Indian Hotel Industry Sees Post-Pandemic Innovation Growth: Reports HVS

by Vinita Jain
Indian Hotel Industry Sees Post-Pandemic Innovation Growth: Reports HVS

The COVID-19 pandemic hit India’s hotel industry the hardest, which is trying to recover with higher occupancy. According to a new report from HVS consulting company, the hotel business in India is finally witnessing new growth and demand to exceed the losses following months of reduced rentals and customary price cuts brought on by the epidemic.

The President of HVS, Mandeep S Lamba, and the Associate Director of Research, Dipti Mohan, conducted the research. And they think that this is good news for the sector because India’s hotel industry is particularly sensitive to changes in supply and demand.

HVS Expects Hotel Industry Supply To Grow At A CAGR Of 3 to 4% In The Coming Years

According to one of the most recent industry insights, while demand for premises increased by more than 60% from January to July 2022 year-on-year, space supply increased only by 1-2%. While demand will continue to grow at a double-digit rate due to the strength of the domestic travel segment and the recovery of inbound tourism, HVS said it expects supply to grow at an annual growth rate of only 3-4% in the next six to seven years.

Also read: Singapore airlines increases flights to India to bring travel to pre-pandemic levels

According to the HVS ANAROCK report, 2022 got off to a rough start with moderate demand in the first few weeks due to increased domestic Omicron cases and restrictions between states.

Hotel Industry
Picture Credit: pixabay

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Although the global travel and tourism industry has improved, 573 deals (including M&A, private equity, and venture finance) were announced in the first half of 2022. But the trading activity in India remains mediocre and the hotel industry has yet to see deals distressed in the aftermath of the coronavirus.

The hotel business will seek innovation development in the near future, though, as domestic travel demand has returned since the cases have reduced and travel restrictions have been lifted.

Cover image courtesy: Pixabay