5% revenue dip in hotels: Shree Naman Group's Harsh Shah flags early impact of West Asia crisis

Harsh Shah, Director of Shree Naman Group, acknowledged that the ongoing geopolitical disruptions have begun to weigh on both hospitality and real estate, even as he remains confident about the sectors’ resilience over the medium term. 

Speaking at the Business Today MindRush & India’s Best CEOs Awards, Shah said, “We're into both the real estate and hotel and hospitality industries. Now take hospitality. It's a very obvious one. You see huge negative impact with the drop in tourist numbers. You see business conferences and large events getting cancelled because of all the disruption to flights in the Middle East.” 

The impact is already visible in hospitality performance. “I'd say about 5% revenue impact in this last quarter,” he noted, adding that the disruption has been industry-wide. 

In contrast, real estate has not yet seen a direct hit, though early signs of strain are emerging through supply chains. “In real estate you've not yet seen it hit yet but we are seeing a lot of our supplies… getting delayed, a lot of vendors already calling in force majeure… and saying that now our delivery timelines are getting delayed,” Shah said. This, he warned, will likely have a cascading effect across projects in the coming months. 

Despite these near-term challenges, domestic demand continues to provide a buffer. “The good thing is in Indian hospitality we're still largely reliant on domestic demand… it's supporting the industry… you're not seeing too much of an impact yet,” he said, cautioning that prolonged disruption could eventually weigh on this support as well. 

On expansion plans, Shah admitted that the pace has taken a hit. “Yes in a way I do worry that… we were running at lightning fast speed. It was a bullet train that's been slightly derailed in its tracks,” he said. However, he remains optimistic about recovery, pointing to the sector’s ability to bounce back from past shocks. 

“I think you'll see an impact… you'll see delays but… there's lot of opportunities here as well,” Shah added, highlighting India’s positioning as a relatively stable and attractive destination amid global uncertainty. 

He sees a strategic upside emerging from the disruption. “India is right now looking like a very bright and safe spot… this could be a real opportunity… whether it's the largest trade fairs, conventions, weddings… why can't they now come to India?” he said.