India’s hospitality industry is entering one of its most transformative periods, driven by domestic travel, shifting consumer behaviour, and renewed investor confidence. In a conversation with Sobia Khan of The Economic Times, Jai Sreedhar, CEO and Joint Managing Director of Rosetta Hospitality, discusses the opportunities, challenges, and technology trends shaping the sector, and outlines the company’s roadmap after its rebranding, Excerpts:
What’s your outlook for India’s hospitality sector over the next three to five years?
India’s hospitality industry is at the threshold of its most dynamic phase. Despite several years of steady development, India continues to have one of the lowest hotel room counts per capita globally — much lower than countries like China or the U.S. This supply gap points to significant untapped potential. We expect the sector to grow at a compounded annual rate of about 10–12% over the next three to five years. This growth will be driven by rising disposable incomes, improved air and road connectivity, and a strong domestic travel base. While urban business hotels will maintain stable demand, the real momentum will come from the leisure segment, especially destinations within driving distance of major metros. For operators like us, the opportunity lies not just in adding rooms but in building destination-led experiences that combine wellness, culture, sustainability, and gastronomy.
How has consumer travel behaviour evolved in recent years?
The most visible change is in how travellers define luxury. The earlier notion of luxury as grandeur or display has shifted to a focus on experience and authenticity. Travellers are now drawn to properties that offer personalised service, meaningful local experiences, and wellness-driven itineraries rather than ornate décor. We are also seeing a clear rise in short, spontaneous leisure trips to destinations that are within easy driving distance from metros. The blending of work and leisure has enabled longer hybrid stays. Another major shift is the influence of younger travellers, especially Gen Z. They value sustainability, seamless digital experiences, and authenticity. Their travel choices are shaped less by advertising and more by peer reviews and social media narratives. This is pushing hospitality operators to rethink brand storytelling, sustainability, and tech integration as central pillars.
What are the key challenges the industry is facing right now?
There are three main challenges: rising costs, limited access to capital, and high attrition. Construction and fit-out costs have increased by 15–20% over the last three years, putting pressure on project feasibility. Energy and supply chain costs remain volatile. The government’s rationalisation of GST rates has been positive for consumers, but the lack of input tax credit on the 5% slab continues to distort project economics for operators. Financing remains another pain point. Hospitality projects have long gestation periods — often three to four years for construction and up to a year to stabilise operations — but they rarely receive the kind of lending terms extended to infrastructure or industrial projects. Finally, talent retention is a serious issue. Attrition rates in India’s hospitality sector hover around 20–25%, much higher than global benchmarks. The new workforce seeks faster growth, broader skill exposure, and purpose-led careers. Structured training and leadership development are now essential to retaining talent. Sustainability is an additional challenge that can’t be ignored. Investments in renewable energy, waste management, and water conservation are capital-intensive, but they are increasingly non-negotiable in the eyes of consumers.
How is technology reshaping hospitality operations and guest experiences?
Technology is now central to every aspect of hospitality — from discovery and booking to post-stay engagement. Guests expect a seamless, omni-channel experience: personalised recommendations, digital check-ins, cashless payments, and real-time service responses. On the operations side, technology is improving efficiency through advanced revenue management systems, integrated property management platforms, and data-driven CRM tools that unify guest profiles across properties. At Rosetta, we are implementing an enterprise-wide CRM to consolidate guest data across our resorts and our luxury timeshare platform, Club Rosetta. This ensures that every guest enjoys a consistent experience across destinations. IoT-based energy management and predictive maintenance tools are also playing a key role in enhancing sustainability and reducing downtime. In the future, technology will continue to bridge ecosystems, linking domestic operators with global networks and creating a more connected hospitality experience.
What’s next for Rosetta Hospitality following your rebranding?
The rebranding marks a natural evolution of our identity. We began as Rosetta by Ferns, drawing on the reputation of our parent company, Ferns Estates and Developers, to establish credibility. With the success of Rosetta Sakleshpur and growing brand recognition, we felt ready to stand independently as Rosetta Hospitality. Our growth strategy now rests on three pillars. First, deepening our leisure portfolio — from Sakleshpur and Goa, with three new resorts under development, we aim to reach 8–10 destination resorts within five years. Second, expanding through partnerships, including our collaboration with Interval International, which links Club Rosetta members to a global exchange network. Third, embedding sustainability and technology as part of our brand DNA to ensure consistency and quality across all locations.Our expansion will follow a mix of own-and-operate and lease-and-operate models. The focus is on deliberate, destination-led growth where each resort reflects local culture and environmental consciousness. The next phase for us is about scaling responsibly while building long-term institutional value.
