According to JLL’s Hotel Momentum India (HMI) Q3 2020, India’s hospitality industry has observed a decline of 52.8 percent in Revenue Per Available Room (RevPAR) from January to September (YTD Sept) 2020 over the same period last year due to the impact of the pandemic.
The quarterly hospitality sector monitor further observed that in inventory volume, the brand signings declined by 19 percent in Q3 2020 over Q3 2019.
Mumbai, Bengaluru, Pune, Goa witnessed sharp declines in RevPAR
All major 11 markets in the country reported a decrease in RevPAR Performance in Q3 2020 over the same period last year. Even though Mumbai witnessed a decline of RevPAR by 71.7 percent in Q3 2020 compared to Q3 2019, it still emerged as a RevPAR leader.
Also, Bengaluru observed the sharpest decline in RevPAR in Q3 2020, with 88.1 percent decline compared to the same period in the previous year. Other cities such as Pune (86.2 percent), Kolkata (82.6 percent) and Goa (78.8 percent) also observed sharp declines in RevPAR.
Furthermore the research showed that in terms of inventory volume, international operators made more signings over domestic operators with the ratio of 53:47.
Jaideep Dang, Managing Director, Hotels & Hospitality Group (India), JLL, said, “Investors are taking interest in exploring operational hotel opportunities both in business and in leisure locations. With the phased unlocking of the economy in the third quarter of 2020, we are witnessing gradual growth in demand particularly in leisure market with weekend occupancy spikes.”.
Total number of signings in Q3 of 2020 was at 24 hotels comprising 2,314 keys. This recorded a decline of 19 percent compared to the same period last year.
To help mitigate these numbers, the Reserve Bank of India (RBI) has announced de-linking hotels from commercial real estate. This enables hotels to request capital loans from banks and ease out liquidity issues, especially for new hotel signings.