In a recent report titled ‘Hotel Investment Trends – India 2023,’ JLL India unveiled significant growth and positive trends in the hospitality sector, particularly during the first quarter of 2024. According to the report, there was a noteworthy 80 per cent Year-on-Year surge in hotel transaction volumes, amounting to USD 78 million in Q1FY24.
The sector has been on an upward trajectory since 2023, witnessing record hotel signings and openings. In 2023 alone, there were 25,176 key signings and 12,647 key openings, with a notable interest in hotel development activities shifting towards Tier-2 cities, accounting for 54 per cent of total signings.
Hotel investments in India surged to USD 401 million in 2023, marking a four-fold increase compared to 2022. A significant portion, 25 per cent of the total transaction value, involved under-construction hotels across both business and leisure destinations. Additionally, 2023 saw a milestone of 22 hotel transactions, the largest in a decade, with three hotel companies debuting on the stock market through IPOs. Greenfield projects in 2023 added approximately 13,600 keys, showcasing developers’ enduring confidence in the sector’s long-term growth potential.
Jaideep Dang, Managing Director of Hotels and Hospitality Group at JLL India, commented, “The year 2023 witnessed record hotel investments, new openings, and signings, setting a strong foundation for 2024. The sector’s enthusiasm is bolstered by the performance of hotel stocks, leading to more companies entering public markets with robust valuations. We anticipate this positive trend to continue in 2024, driven by various growth avenues such as expanding commercial markets and infrastructure development.”
The rebound in the tourism sector has been particularly notable, with global travel and tourism revenues projected to increase by 8.3 per cent in 2024, reaching almost USD 930 billion. This surge marks the highest revenue figure ever recorded in the industry, reflecting a strong resurgence following the pandemic-induced downturn.
Key highlights from the report include:
– High Net Worth Individuals (HNIs) and Institutional Capital were major contributors to hotel investments, accounting for 3 per cent of total investments.- Real estate developers constituted 27 per cent of investments, followed by owner-operators at 11 per cent.
– The upper upscale segment witnessed the highest number of key transactions, followed by upscale, luxury, and midscale segments.
– Five transactions facilitated through the insolvency resolution process under the National Company Law Tribunal (NCLT) represented 33 per cent of the total transaction value, amounting to USD 133 million.
– Management contracts continued to dominate signings, comprising 78 per cent of total key signings, with an increase noted in lease and revenue share models across different tiers, making up 4 per cent of total keys signed. Tier 1 cities experienced a notable increase of 31 per cent in key signings compared to 2022, driven by the robust performance of the commercial sector.
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Yatra Online, leading corporate travel services provider and a prominent player in the online travel sector, has announced robust financial results for the third quarter of the fiscal year 2023-24. With a 23 per cent year-on-year increase in revenue, the company continues to strengthen its position in the market despite facing certain operational challenges.
The consolidated financial performance for Q3-FY24 reveals a significant growth in revenue from operations, amounting to INR 1,103 million, marking a 23 per cent increase compared to the same period last year. However, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA) showed a decline of 25 per cent year-on-year, standing at INR 48 million. Adjusted EBIDTA also experienced a decrease of 11 per cent, amounting to INR 100 million. Nonetheless, the net profit surged impressively by 119 per cent year-on-year, reaching INR 11 million.
Operational highlights for the quarter indicate a robust performance in Yatra‘s domestic air passenger segment, witnessing a remarkable growth of 26 per cent year-on-year, outpacing industry growth by a significant margin. This growth underscores the company’s effective strategies in capturing market share and solid brand recognition. Gross bookings also saw a healthy increase of 18 per cent year-on-year, totaling INR 18,605 million.
Despite challenges posed by muted business travel spends across certain sectors, Yatra continued to expand its corporate client base. The quarter saw the addition of 26 new corporate accounts, with a total annual billing potential of INR 2,237 million. Notably, subsequent to the quarter’s end, Yatra secured partnerships with prominent entities, including one of India’s largest banks and a leading pharmaceutical company.
