Market Report: India Hotel Market Review

India Hotel Market Review: H1 2019

Horwath HTL India is delighted to release the India Hotel Review Report – H1 2019; a joint-publication between Horwath HTL and  STR. This report analyses the performance of hotels in India for the half year Jan-June 2019. All comparisons are between H1-19 and H1-18 unless otherwise stated.

On the face it, all-India results are positive with 4.2% RevPAR growth mainly drawn from ADR crossing Rs. 6k and Occ inching up to 66.5%. As one digs deeper, there are some real bright lights, some questions and then some serious concerns. Trading conditions were generally softer in Q2-19.

Bright Lights: Bengaluru, Gurugram,Hyderabad and Chandigarh area

• Bengaluru & Gurugram achieved +13.3% and +13% RevPAR as commercial and IT demand grew significantly, enabling double digit growth across all segments
• +13.4% RevPAR for Hyderabad, with Lux-UpperUp hotels leading the way
• Chandigarh: +16% RevPAR, but on low bases; good corporate and MICE demand

Some Questions: Pune

• Occupancy declined to 68%, while ADR grew by Rs. 200. Occ and ADR slowdown from Q2-19 could be an outcome of auto sector stress. Chennai too reflected constrained Occ and ADR for Q2-19.

Serious concerns: Goa and Ahmedabad

• Goa continues to decline. Occ dropped -5.4 pts, to below 70%; while market ADR grew marginally, the M-E segment dropped ADR. RevPAR is at 38.5% premium to all-India RevPAR; down from 53.8% premium for H1-17. GST has pushed business to other destinations and towards alternate accommodations; charter volumes were lower.
• Ahmedabad: RevPAR declined 6.8% in a year of Vibrant Gujarat which normally is a big boost for the city. RevPAR for H1-19 was the lowest among all key cities
• Mumbai grew rates across all segments; Delhi was somewhat modest; Kolkata struggled with new supply and a slow Q2-19.

You will find the 2018 issue of the India Hotel Market Review here.