Hotel investment volume in 2020 witnessed a 60 per cent global decline in comparison to 2019 and in India, the decline in hotel investment trade was even sharper at 84 per cent in 2020 as compared to 2019 according to JLL. Previous years had seen promising and consistent growth in occupancy and average daily rate (ADR) levels across key cities world over. India was no different.
“The post-pandemic world is bound to see more changes. Realignment of source markets, guest preferences, physical space planning will all be more dynamic and will be discussed more often in board rooms and team meetings. Capital assistance has emerged as the focal point and will remain the need of the hour to help hotels sustain till demand picks up.” says Jaideep Dang, Managing Director, Hotels & Hospitality Group, JLL India.
India-wide hotel performance registered a decline in RevPAR (Revenue per Available Room) by approx. 55 per cent over the previous year, closing at a RevPAR of INR 1,675. Whilst the performance of business hotels has yet to fully recover, leisure markets led by domestic travellers showcased some resilience in the last quarter of 2020.
As a result of the pandemic, hotels were compelled to reset their business plans. Standard operating procedures were drastically transformed with an adaptation of available technology to encourage social distancing and increased focus on health safety and hygiene practices. New hotel developments slowed down, and most hotel openings were deferred by at least six months, according to JLL.