Company’s EBITDA reached INR 653.7 million, up by 10.9 per cent year-on-year. Also, there were 3.8 Lacs hotel night bookings and 7.7 Lacs in the other bookings. Following a successful quarter, EaseMyTrip also acquired a stake of approximately 13 per cent in ECO Hotels and Resorts and signed a Memorandum of Understanding with the Government of Uttarakhand.
Dhruv Shringi, Whole Time Director & Chief Executive Officer, Yatra Online, expressed pride in the company’s strong performance during the December quarter. He attributed the robust growth in the air passenger segment to Yatra’s brand recognition and effective market strategies. Additionally, Shringi highlighted the company’s continued focus on expanding its corporate clientele and enhancing shareholder value.In a bid to fortify its market position and express gratitude to shareholders, Yatra recently launched the Yatra Prime membership initiative. This program aims to enhance travel experiences for shareholders by offering value-added benefits and convenience.
Despite certain headwinds in the operating environment, Yatra said it remains committed to seizing growth opportunities and ensuring sustained upward momentum.
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The Ras Al Khaimah Tourism Development Authority (RAKTDA) celebrated its most successful year for tourism, marking a record-breaking 1.22 million overnight arrivals in 2023, demonstrating an 8 per cent increase in overnight arrivals to the nature Emirate in comparison to 2022. This notable achievement is bolstered by a remarkable 24 per cent year-on-year surge in international visitors, which was supported by over 2,200 international activities across 30 countries.
RAKTDA said that this robust performance is a testament to its’s strategic growth initiatives, including investments in tourism infrastructure, targeted promotional campaigns, and a commitment to sustainability.
In 2023, Ras Al Khaimah achieved several notable accomplishments, solidifying its status as a global destination. Additionally, Ras Al Khaimah was recognised as a hub for business and social events, with a 23 per cent growth in MICE (Meetings, Incentives, Conferences, and Exhibitions) revenue. The region also saw a remarkable 103 per cent increase in revenue from weddings.
Ras Al Khaimah also made history by achieving Silver Certification under EarthCheck’s Sustainable Destinations program, becoming the only destination in the Middle East with this level of certification and showcasing its commitment to responsible tourism. The Emirate also reported significant improvements in energy consumption, greenhouse gas emissions, and waste output, surpassing baseline averages by 23 per cent, 29 per cent, and 61 per cent, respectively.
Enhancing airlift into Ras Al Khaimah is vital for achieving tourism arrival goals. The Emirate saw an increase in international air connectivity through direct flights with Qatar Airways, IndiGo, Smart Wings, Centrum Air, and SmartLynx. Direct flights from India, a key tourism source market, were increased, contributing to accelerated arrivals growth. Additionally, Ras Al Khaimah welcomed cruise liners, with 14 luxury cruise calls expected in the 2023/2024 season, growing to 20 by 2025/2026 and 50 by 2030/2031.
The region also collaborated with Oman Tourism Development Company (OMRAN Group) to promote cross-destination tourism and boost visitor arrivals to both Ras Al Khaimah and Musandam.
In 2023, Ras Al Khaimah hosted several notable events, including the 2023 WMF Minifootball World Cup, DP World Tour, RAK Half Marathon, Arab Aviation Summit, Exotic Wedding Planning Conference, and the Global Citizen Forum.Finally, Ras Al Khaimah set two Guinness World Record titles during the 2024 New Year’s Eve fireworks and drone display, which attracted over 65,000 visitors.
Advance bookings for tour operators for the 2024 summer season are already significantly higher than in the last tourism year and the pre-pandemic year of 2019, DRV said. It also anticipated a boost from revenues from medium haul trips, including to Turkey and Greece, and that long-haul destinations would see more passengers paying higher fares.
Commenting on the achievement, Raki Phillips, CEO, RAKTDA, expressed satisfaction with the remarkable year, stating, “Despite global challenges that have impacted our industry, we remained agile and resilient as a tourism community, working together to deliver a destination offering that would resonate with our visitors and residents alike. Ras Al Khaimah is firmly on the path for continued success in 2024 and beyond.”
