September 6, 2024
3 mins read

Indian Hospitality Set for a Major Leap

According to the report, the positive momentum is set to continue throughout the second half of the year….reports Asian Lite News

Buoyed by overall infrastructure growth and expanding commercial market, the hospitality investment sector in the country showed robust growth in the first half this year, according to a new report.

Hotel investment transactions reached $93 million and are expected to reach $413 million by year-end — a 22 per cent increase compared to last year, according to latest data from JLL Hotels and Hospitality Group

Top hotel companies led by contributing 44 per cent of the total transaction volume. It was followed by owner-operators at 30 per cent and high-net-worth individual (HNIs), family offices, and private hotel owners at 26 per cent.

According to the report, the positive momentum is set to continue throughout the second half of the year.

Reeling under acute losses, Raj hotel industry cries for incentives

Key markets, including Mumbai, Hyderabad, Pune and Chennai, remain dominant, accounting for 78 per cent of the projected transaction volumes.

Tier 2 and 3 markets are likely to contribute the remaining 22 per cent.

Notably, JLL has already facilitated two significant transactions at the onset of the second half of 2024, comprising an operational hotel in Mumbai and a premium hotel land sale in Goa.

“The surge in investor interest for both – operating assets and land sales illustrate the attractiveness of the investment landscape, bolstered by favourable macroeconomic factors, an expanding commercial market, and improved air connectivity,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.

This positive outlook is further reinforced by the substantial hotel development activity witnessed across various tiers, with over 19,440 keys signed in the first half of 2024 alone, the report mentioned.

Another report earlier this month said that 2,706 new rooms were added in the upscale and premium segment in the first half of this year, amid a notable growth in infrastructure development. Out of these, 994 rooms (37 per cent) were upscale while the remaining (63 per cent) consisted of premium inventories.

Indian hospitality industry is on a strong footing marked by a rise in occupancy, new projects opening and a bullish pipeline for the future, according to Skye Hospitality.

Beauty Market to Outpace China, Japan

India is set to become one of the world’s most influential markets for beauty and personal care — soaring higher than China, the US, Japan, and South Korea, according to a report.

The report by online beauty and fashion marketplace Nykaa showed that India is set to see a 10-11 per cent growth by 2028 and will reach $ 34 billion in the beauty, and personal care market.

“India is the fastest growing beauty and personal care market globally, expected to reach $ 34 billion by 2028, from the current $20 billion,” according to a Nykaa statement.

The growth is much higher than other countries like China (4-5 per cent), the US (2-4 per cent), Japan (2-3 per cent) and South Korea (2-3 per cent), revealed the Nykaa Beauty Trends report.

It showed that e-commerce is poised to be the biggest driver of this growth and the fastest-growing segment, anticipated to achieve a CAGR of around 25 per cent.

This is followed by increasing aspirations and higher incomes among Indian consumers, which will steer the market for premium beauty –expected to reach $3-3.2 billion by 2028, said the report.

Further, with 520-560 million users in 2023, social media will also play an important role in the democratisation of beauty expertise and influencing consumer choices.

Meanwhile, the online trade channels for beauty and personal care are also expected to grow at around 25 per cent CAGR. It will be at par with offline organised trade which will account for 33 per cent of the segment’s total turnover.

On the other hand, the unorganised offline trade channels share will reduce from an estimated 55 per cent in 2023 to 35 per cent by 2028, the report said.

“Our report clearly shows a market poised for extraordinary growth, driven by premiumisation, technological advancements, and a new generation of discerning consumers,” said Anchit Nayar, Executive Director and CEO, of Nykaa Beauty.

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