Hospitality

The Indian hospitality sector has seen rapid growth since the last decade. With an increased inflow of business travelers, rising demand for a better experience and a strong economy, in general, has catalyzed the Indian hospitality sector for betterment.

Why is the Indian hospitality sector a good platform for investments?

The total requirement of 32400 additional hotel rooms is projected across seven cosmopolitan cities by the end of 2020. With an increase in urbanization, tier two and tier three cities are also expected to see the construction of 19500 rooms by 2022; thereby raising the inventory market share to 48%.

Moreover, an investment record of $0.68 billion during 2016-2017 and the rising PE/VC investments in the Indian hospitality sector are likely to steer its growth from $0.5 to $0.6 billion by 2022. Most of these investments will be eligible for REIT listings, buyouts, acquisitions, and follow-up investments.

2019 has already been a bumper year for investments in the hotel industry, following Brookfield’s buyout of Hotel Leelaventur’s assets, Lemon Tree’s acquisition of the Keys Hotels, and the big merger of Blackstone Group and Golden Jubilee Hotels.

So, with such national and international investments showing an upward curve, the future of the Indian hospitality sector as a robust investment platform seems pretty optimistic.