India Hotel Market Review 2022

The 2022 Annual India Hotel Market Review Report, is an analysis of the Indian Hotel market performance for 2022 prepared by Horwath HTL India which is based on data sourced from STR.

In the context of last 14 years, 2022 was a dream year that saw record breaking performance and more importantly after two years affected by effects of pandemic and disruption of travel.

Some key highlights of 2022 performance:

• All India Occupancy at 59.8% with an ADR of Rs. 6.1k; near complete RevPAR recovery on all India level compared to 2019; Same store hotels reported 67.8% Occ, as against the all-India Occ of 59.8%
• Product re-rating achieved by hotels, in the eye of the market, with an inherent rate component having risen materially.
• Leisure destinations leading in terms of ADRs, much higher compared to business cities, although seasonality prevails; overall RevPAR is led by Udaipur, Goa and Mumbai in that order.
• Five markets – Mumbai, Delhi, Goa, Udaipur and Jaipur, having 27% supply share have delivered 37% of room revenue earned in India in 2022, showing a sub-par revenue performance by metro cities of Bengaluru, Chennai, Hyderabad and Kolkata.
• Rise in wedding spends and social events, while MICE remained soft during the year, it is expected to grow in 2023.