Government led reforms to boost hotels sector growth
Real Estate

Government led reforms to boost hotels sector growth

Improving economic environment, growth in number of offices, expansion of businesses and industry-friendly reforms including the GST reduction to 18 per cent for premium and luxury hotels, have contributed to growth in RevPAR across most top Indian markets. Nine out of top 11 markets witnessed a rise in RevPAR performance during the July-September 2019 period according to the Hotel Momentum India (HMI) – Q3 2019, the third quarter hospitality monitor (for July to September 2019 period), released by JLL Hotels & Hospitality Group.

As per HMI, while Mumbai ranked on top in absolute terms, Bengaluru led in RevPAR percentage change in both during the third quarter as well as YTD September 2019 over the same period last year. During the quarter, the Bengaluru followed by Hyderabad and Gurugram witnessed the maximum change in ADR, the HMI added. Ahmedabad and Goa have been the only exception to the trend.

“First nine months of the year (January-September 2019) have been exciting for the entire industry. While there have been some positive developments on the reforms front, country’s strong and stable services sector continues to fuel up the commercial real estate market. This has a direct bearing on hotels sector, which is highly dependent on the performance of the services industry across India’s top cities,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL. “The industry is hopeful that a similar momentum will be maintained in 2020 as well,” he added.

 

 

Branded Hotel Openings

Branded Hotel Signings

 

No. of Hotels

No. of Keys

No. of Hotels

No. of Keys

Q3 2019

22

1474

36

2867

Q3 2018

21

1757

35

3422

Source: JLL Hotels and Hospitality Group


The HMI added the branded hotel signings in the third quarter (July-Sept quarter) of 2019 as compared to the corresponding period in 2018 has remained consistent, indicating stability in the market. During the same period, the country witnessed a total of 36 hotel signings, comprising of 2,867 keys as compared to 35 hotels comprising of 3,422 keys. It is the upscale and midscale hotel brands that have contributed the maximum to the signings during the period, according to the update.

“Year 2019 is expected to end on a good note, both for real estate markets and the hotels sector. Consistency in hotel signings suggest that there is strong demand in the market,” Dang added.

Improving economic environment, growth in number of offices, expansion of businesses and industry-friendly reforms including the GST reduction to 18 per cent for premium and luxury hotels, have contributed to growth in RevPAR across most top Indian markets. Nine out of top 11 markets witnessed a rise in RevPAR performance during the July-September 2019 period according to the Hotel Momentum India (HMI) – Q3 2019, the third quarter hospitality monitor (for July to September 2019 period), released by JLL Hotels & Hospitality Group. As per HMI, while Mumbai ranked on top in absolute terms, Bengaluru led in RevPAR percentage change in both during the third quarter as well as YTD September 2019 over the same period last year. During the quarter, the Bengaluru followed by Hyderabad and Gurugram witnessed the maximum change in ADR, the HMI added. Ahmedabad and Goa have been the only exception to the trend. “First nine months of the year (January-September 2019) have been exciting for the entire industry. While there have been some positive developments on the reforms front, country’s strong and stable services sector continues to fuel up the commercial real estate market. This has a direct bearing on hotels sector, which is highly dependent on the performance of the services industry across India’s top cities,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL. “The industry is hopeful that a similar momentum will be maintained in 2020 as well,” he added.     Branded Hotel Openings Branded Hotel Signings   No. of Hotels No. of Keys No. of Hotels No. of Keys Q3 2019 22 1474 36 2867 Q3 2018 21 1757 35 3422 Source: JLL Hotels and Hospitality Group The HMI added the branded hotel signings in the third quarter (July-Sept quarter) of 2019 as compared to the corresponding period in 2018 has remained consistent, indicating stability in the market. During the same period, the country witnessed a total of 36 hotel signings, comprising of 2,867 keys as compared to 35 hotels comprising of 3,422 keys. It is the upscale and midscale hotel brands that have contributed the maximum to the signings during the period, according to the update. “Year 2019 is expected to end on a good note, both for real estate markets and the hotels sector. Consistency in hotel signings suggest that there is strong demand in the market,” Dang added.

Next Story
Real Estate

Sea Breeze launches La Wisteria in Siolim, Goa

Sea Breeze Group has announced the launch of La Wisteria, a RERA-approved luxury residential project in Siolim, North Goa, offering 80 boutique 1BHK and 2BHK apartments with private pools and lush paddy field views. Targeted for completion by December 2027, the development is designed to offer a high-end lifestyle and attractive rental returns.Each unit comes with a private pool and is surrounded by scenic vistas, ensuring exclusivity and long-term value. Positioned on a 3,545 sq m corner plot, the property is open on all four sides and bordered by greenery on two, enhancing privacy and openne..

Next Story
Real Estate

Ashiana Housing launches premium boutique project in Jaipur

Ashiana Housing, a listed real estate developer on NSE and BSE, has announced the launch of Ashiana Aravali, a low-density, premium residential project in Jagatpura, Jaipur. Designed for upper-mid and premium homebuyers, the development offers a rare combination of exclusivity, greenery, and urban connectivity in one of the city’s fastest-growing corridors.The boutique project comprises 50 residences, with 25 each of 4 BHK and 3 BHK units. The 4 BHK homes are offered in two configurations—2641 sq. ft. and 2630 sq. ft., while the 3 BHK homes are sized at 2312 sq. ft. Each apartment includes..

Next Story
Resources

Stylework’s MSA powers flexible workspace efficiency in 120 cities

Delhi, India – May 30, 2025: Stylework, a leading flexible workspace aggregator, announced the continued success of its Master Service Agreement (MSA)—a centralised solution that simplifies workspace management for over 50 enterprises and vendors across 120+ cities. Designed to support Stylework’s long-term vision of scalable workspace integration, the MSA has delivered measurable gains in operational efficiency, administrative control, and strategic agility. The solution reduces the complexity of managing multiple workspace contracts by consolidating them under a single organisatio..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?