Chandigarh Hospitality Trends 2024: Growth & Emerging Opportunities

# Chandigarh Hospitality Trends 2024: Growth & Emerging Opportunities

Chandigarh, known for its urban planning and quality of life, has emerged as a growing hospitality market in North India. In 2023/24, the city experienced steady hotel demand, fueled by business travel, leisure tourism, and growing M.I.C.E. events. With limited supply growth, hotels are capitalizing on premium pricing and higher occupancy rates.

• Chandigarh Airport handled over 4.2 million passengers in 2023/24, marking a strong recovery.
• Passenger traffic grew from 3.5 million in 2021/22 to 4.2 million in 2023/24, reflecting an increase of 20% over two years.
• Growth in business and leisure travel supports consistent hotel occupancy.

• ADR increased to ₹6,450, indicating premium pricing power.
• RevPAR showed stable growth, driven by strong demand for corporate and leisure stays.
• Occupancy levels remain steady at 67.8%, positioning Chandigarh as a high-demand market.

• Only 320 new rooms were added, bringing total inventory to 5,620 rooms.
• Limited new supply allows existing hotels to maintain high ADR and occupancy.
• Midscale and luxury hotels dominate the market, catering to diverse traveler segments.

• Chandigarh recorded ₹4,370 RevPAR, ranking among the top-performing Tier-2 cities.
• Strong domestic travel demand has helped sustain revenue growth.

• Total room revenue reached ₹8.9 billion, reflecting steady market performance.
• Higher ADRs contribute to revenue growth, even with slower supply expansion.

• Chandigarh is witnessing a rise in M.I.C.E. (Meetings, Incentives, Conferences, and Exhibitions) activity.
• Growth in corporate travel and weddings has led to higher occupancy in luxury hotels.
• Event spaces and banquet halls are driving alternate revenue streams.

• Midmarket and upscale hotels dominate, accounting for over 70% of the market.
• Luxury hotels are seeing increased demand, particularly for weddings and high-end travelers.

• Revenue per key stands at ₹18.6 lakh, keeping Chandigarh competitive in the Tier-2 segment.
• Sustained demand and pricing power help maximize per-room profitability.

• Hotel supply expected to grow by 15% over the next five years.
• Expansion in the upscale and premium segment will continue to shape the market.
• Sustained demand from corporate travelers and social events will drive future growth.

✅ Air travel growth supports steady hotel demand.

✅ Premium pricing keeps ADR and RevPAR strong.

✅ Total room revenue of ₹8.9 billion showcases stable market strength.

✅ Limited new supply benefits existing hotels, maintaining high occupancy rates.

✅ Growing M.I.C.E. activity and business travel ensure long-term sustainability.

• Expand event-driven revenue streams, including M.I.C.E. and destination weddings.
• Leverage pricing advantages by maintaining premium ADR levels.
• Enhance digital marketing to attract corporate travelers and high-end leisure guests.
• Optimize existing inventory as new supply remains limited.