Travel boom to drive double-digit growth for branded hotels

These factors, according to Makhija, will drive up the average room rates of branded hotels by 6-7 per cent this fiscal on an already high base. That said, growth in room rates is expected to moderate to 3-4 per cent next fiscal as significant room capacities come up.

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Branded hotels in India are likely to see double-digit revenue growth this financial year and the next, fuelled by demand outpacing supply, asserted Crisil Ratings.

The rating agency pegged revenue for such hotels at 13-14 per cent this fiscal and 11-12 per cent in the next.

While domestic leisure and business travel will continue to be the primary demand drivers, growing traction in MICE (meetings, incentives, conventions and exhibitions) segment and pickup in foreign tourist arrivals will provide an additional fillip, the rating agency said in a report Thursday.

This comes on the back of a strong 17 per cent growth recorded last fiscal, the Crisil report claimed.