Indian hotel turnover per available room fell 43.5% in H1 2020: JLL


All 11 key markets in India reported lower RevPAR performance in the second quarter compared to the same period last year, the report titled “Hotel Momentum India (HMI) Q2 2020” showed.

As the ongoing pandemic has severely affected the Indian hospitality industry, the sector saw a 43.5% drop in revenue per available room (RevPAR) for the first half of 2020 on an annual basis, according to a report from JLL. All 11 key markets in India reported lower RevPAR performance in the second quarter compared to the same period last year, the report titled “Hotel Momentum India (HMI) Q2 2020” showed.

“Overall, in terms of inventory volume, brand signatures decreased 83% in Q2 2020 compared to Q2 2019, but international operators signed more keys than their domestic counterparts. . Demand for rooms and catering remains minimal amid closures and partial openings, “It said.

Mumbai continues to be the RevPAR leader in absolute terms, despite the 81% decline in RevPAR in Q2 2020 compared to Q2 2019, according to the report, adding that Goa experienced the largest decline in RevPAR in Q2 2020, with a drop of 93.9% compared to the same period of the previous year.

International hotel operators dominated signings over domestic operators with a 63:37 ratio in terms of inventory volume, according to the report.

Other cities like Kolkata (88.9%), Bengaluru (88.5%), and Ahmedabad (85.5%) also experienced a sharp decline in their performance.

“While hotels in some cities have opened in early June, customers are yet to return. We believe demand in business cities will take time to pick up and this will only happen when companies allow their employees. to travel via their revised travel advisories. The demand for recreation may pick up around major cities where close friends and family groups could start traveling by road in the coming months, “he said.

Jaideep Dang, Managing Director, Hotels & Hospitality Group (India), JLL, said: “Investors are increasingly interested in exploring operational hotel opportunities. Conversations are progressing, but site visits are still prohibited and as a result transactions and development activities have not yet started. However, we remain confident in the recovery of activity in the medium term. “


Christina A. Kroll