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India's hospitality sector, riding on the momentum of a stellar 2023, anticipates another robust year in 2024, with major chains like IHCL, Marriott, and Lemon Tree Hotels looking for significant room additions. IHCL launched 18 hotels and 1800 rooms in 2023 and aims to open 2400 rooms across 24 hotels this year. Lemon Tree Hotels opened 1375 rooms in 14 hotels last year and plans to add over 1900 rooms in 2024. Marriott International, set to launch 14 hotels in South Asia in 2024 with 1,842 rooms, is introducing the Moxy brand to India through Moxy Bengaluru Prestige and Moxy Mumbai Andheri West.
Kiran Andicot, Marriott's regional VP for hotel development in South Asia, reveals the opening of 12 hotels totaling 1,431 rooms in India last year, with expectations that 2024 figures will align with 2023. JLL's Jaideep Dang highlights 2023 as the peak year for hotel openings, witnessing a 25% surge in supply compared to 2022. In 2019, the hotel industry saw supply of 115 hotels with 8,712 rooms. JLL reports over 12,400 keys launched in India by November 2023, surpassing the 2022 count of 9854.
The revival of unfinished or deferred hotel projects, fueled by renewed financing and development, contributed to the upswing in openings throughout 2023 and 2022. A parallel trend is expected in 2024, as real estate developers, family offices, and funds expedite projects to meet escalating demand across India's hotel sector. This expansion covers diverse projects, including brownfield initiatives and the conversion of standalone hotels into branded establishments through affiliations with national and international chains, primarily facilitated by operations and management contracts.
Noesis Capital Advisors' Nandivardhan Jain forecasts India's standardized hotel inventory growth, exceeding 16,000 new operational rooms in 2023. Looking ahead, the sector anticipates 20,000 to 25,000 new standardized rooms in 2024. Jain attributes the optimistic view to favorable market conditions, enhanced connectivity, and heightened confidence among financial institutions and hotel developers. The proactive approach of industry stakeholders in meeting evolving demands further pushes the positive outlook for the year.
In summary, the Indian hospitality industry is on strong grounds because of the exceptional performance from 2023. Major hotel chains have recognised the rising demand and are strategically expanding their room inventory. Industry analysts project a diverse landscape of growth and express optimism about the sector's trajectory, underpinned by favorable market dynamics and proactive industry response to evolving needs.
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