Indian hotels set for 13-15% revenue growth in FY24 led by demand, says report
Although operating margins are higher than pre-Covid levels, the return on capital employed (RoCE) remains constrained by high capital costs of new properties due to elevated land and construction expenses
New Delhi: The Indian hotel industry will likely register 13-15% revenue growth in FY24, despite potential demand impacts from further Covid waves, according a report by ratings agency Icra Ltd. The recovery in demand has been robust over the past year and is expected to continue in FY24, driven by domestic leisure travel, higher bookings from MICE events, business travel, and a moderate increase in foreign tourist arrivals. The industry may also benefit from events such as the G20 summit and ICC World Cup 2023.