Hotels To See 9-11% Revenue Growth In FY25: CareEdge

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..CareEdge Research Report.The robust resurgence in demand, coupled with the gradual alignment of supply and demand of branded hotels room inventory, has been a noteworthy facet of the hospitality sector's post-pandemic trajectory. The sector is currently in the second year of an upcycle. In FY23, revenue per available room recorded an impressive year-on-year growth of almost 88 per cent, reaching levels approximately 9% higher than the pre-pandemic period, at Rs 4,200-4,400 (average for branded rooms in India). Pan India, average room rates are expected to be around Rs 7,200 to Rs 7,400 in the current fiscal, which is likely to rise further to Rs 7,700 to Rs 7,900 in FY25. We estimate FY24 will end at RevPAR growth of 12-14 per cent on the high base of FY23. This growth momentum going forward is expected to be sustained in FY25, resulting in likely YoY revenue growth by 9-11% backed by healthy domestic leisure and business travel and complemented by increasing foreign tourist arrivals, contributing to an improved credit profile for industry players. The positive momentum in operating margins, which averaged 27-30% in FY23 (for a few key major players the margins are in the range of 33-35%) is also anticipated to persist over the next two years as the sector forges ahead. While supply of room inventory is expected to experience a delayed catch-up due to the protracted setup period for greenfield hotels, organised players are strategically expanding their footprint in an asset-light manner. Anticipated supply growth is estimated to range from 4% to 5% compounded annual growth rate over the next four-five years, adding over 50,000 rooms to the country's current inventory of approximately 160,000 branded rooms. Medium-term growth prospects are promising, bolstered by new tourism policies, increased budget allocations by GoI, and the government’s ambitious plans to expand and improve infrastructure through airports and road and highway development which is expected to bolster connectivity and thus aid travel and tourism..Click on the attachment to read the full report:.IEA Q1 Gas Market Report – Demand Returns, To Pick Up Pace Over CY24: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hotels To See 9-11% Revenue Growth In FY25: CareEdge

Third straight year of growth in current upcycle

Choose a plan