Hotels in India doubled revenues in Oct-Dec 2021, says JLL report

Not surprisingly, hotels in Goa beat their peers across the country in terms of Average Daily Room Rent (ADR) and occupancy thanks to the Christmas and New Year rush late last year. While the city recorded an average occupancy of 70 percent at its hotels, the ADR exceeded Rs 10,000 per room.

 

Interestingly, while Mumbai saw similar hotel room occupancy, its ADR only hovered around the Rs 6,000 mark, indicating that competitive pricing was a hallmark of the city’s hospitality market through 2021. Hotels in Delhi saw occupancy of about 60 percent with ADR at sub-6,000-rupee levels.

JLL now has reason to believe the Indian hospitality market will likely improve in the first half of 2022, fears over possible COVID waves notwithstanding. “The hospitality sector is likely to recover well in 2022 even as uncertainty around different COVID variants and waves continue,” Jaideep said.

A large part of this bullishness is based on an expected turnaround in rail and air travel, the JLL report said, in addition to an inflection in the MICE (Meetings Incentives, Conferences and Events) segment. That also perhaps why the quarter saw 85 new hotel signings with 7,347 rooms slated to enter the market, according to data from the study. Home-grown names outshone international peers in new hotel signings with a ratio of 52:28.