Skift Take
Brigade Hotel Ventures’ IPO filing offers a deep dive into what’s next for the hotel sector in India. Besides growth, the data points to big shifts in demand and supply across segments while breaking down key trends.
India’s hotel market is witnessing a noticeable shift toward chain-affiliated properties thanks to a thriving travel sector and demand for reliable accommodation options.
A recent Draft Red Herring Prospectus (DRHP) filed by Brigade Hotel Ventures' throws light on this growing preference for brand-affiliated hotels that promise consistency, safety, and standardized service, as well as several other trends.
There are 192,000 chain-affiliated rooms in India as of June 2024, according to Horwath HTL India. This reflects a significant change from a sector once dominated by small, independent establishments, mostly operating in the midscale and budget segments.
The demand for chain-affiliated hotels has also surged, with daily room demand growing from 61,000 in 2015 to 116,000 by 2024.
Supply across all hotel segments is diversifying, with 34.8% of available rooms in the luxury and upper-upscale tiers, 38.6% in upscale and upper-midscale, and 26.7% in midscale and economy categories, according to Horwath HTL India.
Growth Beyond Major HubsThe spread is widening geographica