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Saturday, 24 October, 2020, 12 : 00 PM [IST]

Indian hospitality industry needs support & timely attention which has not been forthcoming: Horwath HTL India and STR Report

2019 had been one of the strongest performing years for the Indian hotel market in the past decade, uplifting hopes for even better performance in 2020. However, 2020 has been the toughest year in living memory and unfortunately looks to carry on the negative trend for the rest of the year due to the global pandemic. A significant part of the first half of the year was impacted by COVID-19, especially after a complete country wide lockdown was implemented effective 24 March 2020. The half yearly report by Horwath HTL India and STR portrays the severity of impact on India's hotel sector due to COVID-19.

While mentioning about the decline in occupancy, the report said that the YoY occupancy declined by 30% in the first 2 weeks of March. The fall was steeper post lockdown effective 24 March 2020 resulting in a 56% YoY decline in RevPAR for Mar 2020.

The report also pointed out, that the demand decline in the March to June period for the luxury-upper upscale, upscale and up-mid, and midscale-economy segments was 49%, 46% and 44% respectively. Room revenue loss for these segments, compared to 2019, is estimated at INR 2,700 crores, INR 1,500 crores and INR 600 crores respectively.

The aggregate room revenue loss for March to June 2020, compared to 2019, is INR 4,810 crores.

The Horwath HTL and STR report estimates the F&B and other operating revenue decline in this period (March through end June) at about INR 3,200 crores. The total revenue loss for the March to June period is estimated at a massive INR 8,000 crores.

The report also put for concerns about the state of the Indian hospitality industry by saying, “They need support and timely attention which has not been forthcoming. One wonders, how the pandemic containment programme would have worked if hotels were not around to support the varied needs. There should be significant concern about what will happen to the lakhs of employees that will be stranded job-less because the industry sees multiple closures, lack of resource and abandonment of new projects.”

 
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