The hotel sector is experiencing a remarkable resurgence, with a significant 27-29% increase in revenue per available room (RevPAR) compared to pre-pandemic levels. According to Sunjae Sharma, Managing Director of Hyatt India, the company is not just expanding its property portfolio but is also set to introduce new brands in the coming years. This strategic growth underscores Hyatt’s commitment to enhancing its presence in the Indian market.
Hyatt’s Ambitious Expansion Plans
Hyatt currently boasts 52 hotels and plans to add seven more by the end of this year, with an impressive target of nearly ten new properties annually starting next year. With 21 signings already secured for 2024, Hyatt is on track to reach 100 hotels by 2030. The company aims to establish over 50 additional hotels across India within the next five years.
- Current Properties: 52
- New Openings This Year: 7
- Annual Openings Starting Next Year: ~10
- Projected Hotels by 2030: 100
Targeting Domestic Demand
Sharma emphasized that the surge in demand is largely driven by domestic travelers. As such, Hyatt is focusing on tertiary cities and other emerging destinations to cater to this growing market. By tapping into lesser-explored locales, Hyatt is poised to capitalize on the increasing interest in domestic tourism.
Expanding Brand Portfolio
Hyatt operates 34 brands worldwide, with nine currently in India. This year, the company will introduce an additional “Destination by Hyatt” brand. Recently, Hyatt has also acquired the “Standard” brand, which aims to serve as an entertainment hub in bustling cities like Bengaluru, Delhi, Mumbai, and Goa. The addition of Andaz, a lifestyle brand already present in India, further diversifies Hyatt’s offerings.
- New Brand Launch: Destination by Hyatt
- Acquisition: The Standard (entertainment-focused)
- Existing Lifestyle Brand: Andaz
Popularity of Alila and Future Prospects
One of Hyatt’s standout brands, Alila, has gained traction in India, with properties like Alila Diwa in Goa receiving positive reviews. Currently, three new Alila hotels are under construction in Igatpuri, Coorg, and Lansdowne, expected to open within the next 2-4 years. Alila positions itself as a luxury leisure brand, indicating a bright future in India’s hospitality landscape.
Market Resilience Amid Global Challenges
When asked about the ongoing tariff war, Sharma noted that it’s premature to assess its impact on the hospitality sector. With 80% of Hyatt’s clientele being domestic, the influence of international travelers remains low, suggesting stability in the business landscape.
Positive Growth Outlook
Hyatt has recorded double-digit growth over the past year, and Sharma projects this trend will continue into FY26. Since surpassing pre-COVID revenue levels in 2021, the company is optimistic about sustained growth in RevPAR.
- Projected Growth for FY26: Double digits
- Revenue Recovery: Surpassed pre-COVID levels in 2021
Opportunities Beyond Tier 1 Cities
Government initiatives aimed at promoting tourism are boosting Hyatt’s presence in tier-2 cities like Bharuch, Vithlapur, Jim Corbet, and Pushkar. This growing awareness among domestic travelers signals vast opportunities for development in the Indian hospitality sector.
Investment Strategies
Hyatt maintains an asset-light model but has formed a joint venture with Juniper for eight hotels in India. Following a successful initial public offering (IPO) last year, the company is focused on fulfilling its partners’ aspirations while minimizing direct investments.
Robust MICE Growth
The MICE (Meetings, Incentives, Conferences, and Exhibitions) segment is thriving, with wedding demand skyrocketing. The increase in wedding dates this year compared to last indicates a robust market, prompting Hyatt to prepare for heightened demand.
Hyatt Regency, Mumbai: Future Updates
Excitement is building around the Hyatt Regency in Mumbai, with updates expected soon regarding its reopening. Negotiations with the property owners are underway, promising an announcement in the near future.
In summary, Hyatt’s strategic initiatives, robust growth plans, and focus on domestic tourism position it well for a promising future in the Indian hospitality sector. With a dynamic approach to brand expansion and a keen eye on market trends, Hyatt is set to redefine luxury travel across the country.
