Hotel occupancy rate crosses 65% mark for first time since covid outbreak: Report

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NEW DELHI: India’s hotel occupancy rate passed the 65% mark in April 2022, up 100 basis points from April 2019, with the Mumbai region remaining the market leader with rates of record hotel occupancy, according to a new report.

According to a report by Motilal Oswal Financial Services, the city recorded occupancy rates above 80%, due to the Indian Premier League and big-ticket conferences.

Hotel occupancy in India passed the 65% mark in April 2022, a first since the start of the covid-19 pandemic, with annual recurring revenue (ARR) up 4% from levels from April 2019 to 5,850. This led to a 5% increase in revenue per available room (RevPAR) from April 2019 to 3,804.

On a yearly basis, the hospitality basket recorded higher incremental EBITDA to incremental revenue in the fourth quarter of FY22, with East India Hotels leading the pack (48%), followed by Indian Hotels, Chalet and Lemon Tree Hotels. RevPAR saw an uptick in activity, with leisure travel near normalized levels in April 2022.

The momentum continued into May 2022, he said, and the increased demand versus supply crunch will propel ARR’s growth in the medium to long term.

Aggregate hospitality basket revenue from hotels like Chalet, East India Hotels, Lemon Tree and Indian Hotels fell 19% quarter-on-quarter, but grew 41% year-on-year in the fourth quarter of FY2022. revenue fell quarter over quarter, while Chalet led the pack with 51% YoY growth, followed by Indian Hotels / EIH (42% / 40%).

On an overall basis, EBITDA fell 52% quarter-over-quarter for all players in the fourth quarter of FY22, but increased 2.7 times year-on-year. The adjusted net result of the courtesy basket amounts to 162 million in the fourth quarter against 1,178 million in the third quarter of fiscal 2022 and a loss of 1,838m in the 4th quarter of fiscal 2021.

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