-BA(Hons) in Hotel Management from Institute of Hotel Management (affiliated with Taj Group of Hotels) Aurangabad. Batch of 2001
Akash, Consulting & Valuation Analyst, joined HVS International in August 2005. Prior to joining HVS, he has trained under various Front Office departments as an Executive Trainee at the Renaissance Hotel & Convention Centre.
This report highlights the key trends in the Indian hospitality sector in 2020 along with the sector performance metrics, brand signings and openings during the year. It also provides our outlook for the sector for 2021.
2020 was a challenging year for hotel transactions in India, with hotel transactions value in the country contracting by approx. 50% compared to the previous year. The uncertain market conditions and COVID-19 related restrictions suppressed M&A activity during the year as companies adopted a wait-and-watch policy.
India's first post-COVID budget failed to provide any direct and immediate support to the Indian hospitality sector. However, the massive fillip given to other allied sectors such as healthcare and infrastructure will indirectly help boost the tourism and hospitality sector’s growth in the long-term.
In the last few weeks, demand for domestic leisure tourism has improved in India, which is a silver lining for the distressed and vulnerable Indian hotels sector. However, sudden changes in regulations are adding to the sector’s woes and may dampen the spirits going forward.
Before investing millions of Rupees of expensive capital, it is prudent to spend an insignificant fraction of the sum on Feasibility and ROI Studies for a hotel and/or a mixed-use project to help determine the viability of the project. The rapidly evolving consumer behavior and demand fundamentals are expected to make a professionally prepared feasibility study even more critical than ever before.
Mixed-use developments are going to be the most sustainable model for hotels going forward as they leverage the best of each asset class, while diversifying the risks for the investors and enhancing the overall experience for the guests. Read on to know more.
Hotel owners need to don the hat of institutional investors now more than ever as creating a well-thought and well-researched ‘development-growth-exit’ strategy for their projects will become critical in capitalizing the asset in the post-COVID world.