As per JLL’s Hotel Momentum, India Q3 2021, a quarterly hospitality sector report, the Indian hotel industry saw a revenue per available room (RevPAR) increase of 169.4% in Q3 2021 (July-September) compared to Q3 2020.
In Q3 2021, compared to Q2 2021, there was a 122.9% increase in RevPAR across India, owing to a robust recovery in leisure demand as travel restrictions were removed following the second wave of the epidemic. According to the firm, the sector’s year-on-year growth in Q3 2021 is most attributable to the low base effect of Q3 2020, when the country began to gradually lift travel restrictions.
As per the firm, the surge in travel is likely to continue for the next two quarters as India continues to increase its immunization rate, leading to improved emotions. IT/ITeS firms have predicted that their travel expenses will rise in the coming quarters when personnel resume work-related travel. The occupancy and average rates of leisure locations are likely to rise further, fueled primarily by transitory leisure and social events.
In Q3 of 2021, 32 hotels with 2,624 keys were signed, representing a 13.4% increase over the same period last year. Conversions of old hotels account for 15 new signings (47%of total properties inked), which is in keeping with the overall upward trend. In terms of inventory volume, domestic businesses outnumbered overseas operators by a ratio of 57:43.
In the third quarter of 2021, demand for operating inventory climbed by 159% and supply increased by 9.5% in six major cities, respectively, compared to the same period last year.
“After the second wave of the epidemic, the industry saw a rapid comeback in Q3 2021, most weekends are sold out with domestic travellers opting to visit various sites around the country,” said Jaideep Dang, Managing Director, JLL Hotels and Hospitality Group, South Asia.