While there has been a marginal year-on-year increase of 2 to 4 percent in ADRs and RevPARs of branded hotels in May, 2024, on a month-on-month basis, the hotels in the country have experienced a dip in occupancies, ADRs and RevPARs.
Compared to April 2024, in May, the occupancies in hotels have dropped by 1 to 3 percentage points, which resulted in 6 to 8 percent decline in ADRs and 9 to 11 percent reduction in RevPARs of hotels on a nation-wide basis.
As per the monthly hospitality overview report by leading hospitality consultancy firm, HVS Anarock, there has been contrasting trends in terms of occupancies and ADRs in a few cities. While Kochi hotel market has registered 6 to 9 percent growth in occupancies on a year on year basis in May 2024, the occupancy growth didn’t convert into ADR growth. On the contrary, the ADR of Kochi hotels shrunk between 6 and 12 percent in May, 2024 compared to the same month last year.
On the contrary, Hyderabad exhibited a stark divergence between occupancy and ADR changes. While the occupancy rate saw the largest drop of 3-5 pp, the city’s ADR experienced the highest increase rate at 12-14 percent.
Goa is another hotel market for contrasting trends. While year-on-year occupancy increased by 1-3 pp, Goa witnessed a decline in average rates by 9-11 percent during the same period.
Although domestic air passenger traffic continued to increase, surpassing 137 lakhs in May 2024, marking a growth of over 4 percent compared to May 2023, this increase in air traffic didn’t convert into demand for hotels.
Amidst these contrasting trends, the branded signings and opening market remained robust. In the branded hotels, 49 new hotels have been opened year to date adding an additional 3176 rooms. 146 new signings have happened for a pipeline of 14311 rooms.