India Hotel Market Review: H1 2020
By Vijay Thacker on September 21, 2020
2019 had been one of the strongest performing years for the Indian hotel market in the past decade, uplifting hopes for even better performance in 2020. However, 2020 has been the toughest year in living memory and unfortunately looks to carry on the negative trend for the rest of the year due to the global pandemic. A significant part of the first half of the year was impacted by COVID-19, especially after a complete country wide lockdown was implemented effective 24 March 2020.
The half yearly report by Horwath HTL India and STR portrays the severity of impact on India’s hotel sector due to COVID-19.
- YoY occupancy declined by 30% in the first two weeks of March.
- Demand decline in the March to June period for the luxury-upper upscale, upscale and up-mid, and midscale-economy segments was 49%, 46% and 44% respectively.
- The aggregate room revenue loss for March to June 2020, compared to 2019, is Rs. 48.1 bn (Rs. 4,810 crores).
- Horwath HTL estimates the F&B and other operating revenue decline in this period (March through end June) at about Rs. 32 bn (Rs. 3,200 crores).
- The total revenue loss for the March to June period is estimated at a massive Rs. 80 bn (Rs. 8,000 crores).