‘Hotel industry to see double-digit revenue growth in FY ’24’

    ICRA has predicted 13–15 per cent revenue growth for Indian hotel industry in FY2024, notwithstanding the potential impact on demand with further COVID waves, if any. Vinutaa S, Vice President & Sector Head, Corporate Ratings, ICRA, said, “Sustenance of a large part of the cost-rationalization measures undertaken during the COVID period, along with operating leverage benefits, resulted in a sharp expansion in margins. ICRA’s sample comprising 12 large hotel companies is expected to report operating margins of 28–30 per cent for FY2023, against 20–22 per cent pre-COVID. While there could be some moderation in margins from the current levels with an increase in some cost-heads, including refurbishment/maintenance, the margins are still expected to be higher than the pre-COVID levels over the medium term.”