The market of luxury hotels in India is expanding rapidly. Both international and domestic hotel companies are investing extensively in this segment. Global brands like Marriott International, Accor, Hilton and Hyatt are seeing India as a big growth market. Indian Hotels Company (IHCL), The Leela Palaces, Hotels & Resorts and The Oberoi Group are also engaged in aggressive expansion.
Entry of new projects and brands
Last month, Hilton signed the Waldorf Astoria hotel in Goa, which will be its third project in India. Earlier this had also been announced in Jaipur and New Delhi. While Accor is bringing new hotels under the Sofitel brand in Jaipur, Rishikesh and Mumbai, there are also preparations to launch Raffles in Ranthambore and Fairmont in Agra.
Fast growing luxury segment
According to Manav Thadani, 77 new luxury hotels (about 11,800 rooms) are expected to come up in India by 2031, which will be about 66% of the current supply. The highest revenue growth has also been recorded in this segment, which has increased the confidence of investors.
Reasons for surge in demand
Experts believe that rising incomes, young population and increase in the number of high-net-worth individuals are increasing the demand for luxury hotels. According to Nandivardhan Jain, about 30% of the new projects in the last 12 months have been in the luxury category.
Strong presence of domestic companies
The Leela Palaces, Hotels and Resorts has purchased an ultra-luxury resort in Coorg worth Rs 560 crore, which will be launched soon. Apart from this, new projects are also in the pipeline at many tourist places in the country. The luxury hotel industry in India is going to grow rapidly in the coming years. Due to increasing demand and investment, this sector is proving important for both tourism and economy of the country.