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Saturday, 25 February, 2017, 17 : 00 PM [IST]

2016 was best year for Indian hotel industry since 2007: STR-Horwath HTL report

Year 2016 has come out as one of the best year in terms of performance parameters for Indian hotel industry even since the hey days of 2007. According to Indian Hotel Review Report -2016 released by Horwath HTL for STR Global, despite the demand slow down in the last 45 days of the year on the back of the demonetisation drive by the government, the year was the best since 2007 in terms of occupancy, ADR, and RevPAR.

All India occupancy rose by 2.4 points to 64.1%, ADR by 2%, and RevPAR by 5.9%. All India demand grew 12.5% and may have gone higher but for a clear decline in the last 45 days. Occupancies for all key markets crossed 60% and marginally crossed the 70% mark in two markets in 2016, the report notes.

All key markets barring Ahmedabad achieve rate growth though it was less than 1% in four markets and 1.0 to 1.4% in three other markets.

All markets gained RevPAR between 1.0 to 20.2 points. Markets like Hyderabad, Jaipur, etc., clocked double digit RevPAR growth, the report says.

Among the destinations, Mumbai and Goa are clearly ahead of the pack and are the only markets in the ‘Busy-Higher’ rate zone. Goa ADR has risen above Mumbai in 2016.
In capital city Delhi, the average occupancies remained at 67.2% at USD 95. According to the report Delhi has witnessed demand loss to adjoining city of Gurgaon. The demand CAGR growth for last eight years for Delhi lagged behind the supply CAGR by 1.0 pts. Mumbai on the other hand recorded 74% occupancy with 10.4% RevPAR growth in Central and South Mumbai hotels and ADR crossing 10k mark.  

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