The room additions in the hotel industry are expected to remain below pre-COVID levels in 2023-24, according to CMIE’s Industry Outlook. “Rising travel demand and higher occupancy rates are driving the need for additional capacities in the industry. Better global macroeconomic conditions and resumption of e-visa services with key source countries will lead to an increase in foreign tourist arrivals. Demand for domestic travel is expected to remain robust in the current year. Most of the room additions projects expected to be completed in 2023-24 will be adding capacities in smaller cities. The hotels industry is anticipating an increase in demand over the next few years. It is therefore expected to continue to significantly add capacities over the next few years. We expect the industry to add a capacity of 5,210 rooms in 2023-24. The industry added 5,993 rooms in 2021-22 and 5,354 rooms in 2022-23. However, room additions will continue to be below pre-COVID levels. The industry on an average added 7,686 rooms per year in the five years from 2015-16 to 2019-20,” noted CMIE’s Industry Outlook.
