Hotel sector poised for a rebound. Should you check in?

With high cost of land and limited avenues of financing, the room supply growth is expected to moderate to 7.9 per cent CAGR over the next three-four years.

After a lull of almost a decade, the hospitality industry in India is set to witness a meaningful uptick going ahead. Increasing middle-class population, rising disposable income, growth in foreign tourist arrivals (FTAs), and the government’s numerous initiatives to grow the domestic tourism are some of the factors, analysts say, augur well for the industry.

Fundamentals for the Indian hospitality industry are turning favorable, with demand growth (10-12 per cent) likely to outpace supply growth (5 per cent over FY18-23), reports suggest. Earlier, new inventory / room supply growth of 10.6 per cent against room demand growth of 10.2 per