homevideos Newsbusiness Newscompanies NewsSector performs 20% above FY20 levels, expect to open 18 new hotels in the calendar: Puneet Chhatwal of Indian Hotels
Sector performs 20% above FY20 levels, expect to open 18 new hotels in the calendar: Puneet Chhatwal of Indian Hotels
As per industry estimates, recovering from the impact of COVID-19 by the third quarter of 2022-23, the hospitality industry had touched the occupancy of 70 percent, while the average daily rates had moved up to Rs 7,260 as compared to Rs 6,540 in the same period in FY20.
Puneet Chhatwal, Managing Director (MD) and Chief Executive Officer (CEO) at Indian Hotels Company Limited on Friday said that they are well booked across destinations and the sector is currently performing 20 percent above the FY20 levels. He is expecting to open 18 new hotels in the calendar. He added that they have recently seen a very good wedding and MICE season.
In tourism, travelling for business is given an acronym as MICE tourism which stands for Meetings, Incentives, Conference/ Conventions and Exhibitions/ Events.
Speaking on the recent trends in the hotel sector, Chhatwal said, "Business and leisure trend is happening. Room rates are showing over double-digit increase from FY20. Management fee is standardised but we are adding new signings. Year-to-date (YTD) signings are 25 hotels in the first 9 months. Supply is constrained and demand is increasing. Margin in the sector is improving for the first time on lower costs. On sea rock hotel we are working with the government ahead of our margin guidance."
As per industry estimates, recovering from the impact of COVID-19 by the third quarter of 2022-23, the hospitality industry had touched the occupancy of 70 percent, while the average daily rates had moved up to Rs 7,260 as compared to Rs 6,540 in the same period in FY20. Also, the revenue per available room had increased to Rs 5,085 against Rs 4,499 in Q3FY20.
On 2023 expectations, Chatwal said that he is expecting the occupancy to exceed 70 percent in most markets.
"G20 and world cup next year will augur well," he told in an exclusive interaction with CNBC-TV18.
He believes that G20 images going around the world will position India well as a destination.
On foreign tourism, Chatwal said that it is not yet back to pre-COVID levels.
Watch VIDEO for details
(Edited by : Anshul)
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