The first quarter of 2024 witnessed a significant 80 per year-on-year increase in hotel transaction volumes, reaching $78 million.
JLL India, a consultancy firm, has released its latest report titled 'Hotel Investment Trends: India 2023’. The report highlights the growth and positive start of the first quarter (Jan-March) of 2024 in the hospitality sector. It mentions that the first quarter of 2024 witnessed a significant 80 per year-on-year increase in hotel transaction volumes, reaching $78 million.
The sector has been witnessing a good surge since last calendar year (2023). A record number of hotel signings and openings took place in 2023, with 25,176 keys signed and 12,647 keys opened. Further, there is an increasing interest in hotel development activity in Tier-2 cities, with 54 per cent of the total signings taking place in these locations.
In 2023, hotel investments in India touched $401 million, which was nearly four-fold the volume witnessed in 2022. 25 per cent of the overall value of transactions involved under-construction hotels in both business and leisure destinations. 2023 also achieved a significant milestone of 22 hotel transactions, which is the largest number of assets traded in the last decade.
It also saw three hotel companies successfully debut on the stock market through their initial public offerings (IPOs). There were approximately 13,600 greenfield projects in 2023, surpassing the figure from the previous year (8,000 keys), showcasing the enduring confidence of hotel developers in the long-term growth potential of the sector, according to a company statement.
Furthermore, the report notes the emergence of tourism and leisure destinations as centers for Meetings, Incentives, Conferences, and Exhibitions (MICE) activities, with the signing of three large-format hotels with about 900 keys.
“The year 2023 has been a record year not only in terms of hotel investments but also in terms of new branded hotel openings and signings. Furthermore, 2024 started with strong tail winds as we saw prominent hotel deals early this year.,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.