Skift Take
In 2023, the Indian hospitality industry experienced a surge in investments and new branded hotel openings, setting a record year for the sector.
According to a report by JLL, the Indian hospitality industry saw investments totaling $401 million in 2023, marking a fourfold increase from the previous year.
2023 hospitality industry overview: With 22 hotel transactions, 2023 witnessed the highest number of asset trades in the past decade, with a significant portion of investments related to under-construction hotels in key business and leisure destinations.
In 2023, the industry signed agreements for hotels with over 25,200 keys and opened more than 12,600 keys. JLL noted a strong interest in tier-2 cities, which accounted for a majority of the signings. Jaideep Dang, Managing Director of the Hotels and Hospitality Group, India at JLL, described 2023 as a remarkable year in terms of hotel investments and new branded hotel openings.
The 2024 outlook: During the first quarter of 2024, hotel transaction volumes in India reached $78 million, up by 80% compared to the same period in 2023. Dang predicts that the momentum from 2023 will continue throughout the year.
Airports Body to Infuse $3.6 Billion Capital For Infrastructure Upgrade
The Airports Authority of India (AAI) is planning a capital expenditure of INR 300 billion ($3.6 billion) over the next five years to enhance and modernize airport infrastructure in the country.
AAI is projecting its highest turnover ever in the 2023-24 fiscal year, expected to reach INR 150 billion ($1.8 billion). According to Sanjeev Kumar, Chairman of AAI, the organization is on track to achieve a profit before tax of INR 50 billion ($600 million).
Kumar also predicts that by 2047, Indian airports will cater to 3 billion passengers annually. The Indian aviation sector has seen remarkable growth, with the number of airports doubling and passenger numbers rising from 60 million to over 150 million between 2014 and 2023.
Online Business Travel Platform Tumodo Enters India
Corporate travel platform Tumodo has launched its operations in India after securing $35 million in funding. The company aims to capture a 5% market share in India by 2027, as reported by ET.
A recent report by the Global Business Travel Association (GBTA) estimates that India’s business travel spending will reach $38 billion in the current year, making it the ninth-largest market globally for business travel expenditure.
New Airline Directive Allows Passengers to Deboard Flight in Case of Delay
A recent directive allows airline passengers to disembark in the event of flight delays due to inclement weather. The Bureau of Civil Aviation Security (BCAS) issued this directive, overturning the previous rule that allowed airlines to retain passengers on the ground for up to 12 hours.
Zulfiquar Hasan, Director General of BCAS, mentioned that decisions about passenger deboarding will be made by airlines and security agencies, with airport security empowered to intervene if necessary.
Brij Hotels Aiming to Operate 50 Boutique Hotels in Next Five Years
Brij Hotels has set a goal of having 50 boutique hotels operational within the next five years. Currently, the company manages eight properties and has recently raised $4 million in funding, with plans for further investment within a year, according to ET.
A report by HVS ANAROCK highlights that the global boutique hotel segment has grown by 50% in the last three years. Brij Hotels is experiencing significant occupancy growth and anticipates further expansion in the future.
Vistara to Reduce Flight Operations Amid Cancellations, Delays
India’s full-service carrier, Vistara, plans to reduce its flight operations temporarily, as reported by PTI. The airline has been facing flight cancellations and delays due to pilot shortages, with nearly 80 flights canceled and over 190 delayed recently.
The Ministry of Civil Aviation has requested a detailed report from Vistara on the issue, and the Directorate General of Civil Aviation has asked for daily updates on delays and cancellations.
Reports suggest that pilots are protesting the new pay structure at Vistara. The airline’s new pay system aligns with that of its soon-to-be-merged sister airline, Air India.
