Indian hotel rates remain 40% below global benchmarks, strong rate growth potential: Dr Sanjay Sethi 

A key opportunity, Dr Sanjay Sethi MD & CEO Chalet Hotels Limited noted, lies in India’s current pricing dynamics. There is a growing perception that Indian hotels are becoming expensive, particularly in metros such as Mumbai. However, he pointed out that even Mumbai, currently operating in the range of US$160–170, is still discounted by nearly 30 to 40 per cent when compared to global peer destinations. He underlined, “This comparison does not include traditionally high-cost cities such as New York, London, or Paris. Even when benchmarked against the next tier of global cities, including Dubai, Singapore, Hong Kong, and Berlin, Indian hotel rates remain at a significant discount of close to 40 per cent.” “This value gap represents a major headroom for rate growth,” he suggested, adding that as product quality, infrastructure, and overall guest experience continue to improve, India is well placed to bridge this differential.