Indian hotels have experienced a 5% year-on-year increase in occupancy this year, helped by a rise in corporate demand and domestic travel.
According to STR data, reported by the Economic Times, the country’s hotels recorded an average occupancy level of 67.6% in the first quarter of 2016, as rising demand for hotel rooms (+8.9%) exceeded the increase in new room supply (+3.6%).
“India experienced a strong performance in the first quarter of 2016, particularly in March. Occupancy has really picked up this year for most cities in India, which has helped boost revPAR levels,” an STR analyst was reported saying
And a slowdown in new supply in major cities such as Mumbai, Bengaluru, Hyderabad, Pune, Ahmedabad and Jaipur has also allowed hoteliers to increase rates, according to STR. This pushed India’s revenue per available room (revPAR) up 6.7% to INR 4,190.90 (approx. US$63) in Q1 2016.
But some hotel chains appear to be doing better than others; the Economic Times reported Marriott International as saying that its Indian revPAR was up 14%, while Hyatt experienced “high single-digit percentage” growth.