New Delhi: Occupancy and average daily rates are moving towards normal in hotels across India, according to a report by hospitality consultancy firm HVS Anarock.
On the India-wide average in September, there has been a 1-3% gradual increase in average daily rates, the report said, adding that the average daily rate, or ADR, in September was ₹4,200- ₹4,400 per night in hotels across the country. ADR measures the effectiveness of room rate management. By the end of 2020, ADRs had declined and were much lower than in 2019 at 14-17%.
Revenue per room available in India (a performance measure calculated by multiplying a hotel’s average daily room rate by its occupancy rate), however, remained low. While it was 9-11% higher in September, rates remained between the low ₹2,268 more ₹2,464 across the country. It had fallen to a disappointing low of 53-57%. ₹1,500- ₹1,800 by the end of 2020.
The Indian hotel industry recorded its highest nationwide occupancy rate since the start of the pandemic, ranging from 54% to 56% in September.
The company, in its report, Hotels and Hospitality Overview October 2021, said that Chandigarh was the market leader in terms of engagements during the month. Some of the contributing factors are the gradual resumption of corporate travel aiding the recovery of hotel demand in cities such as Bengaluru and Pune, which were performing poorly earlier.
Increased demand also helped the recovery of average daily rates in the markets, with Goa pushing the average daily rates during the month touching pre-pandemic levels.
India’s domestic air traffic is also growing steadily, with an increase of 5.4% in September compared to August.
The report said 42 new hotels were signed in the third quarter of calendar year 2021, while 30 hotels were signed in the year itself. About 26 new hotels with around 2,250 rooms opened in the third quarter across India this year, compared to 13 last year with around 1,300 rooms.
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