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The hospitality sector in India maintained its growth trajectory in Q3 2024 (July-September), recording a Year-on-Year (YoY) Revenue Per Available Room (RevPAR) increase of 10.8 per cent, according to JLL's Hotel Momentum India (HMI) Q3 2024 report.
This performance was primarily driven by a rise in Average Daily Rate (ADR), with a 2 per cent Quarter-on-Quarter (QoQ) increase in RevPAR compared to Q2 2024. The third quarter saw a surge in corporate travel, a seasonal trend that significantly contributed to the sector's upward momentum. Among major markets, Hyderabad emerged as the leader with a remarkable 23.6 per cent YoY RevPAR growth, followed by Chennai and Mumbai, which posted growth rates of 17.7 per cent and 16.8 per cent, respectively. Except for a slight dip in ADRs in Delhi and Goa, all other key cities, including Bengaluru, Chennai, and Mumbai, showcased robust growth in ADR and RevPAR. Occupancy levels remained stable compared to Q3 2023, but ADR improvements propelled the RevPAR increase across major markets. The steady demand for business travel and Meetings, Incentives, Conferences, and Exhibitions (MICE) events also played a pivotal role in driving the sector's performance. Q3 2024 witnessed the signing of 96 branded hotel deals, adding 10,686 rooms to the inventory. Notably, 12 of these signings were conversions, contributing 11 per cent to the total inventory. The quarter also saw the opening of 30 new hotels, adding 1,988 keys, with nearly 80 per cent of these located in Tier II and III cities such as Tirupati, Udaipur, Ranchi, and Mussoorie. Looking ahead, the hospitality sector is poised for a strong Q4, buoyed by the festival season and a resurgence in corporate travel. The strengthening of MICE events, weddings, and other social gatherings is expected to sustain the sector's growth momentum. Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL, said, "Backed by strong performance of hotels across India, we continue to see investors moving money in this asset class. There is strong momentum on both greenfield developments as well as operating assets across business and leisure markets." He added, "Although the summer season has brought down corporate room night demand in Q3 2024, the sector continued to demonstrate growth in average daily rates (ADR) compared to Q3 2023. Looking ahead, the sector's performance in the upcoming quarter appears promising due to the festival season, general rise in domestic corporate travel, the strengthening of MICE events, weddings, and other social gatherings." (ANI)
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