Connect with us


Industry performs but concerns over occupancy remain


With room rents remaining upwardly stable, occupancy levels in cities such as Ahmedabad, Goa and Pune declined during January-June 2019 period   

·         Nine out of top 11 markets witnessed a rise in RevPAR performance during this period; Mumbai ranked on top in absolute terms; Hyderabad led in RevPAR percentage change

·         Of the top 11 markets, 10 witnessed a rise in ADRs during this period; While Bengaluru ranked on top in ADR percentage change terms, Ahmedabad remained an exception

·  &nb sp;      Gurugram led in occupancy growth change

·         While Budget Brands looked promising, upscale and midscale hotel brands have contributed the maximum to signings


New Delhi, 29 July 2019 – Long election season spanning all over April and May, grounding of Jet Airways causing last minute flight cancellations and expensive alternate itineraries, followed by a harsh summer and travellers opting for overseas travel during holiday season have together contributed to reduction in occupancies across hotel segments and across key Indian cities. Decline in occupancies was more visible in key cities including Goa, Pune and Ahmedabad, according to the Hotel Momentum India (HMI)  H1 2019,the half-yearly hospitality monitor (for January to June 2019 period), released today by JLL Hotels and Hospitality Group

However, thanks to upwardly stable Average Daily Rates (ADR), the hotels continued to maintain momentum during these first six months, the HMI added. At the country level, nine out of the top 11 markets witnessed a marginal rise in RevPAR performance during this period. In RevPAR percentage terms, as compared with the corresponding period the last year, Hyderabad ranked on top. Bengaluru and Gurugram followed on the second and third rank, it said. Mumbai, however, is the RevPAR leader in absolute term. 

“First three months of the year (January to March) continued to perform well on back of winter season, which is conducive for leisure travel into India. Business travel also remained strong. But subsequently, problems relating to Jet Airways and a long election season ( April to June period) forced travellers to change or defer their travel plans. Last-minute flight cancellations and expensive re-ticketing forced people to look at alternative economical international destinations. This impacted the performance of cities such as Goa and Jaipur, and also business markets such as Pune and Ahmedabad. Despite these challenges, top cities have performed decently during the first six months of the year,” said Jaideep Dang, Managing Director of JLL India’s Hotels and Hospitality Business.

“We expect the room rents to remain stable in the future. Few cities, however, which are high on tourism radar and are business-wise important, are likely to see an upward movement in rents. This trend is likely to keep the performance and growth of the sector intact in coming quarters too,” he added.

The HMI further added the country has seen a rise in branded hotel signings in the first six months (Jan-June) of 2019. During the period, the country witnessed a total of 85 hotel signings, comprising of 8,612 keys. While budget brands looked promising in 2018, upscale and midscale hotel brands have contributed the maximum to the signings during the first half of the year, according to the half-yearly update.


“Despite the fact that real estate market in the country is going through a difficult phase, new hotel signings suggest that there are businessmen and entrepreneurs from other trades who are investing in hotels given its long term potential,” Dang added.

Latest News

Events2 days ago

Danube Properties’ Dh525 million Opalz sold out on the first day of launch

October 4, 2022: Danube Properties, the UAE-based affordable housing developer, said, its latest project Opalz, a twin-tower residential project with...

Events2 days ago

Pacific Mall D21’s ‘Dussehra Celebrations’ drops the curtain with high attendance

New Delhi: Pacific Mall D21 organised a two-day Dussehra celebration and Garba Night, attracting massive turnouts. The special arrangement of...

News2 days ago

Tata Value Homes sells over 100 residential units at New Haven, Bahadurgarh at launch

Delhi/Haryana October 4, 2022: With an aim to address the growing demand for quality homes in Haryana – Bahadurgarh, Tata...

New Launches2 days ago

Welspun Corp opens steel plant in Anjar

October 3, 2022, Anjar, Gujarat: Welspun Metallics Limited, a subsidiary of Welspun Corp Limited (WCL), the flagship company of the Welspun...

Events2 days ago

Over 1500 cyclists join Hiranandani Thane Cyclothon 2022 to support ‘Rhyme for Earth’ initiative

October 2, Thane: The Hiranandani Group hosted the first Hiranandani Thane Cyclothon today from its thriving Thane township, Hiranandani Estate. Over...

New Launches2 days ago

Ashiana Housing adds over 900 senior living units with Villas and Apartments with the launch of Ashiana Advik in Bhiwadi

New Delhi, October 3, 2022: New Delhi-based real estate developer Ashiana Housing has announced the launch of Ashiana Advik in Sector 39, Bhiwadi....