Tag Archives: HVS Anarock

A total of 11,097 keys for midscale hotels were signed in 2018, as compared to 9052 keys in 2017 and 9284 keys in 2016, revealed a report by HVS ANAROCK. The report stated that the value-driven volume customer, seeking a full- service hotel continues to drive the growth in midscale space, leaving far behind the branded economy segment, which is yet to fully find its footing in the Indian market. To add further fuel to fire, the relatively new-kids-on-the-block and considered to be outliers, such as Oyo, Treebo and Fabhotels have very quickly come to dominate the economy segment, setting the goal post a further drift for the mainstream brands.

The year 2019 is expected to outpace 2018 with a total of 105 new branded hotel openings with a total key count of 8,574 keys, according to a ‘India Hospitality Industry Review’ report by HVS ANAROCK. The effort to open new hotels, big or small, requires hotel operators to coordinate large amounts of pre-opening effort. So, while domestic operators opened 65 hotels of the total 134 openings in 2018, which represents nearly half of all the openings in terms of key counts, domestic operators represented only 32 per cent of the total 7,215 keys. Bengaluru witnessed the largest number of new openings by a large margin, in part due to the opening of the Sheraton Grand Bengaluru Whitefield Hotel & Convention Centre with 360 keys.

Rapid urbanisation in India is increasingly making Tier-III markets more relevant in the eyes of the hotel brands, according to a ‘India Hospitality Industry Review’ report by HVS Anarock. Nearly a third of new hotel signings emerge from these markets despite hotels being much smaller than those located in Tier-I markets. This is also happening on account of newer hotel management companies setting shop as also the smaller ones looking to grow rapidly through franchise or management agreement of smaller stand-alone hotels in Tier II, III cities.