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Indian hotels seem to be finally out of the woods following the pandemic. According to HVS Anarock, the hospitality industry generated 4 to six per cent higher revenue per available room (RevPAR) in September 2022, compared to September 2019.
Besides, hotels were able to demand a 7-9 per cent higher room tariff in September 2022, compared to the same time in 2019.
The average daily rate of hotel rooms went up to an average of Rs 5,900-Rs 6,100, up 7-9 per cent from the same time in 2019. Cost cutting has also helped the industry, which has translated into a higher RevPAR of Rs 3,658- Rs 3,904.
However, hotel room occupancies dipped 1-3 percentage points, compared to that in 2019, with only 62-63 per cent of the rooms being occupied.
On a year-on-year basis, too, the industry fared well. In 2022, the Average Daily Rates were higher by 43-45 per cent, occupancies by 12-14 percentage points, and RevPAR by 81-83 per cent.
The report said domestic air traffic in India increased by over 2 per cent in September 2022, compared to the previous month. In that light, the Indian hotel industry’s performance bounced back in September 2022, following a seasonal dip in August 2022.
“The strong recovery in demand is driving consistent increases in average room rates, which, along with RevPAR, continue to be higher than their pre-pandemic levels for the month,” the consultancy firm added.
Mumbai and New Delhi remained the top markets, with the occupancy rate crossing 75 per cent in September 2022.
On the growth drivers, HVS Anarock said corporate travel, relocation business, and small meetings, as well as staycations and the visiting friends and relatives (VFR) segment, which has increased in recent months, were the main demand drivers.
In September, 86 branded hotels were opened, while the number of new hotels opened during this time stood at 154.
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