NOESIS Report: “India Hospitality Overview 2022” Reveals Strong Recovery and Positive Growth
NOESIS, a leading hospitality consulting and hotel investment advisory firm in India, is pleased to announce the launch of its latest report, “India Hospitality Overview 2022.” The report provides an in-depth analysis of the current state of the hotel and tourism industry in India and offers valuable insights into the future prospects of the sector.
Despite the challenging period caused by the pandemic, the Indian hotel industry is showing signs of recovery and gaining momentum. According to the report, the majority of markets have surpassed 2019 levels, indicating a positive trend for the industry. In 2022, the industry experienced a critical year with unique opportunities, and domestic businesses seized the chance with 66% of hotel signings. Meanwhile, international brands signed 44% of the total keys, resulting in the opening of 10,138 keys. This exciting future is set to continue with a pipeline of 7,163 keys being added from 2023 onwards.
NOESIS notes that the pattern of hotels opened in India continues to favour domestic companies, with only a quarter of hotels opened being associated with international brands. However, when it comes to keys opened, they have been fairly balanced. This indicates that the Indian hospitality industry is still dominated by domestic players, but international brands are also making a significant impact.
North India will account for 38% of all hotel signings in 2022, with Himachal Pradesh (8.6%) and Rajasthan (8.1%) leading the way. This is followed by India’s Western region, which is driven mostly by Gujarat (10.4%) and Maharashtra (9.5%), as well as other states. Tier 2 cities accounted for 46% of hotel signings, with untapped destinations accounting for 33%, and Tier 1 and Tier 3 cities accounting for around 10% of hotel signings each.
The tourism industry in India is also growing strongly, with a total of 294 million passengers moving through the country’s airports in 2022. Of these, 49 million were international travellers, while 245 million were domestic travellers. December recorded the highest air passenger movement, with 5 million international and 25 million domestic passengers. In contrast, January was still affected by pandemic restrictions and recorded only 2.5 million international and 13 million domestic air passengers. While there is a significant difference between the first and fourth quarters, the summer season (Q2) saw a total movement of 76 million air passengers, with Q3 receiving 73 million total air passenger movements.
As an industry expert, NOESIS recognizes the significant measures taken by the Indian government to promote tourism in the nation. One example is the ‘UDAN’ initiative, which offers affordable and economical air travel services to people of the country. The government provides subsidies to implement this program, allowing people to travel at lower costs, thereby improving the country’s travel and accessibility standards. This strategy is anticipated to improve the country’s domestic aviation sector by encouraging a higher proportion of passengers, increasing accessibility, and creating job possibilities across the country.
The “India Hospitality Overview 2022” report is a valuable resource for businesses and investors looking to understand the current state of the Indian hospitality industry and the future prospects for growth. NOESIS is proud to be at the forefront of this exciting industry and looks forward to continuing to provide expert advice and insights to its clients.