India’s “gilded era” has returned with an explosive increase in luxury hotel growth, with hotel developers and operators reporting record growth across all segments.
The Indian Hotels Association (IHA) and hotel industry body IHS Markit said the industry has witnessed an exponential growth in luxury accommodation in the past two years, and this trend is expected to continue over the next few years.
With a median hotel room price of $2,500, India’s luxury hotel sector has witnessed a significant increase in the last year, up from a median of $1,000 in 2016, IHS said.
“The demand for luxury accommodation has become so strong, that the hotel industry in India has already taken off,” IHS Managing Director Praveen Kumar said.
“As hotels become more expensive, hotel owners have to offer more amenities for guests, and that’s where they’ve found some of the most innovative solutions.”
Hotels are seeing an exponential increase in demand for their suites and suites can offer more value for the hotel owners,” he added.
The IHA and IHS expect the industry to see a further boom over the coming years, with the sector set to surpass $1 billion in revenue by 2020.
The IHAS expects luxury hotel sales to grow from a mere $4.2 billion in 2016 to a whopping $7.6 billion by 2020, while the IHSMarkit Group predicts hotel occupancy to reach a record high of almost 70 million by 2020 and that the sector will reach $7 trillion by 2020 based on the latest industry projections.