Hyderabad tops in hotel occupancy charts
Hyderabad: Hyderabad has topped the charts in terms of growth in Average Occupancy Rate (AOR) in hotels among the top six markets of the country during Q3 2021 (July-September).
The city witnessed the highest growth in occupancy level registering a 33.6 per cent increase in Q3 2021 over the same period last year, surpassing Goa with 29.8 per cent, Mumbai with 29.4 per cent, Bengaluru with 26.8 per cent, Delhi with 25.5 per cent and Chennai with 24.1 per cent, according to JLL’s research.
Hyderabad also took the third spot nationally in terms of increase in Revenue Per Available Room (RevPAR). Goa re-emerged as the RevPAR leader in Q3 2021 with a growth of 389.8 per cent as compared to the low base of Q3 2020, while Bengaluru witnessed 213.2 per cent growth, followed by Hyderabad with a 173.5 per cent increase compared to the same period of the previous year.
Jaideep Dang, MD, Hotels and Hospitality Group, South Asia, JLL, told Telangana Today, “We witnessed that offices began opening in Q3. Many companies have indicated that they will resume complete work from office in the coming months in Hyderabad and with it corporate travel is also expected to witnesses a slight uptick.”
“Hyderabad’s change in occupancy levels is the highest in India and this recovery is driven by weddings and staycation demand,” Dang noted.
Pan-India scenario
Nationally, the hospitality industry witnessed a growth of 169.4 per cent in Revenue Per Available Room (RevPAR) during Q3 2021, shows JLL’s Hotel Momentum India (HMI). There has been a 122.9 per cent growth in RevPAR in Q3 2021 as compared to Q2 2021 (sequentially), due to strong recovery in leisure demand as travel restrictions were eased post the second wave of the pandemic.
Demand and supply of operational inventory in six major cities increased by 159 per cent and 9.5 per cent respectively in the third quarter of 2021 as compared to the same period last year.
Recovery phase
The Year on Year (Y-o-Y) growth witnessed in the sector during Q3 2021 is due to the low base effect of Q3 2020 as India began to cautiously ease travel restrictions. Post the full and partial lockdowns witnessed in many States during April and May of 2021, the sector witnessed a sharp recovery in leisure travel towards the end of Q2 2021.
This trend continued into Q3 2021 as inter-State travel restrictions were further eased and an improvement in travellers’ confidence was seen with the large-scale vaccination drive across the nation.
Near-term outlook
For the next two quarters (Q4 2021 and Q1 2022), JLL projects that the growth in travel is expected to continue as India ramps up its vaccination rate resulting in improved sentiment towards domestic travel, especially business travel.
IT / ITeS companies have indicated that their travel expenditure will increase in the coming quarters as they foresee employees returning to the office/campus as well as resuming travel for work. However, there is a lag between returning to work and subsequent business-related travel.
Leisure locations are expected to see a further increase in occupancy and average rates supported mainly by transient leisure and social gatherings.
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