Hotel occupancy on rise in major cities: HVS ANAROCK

According to HVS Anarock’s latest Hotels & Hospitality Overview report, hotel occupancies across all major cities witnessed a month-on-month increase with the revival in leisure travel. Mumbai saw the highest occupancy (51-53%) in June 2021, followed by New Delhi (39-41%), chiefly driven by staycation and weekend businesses. The report further observes an upward trend in hotel stocks due to increasing positivity towards the sector, with IHCL outperforming the market in recent months.

While All India average occupancies were between 30-32 per cent in June, up by 12-14 percentage points month-on-month, the average daily rates were up by 14-16 per cent month-on-month and were between INR 3600-Rs3800. Revenue per available room was around INR 1080-1250 in June, up 93-95 per cent month-on-month.

On a year on year basis, the average daily rates increased by 17-19 per cent while the occupancy rates went up by 10-12 percentage points in June. Also in June, revenue per available room was up by 78-80 per cent year-on-year.

Brand openings and signings by properties have also observed a marginal increase in the first half of 2021 as compared to last year. In the first half of this year, hotel operators have signed smaller hotels with increased focus on tier three and tier four cities. 19 hotels spanning 1910 keys opened for guests in the first half of this year compared to 14 hotels covering 1361 rooms in the first half of last year. 49 hotels spanning 4401 rooms were signed in the first half of this year, compared to 46 hotels covering 4998 rooms in the first half of 2020.

According to the report, domestic air traffic increased by over 47 per cent in June this year compared to May as travel restrictions started easing across states in India because of the declining COVID cases in the country.