As tourism booms in the country, Indian hotels are on a growth path, with Mumbai continuing to lead the market, according to a new report. Mumbai hotels recorded 80% occupancy in May 2022, followed by Pune and Bengaluru, consultancy HVS Anarock said in its “Hotels & Hospitality Overview” report.
In May, the average daily hotel rate ranged from 5,750 to 5,950 rupees, 6 to 8 percent higher than the corresponding month in 2019, according to the report. He added that the average occupancy rate was 63-65%, which is 1-3 percentage points compared to 2019, Reported new condition.
The report states that the revenue per available room ranged between 3,622 and 3,867 rupees, which is 10-12% higher than in May 2019. The revenue measure is used to measure the performance of a hotel.
While the hospitality industry has seen an upsurge in recent months even as rising travel costs have yet to impact demand, HVS Anarock said growth in the sector may be hampered due to the economic and global headwinds underway.
In May, domestic air traffic increased by more than 11% compared to April, almost reaching the level of May 2019.
Hotels in Goa and Kolkata saw an increase of 8-12% in May 2022 compared to 2019 levels, according to the report, adding that Mumbai, New Delhi, Kochi and Bengaluru increased by 4-8%.
“We are charting May and it was much better than May 2019. We are ahead on all metrics like occupancy rates, average room rates and revenue per available room. This is obviously due to the strength of the inner journeys. International trade has not yet returned so it can only get better from here. The strength of domestic tourism is something that has been very well recognized by the industry,” said Mandeep S Lamba, President of HVS Anarock, as quoted by Mint.
The hospitality industry can cross the 70% occupancy mark by 2024, which would be the highest in 20 years, Lamba said. He said business travel is picking up even in cities like Bangalore which had a slow start as the IT market has yet to rebound, mint city.
“We are seeing signs of a recovery in business travel and we will again see near-full robust business travel by the last quarter of this calendar year,” Lamba added.