Unlocking the Possible of the Extended-stay Resort Segment in India
Extended-stay motels are one of the fastest growing segments globally, nevertheless it remains a quite enviornment of interest offering in India. Read on to understand more.
Extended-stay motels are witnessing increasing recognition worldwide. As per industry stories, the international prolonged-stay motels market used to be valued at approximately USD 50 billion in 2022 and is projected to set USD 166.5 billion by 2033, growing at a compound annual growth charge (CAGR) of over 11% during this duration. The prolonged-stay resort understanding is booming, particularly in the United States, the put it targets travelers seeking a “home-away-from-home” experience during their prolonged stays. These guests assuredly stay for longer classes exceeding a couple of days and even weeks, and hence, desire to maintain further amenities fancy a kitchenette, shared laundromat, and a much bigger living home, that are in overall now not out there in ragged resort rooms. Therefore, these motels in fact develop into the sweet dwelling combining the most interesting of both worlds: the comfort of home with the conveniences of a resort, offering travelers greater comfort at a more cheap brand point, with out the hassles of getting into residential rent agreements.
Extended-stay properties maintain assuredly been most neatly-liked by business travelers on prolonged-term assignments, expatriates, vacationers on prolonged vacations, individuals relocating, or individuals undergoing scientific remedy some distance from home. The pandemic and hybrid work preparations have not too prolonged in the past generated sturdy demand for longer resort stays, increasing the recognition of charge-effective prolonged-stay motels and making them one of the fastest-growing segments in hospitality globally. Reviews indicate that the occupancy charge of prolonged-stay motels is 10-14% greater than the total resort industry in the US, and this segment additionally witnessed lower income loss during the pandemic in comparison with ragged motels. All main resort operators, including Accor, Marriott, IHG, Hilton, Hyatt, and Wyndham, maintain diversified and established their presence in this segment, and maintain a robust style pipeline.
Regardless of the prolonged stay resort understanding having a presence in India, it remains a quite enviornment of interest offering. With the exception of a handful of brands akin to Marriott Executive Apartments, Taj Wellington Mews, Ascott, and The Fern Habitat, the prolonged stay market in India is predominantly served by unorganized services. The restricted demand for prolonged stays, mainly pushed by expatriates and corporate travelers on short to medium-term assignments, has confirmed sluggish growth, which has now not incentivized local operators to introduce brands catering to this segment. Furthermore, international operators entering the Indian market maintain focused more on a one-dimension-matches-all way, and largely now not actively regarded into customizing the product to suit the assert needs of Indian guests. As an instance, Indian guests desire a truly purposeful kitchen and washing machines, as against correct a kitchenette and shared laundry amenities. Additionally, there is a lack of offerings in the midscale and financial system segments.
Having acknowledged that, with the financial system poised to develop all at the moment and as a consequence of the publish-COVID adjustments in customer behaviour, there is increasing potential within this segment, waiting to be unleashed by customizing the product to cater to assert customer groups. For instance, India is becoming a preferred scientific tourism destination, presenting an opportunity for resort chains to develop prolonged-stay properties shut to prominent hospitals and scientific centers. Equally, prolonged stay properties might possibly possibly partner with relocation service services to intention expat communities or be strategically located shut to tutorial institutions and campuses to cater to varsity students and their families. Furthermore, with the rise in multi-generational family shuffle, prolonged-stay motels can offer a charge-effective and delighted home-away-from-home experience for this customer group. As travelers continue to find out about flexibility, comfort, and comfort, prolonged-stay motels maintain the potential to play a serious intention in the future of shuffle and hospitality in India.
Akash Datta, HVS Senior Vice President – Consulting and Valuation, leads consulting engagements, encompassing market examine, feasibility examine, strategic planning, valuation, and forecasting. Akash has spent on the enviornment of 13 years in the hospitality industry having successfully worked with International Resort and Consulting firms akin to Hilton, JLL and HVS in South Asia and the Middle East. In 2005, Akash started his Consulting profession with HVS as an analyst following which he undertook his MBA in International Hospitality Management with focus in Sincere Estate Finance from IMHI ESSEC in Paris, France. Identified for his industry insights, Akash works with leading firms, deepest clients, industry groups, and international networks. Contact Akash at +91 989 9517 404 or [email protected].
Dipti Mohan, Senior Supervisor – Research with HVS South Asia, is a seasoned information professional with in depth experience in examine-basically based voice creation. She has authored a number of ‘point of ogle’ paperwork akin to understanding leadership stories, skilled opinion articles, white papers and examine stories. Contact Dipti at [email protected].
Dhwani Gupta, Affiliate – Research with HVS South Asia,