On the back of a strong recovery following the second COVID-19 wave, the Indian hospitality industry RevPAR surged by 122.9 per cent in Q3 2021 over Q2 2021.
The hospitality industry in India witnessed a growth of 169.4 per cent in revenue per available room (RevPAR) during Q3 2021 as compared to Q3 2020, according to JLL’s Hotel Momentum India (HMI) Q3 2021. Furthermore, at a pan-India level, there has been a 122.9 per cent growth in RevPAR in Q3 2021 as compared to Q2 2021, due to a strong recovery in leisure demand.
The year-on-year (y-o-y) growth witnessed in the sector during Q3 2021 is primarily due to the low base effect of Q3 2020. Post the full and partial lockdowns witnessed in many states during April and May of 2021, the sector witnessed a sharp recovery in leisure travel towards the end of Q2 2021. This trend continued into Q3 2021 as an improvement in travellers’ confidence was seen with the vaccination drive across the nation.
For the next two quarters (Q4 2021 and Q1 2022), growth in travel is expected to continue as India further ramps up its vaccination rate, resulting in improved sentiment towards domestic travel, especially business travel. IT/ITeS companies have indicated that their travel expenditure will increase in the coming quarters as they foresee employees returning to the office/campus as well as resuming travel for work. However, there is a lag between returning to work and subsequent businessrelated travel. Leisure locations are expected to see a further increase in occupancy and average rates supported mainly by transient leisure and social gatherings.
The total number of signings in Q3 of 2021 stood at 32 hotels comprising 2,624 keys, recording a growth of 13.4 per cent compared to the same period last year. In line with the overall increase, 15 new signings (47 per cent of total properties signed) are conversions of old hotels. Domestic operators dominated signings over international operators with a ratio of 57:43 in terms of inventory volume. Goa re-emerged as the RevPAR leader in absolute terms in Q3 2021 with a growth of 389.8 per cent as compared to the low base of Q3 2020.
Additionally, Hyderabad witnessed the highest growth in occupancy level registering a 33.6 per cent increase in Q3 2021 over the same period last year. Bengaluru saw 213.2 per cent growth in RevPAR followed by Hyderabad with a 173.5 per cent hike compared to the same period last year. Demand and supply of operational inventory in six major cities have increased by 159 per cent and 9.5 per cent, respectively, in Q3 2021 as compared to the same period last year.
“The sector has witnessed a sharp recovery in Q3 2021 post the second wave of the pandemic. Holiday destinations are sold out on most weekends with domestic tourists deciding to explore different destinations across the nation. Demand for weddings continue to grow as restrictions on large gatherings are further eased. F&B dining has also witnessed a strong recovery both in major metropolitan cities as well as in tier-II towns, on the back of improved market sentiments and growth in vaccination numbers. In this quarter, we have witnessed a slight up-tick in corporate travel as well, which we believe would be a major step towards a full recovery for the sector,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, South Asia, JLL.
QUICK BYTE Goa continues to leadin RevPAR with a 389.8 per cent rise, owing to the low base of Q3 2020