Delivering More Visitors to Ras Al Khaimah
RAKTDA’s efforts to promote Ras Al Khaimah globally resulted in an 8 per cent increase in total annual visitors, reaching the milestone of 1.22 million, with a significant 24 per cent boost in international visitors. The Emirate also witnessed a notable rise in hotel occupancy, reaching an impressive 74 per cent, reflecting a year-on-year growth of 12 percentage points.
More Rooms Drive Visitor Growth
Ras Al Khaimah’s expanding hotel portfolio is central to attracting more visitors. In 2023, several new hospitality projects were announced, including Nobu, Le Méridien, W Hotels, JW Marriott & Hilton on Al Marjan Island, totaling over 1,800 keys. The destination also welcomed Anantara Mina Al Arab Ras Al Khaimah Resort and the reopening of Waldorf Astoria Ras Al Khaimah following refurbishment. Upcoming hotel projects include Westin Resort, Sofitel Al Hamra, Rove Al Marjan Island, Rotana Mangrove, and Saij, A Mantis Collection Mountain Lodge.
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EaseMyTrip.com, India’s leading online travel technology platform, has once again showcased its financial prowess by announcing outstanding financial results for the second quarter of FY24. The company reported a staggering Profit After Tax (PAT) of INR 471.8 million, reflecting a remarkable year-on-year growth of 67.2 per cent. These impressive figures reaffirm the company’s position as a leading player in India’s travel and technology industry.
During the second quarter of FY24, EaseMyTrip.com recorded exceptional performance across various key metrics:
– Air segment bookings witnessed a YoY growth of 2.3 per cent with 29.0 lakh air tickets sold (net of cancellations).
– Hotel nights bookings surged to 1,24,862, marking an impressive YoY increase of 60.2 per cent.
– The “Others” segment, which includes trains, buses, and more, experienced remarkable growth, with 2.7 lakh bookings and a substantial YoY increase of 98.5 per cent.
– The company achieved a Gross Booking Revenue (GBR) of INR 20,255.8 million, demonstrating a strong YoY growth of 2.4 per cent from INR 19,776.9 million.
Strategic Acquisitions and Expansion Initiatives
During Q2FY24, EaseMyTrip.com strategically acquired majority stakes (51 per cent) in three prominent travel companies, each known for its expertise in different sectors of the travel industry:
1. Guideline Travel Holidays Pvt. Ltd. in Mumbai.
2. TripShope Travel Technologies Pvt. Ltd. in Kashmir.
3. Dook Travels Pvt. Ltd. in Delhi.
These acquisitions not only boost the company’s growth but also extend its platforms to provide a diverse spectrum of exceptional services to a broader customer base. Guideline Travels excels in both B2C and B2B circuits, while TripShope Travel offers a range of solutions and boasts a vast customer base in Kashmir. Dook Travels provides travel services and operates across CIS countries, Turkey, the UAE, and India.
EaseMyTrip.com is further enhancing its presence in India by opening new franchise stores in key cities such as Ludhiana, Jalandhar, Delhi, and Agra. These stores are designed to provide personalized travel experiences, including flight and hotel bookings, transportation, and premium vacation packages. This expansion aims to enhance the company’s nationwide network and scalability, increasing its reach to offline customers.
The company’s consolidated Profit Before Tax (PBT) also witnessed an upswing. In Q2 FY24, the PBT surged over 16 times, reaching INR 766 million, as compared to a mere INR 49 million in Q2 FY23. The upward trajectory extended over the first half of the fiscal year, with the Group’s consolidated PBT for H1 FY24 reaching INR 1,774 million, compared to INR 26 million in H1 FY23.
Green Mobility and Global Expansion
In a bid to promote sustainable travel solutions and environmentally friendly mobility, EaseMyTrip.com has partnered with BluSmart, India’s leading all-electric ride-hailing service and EV charging superhub operator. Additionally, the company has forged an alliance with DuDigital Global Limited, a globally recognized technology company known for its excellence in administrative services, visa, passport, and identity management.With a vision to expand globally and a commitment to strategic initiatives and collaborations, EaseMyTrip.com is well-positioned as an industry leader in the evolving travel landscape.
