Hotels Demand To Continue To Outstrip Supply, RevPAR To Grow At 8-9% In FY25: CareEdge Analysis

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..CareEdge Research Report.The Indian hospitality sector is currently experiencing an upcycle, driven by favorable demographics, robust domestic demand (with supply clearly lagging behind demand growth), increased investments, and ongoing improvements in infrastructure and connectivity. According to our estimates, the industry's revenue per available room registered a strong growth of 14% during fiscal year 2024. For FY25, RevPAR is expected to grow by approximately 8-9%, building on the high base set in FY24.India currently has around 166,000 branded hotel rooms/keys. Over the next five years, the industry is expected to add approximately 55,000 rooms, with supply registering a compound annual growth rate of 4.5-5.5% during this period.The segment mix is shifting towards Upper Midscale and Midscale Economy, with more than 60% of new supply expected to be added in these segments. This growth is driven by several factors, including a growing middle class, a significant uptick in business travel (especially from small and medium-sized enterprises), and an expanding scope of business activities into tier-II, tier-III, and tier-IV cities. More than 70% of the proposed new supply is concentrated in tier-II and tier-III cities, followed by tier-I, as hotel owners and operators explore opportunities to capture unmet demand in emerging and underserved markets.The industry dynamics have significantly shifted, with more investors exploring asset-light options to increase revenue and margins without significant capital expenditure..Click on the attachment to read the full report:.Prince Pipes - Resin Price Volatilty To Drag Q2 Performance: HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hotels Demand To Continue To Outstrip Supply, RevPAR To Grow At 8-9% In FY25: CareEdge Analysis

On the back of the surge in domestic consumption and underlying GDP growth, the players in the industry are witnessing strong capacity utilization, says the brokerage.

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Hotels Demand To Continue To Outstrip Supply, RevPAR To Grow At 8-9% In FY25: CareEdge Analysis

On the back of the surge in domestic consumption and underlying GDP growth, the players in the industry are witnessing strong capacity utilization, says the brokerage.

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