September 29, 2022

JLL IHM Report, Hospitality News, ET HospitalityWorld

The latest Hotel Momentum India (HMI) Report for Q2 (April to June 2022) from Consulting Group JLL, with support from STR, highlights another strong performing quarter for the country’s hotel sector.

The latest Hotel Momentum India (HMI) report for Q2 (April to June 2022) from leading consultancy group JLL, with support from STR, highlights another strong quarter for the country’s hotel sector. As many other industry reports have indicated, the Indian hospitality sector is on the right path, 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% at pan-India RevPAR level compared to the first quarter of 2022, in which 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 notes.

Domestic 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 low base seen last year during the second wave of the pandemic coupled with the exceptional performance of the sector this year . Bengaluru 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 a year-on-year growth of 564.5% and 326 % respectively.

Commenting on the second quarter results, Jaideep Dang, MD – Hotels & Hospitality Group, JLL, said: “With exponential growth across all performance indicators in business and leisure destinations, the second quarter of 2022 marks the 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.