Indian Hospitality Industry Sees Post-Pandemic Growth: HVS Reports

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The COVID-19 pandemic has hit India’s hospitality industry the hardest, which is trying to recover with higher occupancy. According to a new report from consultancy HVS, the hotel business in India is finally seeing new growth and demand to outrun losses after months of rent cuts and customary price cuts brought on by the outbreak.

HVS President Mandeep S Lamba and Associate Director of Research Dipti Mohan conducted the research. And they think it’s good news for the sector because the Indian hotel industry is particularly sensitive to variations in supply and demand.

HVS expects hospitality industry supply to grow at a CAGR of 3-4% in the coming years

According to one of the most recent industry analyses, while demand for space increased by more than 60% from January to July 2022 year-over-year, space supply only increased 1 to 2%. While demand will continue to grow at a double-digit rate due to the strength of the domestic travel segment and the recovery of inbound tourism, HVS said it expects supply to grow at a rate annual growth of only 3 to 4% over the next six years. at seven years old.

Read also : Singapore airlines increase flights to India to bring travel back to pre-pandemic levels

According to the HVS ANAROCK report, 2022 got off to a rocky start with moderate demand in the first few weeks due to rising domestic Omicron cases and interstate restrictions.

Hotel

photo credit: pixabay

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Although the global travel and tourism industry has improved, 573 deals (including mergers and acquisitions, private equity and venture finance) were announced in the first half of 2022. But business activity in India remains mediocre and the hospitality industry has yet to see troubled deals. in the aftermath of the coronavirus.

However, the hospitality industry will look to expand the innovation in the near future as demand for domestic travel has returned since cases declined and travel restrictions were lifted.

Cover image courtesy of: Pixabay

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