The revenue per available room rose by 4.8 per cent year-on-year in the hospitality sector in the April-June quarter this year mainly driven by the rise in Average Daily Rate, a report said on Wednesday.
However, sequentially, the June quarter recorded a dip in occupancy levels, which can be attributed to the onset of summer vacations and a subsequent decrease of corporate travel, according to JLL’s Hotel Momentum India (HMI) Q2 report.
The report further revealed that besides a slight decrease in Goa’s Average Daily Rate (ADR), all other markets (Bengaluru, Chennai, Delhi, Goa, Hyderabad, and Mumbai) showed considerable growth in ADR and revenue per available room figures, with Hyderabad leading the list.
Hyderabad emerged as the RevPAR leader in the second quarter registering a growth of 11.9 per cent over the same period of 2023, followed by Delhi and Bengaluru with year-on-year growth of 11.8 per cent and 10.4 per cent, respectively, it added.
Although occupancy levels remained relatively stable in the second quarter compared to the year-ago period, ADR levels improved, leading to an increase in RevPAR across all markets, excluding Goa, it added.
The report said that the upcoming quarter is anticipated to benefit from the resurgence of corporate travel, festivals, and other corporate and social Meetings, Incentives, Conferences, and Exhibitions (MICE). The industry’s strong momentum and sustained domestic demand for business travel will drive a busy season, it noted.
During the April-June period, 82 branded hotels comprising 9,732 rooms were signed.
Further, 15 hotels signed were conversions of other hotels, accounting for 11 per cent of the inventory signed in the second quarter.
Branded hotel openings comprised 50 hotels with 3,755 keys, of which 90 per cent of the total number of keys were located in Tier II and III cities, including Tirupati, Udaipur, Thane, and Mysore, to name a few.
“Backed by strong performance of hotels across India, we continue to see investors moving money in this asset class. There is strong momentum on both greenfield developments as well as operating assets across business and leisure markets. Although the summer season has brought down corporate room night demand in Q2 2024, the sector continued to demonstrate growth in ADR compared to Q2 2023,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.
The sector’s performance in the upcoming quarters appears promising due to the upcoming festival season, general rise in domestic corporate travel, the return of MICE events, weddings, and other social gatherings, he added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Aug 14 2024 | 6:42 PM IST
