The hospitality industry plays a crucial role in driving the growth of any tourist destination, with accommodation being a key component for travelers. Since the pandemic, global tourism has rebounded significantly, with India experiencing an impressive surge. In fact, the tourism sector in 2022 outperformed 2019 levels in terms of business. The pandemic brought about new ways of working, such as virtual meetings and remote work, but once restrictions were lifted, domestic travel experienced a sharp increase.
This renewed interest in travel naturally boosted the demand for accommodation, positioning the hotel industry for a strong growth phase over the next five to six years. The widening gap between demand and supply is creating ample opportunities for new hotels to be developed across all segments and tourist destinations. With the market responding positively and the potential for early returns on investment, the hotel industry is now attracting investment from diverse business sectors, including publishing houses, which previously might not have considered this sector.
Odisha, in particular, has witnessed impressive growth in tourism over the last decade. However, the state has been unable to provide sufficient hotel accommodations in most of its tourist circuits, with a few exceptions like Bhubaneswar, Puri, and Gopalpur. Even in these areas, the availability of luxury accommodations is limited. This has created a growing demand for luxury hotels, encouraging developers to plan for exclusive five-star properties in various locations across the state.
Bhubaneswar stands out as a prime example of this trend. Until 2021, the city had only three five-star hotels. The entry of Vivanta by IHCL and ITC Welcome has since increased the number of rooms in this category to 650. Recently, the refurbished Crown IHCL SeleQtions and Lyfe have added another 200 rooms. Several additional hotels are in the works, including brands such as Sarovar Premium, Novotel, Radisson, and Atmosphere. This expansion reflects the growing importance of Bhubaneswar as a key destination for both leisure and business travelers.
The promotion of tourism by the state government has also improved dramatically in the last decade. The slogan ‘India’s Best Kept Secret’ has successfully captured the imagination of travelers, drawing attention to the state's unique offerings. Additionally, the state's Eco Retreat initiative has become increasingly popular, providing tourists with immersive experiences in nature. Another factor contributing to the tourism boom is Odisha’s proactive approach to promoting sports activities. The state has become a hub for various sports, including hockey, football, kabaddi, badminton, kho-kho, athletics, and cricket. These sporting events generate a year-round demand for hotel rooms to accommodate athletes, officials, and spectators. For instance, people from distant places like Vadodara and Coimbatore traveled to Bhubaneswar to watch the World Cup Hockey matches last year.
As a result of these initiatives, Odisha has seen an influx of national and international hotel brands. For many years, the state was home to only one national brand, Oberoi Trident. However, today it boasts a growing roster of well-known hotel chains, with more expected to arrive in the near future. Puri, a popular pilgrimage and beach destination, which previously lacked a single five-star property, is now preparing to welcome hotels from the Taj, Hyatt, and ITC Fortune brands. These luxury hotels are anticipated to be operational by late 2024 or early 2025. Atmosphere, a relatively new brand, is actively promoting Odisha as a tourist destination and plans to add several properties across the state in the near future.
Local brands are also expanding their presence in Odisha. The Mayfair Group, a well-known homegrown brand, recently opened a new hotel in Jharsuguda, a growing industrial town. Construction of the Mayfair Convention hotel in Bhubaneswar is progressing rapidly. Swosti Group, another local player, is nearing completion of a luxury resort in Puri, further enhancing the state’s luxury accommodation offerings. The Taj Group (IHCL) is negotiating to acquire properties in Gopalpur and Bhubaneswar, indicating their growing interest in the state’s tourism potential. There are also discussions that Marriott will enter the Odisha market with its Courtyard by Marriott and Fairfield by Marriott brands, targeting Bhubaneswar and the historic town of Konark, respectively.
Looking ahead, 2024 is expected to bring a significant increase in the number of five-star deluxe rooms available across Odisha. This growth trend is projected to continue for several years, with at least 2,000 new five-star rooms anticipated in the near future. The estimated investment for these developments is likely to exceed $300 million, based on a conservative estimate of Rs 1.50 crore per room.
So, Odisha’s tourism and hotel industry is poised for substantial growth, driven by increased demand, proactive government promotion, and the arrival of both national and international hotel brands. With the state’s diverse tourist attractions and growing sports calendar, the hospitality sector is set to flourish, positioning Odisha as a major player in India’s tourism landscape.
In this evolving landscape of Odisha’s booming hospitality sector, one institution stands out as the premier choice for those aspiring to make their mark in the industry—IMB School of Hospitality. Recognized as the top hotel management institute in Bhubaneswar, providing best hotel management placements in Bhubaneswar, IMB School of Hospitality, offers a distinctive combination of hands-on practical training, extensive industry exposure, and a pathway to diverse career opportunities. With a strong focus on experiential learning and a curriculum deeply integrated with industry needs, the institute fosters entrepreneurial thinking and cultivates a global perspective among its students. By choosing IMB School of Hospitality, future hospitality professionals are not only equipped with the skills needed for success but are also positioned for personal and professional growth. The institute truly opens doors to a world of possibilities in the ever-evolving and rewarding realm of hospitality, making it the ideal stepping stone for a fulfilling career in this dynamic field.