What’s your outlook for India’s hospitality sector over the next three to five years?
India’s hospitality industry is at the threshold of its most dynamic phase. Despite several years of steady development, India continues to have one of the lowest hotel room counts per capita globally — much lower than countries like China or the U.S. This supply gap points to significant untapped potential. We expect the sector to grow at a compounded annual rate of about 10–12% over the next three to five years. This growth will be driven by rising disposable incomes, improved air and road connectivity, and a strong domestic travel base. While urban business hotels will maintain stable demand, the real momentum will come from the leisure segment, especially destinations within driving distance of major metros. For operators like us, the opportunity lies not just in adding rooms but in building destination-led experiences that combine wellness, culture, sustainability, and gastronomy.
How has consumer travel behaviour evolved in recent years?
The most visible change is in how travellers define luxury. The earlier notion of luxury as grandeur or display has shifted to a focus on experience and authenticity. Travellers are now drawn to properties that offer personalised service, meaningful local experiences, and wellness-driven itineraries rather than ornate décor. We are also seeing a clear rise in short, spontaneous leisure trips to destinations that are within easy driving distance from metros. The blending of work and leisure has enabled longer hybrid stays. Another major shift is the influence of younger travellers, especially Gen Z. They value sustainability, seamless digital experiences, and authenticity. Their travel choices are shaped less by advertising and more by peer reviews and social media narratives. This is pushing hospitality operators to rethink brand storytelling, sustainability, and tech integration as central pillars.
What are the key challenges the industry is facing right now?
There are three main challenges: rising costs, limited access to capital, and high attrition. Construction and fit-out costs have increased by 15–20% over the last three years, putting pressure on project feasibility. Energy and supply chain costs remain volatile. The government’s rationalisation of GST rates has been positive for consumers, but the lack of input tax credit on the 5% slab continues to distort project economics for operators. Financing remains another pain point. Hospitality projects have long gestation periods — often three to four years for construction and up to a year to stabilise operations — but they rarely receive the kind of lending terms extended to infrastructure or industrial projects. Finally, talent retention is a serious issue. Attrition rates in India’s hospitality sector hover around 20–25%, much higher than global benchmarks. The new workforce seeks faster growth, broader skill exposure, and purpose-led careers. Structured training and leadership development are now essential to retaining talent. Sustainability is an additional challenge that can’t be ignored. Investments in renewable energy, waste management, and water conservation are capital-intensive, but they are increasingly non-negotiable in the eyes of consumers.
How is technology reshaping hospitality operations and guest experiences?
Technology is now central to every aspect of hospitality — from discovery and booking to post-stay engagement. Guests expect a seamless, omni-channel experience: personalised recommendations, digital check-ins, cashless payments, and real-time service responses. On the operations side, technology is improving efficiency through advanced revenue management systems, integrated property management platforms, and data-driven CRM tools that unify guest profiles across properties. At Rosetta, we are implementing an enterprise-wide CRM to consolidate guest data across our resorts and our luxury timeshare platform, Club Rosetta. This ensures that every guest enjoys a consistent experience across destinations. IoT-based energy management and predictive maintenance tools are also playing a key role in enhancing sustainability and reducing downtime. In the future, technology will continue to bridge ecosystems, linking domestic operators with global networks and creating a more connected hospitality experience.
What’s next for Rosetta Hospitality following your rebranding?
The rebranding marks a natural evolution of our identity. We began as Rosetta by Ferns, drawing on the reputation of our parent company, Ferns Estates and Developers, to establish credibility. With the success of Rosetta Sakleshpur and growing brand recognition, we felt ready to stand independently as Rosetta Hospitality. Our growth strategy now rests on three pillars. First, deepening our leisure portfolio — from Sakleshpur and Goa, with three new resorts under development, we aim to reach 8–10 destination resorts within five years. Second, expanding through partnerships, including our collaboration with Interval International, which links Club Rosetta members to a global exchange network. Third, embedding sustainability and technology as part of our brand DNA to ensure consistency and quality across all locations.Our expansion will follow a mix of own-and-operate and lease-and-operate models. The focus is on deliberate, destination-led growth where each resort reflects local culture and environmental consciousness. The next phase for us is about scaling responsibly while building long-term institutional value.
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