 openings in 9MFY25 (85 per cent of signings being capital-light), taking the total portfolio to 360 hotels. (File Image)

Devangshu Datta

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Indian Hotels reported strong consolidated revenue growth of 29 per cent year-on-year (Y-o-Y) in the third quarter of the current financial year (Q3FY25), led by revenue per available room, or RevPAR, growth of 15 per cent. The average room rate, or ARR, was up 13 per cent and occupancy improved 120 basis points (bps) Y-o-Y on a standalone business.
 
Like-for-like revenue growth was 15 per cent Y-o-Y, while TajSats (airline catering) grew by 18 per cent Y-o-Y. The new and reimagined segment reported 40 per cent Y-o-Y growth. Management contract revenue rose 32 per cent Y-o-Y to Rs 180 crore.

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