The latest HVS ANAROCK Hotels & Hospitality Overview for June 2024 reveals a mixed landscape in India’s hospitality sector, marked by stability in some areas and significant variations in others.
Despite a notable increase in air traffic in May 2024, hotel occupancy rates nationwide remained stable. This indicates a balanced demand and supply in the hospitality industry, even as more travelers took to the skies.
Kochi stood out with the highest year-on-year increase in occupancy rates in May 2024, rising by 7-9 percentage points. However, this impressive growth in occupancy was tempered by a decline in average daily rates (ADR) by 10-12 percentage points. This suggests that while more rooms were filled, the competitive pricing pressure led to lower revenue per available room.
Domestic air passenger traffic continued its upward trajectory, surpassing 137 lakhs in May 2024. This marks a growth of over 4% compared to May 2023, reflecting a robust recovery in the aviation sector and increased mobility among the populace.
Hyderabad exhibited a stark divergence in its hospitality metrics. The city experienced the largest drop-in occupancy rates, decreasing by 3-5 percentage points. Contrarily, Hyderabad’s ADR saw the highest increase at 12-14%, indicating a strategic shift towards higher room rates despite lower occupancy, possibly targeting premium segments or business travelers.
Goa’s hospitality sector showed a mixed performance. The state recorded a year-on-year increase in occupancy rates by 1-3 percentage points in May 2024. However, this was offset by a decline in average rates by 9-11%, suggesting challenges in maintaining room rates amid growing occupancy.
