Indian hotels sector has seen a 15.6% growth in average daily rate (ADR) in third quarter of the calendar year 2023 resulting in a RevPAR (revenue per available room) growth of 15.1%, said a new report.
The Q3CY23 witnessed strong growth in ADR due to multiple international events being held in key cities. The sector witnessed a marginal decline of 4.5% in RevPAR in Q3 2023, as compared to Q2 2023, according to Hotel Momentum India (HMI) Q3, 2023 report by global property consulting firm JLL.
The six markets (Bengaluru, Chennai, Delhi, Goa, Hyderabad, and Mumbai) continue to display strong growth driven by ADR on the back of sustained demand from corporate travel, it said. ” International events such as the G20 Summit also contributed to ADR growth in major cities. Delhi leads with a 36% growth in ADR, followed by Hyderabad (22.2%) and Mumbai (16.7%). Apart from the marginal drop in Bengaluru and Goa’s occupancy levels, the rest of the markets have remained fairly stable in Q3 2023 as compared to Q3 2022,” JLL said
The last quarter of the year is expected to remain strong on the back of international events such as the Cricket World Cup and domestic travel amidst winter vacation and year end festivities, it said
Weddings and meetings, Incentives, conferences, and exhibitions (MICE) will remain the major demand drivers in the coming months. “However, we expect business travel registering a dip towards the year end. Several hotel openings have been slotted for the quarter and development activity is expected to pick up in the last quarter. 59 hotels comprising 4,669 keys were signed in Q3 2023. There were 12 hotels signed that were conversions of other hotels. Conversions constituted 23% of the inventory signed in Q3 2023,” it said.