Indian hotel markets

• Hotel demand is driven by business and leisure travel, staycations and travel for weddings, conferences and events.

• There is also very low penetration in the Indian hotels market compared to global hotel markets

• Other growth drivers include robust domestic demands, foreign tourist increasing and hotel demand in key markets

• Major reforms in hotels

• Most of the market is controlled by the top 15 names which include Marriott, Hyatt, lemon tree and more

Indian markets

• Very strong growth

• Growth drivers include urbanisation, rising middle class and high income, largest youth population and more

Overview of industry inventory and chain affiliated hotels

• Key markets for the hotel sector is Mumbai Metropolitan Area, Delhi NCR, Bangalore, Chennai, Hyderabad, Kolkata, Ahmedabad, Pune, Jaipur and Goa

• Venture currently has 8 operating hotels out of which 6 are in Pune and 2 are in Bangalore 

• India has approximately 188k chain affiliated rooms

• Luxury and upper upscale hotels contribute to more then half of all of hotels revenue

• Key markets have 59 percent of the total amount of inventory

• Per data 57k more rooms are expected to be added by fy 27

• Foreign chains gaining on domestic chains

• Challenges include availability of land, regulatory challenges, financing and costs and more

• They expect India hotel inventories to grow at a rate of 9.3 percent and demand to grow at 12.3 percent CAGR

Pune Hotel market

• Despite strong growth in the last few years they expect the growth to be omly 2.5 percent CAGR for inventory

• Pune has many benefits like the proximity to Mumbai and has also been ranked as the second most liveable country in India

• Occupancy levels are touching 70 percent

Bangalore hotel market

• More stable with upper and middle their growing at basically the same rate

• Some demand drivers is that Bangalore is considered the Silicon Valley of India and is one of the largest and busiest countries

Maldives hotel industry

• Some growth drivers are that they are a leading tourist place because of beaches, Tourism and allied sectors are the main contributor of their GDP, market is dominated by top hotel chains and more

• 2 Challenges to the hotel industry is limited upcoming supply and Barries to upcoming construction

• Maldives has had the second most tourists compared to other touristic cities with Bali having almost 3 times more with 5.2 million tourists

• Maldives have way higher room rates compared to Bali

• International chains have the highest supply share of 56 percent

Overview of Sri Lanka hospitality market

• Sri Lanka has a lot of tourist attractions like beaches, Waterfalls and more which attracts customers

• Fast growing tourism

• Something to note is that between 2019 and 2023 the amount of 5 star hotels inventory in Sri lankroa has reduced from 14 to 6 which could be a sign of not enough tourist and not a good location to open something like this or could just be correction as 14 5 stars was the highest with the second highest being 3 4 stars. This is while all the others have stayed the same or increased. 

• Important focus on tourism by government

Risks to the hospitality market

• Reputation risks like hotels losing their reputation

• Competition risks like there is a lot of competition

• Economic risks which is basically how the hotel sector follows the economic situation and if there is a bad economic situation hotel revenue can slow down and if there is a good economics situation then it can help the hotel industry a lot

• Changing climates can also affect the hotel industry a lot

Business overview

They are a hospitality asset owner with a focus on luxury and upper up scale hotels. All their assets are operated by global operators like Marriott Hilton, Minor

and Atmosphere. Their luxury assets contributed to around 80 percent of their revenue. Their portfolio has 11 operational hotels in Maldives and in India and the generally tend to have a premium compared to their competitors. They also have award winning food and beverages services. Their occupancy on hospitality assets is around 60 percent with their committed occupancy on annuity assets around 97 percent. Some competitive strengths they have are premium hospitality assets, Grade an annuity assets and established track record of development and acquisition led growth in India and Maldives. In Pune 7 of their restaurants are in the top ten dining restraints rated by trip advisor. Their office rental spaces also have a premium of about 29 percent. Indian economy is expected to grow faster compared to the global economies. Indias hotel market is severely under penetrated compared to global hotel markets. Their growth strategy includes development and expansion of their assets, drive organic growth from their existing assets, leverage their abbilities, optimise event spaces and selective acquisitions.