This report briefly examines the performance of hotels in India in the half year from Jan - June 2018. Additionally, we have changed the focus of the report to present two interesting aspects.

• performance in H1-18, of hotels that were reported for H1-17, so as present an ‘apples- to apples’ comparison.
• performance in H1-18 of hotels that were opened in 2017 - thus giving an idea of the level of penetration that these hotels achieved over their initial months of operation.

Market Performance H1-18

Market-wide occupancy, ADR and RevPAR were at 65.9%, Rs. 5,868 and Rs. 3,868 respectively. The movement was positive, across all three parameters.

The key positive news from this performance is:

• Mumbai occupancy up significantly, to 78%; and ADR crossed 8k level
• New Delhi and Pune occupancy crossed 70%, while also gaining 8% in ADR
• Goa occupancy moved up by +2.1 pts, however ADR was flat
• Bengaluru and Jaipur had good ADR growth, comfortably crossing the 6k and 5k levels respectively
• Kochi ADR grew 7.2% - but the market will struggle due to the unfortunate floods
• Hyderabad grew RevPAR by 6.7%, mainly on improved occupancy.

Markets that faced challenges are:

• Gurgaon, with ADR and RevPAR decline
• Chennai and Ahmedabad with less than 1% RevPAR growth
• Chandigarh, where rate decline has materially neutralised occupancy growth

Performance of Hotels reported in H1-17

If we look only at hotels which were included in our H1-17 report, the all-India performance is: H1 - 2018 (Source: STR)

• Occupancy 68.5
• Average Daily Rate (Rs.) 6,018
• RevPAR 4,124

These results are really heartening because:

• Occupancy has moved into the high 60’s
• ADR levels have crossed 6k, on all India level
• RevPAR has crossed 4k, on all India level
• Occupancy for Feb 18 was at 77.1%, up 2.3 pts from Feb 17 and +6.3 pts over Feb 15

Read the full report here.