Indian hotel market to grow to around $13 bn by 2020

The Indian hotel market is projected to grow to around USD 13 bn by 2020, according to FICCI-Yes Bank Knowledge Paper titled ‘Tourism Infrastructure Investments: Leveraging Partnerships for Exponential Growth’. Further, as per World Travel & Tourism Council’s 2018 report, the industry contribution to capital investment in India was Rs 2706.1 bn in 2017 and is projected to grow 6.7 per cent per annum in next 10 years to Rs 5546.3 bn by 2028, higher than the global average of 4.5 per cent.
Despite increase in private sector investment, the Indian hotel industry observed a decline in average room rate and room occupancy in 2016-17 which is largely attributed to lower participation of hotels in the five-star deluxe and five-star categories in India.