• RevPAR outlook: Q2 RevPAR growth of 25% was aided by BRICS, while matching that pace in Q3 is harder on a higher base. Post-Diwali events, Christmas and New Year, and stronger international demand are expected to support Q3 and Q4.
• Annual guidance: Indian Hotels raised its full-year top-line growth guidance by 300 basis points to 17 to 19%; including airline catering, it expects 15 to 17% growth. Hotel growth is expected to be stronger, while catering could improve if the West Asia crisis subsides.
• India demand: Management said branded-room demand continues to outpace supply: India has 200,000 rooms, is expected to reach 400,000, and needs around 1 million. Domestic tourism has grown at a CAGR of 11% for the last 10 years; foreign tourist arrivals are growing at sub-4%, with next year’s World Travel & Tourism Council summit expected to help.
• Competition and capacity: Chhatwal sees room for more hospitality players and more luxury, budget, mid-market and upscale hotels, particularly in tier 2 and tier 3 cities where supply is limited. He said Taj’s locations and assets are difficult to replicate and that competition encourages agility and innovation.
• Catering recovery: Revised flight schedules from October increased domestic and international flights, supporting TajSATS. Non-airline catering has almost reached 20% in the second quarter of total airline catering revenue, with plans to expand institutional catering and use TajSATS kitchens to support food offerings, including for Ginger.