India Hotel Market Review - H1 2018
This report examines the performance of hotels in India in the half year from Jan - June 2018. Additionally, we have changed the focus of the report to present two interesting aspects:
• performance in H1-18, of hotels that were reported for H1-17, so as present an ‘apples- to apples’ comparison.
• performance in H1-18 of hotels that were opened in 2017 - thus giving an idea of the level of penetration that these hotels achieved over their initial months of operation.
Market Performance H1-18
Market-wide occupancy, ADR and RevPAR were at 65.9%, Rs. 5,868 and Rs. 3,868 respectively. The movement was positive, across all three parameters.
The key positive news from this performance is:
• Mumbai occupancy up significantly, to 78%; and ADR crossed 8k level
• New Delhi and Pune occupancy crossed 70%, while also gaining 8% in ADR
• Goa occupancy moved up by +2.1 pts, however ADR was flat
• Bengaluru and Jaipur had good ADR growth, comfortably crossing the 6k and 5k levels respectively
• Kochi ADR grew 7.2% - but the market will struggle due to the unfortunate floods
• Hyderabad grew RevPAR by 6.7%, mainly on improved occupancy.
Markets that faced challenges are:
• Gurgaon, with ADR and RevPAR decline
• Chennai and Ahmedabad with less than 1% RevPAR growth
• Chandigarh, where rate decline has materially neutralised occupancy growth
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