In addition to the remarkable Q2 FY24 results, EaseMyTrip.com reported impressive performance during H1 FY24:
– Air segment bookings increased by 20.4 per cent YoY to 61.1 lakh.
– Hotel nights bookings reached 2.9 lakh, reflecting a substantial YoY increase of 90.5 per cent.
– Bookings in the Trains, Buses & Others segment grew by 66.8 per cent YoY to 5.0 lakh.
– Gross Booking Revenue amounted to INR 43,965.4 million, demonstrating a significant YoY increase of 20.8 per cent from INR 36,407.5 million.
Announcing the results, Nishant Pitti, Co-founder & CEO of Easy Trip Planners, commented, “I am delighted to report that our Q2FY24 Profit After Tax surged to Rs. 471.8 million, a 67.2 per cent increase compared to the same quarter in the previous year. With a similar trajectory, our H1FY24 Profit After Tax reached Rs. 732.0 million, a substantial 19.3 per cent growth year-on-year. Despite the lean period in the travel industry during Q2FY24, Easy Trip Planners delivered an strong performance where we recorded Gross Booking Revenue of Rs. 20,255.8 million. Furthermore, Revenue from Operations rose to Rs. 1,416.9 million, a robust 30.6 per cent year-on-year growth and a 14.2 per cent increase from the previous quarter.”
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MakeMyTrip Limited, India’s leading travel service provider, has released its unaudited financial and operating results for the fiscal second quarter ending September 30, 2023. Despite seasonal challenges, the company has reported robust year-on-year revenue and profitability growth, driven by strong travel demand across various categories.
The company recorded Gross Bookings of USD 1.839.7 million in Q2 FY24, a substantial increase of 23.8 per cent in constant currency compared to USD 1,514.7 million in the same period last year (Q2 FY23). According to IFRS (International Financial Reporting Standards), the company reported revenue of USD 168.7 million in Q2 FY24, reflecting a remarkable 32.8 per cent year-on-year growth compared to USD 131.3 million in Q2 FY23.
Segment-wise performance:
MakeMyTrip‘s various segments contributed significantly to its strong financial performance. The Air Ticketing segment reported revenue of USD 80.3 million, while Hotels and Packages generated USD 75.7 million. Bus Ticketing recorded USD 21.8 million, and other services contributed USD 11 million in revenue.
Profit and margin:
The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY24 stood at USD 13.5 million, compared to USD 10.7 million in Q2 FY23. Remarkably, MakeMyTrip reported a profit of USD 2.0 million during this period, in contrast to a loss of USD 6.8 million in Q2 FY23.
The first half of the fiscal year (H1) for IHCL was equally impressive, as it continued to deliver exceptional results. The revenue for this period reached INR 2,997 crores, demonstrating a substantial 17 per cent YoY increase. The EBITDA registered at INR 862 crores, reflecting a notable 19 per cent YoY growth, along with an expansion of 0.4 basis points in the EBITDA margin. The Profit After Tax (PAT) for H1 reached INR 389 Crores, marking a remarkable 34 per cent YoY growth.
Expansion and acquisitions:
MakeMyTrip continues to enhance its service offerings and expand its presence in the market. On October 31, 2023, its wholly-owned subsidiary, MakeMyTrip (India) entered into an agreement to acquire a majority interest in Savaari Car Rentals, a renowned provider of inter-city car rental services in India. This strategic acquisition is set to be finalised by December 31, 2023, and is expected to bolster MakeMyTrip’s footprint in the inter-city car rental market within India.Commenting on these impressive results, Rajesh Magow, Group Chief Executive Officer, MakeMyTrip, stated, “Despite the seasonal challenges typically associated with the second quarter of the fiscal year, we are delighted to report strong year-on-year revenue growth and an expansion in Adjusted Operating Profit. Our ability to deliver innovative travel solutions, our brand strength, and our commitment to delivering superior value to our customers and partners continue to drive our profitable growth.”
The travel demand in various categories remained robust, with both Gross Bookings and profitability experiencing notable growth in this quarter, highlighting MakeMyTrip’s resilience and its ability to thrive even during seasonally challenging periods.
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