ICRA has predicted 13–15 per cent revenue growth for Indian hotel industry in FY2024, notwithstanding the potential impact on demand with further COVID waves, if any. Vinutaa S, Vice President & Sector Head, Corporate Ratings, ICRA, said, “Sustenance of a large part of the cost-rationalization measures undertaken during the COVID period, along with operating leverage benefits, resulted in a sharp expansion in margins. ICRA’s sample comprising 12 large hotel companies is expected to report operating margins of 28–30 per cent for FY2023, against 20–22 per cent pre-COVID. While there could be some moderation in margins from the current levels with an increase in some cost-heads, including refurbishment/maintenance, the margins are still expected to be higher than the pre-COVID levels over the medium term.”
