By BW Hotelier
HOSPITALITY CONSULTING giant, has released an article titled ’Investing in Leisure: Exploring the Untapped Potential’ by Achin Khanna, Managing Director, HVS Consulting & Valuation and Rishabh Thapar, Associate, HVS Consulting & Valuation.
The article evaluates the past performance and potential that leisure destinations hold for hotel development and why hotel investors must more actively look at investing in leisure destinations across India.
Operating hotels in leisure destinations may have been less lucrative for multiple reasons in the past including seasonality, inaccessibility, lack of quality manpower and high fixed/operating costs. Consequently, today, amongst the proposed branded supply of 45,000 rooms in India (under active development being tracked by HVS) only 18 per cent are in leisure destinations. However, in light factors such as the burgeoning middle class, increased leisure spending/travel interest, growing domestic tourism, pro-tourism initiatives by the government and the performance of hotels in leisure destinations, it is both interesting and important to evaluate whether leisure destinations in India are still less lucrative than business destinations from a hotel investment perspective.
The article highlights the growth of various markets and the opportunities in leisure destinations while looking closely at some of the trends in leisure tourism. It also reviews performance of hotels in leisure destinations, benchmarked against an All-India average.
In conclusion, the higher RevPARs in leisure destinations, combined with incremental leisure spending on food and beverage, spas and travel & tours, merit investments into leisure destinations for hotel investors.
Photo is purely representational.-
Click to read-
HVS Report
HOSPITALITY CONSULTING giant, has released an article titled ’Investing in Leisure: Exploring the Untapped Potential’ by Achin Khanna, Managing Director, HVS Consulting & Valuation and Rishabh Thapar, Associate, HVS Consulting & Valuation.
The article evaluates the past performance and potential that leisure destinations hold for hotel development and why hotel investors must more actively look at investing in leisure destinations across India.
Operating hotels in leisure destinations may have been less lucrative for multiple reasons in the past including seasonality, inaccessibility, lack of quality manpower and high fixed/operating costs. Consequently, today, amongst the proposed branded supply of 45,000 rooms in India (under active development being tracked by HVS) only 18 per cent are in leisure destinations. However, in light factors such as the burgeoning middle class, increased leisure spending/travel interest, growing domestic tourism, pro-tourism initiatives by the government and the performance of hotels in leisure destinations, it is both interesting and important to evaluate whether leisure destinations in India are still less lucrative than business destinations from a hotel investment perspective.
The article highlights the growth of various markets and the opportunities in leisure destinations while looking closely at some of the trends in leisure tourism. It also reviews performance of hotels in leisure destinations, benchmarked against an All-India average.
In conclusion, the higher RevPARs in leisure destinations, combined with incremental leisure spending on food and beverage, spas and travel & tours, merit investments into leisure destinations for hotel investors.
Photo is purely representational.-
Click to read-HVS Report
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