Indian Hotel Sector Regains Ground Faster Than Expected
- HVS Global Hospitality Services
Global Hospitality Services HVS states in a report that after the increase in travel demand, the Indian hotel sector has been regaining ground faster than expected, strengthening the sector’s hope for a stronger rebound. Growth in domestic leisure travel, resumption of in-country business travel, weddings and social events are contributing not only to hospitality but also to other markets. The higher traveler traffic has been mainly due to the easing of restrictions in the states, fewer COVID cases and a higher vaccination rate in the country, so it is estimated to continue in the last two months of the year.
Under an optimistic scenario, the October-December 2021 quarter results are estimated to be close to and may even exceed pre-pandemic levels, with some markets, such as Goa and Chandigarh. Nationwide occupancy is expected to be in the range of 62-64% in the October-December 2021 quarter, compared to 38% and 69% during the same period in 2020 and 2019, respectively.
Average rates have also improved and are expected to be in the range of INR5,400-5,600 in October-December 2021, up from INR4,253 and INR6,540 bought with the 2020 and 2019 period, respectively. As a result, RevPAR will double from INR1,615 in October-December 2020 to INR3,400-3,600 in October-December 2021 but will remain below the INR4,500 levels seen in 2019.