Mumbai, Feb 9 (PTI) The country’s hospitality sector witnessed a 15.8 per cent growth in Revenue per Available Room (RevPAR) in the December quarter, according to a report.
The hotel industry continued to experience year-on-year growth in performance in the October-December period of 2023, driven primarily by a 14.6 per cent increase in Average Daily Rate (ADR) compared to the year-ago period, which led to a RevPAR growth of 15.8 per cent, JLL’s Hotel Momentum India (HMI) report said on Friday.
JLL is a global commercial real estate and investment management company.
The fourth quarter of the 2023 calendar year saw consistent growth in ADR due to factors such as weddings, corporate and social Meetings, Incentives, Conferences and Exhibitions (MICE) events, leisure travel, and year-end festivities.
Sequentially, the sector witnessed a 31 per cent growth in RevPAR as compared to the July-September period.
Amid stable occupancy levels, the six markets have demonstrated strong ADR performance, benefitting from sustained corporate demand and international events such as the ICC Cricket World Cup, as well as the wedding season, the report stated.
Hyderabad led in terms of ADR growth with 24.7 per cent, followed by Delhi, and Mumbai at 20.3 per cent and 16 per cent, respectively, it added.
The momentum from the last quarter is expected to carry on into this year, supported by the wedding industry, corporate and social MICE demand, and the growing significance of niche tourism categories such as religious tourism, the report noted.
The report also noted that business travel is also anticipated to rebound by the end of the ongoing March quarter, as companies hold their year-end meetings.
The industry shall remain robust, driven by ADR growth, strong domestic demand fuelled by higher disposable incomes, and targeted government initiatives, it said.
Bengaluru emerged as the leader in RevPAR growth in the fourth quarter last year, witnessing a 31.9 per cent growth compared to the same period of 2022.
Delhi and Hyderabad followed closely with year-on-year growth rates of 26.3 per cent and 23.5 per cent, respectively, it added.
“With the rising relevance of key trends such as pilgrimage tourism, airport and complementary developments, and infrastructural upgrades, we are witnessing an increased interest from hotel developers and investors who wish to participate in this growth story,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL. PTI SM TRB
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