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Sarovar Hotels expects a 12 per cent YoY growth in FY24. It will add two international hotels in 2023. The hospitality chain will add 10 hotels a year for the next 5 years, said Ajay Bakaya, MD, Sarovar Hotels.
Bakaya is confident that the company is poised for a strong coming fiscal. “My outlook for the company is largely positive. Somewhere in the middle, we are going to see a slight correction in the leisure destinations as international travel is picking up. However, the pie is increasing and people are travelling. That is a positive sign along with the Average Room Rates (ARR) being where they are currently,” said Bakaya.
Also read: Leela Palaces Hotels looks to expand in overseas markets
Sarovar Hotels and Resorts has over 100 hotels spread across 67 destinations. Speaking about the company’s expansion plans, Bakaya said, “We plan to add 10 hotels in the next year, these aren’t just hotels in the pipeline. These will be inaugurated in the coming fiscal. We will also add two more international hotels in the coming fiscal. In fact, we will be adding 10 hotels every year, over the next five years.”
Speaking to businessline, Bakaya said that the industry has seen tremendous growth post-Covid, and he expects the industry to continue on the trajectory. “The industry is well positioned. The demand has been brilliant. The next five years are going to be exceptional for the hospitality industry.”
A recent CARE Ratings report suggested that despite the possibility of inflation putting pressure on the growth rate in FY24, the ARR has already recovered above the pre-Covid level indexed at 105-107 when compared to FY19.
Also read: OYO to double premium hotels in India in 2023
“People are talking about ARR now because, for the first time in a long time, the rates have gone above 2008 levels. It’s taken us 15 years to get here but we’re still below the inflation rates. The demand is strong enough for people to pay that kind of room rate,” he said.
Bakaya said that India is leveraging India’s G-20 presidency, the ICC Cricket World Cup, and the resumption of foreign inbound travel, along with robust domestic leisure travel, the sector’s ARR should continue to inch higher in FY24, boosting Revenure Per Available Room (RevPAR), which will boost the industry’s growth in the coming fiscal.
In fact, CareEdge estimates that RevPAR should grow 3-5 per cent over FY23 levels.
Also read: Insolvency proceedings of Hyatt Regency extended by 90 days
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