skift take
— Bulbul Dhawan
The Indian hospitality industry witnessed investments worth $401 million in 2023, real estate firm JLL has revealed in a new report. This is almost four times the volume recorded in 2022.
Overview of the hospitality industry in 2023: A total of 22 hotel transactions took place in 2023, the highest number of asset transactions in the past 10 years, JLL said. A quarter of the total investment relates to hotels under construction in business and leisure destinations.
The industry contracted hotels with approximately 25,200 keys in 2023 and opened more than 12,600 locks. JLL added that there was significant interest in his tier 2 cities, which accounted for 54% of the total number of contracts. Jaideep Dhan, Managing Director, Hotels and Hospitality Group, JLL India, said 2023 was a record year not only in terms of hotel investments but also new branded hotel openings and deals.
Outlook for 2024: In the first three months of 2024, India’s hotel transaction volume recorded $78 million. This was 80% higher than the volume recorded between January and March 2023. Dang believes the momentum from 2023 will continue this year.
Airport group to inject $3.6 billion in capital for infrastructure development
The Airports Authority of India (AAI) plans to spend 300 billion rupees ($3.6 billion) in capital expenditure over the next five years to build and modernize the country’s airport infrastructure.
The statutory body also expects sales to reach a record 150 billion rupees ($1.8 billion) in 2023-24. AAI Chairman Sanjeev Kumar said the group was likely to report a pre-tax profit of 50 billion rupees ($600 million).
Kumar added that by 2047, India’s airports will be able to handle 3 billion passengers annually. The Indian aviation industry is experiencing a major boom. From 2014 to 2023, the number of airports in India will double and the number of passengers transported will increase from 60 million to more than 150 million.
Online business travel platform Tumodo enters India
Corporate travel platform Tumodo has started operations in India. The company was founded in 2023 and recently received $35 million in funding. According to a report in ET, Tumodo aims to capture a 5% market share in India by 2027.
According to a recent report by the Global Business Travel Association (GBTA), business travel spending in India is expected to reach $38 billion this year. India is her ninth largest market for travel spending globally.
New airline directive will allow passengers to disembark in case of delay
The latest airline directives allow passengers to deplane if a flight is delayed due to bad weather. The Bureau of Civil Aviation Security (BCAS) issued the directive last week. Previously, airlines could keep passengers on the ground for up to 12 hours while awaiting departure.
BCAS Director-General Zulfiqur Hasan said the decision on disembarking passengers would be taken by airlines and relevant security agencies. If the airline does not allow passengers to disembark, airport security may ask them to disembark.
Brij Hotels aims to operate 50 boutique hotels in next five years
Brij Hotels aims to operate 50 boutique hotels in the next five years. The company currently has eight of his operating properties in its portfolio. According to a report in ET, Brij Hotels recently raised $4 million in funding and plans to raise another round within a year.
According to a report by HVS ANAROCK, the global boutique hotel sector has grown by 50% in the past three years. The company currently has occupancy increased by 50-55% and expects it to increase further.
Vistara to reduce flights due to series of cancellations and delays
Full-service airline Vistara plans to temporarily reduce its operations, Indian news agency PTI reported. This comes as airlines are seeing flight cancellations and delays due to pilots being unavailable. Vistara had around 80 flights canceled and over 190 delayed on Monday.
The Ministry of Civil Aviation has therefore asked airlines for detailed reports on the situation. Aviation regulator Directorate General of Civil Aviation also requires Vistara to submit daily reports on delays and cancellations.
According to media reports, the airline’s pilots have not come to work to protest the new pay structure. Vistara’s new salary structure is in line with that of its sister airline Air India ahead of its impending merger.
Photo Credit: Radisson Hotel Group opens Uday Palace Navsari, a member of Radisson Private, in 2023.
