Hospitality industry bounces back to pre-Covid levels, according to a report by HVS Anarock. “The recovery in the Indian hotel sector is back on course, with a marginal increase in hotel occupancy in June 2022 compared to May 2022, while average rates remained stable,” the hospitality consultancy firm said in its latest report.
According to the report, the industry has now entered a stable phase, despite a fall in domestic air passenger traffic that fell by eight per cent in June 2022 compared to the previous month, mainly due to the seasonality factor.
The occupancy, ADR, and RevPAR rates were all higher than their pre-pandemic levels for the month. The average daily rate (ADR) was between ₹5,750 and ₹5,950 which was at least 8-10 per cent higher than the same time in June 2019.
The average occupancy was 64-66 per cent in June 2022 which was up by 1-6 percentage points. New Delhi, Kolkata, Goa, Pune and Kochi saw the highest occupancy rise of 6-9 per cent. This was followed by Bengaluru and Chennai. The lowest occupancy was recorded in Hyderabad.
The revenue per available room (RevPAR) was ₹3,680-₹3,927, which was at least 11 per cent to 13 per cent higher than June 2019. In June 2022, Chandigarh and Pune had the highest occupancy rates in the range of 75-77 per cent, followed by Bengaluru (74-76 per cent). During the month, Goa recorded the highest average rate (₹8,500-₹10,500) in the country, followed by Mumbai (₹7,500-₹9,500).
In the first half of 2022, 7,956 rooms from 100 hotels were signed whereas 4,755 hotel rooms from 49 hotels were opened, the data compiled from 21 hotel operators showed.
Stocks of the listed hotel companies also performed well, signalling a rebound in the investors’ confidence in the sector. The highest year-to-date change in share price was recorded by Chalet Hotels (45 per cent), followed by Lemon Tree Hotels (31.1 per cent) .
IHCL’s stock prices also recorded a 24.1 per cent hike, while Oberoi hotels, listed as EIH recorded a marginal increase of 0.1 per cent.