EMBRACING THE NEW

The thriving Indian hospitality industry is redefining sustainable travel by seamlessly integrating work and leisure, in the post-Covid era

The Indian hospitality industry has seen a pronounced revival in business after more than three years of instability. This is not just a matter of sentiment, but there are actual developments that suggest that the momentum in the industry is likely to sustain. Here are a few crucial variables, which indicate that the business in the industry has concretely revived:

TRAVEL BOOM

One of the key factors that boost business sentiment in the hospitality industry is travel and tourism. As more and more people travel domestically, hotels see increasing bookings. This, in turn, boosts demand for rooms. As a result, hotel revenues grow, and increasing demand means that there is a high possibility of hotels raising their room rates. This is a favourable situation as it boosts hotel earnings. Fortunately, hotels have been able to increase room rates at present. This is reflected in the financial performance of India’s largest hotel company, Indian Hotels, for the March ’23 quarter.

The company recorded 343% jump in its net profit to ₹328.27 crore in the March 2023 quarter as against net profit of ₹74.2 crore in the corresponding period in the previous fiscal.

Puneet Chhatwal, Managing Director and CEO, Indian Hotels, said, “The company achieved a record setting year with a number of significant accomplishments including the highest ever full-year consolidated revenue, an all-time high and industry leading EBITDA margin, and net profit of over ₹1,000 crore. This is a historic first for the company. This performance was enabled by consecutive four quarters of sustained high demand, additionally bolstered by the company demonstrating Revenue per Available Room (RevPAR) leadership across its brandscape in all its key markets.”