The latest HVS-ANAROCK Hospitality Monitor for October 2024 reveals consistent growth in demand across key markets, leading to improved occupancy rates in September and throughout the third quarter of 2024. Bengaluru and New Delhi saw the most significant year-on-year occupancy growth in September, while markets like Jaipur and Kolkata experienced slight declines.
September 2024 Trends
Bengaluru posted the strongest gains in occupancy, with an 8-10 percentage point (pp) increase compared to September 2023. New Delhi followed closely, recording a 6-8 pp rise in occupancy. However, Jaipur and Kolkata were the only markets to see slight declines, with occupancy dropping by 0-3 pp.
Hyderabad posted the largest increase in average rates, with an impressive 22-24% year-on-year jump. Mumbai and Chennai also saw healthy gains, with rates rising by 10-12%. However, Goa and New Delhi saw contrasting trends—while Goa’s occupancy increased by 2-4 pp, average rates fell by 2-4%. Similarly, New Delhi’s occupancy rose by 6-8 pp, but average rates plummeted by 23-25% compared to last year, likely due to the impact of the 2023 G20 summit, which temporarily inflated prices.
Q3 CY2024 Overview
During the third quarter of 2024, all major markets except Mumbai recorded increased occupancy rates compared to Q3 2023. Most commercial markets, including Bengaluru and Hyderabad, showed strong year-on-year growth in average rates, with the exception of New Delhi, where rates dropped significantly. Goa was the only market that experienced a decline in average rates for both the previous quarter and Q3 2023.
One notable highlight for the quarter was the momentum in hotel signings. The period saw 9,440 keys signed across 96 properties, representing a year-on-year growth of 51% in keys signed, indicating strong investor confidence in India’s hospitality sector.
The report underscores the sustained demand and varied market dynamics shaping India’s hospitality landscape, with several cities continuing to demonstrate robust growth in both occupancy and average rates, while a few markets faced challenges.
