Hotels in India - Trends and Opportunities 2009

This publication highlights the current trends and future opportunities for the hospitality industry in India.
Manav Thadani

The New Delhi office of HVS has released the 2009 edition of "Hotels in India - Trends and Opportunities". The report presents market performance across 11 major cities and highlights important trends in the Indian hospitality industry.

The year 2008/09 saw declines in occupancy and RevPAR in most cities in India, following the global contraction. The industry experienced an overall decline in occupancy of 12.4%, following the downward trend that started last year. Surprisingly, the average rates for the industry declined only by 1.9%. The industry-wide RevPAR saw a decline of 14%. The five-star deluxe segment took the biggest hit followed by the first class and mid market segments, respectively.

Not even a single city in India could escape the decline in occupancy levels: Mumbai (-18.4%) and Jaipur (-16.4%) were the worst hit, followed closely by the leisure destination, Goa. Bangalore, Hyderabad, and Pune, which are majorly dependent on the ITeS sector for room nights demand, saw a sharp decline in 2008/09 as compared to other major Indian cities. In terms of average rates, Agra and Ahmedabad were the only two cities that continued the upward trend.

Despite the declines in occupancies and average rates, the outlook for the Indian tourism industry remains positive. With 5.37 million international travellers and 562.9 million domestic travellers visiting India this year, India saw an overall growth in tourism. Even in the global downturn, the domestic travellers, which were 104 times the international ones, continue to sustain industry growth. However, there is still a lot of room for growth in the industry, as India accounts only for less than 1% of the world tourism market.

As the tourism industry in India continues to grow, HVS continuously monitors the new supply entering the market. In a period of 11 years, from 1998/99 to 2008/09, the supply of rooms increased by 109%. The supply is further expected to increase by 94% in 2013/14 from that in 2008/09. The new supply entering the market across all star categories will prompt rate corrections and will force the hotel operators to justify high rates with the services and facilities they offer.

To access the full PDF report, please CLICK HERE. (PDF File; 1 MB)

India, with its growing economy, remains an attractive destination for foreign investors. To provide a platform for discussions on Indian Hospitality and provide networking opportunities to hotel investors, developers, owners, and operators, HVS New Delhi is hosting The Sixth Hotel Investment Conference South Asia (HICSA) 2010, which is scheduled for April 7 and 8, 2010 and is to be hosted at the Grand Hyatt, Mumbai. Over the past five years the conference has played host to 30 global CEOs and 2,200 plus delegates. This exclusive event promises to once again line up some of the best known global faces of the hospitality industry. Notable speakers for this year’s conference include:

  • Capt CP Krishnan Nair, Chairman - The Leela Palaces Hotels & Resorts
  • Eric Danziger, President & CEO - Wyndham Hotel Group International
  • Frits van Paasschen, President & CEO - Starwood Hotels & Resorts
  • Gamal Aziz, President & CEO - MGM MIRAGE Hospitality
  • Gerald Lawless, Executive Chairman - Jumeirah Group
  • Henry Gabay, Co-Founder & Co-Chairman - Duet Group
  • Jean-Michel Casse, SVP - Operations, Accor Hospitality
  • Louis Klein, Managing Director - Real Estate, IREO
  • Mark Hoplamazian, CEO - Hyatt Hotels Corporation
  • Martin Rinck, President - Asia Pacific, Hilton Worldwide
  • Nakul Anand, Divisional Chief Executive - Hotel Division, ITC
  • Raymond Bickson, Managing Director & CEO - Taj Hotels Resorts and Palaces

For details, log on to

Manav Thadani, Chairman - HVS Asia Pacific, joined the company in 1995 in its New York Office. He went on to start the India operations in 1997 and was HVS’ first employee in Asia. Over the last 19 years, HVS India has expanded into multiple verticals including Strategic Consulting, Executive Search, Marketing, Communications, Energy & Sustainability and Professional Skills Development. In his current role, Manav oversees all eight offices across Asia Pacific, ensuring that they operate cohesively and effectively. Additionally, he runs four conferences in the region – Hotel Investment Conference - South Asia (HICSA); Hotel Operations Summit India (HOSI); Tourism, Hotel Investment & Networking Conference (THINC) Indonesia, and Tourism, Hotel Investment & Networking Conference (THINC) Sri Lanka. A pioneering entrepreneur and an effective leader, Manav has been a trusted advisor to various industry stakeholders, with his candid views being highly sought after and respected in the field of hospitality. Under his guidance, HVS has garnered the reputation of being the ‘Go To’ hospitality consulting firm in this part of the world. On a personal level, Manav co-founded SAMHI in 2011, a leading Indian hotel investment and development firm with focus on ownership of branded hotels in the mid scale and economy segments across key cities. Manav is also the immediate past Chairman of the World Travel & Tourism Council - India Initiative (WTTCII). Contact Manav at


  1. Zia UllahOct 3, 2009

    1.9% decline in ADR vs 14% decline is occupancy indicates hoteliers are just not devaluing their product. This is a very postive sign about professionals working in Indian industry and a true reflection of Hotel Schools impact on Indian Hospitality. Given the ending of global recession by 2011 and ever emerging middle class in India, Hospitality Industry would seek a tremendous amount of growth in RevPar. Zia Ullah Franklin, TN

  2. Sameer MawjiOct 8, 2009

    Based on your conclusions draw in this article, do you feel the Pune market is one that has been over shot the market and has exeeded the demand? Or do you feel that this demand change will eventually capture the large amount of supply? And on another note, this was a very insightful article and very thorough. Look forward to more! Thanks, Sameer

  3. Madurai Hotels, Pollachi HotelsOct 26, 2009

    Thanks for u r information <a href= "">Madurai Hotels, Pollachi Hotels</a>

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