Noesis reports strong recovery & growth in Indian hospitality industry
Indian hotel industry recovers well, North India contributes 38 pc of new hotel signings last year
A report on the state of Indian hospitality industry in the year 2022 says that the industry showed signs of recovery and growth. The report, India Hospitality Overview 2022, by Noesis, a hospitality consultancy and hotel investment advisory organisation, provides insightful information about the sector’s possibilities for the future as well as a thorough examination of how the hotel and tourism industries are now performing in India.
The study states that the Indian hotel industry is showing signs of recovery and gaining momentum despite the challenging period caused by the pandemic. It further states that the majority of markets have surpassed 2019 levels and indicate 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 pc of hotel signings. Meanwhile, international brands signed 44 pc 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.
According to the Noesis study, North India accounted for 38 pc of all hotel signings in 2022, with Himachal Pradesh (8.6 pc) and Rajasthan (8.1 pc) leading the way. This is followed by India’s Western region, which is driven mostly by Gujarat (10.4 pc) and Maharashtra (9.5 pc), as well as other states. Tier 2 cities accounted for 46 pc of hotel signings, with untapped destinations accounting for 33 pc, and Tier 1 and Tier 3 cities accounting for around 10 pc of hotel signings each.
Noesis points out that the pattern of hotels inaugurated in India continues to favour domestic companies. Only a quarter of hotels opened were associated with international brands. However, when it comes to keys opened, they have been fairly balanced, indicating that the Indian hospitality industry is still dominated by domestic players, but international brands are also making a significant impact.
The report goes on to say that 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) recorded a total movement of 76 million air passengers, with Q3 receiving 73 million total air passenger movements.
