Hospitality sector sees more revenues, profit in 2018
NEW DELHI: Banking on growing domestic tourism, foreign tourist arrivals, airline passenger numbers as well as muted supply growth, hotel chains and sector experts predict 2018 to result in better room revenues and profit margins than in the year that just ended. The past year saw the start of an uptrend in the , but was also marked by multiple challenges like curbs on liquor sale and the rollout. With these issues behind them, hotel operators expect business growth to pick up momentum in 2018. Demonetisation and the ban on liquor sales within 500 meters of highways had affected MICE (meeting, incentive, conference and exhibition) activities and the food and beverages segment, said Pavethra Ponniah, vice president at ratings firm ICRA. “As active supply pipeline — especially the hotels which are nearing completion — is still narrow across most cities, we expect the industry growth to pick up significantly starting financial year 2019. By then, domestic demand would ...