India Hotel Market Review 2019

India – Hotel Market Review 2019

India Hotel Market Review 2019, jointly prepared by Horwath HTL India and STR, reflects occupancy, ADR and Revpar growth of 0.8 pts, 2.9% and 4.1% respectively.

In Rupee terms, ADR and RevPAR growth were the biggest and second biggest respectively, in the last ten years. Growth parameters were even stronger on “same store” basis.

Overview Of Performance – India

The report reviews performance by segment (growth in all segments, bar occupancy decline at Midscale-economy segment), for several key markets and for leisure and other markets. It addresses questions on hotel scale, pricing and alternative accommodations while identifying some other issues and opportunities.

The positives

• Largest ADR jump and second largest RevPAR growth, in amounts (Rs. 167 and Rs. 155 respectively) in the last ten years;
• Five Key Markets with Occ above 70%;
• Three markets with Lux-UpperUp ADR in the 9ks (only one last year), and Goa Lux-UpperUp ADR crossing 11k;
• Up-UpMid and M-E ADR grew smartly;
• Significant GST reduction removing the industry from the “sin” bracket,
• Widening supply diversity.

The issues

• Goa continues to slacken;
• Chain-affiliated supply growth (7.8k rooms) was the slowest in ten years;
• All India M-E Occ suffered de-growth (-0.7pts) for the second year running;
• All India Up-UpMid Occ grew only 0.5 pts;
• Jet Airway

Other publications in the series: India Hotel Annual Study 2018 • India Hotel Market Review 2017