Branded hotels in the country are likely to see double-digit revenue growth of 13-14 per cent in 2024-25, and 11-12 per cent in the next financial year on demand surge, a report said on Thursday.
While domestic leisure and business travel will continue to be the primary demand drivers, growing traction in the MICE (meetings, incentives, conventions and exhibitions) segment and pickup in foreign tourist arrivals will provide additional fillip, Crisil Ratings said in a report.
The branded hotels segment registered a strong 17 per cent growth last fiscal, it added.
To meet the increasing demand, the pace of room additions, which has increased since last fiscal, is expected to pick up further and majorly through the asset-light management contract route, it said.
As a result, supply will increase by 20 per cent over this fiscal and the next, it added.
Operating margin is expected to improve by 100-150 basis points (bps) this fiscal and sustain at similar levels in the next, it ...