Long lockdown will impact Q4 FY2022 metrics: ICRA

Dampening the sentiments for the hotel industry, Omicron and prolonged lockdowns will impact Q4 FY2022 operating metrics, according to ICRA. With a sharp rise in infections in the last one week and several states imposing partial lockdowns, hoteliers are witnessing cancellations in January 2022 bookings and the inquiries for the next few weeks have come down. Q3 FY2022 was significantly better than ICRA’s earlier expectation. However, with the Omicron variant, there will be some slowdown in Q4 FY2022, compared to what was anticipated earlier. There is no revision in ICRA’s earlier expectations for FY2022 currently, because of a strong Q3 FY2022. Ms. Vinutaa S, Assistant Vice President and Sector Head, ICRA, added “Notwithstanding the potential Omicron impact we expect a healthy YoY revenue growth for the hotel industry in FY2022 supported by Q2 and Q3 demand, closing at 50-55% of pre-Covid revenues for the full year”.