New Delhi: Hotel occupancy rate in India dropped 1-3% year-on-year in September, and stood at 60-62%, even as the country saw a stream of visitors during the G20 summit, according to a report by hospitality consultancy HVS Anarock. The occupancy rate fell 3-5% against the levels seen in September 2019 before the pandemic.
Five of the top 10 key markets saw a year-on-year decline in occupancy rates in the month, even as the average room rates continued to rise, the report said.
Not all hotels were engaged during the month, though New Delhi saw a boost in room rates, thanks to the summit. Average room rates in the national capital exceeded ₹11,000, showcasing a remarkable year-on-year growth of over 60%.
Pune, Bengaluru, Hyderabad, Chennai and Delhi saw a decline in demand. The sharpest decline was seen in Pune and Bengaluru, between 5% and 10% in terms of occupancies, while the others were down by up to 5%.
There was no decline in markets like Goa and Mumbai which saw a 5% increase. Chandigarh, Kochi and Kolkata also saw an increase in occupancies of a similar amount.
In terms of average daily rate, a metric by which hotels measure how much money a room makes for them over a year, there is still a dichotomy as hotels continue to charge more than last year. In September, the average daily rates were between ₹7000 and ₹7200 in the top markets in the country, up by a staggering 27-29% when compared to September 2019 and 17-19% more than September 2022. Hotels even increased their rates from the month of August 2023, trading 5-7% more than they were then.
As expected, Delhi saw the highest average daily rates change, hovering anywhere between 20-65% more than their regular rates in September 2022. This was followed by six cities, Mumbai, Pune and Bengaluru, Kolkata, Hyderabad and Chennai which saw a 10-20% increase. Chandigarh, Goa and Bengaluru saw more stable rates at this time of up to 10% increase in daily rates.
Till September, 207 hotels were signed in India, with about 17,500 rooms in the pipeline for the first nine months of the calendar year. About 114 hotels have also opened this year in the first nine months, adding close to 8,000 rooms to the hotel supply pipeline, it said.
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Updated: 31 Oct 2023, 04:28 PM IST
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