Hotels add record rooms, challenge now to fill them

Overall occupancy rate in organized hotels industry improved to 63.6% last year

- Varuni Khosla

14,000 rooms added in 2023 by organized hotels industry

₹7,479 Average daily rate charged per room, as per the report

India's hotels industry staged a sharp revival in 2023, as people rushed out in revenge travel after being confined to their homes by the pandemic for months on end. India's organised hotels industry added a record 14,000 rooms in 2023, hospitality consultancy Horwath HTL Consultants said in a new report accessed exclusively by Mint. This year, it's expected to add even more 23,000 rooms.

Among the newly-launched hotels last year was Lemon Tree Hotels' Aurika Mumbai Skycity, with close to 700 rooms.

The company opened the hotel in October and despite it being a very large-inventory hotel, it filled up fast. "Normally Dussehra and Diwali are lower periods for the entire industry, but the hotel was net Ebitda positive starting that quarter itself. It will be the most profitable hotel for the group next year," Patanjali G. Keswani, chairman and managing director, Lemon Tree Hotels, told Mint.

Currently, India has about 183,000 branded hotel rooms, which Horwath expects will increase to 250,000 by 2027. These hotels are also charging higher rates, mostly by serving up guests seeking the comforts of upscale and luxury rooms.

There might be a niggle, though. Filling up those rooms could prove challenging.