The Indian hospitality sector is perhaps undergoing one of its worst-ever crises in living memory and is putting every effort to deal with this unprecedented invasion.

Based on our discussions with key industry stakeholders, we understand that as of 30th of March 2020, 57% of 787 branded hotels in the country have become non-operational, a never before event in the history of the Indian hotel industry.

The few hotels that are operating are running with occupancies ranging at circa 10% or even lower. Even during these challenging times, hotels have been relentlessly providing quality services to their guests, truly embodying the spirit of hospitality.

So, who are the guests staying in these hotels?

Hotels are being offered as quarantine facilities for new arrivals
Hotels are offering their facilities for quarantine purposes to people who have traveled into India recently and have been asked by the Government to adhere to a 14-day, self-isolation period. These hotels are providing guests with all possible comforts, albeit within the confinement of their rooms, following government regulations and safety standards.

Guests who were not able to return due to the lock down
Several foreign and domestic guests, some of whom were long staying guests at the hotel, who were not able to return home to their respective countries or cities due to the lock down are also continuing their stay. For these stranded guests, hotels are providing them a ‘home away from home’.

Hotels as ‘offices’ for business continuity teams
In some cases, hotel rooms are getting converted as ‘office spaces’ for organizations. As we all know that essential services need to run even in the current challenging environment. Several organizations have set-up small Business Continuity teams to continue their operations. These teams are staying and working from hotel rooms to ensure that they are able to maintain essential services for their clients. Meanwhile, hotels provide these teams all the facilities and infrastructure required for their operations, along with stay and meals, while maintaining ‘social distancing’ protocols required in the current situation.

About Ajay Mehtani
Ajay MehtaniAjay has had extensive experience with over 25+ years in Hospitality, FMCG, Private Equity & Technology solution companies during which he has worked with several leading domestic and international companies. He has PGD in Hotel Administration and a PGD in Marketing Management and has certifications in Business Strategy, Digital Marketing & Fundamentals of Revenue Management. In his previous roles, he has been Regional Director Sales & Marketing South West Asia IHG, Chief of Asset Management for Private Equity Investor Duet India Hotels and Regional Director South Asia for New Builds & Transitions with Starwood Hotels prior to its merger with Marriott International. Contact Ajay at amehtani@hvs.com

About Dipti Mohan
Dipti MohanDipti Mohan, Senior Manager - Research with HVS South Asia, is a seasoned knowledge professional with extensive experience in research-based content creation. She has authored several ‘point of view’ documents such as thought leadership reports, expert opinion articles, white papers and research reports. Contact Dipti at dmohan@hvs.com

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