-CB Edit Desk
The Indian hospitality industry declined by 38.7 per cent in Revenue Per Available Room (RevPAR) in the first quarter of 2021, said JLL’s Hotel Momentum India (HMI) report on Thursday.
JLL’s Hotel Momentum India (HMI) Q1 2021 does a quarterly hospitality sector monitor of the RevPAR. In the report, it had mentioned the top six Indian cities decreased by 48 per cent in Q1 2021 as compared to Q1 2020.
Its total number of signings in Q1 2021 stood at 28 hotels comprising 2,064 keys, recording a decline of 53 per cent as compared to the same period last year. This was dominated by the International operators over domestic operators with the ratio of 54:46 in terms of inventory volume.
Goa was the RevPAR leader in absolute terms, despite of the single digit decline it incurred, RevPAR by 1.1 per cent in Q1 2021. This was due to a 6.4 per cent increase in occupancy levels. This is as the demand for domestic leisure travel amidst international travel restrictions makes Goa the fastest recovering market in absolute term.
Bengaluru had the sharpest decline in RevPAR in Q1 2021, with a 60.6 per cent decline. The demand and supply of operational inventory in six major cities declined by 6.7 per cent and 4.2 per cent.
“In Q1 2021, hospitality industry witnessed a revival, with most leisure markets performing exceptionally well. The pace of recovery started picking up due to increase in corporate travel, but it was short lived as the onset of second wave brought back travel restrictions and derailed the recovery,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, South Asia.
Dang further added that the hospitality sector in India is expected to mostly remain under stress in 2021. However, the hotels are much nimbler and better prepared in terms of their SOPs and cost structures to navigate business interruptions this year. A few trades may emerge in the hotel investment space given the dynamic cash flow situations, he added.
