The last Hotel Momentum India (HMI) report for the 2nd quarter (April to June 2022) by a leading consulting group, JLL, with the support of STR, highlights another strong quarter for the hospitality sector in the country. As many other industry reports have indicated, the Indian hospitality sector is on a roll, leaving behind the dark days of the pandemic.
India’s hospitality sector saw strong growth in the second quarter, mainly driven by demand for weddings and events, as well as the dramatic recovery in business travel. The sector has witnessed a stellar growth of 44.6% pan-India in RevPAR compared to Q1 2022 when the sector was still emerging from the third wave of the pandemic.
Demand across the industry soared in the second quarter of 2022, driven primarily by weddings and meetings, incentives, conferences and exhibitions (MICE) and business travel. In addition, enterprise MICE demand has also seen a revival in the form of off-site activities, team meetings, trainings, etc., the report noted.
Home leisure continued to be an important segment during this period, driven by pent-up demand from travelers who had not taken a summer vacation in the past two years.
All six key markets saw exponential growth in RevPAR levels in Q2 2022 compared to Q2 2021, due to the weak base seen last year during the second wave of the pandemic coupled with the exceptional performance of the sector this year . bangalore became the leader in RevPAR growth in the second quarter of 2022, registering a growth of 660.1% compared to the second quarter of 2021, followed by Goa and Hyderabad with year-on-year growth of 564.5% and 326% respectively.
Commenting on the Q2 results, Jaideep DangMD- Hotels & Hospitality Group, JLL, said: “With exponential growth across all performance metrics in business and leisure destinations, the second quarter of 2022 marks renewed investor interest and stakeholder profitability in the hospitality industry.
As business travel and off-site business travel continued to grow, the summer vacation provided a boost to overall demand, leading to renewed confidence in the sector. We expect this momentum to continue in the coming quarters with long weekends, festivals, weddings, events and business travel also contributing to this growth story.
The total number of hotel signings in the second quarter of 2022 amounts to 47 hotels with 4,010 keys. Hotel signings saw a significant increase of 90.9% compared to signings in the second quarter of 2021. Domestic operators led the signings compared to international operators with a 52:48 ratio in terms of inventory volume.
The report expects hotels to remain busy over the coming quarters, as well as through domestic leisure amid long weekends and festivals. Business travel will continue to grow and will remain the main driver of demand for the sector. While demand for weddings and social functions will continue to be an important driver. MICE demand is expected to increase in the coming months, with many corporate meetings and large format conferences planned.