September 29, 2022

Hotel performance in India continues to eclipse pre-pandemic levels: STR report

Leisure markets continue to lead the recovery in the hospitality sector, but business travel is also back, according to new data from hotel data analytics firm STR Inc. The company is a division of the CoStar group which provides market data on the hospitality industry worldwide, including supply and demand. and market share data. India‘s most popular leisure markets, such as Himachal Pradesh, Goa and Uttarakhand, have seen significant occupancy levels throughout 2022, mostly exceeding pre-COVID-19 levels. pandemic. However, the months following Omicron’s peak produced significant demand with improved traveler confidence and an easing of interstate travel restrictions.

Business demand, which was limited after the Delta wave, showed a significant improvement after Omicron with an acceleration in late April and early May. Not only have businesses resumed travel, but MICE demand is also returning. Bengaluru and Pune, cities historically dependent on this segment, have been among the hardest hit by lack of business demand throughout the pandemic, but are now among the markets with the fastest growing demand. Mumbai recorded over 80% occupancy almost every day in April 2022.

The recovery in hotel performance in India resumed in early 2022, but April appeared to be the turning point, with the country outperforming the pre-pandemic comparison in terms of occupancy and average daily rate (ADR) for three consecutive weeks. Leisure markets continued to lead the recovery, but business travel is also back in the country after Omicron. Forward bookings also appear to be healthy for the rest of May, with most pick-ups remaining short-term.

While business markets in India are maintaining ADR levels amid growing occupancy, leisure markets are taking advantage of additional demand to boost premiums. Hotels in Himachal Pradesh and Uttarakhand have managed to at least double their rates compared to 2019. The ongoing 7-day ADR for India has been above pre-pandemic levels since mid- April and continues to grow gradually.

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