Hospitality Sector records $401 Mn Investments in FY23 & 81% Y-o-Y in Q1FY24

Investments in Hotels sector of India reached $ 401 million in the year 2023 which was almost a four-time expansion in the volumes recorded in 2022. As numerous as 25 percent of the general value of transactions required under-development hotels in both business & developmental projects, a report by JLL in Hotel investment trends – 2023 showed. 

HNI - High Net worth Individuals and Institutional Capital contributed a significant part in Hotel investment operations during 2023, representing the biggest offer at 31 percent. Developers & designers in Real Estate represented 27 percent of ventures, tracked by proprietors & owners at 11 percent, it said. 

Also, the report specifies that the primary quarter of 2024 recorded almost 80 percent year-on-year expansion in Hotel transaction & investment volumes by reaching $78 million. 

The Hospitality sector has been seeing a flow since the last financial year - 2023. A record number of Hotel developing and openings occurred in 2023, with 25,176 keys marked & 12,647 keys opened. 
There is an increasing interest in Hotel advancement activities in Level 2 urban communities, with 54 percent of the total signings occurring in these localities. 

Speaking to this, Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL “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 has started with strong tail winds as we saw Prominent Hospitality deals early on in this year. The enthusiasm of the sector is further strengthened by performance of hotel stocks, which also gave confidence to a couple more hotel companies entering public markets and achieving strong valuations”.

He added, “We expect this story to continue in 2024 on back of diversified avenues of growth such as expanding commercial office markets and with development of infrastructure such as new airports, expressways, increasing pilgrimage travel leading to the emergence of new realty and tourism hotspots across the country”.