Spree Hotels Ltd. is a leading brand that reinforced its benchmark in the hospitality sector by offering exquisite top-notch services. With a significant presence across various attractions, it aims to redefine the hospitality concepts by providing optimal satisfaction to its guests. Spree Hotels employs advanced technologies to premium amenities to make its guests stay extraordinary while ensuring the optimal balance between comfort and affordability. Mr Sagar Khurana, COO, Spree Hotels Ltd. speaks to Indian Economy & Market and shares his thoughts on Indian hospitality sector.
There are a lot of disruptions happening in the entire segment of economy and industry in these critical times. What effect it has on Hospitality sector?
The recent economic and geopolitical disruptions, notably the temporary closure of few airports across northern and western India due to heightened tensions, have undeniably impacted the hospitality sector, especially in regions proximate to the border. However, the Indian hospitality industry has historically demonstrated remarkable resilience. The swift reopening of these airports following the ceasefire agreement between India and Pakistan is a testament to the transient nature of such disruptions. As peace efforts continue and travel advisories are lifted, we are witnessing a gradual restoration of traveler confidence. Tour operators and hoteliers report a resurgence in inquiries and bookings, indicating a positive trajectory towards normalization. While challenges persist, the industry’s proactive measures, coupled with governmental support and a resilient domestic travel market, position us well for a robust recovery.
Tell us something about Spree Hospitality?
Spree, by its very definition meaning enjoyment, reflects our core philosophy for both our external guests and our internal team. We aim to create an environment where everyone experiences genuine pleasure: our guests while utilizing our facilities and services, and our employees while contributing their talents and efforts within our company. Our goal is to cultivate a culture of enjoyment that permeates every interaction and experience within Spree Hotels. We are a leading brand that reinforced its benchmark in the hospitality sector by offering exquisite top-notch services. With a significant presence across various attractions, we aim to redefine the hospitality concepts by providing optimal satisfaction to our valuable guests. At Spree Hotels, we invite to embrace the mantra of “Do More” and indulge in a truly grand and unforgettable experience.
Please tell us about the journey of the company so far?
Established in 2010, Spree Hospitality commenced its journey with the inauguration of its first hotel on May 1, 2011. Initially focusing on corporate destinations, the company has since expanded its footprint to encompass a diverse array of locations across India. Our portfolio now includes pilgrim sites, leisure spots, manufacturing and IT hubs, weekend retreats, and prominent wedding destinations. Whether in Tier 1, 2, or 3 cities, our mission is to provide exceptional hospitality experiences nationwide, positioning ourselves as the preferred choice for travelers in the mid and upper-mid market segments. We also have embraced revenue-sharing lease models to diversify our operational strategies. Currently, we manage 47 properties and are on track to achieve our milestone of 50 operational assets within this quarter. Our unwavering commitment to guest satisfaction is evident in our impressive last year’s Net Promoter Score (NPS) of 85 and an average channel rating of 4.5. In November 2021, Spree Hospitality became a wholly-owned subsidiary of EaseMyTrip. This strategic acquisition has catalyzed our growth, resulting in a six fold increase in revenues; we are now poised to double our revenue in the current financial year.
Any expansion plan, and initiatives planned to attract more guests?
We are continuing to take properties on management and revenue sharing contract. We already have more than 20 properties which are being signed and yet to be opened. We are aiming to open 20+ properties during this financial year and look forward to reach the next milestone of 100 operational properties by end of FY 27.
We are continuously innovating in our F&B, curating menus that celebrate regional flavors and ingredients, offering guests authentic dining experiences. This includes sourcing ingredients locally, supporting nearby farmers and artisans, and introducing guests to traditional dishes unique to the local. We are one of the Hotel chains who are serving Filter Coffee during Breakfast. We are offering flexible booking policies, allowing guests to modify or cancel reservations with ease. Our strategic expansion this year involves aggressively targeting Tier 2 and Tier 3 locations, moving beyond our traditional focus on Tier 1 cities to significantly broaden our market reach. Simultaneously, we are prioritizing a substantial increase in direct bookings through our completely revamped website.
What is the current status of Indian hospitality sector on demand and supply front?
Overall the Indian hospitality sector in 2025 is experiencing robust growth, characterized by strong demand and a relatively constrained supply, leading to favorable market dynamics for hotel operators. Domestic tourism continues to be a primary driver, bolstered by increased pilgrim travel, leisure travel, weddings, and MICE (Meetings, Incentives, Conferences, and Exhibitions) activities. While FTAs have not yet reached pre-pandemic levels, a gradual uptick is observed, aided by government initiatives and improved infrastructure.
The addition of new hotel rooms remains modest, with a projected annual growth of 5% in FY2025. This restrained supply growth seems to be due to high land and construction costs. The industry is expected to maintain healthy growth at about 10-12% in fiscal 2025, driven by sustained domestic demand and a gradual increase in international demand. ARRs are estimated to grow 8-10% in FY2025, with expectations to rise further in the following fiscal year. There are certain markets which are witnessing a surge in hotel supply that outpaces demand, leading to a decline in Revenue Per Available Room (RevPAR).
In your opinion what makes Spree Hotels different from others?
Spree Hotels distinguishes itself in the Indian hospitality landscape through a harmonious blend of personalized service, modern amenities, cultural integration, and a commitment to sustainability. Here’s what sets Spree Hotels apart – first of all Spree Hotels seamlessly integrates contemporary design with local cultural elements. Each property reflects the unique heritage of its location, offering guests an immersive experience. For instance, the Zip by Spree Hotels in Gangtok features the Chesum Temple Room, allowing guests to engage with Buddhist traditions in a serene setting. Secondly Spree Hotels has strategically expanded its presence across India, encompassing corporate hubs, leisure destinations, and cultural centers. We have integrated advanced technologies to enhance the guest experience. Varied Brands Catering to Different Needs: With brands like “Spree Hotels”, “Spree Resorts” and “Zip by Spree Hotels,” we cater to a spectrum of travelers, from those seeking a more refined experience to those prioritizing value and essential comforts.
