Mumbai, Nov 19 (IANS) India’s hospitality sector continued to witness year-on-year growth in performance in July–September period, primarily driven by a rise in average daily rate (ADR), resulting in a revenue per available room growth of 10.8 per cent, according to a report released on Tuesday.
Hyderabad emerged as the revenue per available room (RevPAR) growth leader in Q3 2024 registering a growth of 23.6 per cent over Q3 2023, followed by Chennai and Mumbai with year-on-year growth of 17.7 per cent and 16.8 per cent, respectively, according to the report by JLL, a global commercial real estate and investment management company.
In terms of quarterly growth, the sector continued to mark its ascendancy, registering a positive RevPAR growth of 2 per cent QoQ in Q3 2024, compared to Q2 2024.
This can be attributed to the typical nature of the third quarter of the year witnessing higher corporate travel as compared to the second quarter, according to report.
“Backed by strong performance of hotels across India, we continue to see investors moving money in this asset class. There is strong momentum on both greenfield developments as well as operating assets across business and leisure markets,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.
Apart from a slight decrease in the average daily rate (ADR) of Delhi and Goa, all other major markets (Bengaluru, Chennai, Delhi, Hyderabad, and Mumbai) showed considerable growth in ADR and revenue per available room figures, with Hyderabad leading the list, the report observed.
Although occupancy levels remained relatively stable across the board in Q3 compared to Q3 last year, ADR levels improved, leading to an increase in RevPAR across all major markets.
The industry’s strong momentum and sustained domestic demand for business travel, as well as corporate and social MICE events, will drive a busy season, the report stated.
In Q3 2024, there were 96 branded hotel signings comprising 10,686 rooms. Furthermore, 12 hotels signed were conversions of other hotels, accounting for 11 per cent of the inventory signed in Q3 2024.
Branded hotel openings comprised 30 hotels with 1,988 keys, of which approximately 80 per cent of the total number of keys were located in tier 2 and 3 cities, such as Tirupati, Udaipur, Ranchi, and Mussoorie, according to the report.
Looking ahead, the sector’s performance in the upcoming quarter appears promising due to the festival season, general rise in domestic corporate travel, the strengthening of MICE events, weddings, and other social gatherings, said Dang.
–IANS
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