Market Report India

HVS Report - India Lodging Industry: Economic Headwinds Likely to Impact Performance of the Sector in 2020 - By Mandeep Lamba, Akash Datta and Dipti Mohan

Royal Jal Mahal, Jaipur, India - Photo by Ravi Shekhar on Unsplash
India Lodging Industry: Economic Headwinds Likely to Impact Performance of the Sector in 2020

At the start of the current year (2019), the prescribed view of many industry pundits, including ours at HVS, was that of optimism due to the strong performance witnessed in 2018 that was propelled by the ongoing widening of the demand-supply gap.

Surely so, the first quarter of 2019 beat market expectations, and later in the year, the sector benefited from easing of Goods & Services Tax (GST) rate on hotel room tariffs across the board. But successive negative impacts on the sector drained much of the enthuse. The outlook for the Indian lodging industry is one of caution due to the decline in demand growth and economic headwinds shrouding the benefits accrued over the recent years, largely attributed to the increasing demand-supply gap.

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