TThe hotels sector will continue to enjoy double-digit revenue growth in this fiscal and the next given continued increase in average room rates and healthy occupancies being sustained owing to room demand outpacing supply over the same period.
While domestic leisure and business travel will continue to grow well, higher foreign tourist arrivals - expected to surpass pre-pandemic levels this fiscal - will provide additional fillip. Healthy growth momentum would also help players improve their operating margins as operating leverage benefits kick in.
To cater to the growing demand, hotels will keep adding rooms, especially in the untapped leisure and spiritual destinations in addition to the metros. However, a significant portion of room additions would be through the asset-light management contract route. Asset-light expansion would help chains maintain a comfortable financial risk profile, which is expected to be further bolstered through significant equity raisings. However, with the pace of room additions increasing, will this growth momentum sustain and would players be able to hold onto their current healthy operating margins?
To delve deeper into such aspects, Crisil Ratings is hosting a webinar, titled 'Booking a Brighter Future' on December 4, 2024, where our experts will analyse sectoral trends and present their views on:
Demand drivers and supply trends
Supply trends in each market segment and category
Revenue growth and profitability expectations
Credit outlook
The session will be followed by a panel discussion with industry experts and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of Crisil. Any use of the same without written permission of Crisil is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
