Delhi, January 6 2025 : India’s hospitality industry
is set to significantly outperform global growth trends through the end of the
decade—2030—supported by strong domestic travel demand, rising incomes,
sustained investment in tourism infrastructure, the continued rise of bleisure
and MICE tourism, and the country’s unparalleled demographic and cultural
diversity, which has historically been a powerful driver of travel, tourism,
and hospitality consumption, says Anirudh Reddy, Director – Viceroy
Hotels.
Anirudh Reddy adds, “Hospitality
sector recorded a strong recovery in FY 2024–25, delivering revenue growth of
around 7–9%, alongside rising occupancies in premium and upper-upscale hotels,
despite supply constraints in key urban markets. Looking ahead, India’s hotel
market revenues are expected to grow at a robust 15–17% CAGR through 2030,
nearly double the projected global growth rate.”
Globally, the hospitality sector is entering a steady
growth phase following a strong post-pandemic recovery. Travel and tourism are
expected to contribute nearly US$15 trillion to global GDP by 2030, while the
global hotel industry is projected to grow at a compound annual growth rate
(CAGR) of approximately 8–9% between 2025 and 2030, according to estimates by
the World Travel & Tourism Council.
Domestic travel is forecast to reach nearly five
billion trips annually by 2030. This expansion will be supported by rising
disposable incomes, expanding middle-class consumption, enhanced air and road
connectivity, and continued public and private investment in tourism
infrastructure. Collectively, hospitality and tourism are expected to
contribute over ₹40 trillion to India’s GDP by the mid-2030s, as per
projections from the India Brand Equity Foundation and the World Travel & Tourism
Council.
Reflecting confidence in these long-term sectoral
fundamentals, Viceroy Hotels recently announced the acquisition of Marriott
Executive Apartments Hyderabad, strengthening its presence in the premium and
extended-stay hospitality segment. Revenue from Marriott Executive
Apartments is expected to start flowing into the company from Q4, providing
near-term earnings visibility alongside long-term growth potential.
The acquisition agreement was signed in the presence
of (from Left) Ravinder Reddy Kondareddy, SP Reddy, Anirudh Reddy Kondareddy,
Amarender Reddy Bandaru.
Viceroy Hotels has been looking ahead to expand its
portfolio to 1,000 keys by 2030, supported by its existing portfolio of
about 550 keys and the addition of approximately 200 keys through an upcoming
greenfield project in Hyderabad.
