India has seen immense growth in business in the calendar year (CY) 2022. Recovering from the COVID pandemic with strong pent-up demand and relaxation of travel-related restrictions gave India an edge in the business sector. Witnessing the strong growth, several international hospitality companies, including Hyatt, Hilton, Accor, and Wyndham, are looking forward to expanding their franchise in the country.
HVS Anarock reported that the hospitality sector witnessed immense growth, and closed CY22 with occupancy within the range of 59-61%, up 15-17 percentage points over CY21 and only 5-7 percentage points lower than CY19. On further comparison, it can be said that the CY 22 growth surpassed the CY 21 growth rate but fell short of 5-7 points below CY 19. The hospitality sector couldn’t believe it when the average room rates (ARRs) were fully recovered in CY 22. The ARRs crossed CY 19’s levels by 1-3%, and crossed CY 21 levels by a massive 37-39%. The growth also influenced the increase in the revenue per available room (RevPAR) by 89-91% in CY 22. RevPAR in CY 22 was only 7-9% lower than CY 19.
While the CY 22 rates have impressed many, there are strong expectations from this sector for CY 23.
Hyatt has just over 40 properties in India, and all across eight brand names. Sunjae Sharma, Managing Director, India and SouthWest Asia, Hyatt India Consultancy, said in a press meet about their ambitions to open ten more property launches in CY 23. All this aims towards the opening of globally-acclaimed brand ‘JdV by Hyatt’ in India.
Alongside Hyatt, Hilton also operates five brands in India. Their current property count is 24, which will only double in the coming year. As per reports, Hilton recently signed an agreement to introduce the country Hilton’s iconic Waldorf Astoria in Jaipur, scheduled to open in 2027.
“India has strong growth potential in the medium term, particularly in the midscale and upscale segments, and that makes us very optimistic about the year ahead. Compared to pre-pandemic levels, corporate business in India is already back to 75%, while meetings, incentives, conferences and exhibitions (MICE) business is back to 92% and our booking pace is growing 43% year-on-year and in line with CY19,” said Senior VP and Country Head – India of Hilton, Navjit Ahluwalia.
All of these luxury hotels are closely looking to take great advantage of the numbers the country has shown in CY 22. The recent COVID bump couldn’t stop India from getting back on its feet, creating a safe haven for thousands of businesses including luxury hotels.
Accor, another luxury hotel company, is allegedly looking to add another eleven properties to its name in the country after boasting a strong property count of 58 hotels.
Puneet Dhawan, Senior Vice President – Operations, Accor India and South Asia, talks about the challenges they faced in the last two years. He speaks of the learning curve the company has witnessed and how it has helped them gain access to better understanding and enter the contest with better resources and strategies. Dhawan brags about the strong business revival post-pandemic and all the increased profitibility.
Source – India Today
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