Realty Firms Shift Focus to Hospitality as Travel Business Booms
Indian developers are increasingly investing in high-capex hospitality projects, merging real estate with hospitality to cater to the rising demand for quality vacation experiences.
Real EstateHospitalityTravelHotelsIndiaReal EstateAug 13, 2024
We didn't focus much on hospitality in the past as it's very capex heavy and returns take time. But, we see cycles are changing,” said Adrija Agarwal, founder of Sattva Ventures and VP, business development at Salarpuria Sattva Group. “Average room rates are improving and discretionary spends are going up. We think some of these discretionary spends will also be directed towards travel and experiences,” she added.
Agarwal is playing a key role in converting a 48 acre land parcel into an upcoming 294 key luxury Taj resort in Bengaluru. The resort is expected to come up in 2026 and the group is also considering another business hotel in Bengaluru.
As per data shared by JLL Hotels & Hospitality Group, the first half of 2024 saw the signing of 16,200 keys in tier two and three cities, a 59% hike as compared to 10,200 keys in the first half of 2023. “Developers recognize the untapped potential in these cities and aim to cater to the rising demand for quality hospitality infrastructure, presenting significant investment opportunities in the hotel sector,” said Jaideep Dang, MD, Hotels and Hospitality Group, India at JLL.
Recognising the sector's promising growth, there has been an upswing in investments from real estate companies foraying into the hospitality sector, said Nikhil Sharma, MD and ASVP, South Asia, at Radisson Hotel Group. \
Frequently Asked Questions
Why are real estate developers investing in hospitality projects?
Real estate developers are investing in hospitality projects as they see immense value in integrating hotels with branded residences and catering to the rising demand for quality vacation experiences.
Which cities are seeing a surge in hospitality projects?
Cities like Mumbai, Hyderabad, Delhi NCR, Goa, and Bengaluru are seeing a surge in hospitality projects.
What is driving the growth of the hospitality sector in India?
The hospitality sector in India is experiencing a golden era driven by enhanced infrastructure, high demand, and increased consumption of quality hospitality.
Who are some of the key players in the hospitality sector in India?
Some of the key players in the hospitality sector in India include Marriott International, Radisson Hotel Group, and Oyo.
What is the expected growth in the hospitality sector in India?
The hospitality sector in India is expected to see significant growth, with developers recognizing the untapped potential in tier two and three cities and aiming to cater to the rising demand for quality hospitality infrastructure.
Related News Articles
Pune's Real Estate Market: Understanding the Impact of Shraadh
Explore how the annual Shraadh period affects Pune's property market, including registration, stamp duty, and homebuyer trends.
Ropes & Gray Guides GCM Grosvenor on Strategic European Real Estate Investments
Ropes & Gray, a leading international law firm, has advised GCM Grosvenor, a global alternative asset management firm, on a series of strategic investments in the European real estate market. These investments include an initial stake in the residential d
Office Space Leasing to See 14% Surge in 2024: Cushman & Wakefield
India's office real estate market is booming, with gross leasing expected to reach a record 85 million sq ft in 2024, driven by strong demand from various sectors.
Tri-City Property Fest: Discover Prime Real Estate in Gandhinagar, Ahmedabad, and GIFT City
The Tri-City Property Fest, set to take place in Gandhinagar from January 10-12, will feature over 120 real estate projects by 65 top developers. Attendees can explore prime opportunities across Gandhinagar, Ahmedabad, and the rapidly developing GIFT City
25 LPA Feels Like Nothing: IT Professional Regrets Relocation to Bengaluru
An IT professional from Pune shares his regrets about moving to Bengaluru, despite a 40% pay hike, due to the high cost of living and increased stress.
BM Property: Why Bengaluru North is Attracting Real Estate Investors
The recent development works, improved connectivity, and financial activities in Bengaluru North have significantly boosted the real estate market, making it a highly attractive region for investors.