Hyderabad's hospitality soars: Novotel HICC leads as MICE and green real estate powerhouse

Hyderabad's hospitality soars: Novotel HICC leads as MICE and green real estate powerhouse

Hyderabad's real estate hospitality market is witnessing first-time growth, with integrated convention centers like the Novotel Hyderabad Convention Centre (NHCC) and Hyderabad International Convention Centre (HICC) emerging as key drivers.

Bolstered by its strategic location and MICE (Meetings, Incentives, Conferences, and Exhibitions) capabilities, NHCC has significantly exceeded pre-pandemic performance, signalling a robust outlook for the city's commercial real estate, particularly in the MICE and luxury segments.

Novotel Hyderabad Hotel and Convention Centre is an Accor brand hospitality property.

"Hyderabad's hospitality landscape has transformed dramatically, emerging as a strategic epicenter for IT, biotechnology, and pharmaceuticals. Novotel’s direct integration with HICC, which is India’s first purpose-built convention centre, makes us a preferred destination for large-scale national and international MICE events, offering convenience to business travelers and event delegates," Rubin Cherian, General Manager, Novotel Hyderabad Convention Centre & HICC, told Moneycontrol.

He said that over the past 12-18 months, NHCC has seen a strong rebound, with occupancy rates averaging above 75 percent and Average Room Rate (ARR) growing by 12 percent year-on-year.

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MICE segment a key hospitality segment driver

Cherian highlighted that the MICE travel in Hyderabad has seen a 35 percent growth in 2024 alone, which, he said, is a strong indicator that the city is now firmly on the global events map.

“Over 75 percent of NHCC's annual revenue is MICE-driven. Underscoring its pivotal role for the growth of the hospitality segment, NHCC plans to capitalize on this by focusing on sustainable and smart real estate investment, expanding bespoke MICE experiences, and embracing digital transformation with hybrid event infrastructure,” Cherian said.

He said that witnessing a huge demand for MICE and other travel trends, two more Accor brand hotels are likely in coming years.

He added that the hotel’s Revenue Per Available Room (RevPAR) has also improved significantly, driven by a surge in large conventions. Domestic travelers currently account for nearly 85 percent of our occupancy, with international traffic showing a healthy rebound thanks to events like BioAsia 2024 and the ICASSP 2025, he said.

Cherian said that from a real estate perspective, NHCC and HICC are high-value assets as these are located in HITEC City, Hyderabad’s IT and business hub, with excellent connectivity. The property occupies a 15-acre land parcel, presenting many opportunities for future development.

"We are actively evaluating opportunities for value-adding enhancements, from room inventory, to expanded F&B and wellness zones, and even co-working and flexible event infrastructure," Cherian said.

He also pointed out that the property has a potential for mixed-use development that could include retail, entertainment, and lifestyle spaces, complementing their core business.

Hyderabad's rapid urban and infrastructure development, including expanding business districts and improved connectivity, further strengthens the hotel's long-term prospects. This growth extends beyond business, with the city's rising affluence making it a hotspot for residential weddings and luxury social events, which NHCC is actively catering to with its expansive venues and curated experiences.

Cherian noted that as the city grows outward and upward, demand for large-scale, world-class venues with seamless connectivity will only intensify.

"As India’s first purpose-built convention centre integrated with a 5-star eco-certified hotel, we operate in a niche, high-potential segment. Continuous investments in renovation, energy-efficient systems like solar and atmospheric water generation, and expanded F&B concepts help future-proof the property and support long-term capital appreciation," he said.

The property boasts a 1,818-panel solar power system, generating 1.46 million units annually and offsetting significant CO2 emissions.