Turnover per available room in Indian hotel industries down 43.5% in 2020: JLL


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 by 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 rate of 93.9%. decrease 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 such as Calcutta (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.

–IANS

rrb / sn / vd

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor


Christina A. Kroll