Mumbai, Oct 26: The hotel industry will report double-digit revenue growth in FY2024, supported by the sustenance of domestic leisure and business travel and an increase in foreign tourist arrivals, rating agency Icra said on Wednesday.The industry has also benefitted from the G20 summit and ongoing ICC World Cup 2023, it added.
Icra estimates pan-India premium hotel occupancy at around 70-72 per cent in FY24, after recovering to 68-70 per cent in FY23.
Pan-India premium hotel average room rates (ARRs) are expected to be at around Rs 6,000-6,200 in FY2024, it said.
According to Icra, the medium-term demand outlook also remains healthy, supported by a confluence of factors, including improvement in infrastructure and air connectivity, favourable demographics, and anticipated growth in large-scale MICE (meetings, incentives, conferences, and exhibitions) events with the opening of multiple new convention centres in the last few years.
Icra Vice President and Sector Head – Corporate Ratings Vinutaa S said, ”Demand is expected to remain strong across markets in FY2024 as consumer sentiments continue to be healthy and corporate performance is stable. Hotel-specific demand would, however, depend on location, competition, and other property-related dynamics”.