The performance of the Indian hospitality industry continued to increase Year-over-Year (Y-o-Y) in Q2 2023, mostly because to the notable increase in Average Daily Rate (ADR) of 16.4% over Q2 2022, which led to a RevPAR gain of 15.4%. Due to the start of the summer holidays and the consequent decline in corporate travel, the occupancy levels in the second quarter fell. Furthermore, according to JLL’s Hotel Momentum India (HMI) Q2, 2023, the industry saw a 16.6% q-o-q fall in RevPAR in Q2 2023 compared to Q1 2023.
Apart from Bengaluru, which had a slight decline in occupancy during the summer vacation period, the other markets continue to show notable rise in ADR and RevPAR data. While occupancy levels are almost same in Q2 2023 compared to Q2 2022, ADR levels have increased, which has raised RevPAR levels in all 6 key markets.
Reviving corporate travel, festivals, and other corporate and social MICE are predicted to benefit the upcoming quarter. The hospitality industry will benefit from the upcoming G20 meetings, which will take place in several cities across India. This will increase demand for short-term needs while laying the groundwork for long-term expansion.
In Q2 2023, 69 hotels totaling 7,010 keys were signed. 16 hotels that were renovations of other hotels were signed. 23% of the inventory signed in Q2 2023 was converted. With the signing of the first Radisson Collection and Waldorf Astoria properties in Hyderabad and Jaipur, respectively, hotel brands remain bullish about the Indian hotel business, both in the mid-market and luxury segments.
Due to the continued contribution of MICE, social events, leisure travel, etc., all six important markets had significant growth in RevPAR levels in Q2 2023 compared to Q2 2022. RevPAR growth in Q2 2023 was led by Chennai, which saw a 31.4% increase over Q2 2022. Hyderabad and Delhi followed, with y-o-y growth rates of 25.8% and 24.6%, respectively.
The hospitality industry continues to show robust growth in ADR levels in Q2 2023 over Q2 2022, despite a minor decline in corporate room night demand in the second quarter of 2023 due to summer vacations. Due to a rise in domestic business demand, MICE, weddings, and other social events, the sector’s growth in the upcoming quarters is good. The nation is anticipated to host numerous international events in the near future as the infrastructure for travel and connection keeps becoming better. The G20 presidency of India, which boosted the performance of the hospitality industry throughout the year, will end in September. The sector will continue to be driven by sustainable sources of demand, such as MICE, social events, and leisure, according to Jaideep Dang, Managing Director, Hotels and Hospitality Group, JLL India.
Source- Travel daily
