Mandeep Lamba, President – South Asia, HVS ANAROCK
The best matches may be made in heaven, but the most memorable weddings happen in picturesque locales back on terra firma. Destination weddings are redefining India’s wedding culture (already famous for opulence, customs and traditions spread over several days).
While the trend of destination weddings is not exactly an Indian concept, its percolation into the globe-trotting Indian millennial milieu was inevitable. Wedding halls are passé – perfect, fairy-tale settings for one of life’s most momentous events are increasingly ‘in’.
It has been reported that the Indian destination wedding industry is expected to reach a market size of INR 45,000 Cr by 2020, with a projected annual growth rate of 25-30%.
Factors such as the rise of the middle class, a booming economy and celebrity endorsements – amply stirred by social media-induced aspiration – have contributed to this growth.
Destination weddings have also given a major shot in the arm to wedding planners, banquet organisers and wedding apparel designers – who, in any case, had little to complain about in a country where all stops are pulled out for weddings.
- Approx. 8,574 keys to hit the market in 2019; nearly 19% increase over the last 2 years
- Revenue per available room (RevPAR) sees 17% growth between 2016 and 2018
- Average daily rates saw a 6.25% rise in 2018, faster than 4.5% long-term inflation rate
- Goa saw the largest signing of keys in 2018 at nearly 2,209 keys, eclipsing Bengaluru by just 192 keys
- Hotel transaction volume hit an all-time low in 2018 at INR 5,354 mn since 2007; 2019 likely to witness the sale of high-value hotel assets valued USD 800 mn across key markets
Mumbai, 10 April 2019: With demand finally outpacing supply, the Indian hospitality industry is on an upswing. The ‘India Hospitality Industry Review 2018’ report by HVS ANAROCK predicts RevPAR to grow by 9.5% in 2019.
Interestingly, Q1 2019 itself saw unexpected growth in the India hotel industry. The successful transaction of the Leela Hotels & Keys portfolio in Q1 2019 set a healthy tone for the start to the year, and trends indicating that 2019 could see transaction volumes reach around USD 800 mn.
- New housing supply estimated at 1,93,600 units by 2018 end; an annual increase of 32%
- Housing sales in 2018 estimated at 2,45,500 units; an annual increase of 16%
- NBFC crisis holds sector at gunpoint as 2019 begins
Anuj Puri, Chairman – ANAROCK Property Consultants
The year 2018 was a veritable roller-coaster ride for Indian real estate. Despite signs of recovery across segments, the liquidity crunch – further exacerbated by the NBFC crisis – put all industry stakeholders on tenterhooks.
Consolidation via mergers and acquisitions was rife in all sectors, completely redefining the concept of ‘financial health’ among players and drawing clear lines on who will survive the heat. This process will continue throughout 2019, as well.
Despite all odds, economic indicators remained positive with India’s GDP growth rate pegged at 7.3% in 2018. CPI inflation, a major concern in the past, remained reined in at a manageable 4.8%.
GDP growth and contained inflation are generally considered panacea for most real estate woes. However, it took a lot more than that for real estate to retain even a semblance of an even keel in 2018.
Anuj Puri, Chairman – ANAROCK Property Consultants & HVS ANAROCK
There’s a popular saying in India – Athithi Devo Bhava –meaning the guest is God. Backed by this popular belief and the rising business prospects due to the significant growth of the Indian travel industry, homestays have today become a viable option for both travellers and its owners alike.
For the guest, it’s a home away from home that is nicely tucked into the greens or high up in the hills, in the remotest hinterlands. For the property owner, it’s a lucrative income source.
Numbers suggest that India’s travel market is projected to grow at an annual rate of 11-11.5% and will be worth $48 bn by 2020. Homestays are indisputably one of the means to cater to this growing demand. Rising disposable incomes, focused government measures to boost the travel industry and the growing appetite for travel is accelerating this growth.
In fact, India saw a 15.6% annual increase in foreign tourist arrivals in CY 2017 as against the previous year. Business tourism too is expected to grow three-fold by 2030 from $30 bn in 2015.
Anuj Puri, Chairman – ANAROCK Property Consultants
- New-age technology and data-driven concepts have significantly influenced asset management in the hotel sector today
- Luxury hotel guests expect an international experience wherever they go and country-specific limitations are not accepted
Rising disposable incomes at the hands of the middle class, an increasing number of multi-millionaires and the growing quest to travel have given a major boost to the tourism and hospitality sector in India.
Over the last decade, this sector has accounted for nearly 7.5% of the country’s GDP. It is estimated that the Indian hospitality sector is likely to witness high double-digit annual growth by 2022.
The sector is a major direct and indirect employment generator, attracts massive FDI inflows and is the most important net foreign exchange earner for the country.
Considering its potential, the Government must necessarily incentivize investment into the hospitality sector by lowering the taxes on its development and giving it industry status.
Since it relies on a host of other sectors such as transportation,
HVS And ANAROCK Join Forces To Tap Into India’s $210 Billion Hospitality Market
- Partnership to boost HVS India’s annual turnover by up to 75%
- Multiple big-ticket hotel funding, divestments & acquisitions already underway
Mumbai, 17 May 2018: India’s leading real estate services firm, ANAROCK Property Consultants, today announced its partnership with HVS, the global hospitality sector leader.
As a new business vertical under the ANAROCK Group, HVS ANAROCK will focus on brokerage, feasibility studies, operator searches, appraisals, executive search and other hospitality sector consulting and advisory services throughout South Asia.
Anuj Puri, Chairman – ANAROCK Property Consultants takes on the added role of Chairman – Hospitality at HVS ANAROCK and the Firm’s soon-to-be-appointed CEO will report to him. Shobhit Agarwal, MD & CEO – ANAROCK Capital will head the transactions vertical at HVS ANAROCK.
Stephen Rushmore Jr, President and CEO – HVS, commented, “We are very excited to partner with ANAROCK as we share a strong professional and cultural fit.