The Indian hospitality sector has reported a strong 10.8% Year-on-Year (YoY) growth in Revenue Per Available Room (RevPAR) for Q3 2024 (July – September 2024), driven by a rise in Average Daily Rates (ADR). The sector continued its positive trajectory, registering a 2% quarter-on-quarter growth in RevPAR, with the third quarter typically benefiting from an uptick in corporate travel.
Among the major markets, Hyderabad led the pack with an impressive 23.6% YoY growth in RevPAR, outpacing other cities like Chennai (17.7%) and Mumbai (16.8%). Although Delhi and Goa experienced a slight dip in ADR, most major markets, including Bengaluru and Chennai, saw strong improvements in both ADR and RevPAR, which helped drive the overall sector growth. Despite occupancy levels remaining stable compared to Q3 2023, the rise in ADR resulted in a significant increase in RevPAR across key markets.
In addition to strong operational performance, the hospitality sector also saw continued growth in supply. During Q3 2024, 30 new hotels with 1,988 keys opened, with approximately 80% of the new inventory located in Tier II and Tier III cities such as Tirupati, Udaipur, Ranchi, and Mussoorie. The quarter also witnessed 96 branded hotel signings, totaling 10,686 rooms, including the conversion of 12 hotels, which accounted for 11% of the total signed inventory.
The upcoming quarter is expected to benefit from continued corporate travel, festivals, and a surge in Meetings, Incentives, Conferences, and Exhibitions (MICE) events. The sustained demand for business travel, coupled with the rise in social events like weddings and festivals, is expected to further boost performance across the hospitality sector.
Jaideep Dang, Managing Director of the Hotels and Hospitality Group in India, noted, “While the summer season led to a temporary slowdown in corporate room night demand, the sector has continued to show growth, especially in ADR. The upcoming quarter looks promising, with a strong outlook for domestic corporate travel and MICE events.”
As the hospitality sector enjoys robust demand across both business and leisure markets, investment in the industry remains strong, with both greenfield developments and operating assets continuing to attract investor interest.
Also Read: Hospitality Sector Sees 4.8% YoY RevPAR Growth in Q2 2024, Hyderabad Leads with 11.9% Surge
