TSIT ■ Hyderabad/Mumbai
Indian hospitality sector witnessed a strong growth of 89.6 percent Y-o-Y Revenue Per Available Room (RevPAR) in Q3, 2022 ( July to September) , primarily driven by corporate travel, over Q3 in the previous year, according to JLL’s Hotel Momentum India (HMI) Q3, 2022 report. Bengaluru witnessed the highest growth in Revenue Per Available Room (RevPAR) in July-September (Q3 2022) at 241.4 per cent, followed by Hyderabad and Chennai with Y-o-Y growth of 140.9 percent and 123.6 percent respectively, the report revealed. Last year during the same quarter, the country was struggling to recover from the brutal second wave of the pandemic, which had a significant impact on the performance of the sector.
However, as compared to Q2 2022, the sector witnessed a marginal dip of 3.8 per cent in RevPAR in Q3 2022. This is due to reduced corporate travel amidst long weekends and festivals, JLL, a leading professional services firm that specializes in real estates also said in its report. The hotel room demand across business cities remained strong during the quarter primarily driven by Meetings, Incentives, Conferences and Exhibitions (MICE) and other business-related travel.
Despite long weekends, most business cities performed well with occupancy levels circa 70% and also witnessed strong growth in Average Daily Occupancy (ADR) levels.
The last quarter of the year is expected to remain busy on the back of weddings, domestic leisure as winter vacation sets in.
Meanwhile, business travel will continue to remain strong through the end of the year, the report stated. 54 hotels comprising 4,282 keys were signed in Q3 2022. The hotel signings witnessed a significant increase of 63.2 per cent as compared to signings in Q3 2021.
International operators dominated signings over Domestic operators with a 53:47 ratio in terms of inventory volume.
All six key markets witnessed strong growth in RevPAR levels in Q3 2022 as compared to Q3 2021, due to the comparable low base of last year amidst travel restrictions post the second wave of the pandemic. We believe this momentum will continue through the year-end. Furthermore, we expect the hotel investment climate to remain buoyant in 2023 as hotel performances further strengthen” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.
