Hospitality Sector Sees 10.8% Rise In Revenue Per Room In September Quarter: Study
The surge can be attributed to higher corporate travel as compared to the quarter ended June, JLL said in a release. Higher corporate travel usually leads to an increase in hotel occupancy rate.
India's hospitality sector witnessed a 10.8% year-on-year increase in revenue per available room in the quarter ended Sept. 30, 2024, according to a study conducted by real estate management firm JLL India. Sequentially, the revenue grew by 2%, it said.
The surge can be attributed to higher corporate travel as compared to the quarter ended June, JLL said in a release. Higher corporate travel usually leads to an increase in hotel occupancy rate.
Hyderabad recorded the highest revenue growth on each available room, at 23.6%, followed by 17.7% in Chennai and 16.8% in Mumbai, as per the research.
All other major markets, which includes Bengaluru, Chennai, Delhi, Hyderabad, and Mumbai, logged a rise in the in the average daily rate—a metric used to estimate the average per-day revenue mopped on an occupied room.
Sharing other key statistics of the hospitality sector from the July-September quarter, JLL said there were 96 branded hotel signings comprising 10,686 rooms.
"Branded hotel openings comprised 30 hotels with 1,988 keys, of which approximately 80% of the total number of keys were located in Tier II and III cities, including Tirupati, Udaipur, Ranchi, and Mussoorie to name a few," it said.
In the October-December quarter, the hospitality sector is expected to benefit from festivals, social meetings, conferences and exhibitions, along with continued resurgence in corporate travel, JLL said.
“Backed by strong performance of hotels across India, we continue to see investors moving money in this asset class. There is strong momentum on both greenfield developments as well as operating assets across business and leisure markets,” said Jaideep Dang, managing director of Hotels and Hospitality Group, India, JLL.
