As per a report in The Economic Times, hotels in India reported over 5% year on year growth in occupancy in the quarter ended March, helped by a rise in corporate demand and domestic travel, a new report has said.
Hotels reported 67.6% occupancy in the first quarter of 2016, 5.1% growth over the year-ago period, while their revenue per available room (RevPAR) rose 6.7% to Rs 4,190.90 during the same period, according to a report by US data analytics firm STR that tracks the hotel industry across the world.
“India experienced a strong performance in the first quarter of 2016, particularly in March. Occupancy has really picked up this year for most cities in India, which has helped boost RevPAR levels,” said an STR analyst.
Occupancy was the main driver of performance for the quarter linked to slowing supply growth in the country’s major cities, it said.
Reduced supply of new rooms in certain markets such as Mumbai, Bengaluru, Hyderabad, Pune, Ahmedabad and Jaipur coupled with rising demand allowed hotels to increase rates. According to the STR analyst, Jaipur recorded significantly higher occupancy this March than in previous years. During the first three months, demand for hotel rooms in India grew by 8.9% and the supply increased 3.6%.
Now global hotel chains are bullish on the Indian market which is witnessing faster growth than many major markets around the world.
During an investors call this week, Patrick J Grismer, Chief Financial Officer, Hyatt Hotels, said that while the group’s hotels saw double-digit reduction in RevPAR in France and Middle East on account of reduction in travel following the terrorist attacks in Paris last November and the ongoing geopolitical instability, respectively, India remained a bright spot with Rev-PAR growth in the high single-digit percentage, driven by increased transient demand across the country.
Arne Sorenson, CEO, Marriott, in an investors’ call early this week had said, “In India the economy is strengthening and first quarter RevPar was at 14%.”