Hotels See a Surge in Room Revenue in 22
Revenue per room grows 90% YoY, Q4 no.s also strong on rising corporate travel, weddings
The year 2022 ended with a 90% year-on-year growth in revenue per availableroom for the hospitality sector over 2021. The fourth quarter (October December) recording a 60. 9% year-on-year ‘RevPAR’ growth over its corresponding quarter in 2021, as per JLL’s latest Hotel Momentum India (HMI) Q4, 2022, a quarterly hospitality sector monitor. A performance metric widely used in the hospitality sector, RevPAR is calculated by dividing total room revenue by total rooms available. JLL stated that the hospitality sector continued to witness strong year-on-year growth in performance in the ast quarter of last year, primarily driven by corporate travel, weddings, winter vacations and festivities. Furthermore, the sector witnessed a quarter-on-quarter RevPAR growth of 30. 1% over thrid quarter last year.
As per the report, this was due to higher levels of corporate travel in the fourth quarter Despite the year-end holidays, most business cities performed well with occupancy levels of about 65% and witnessed a strong growth in the average daily occupancy (ADR) levels. JLL said the momentum of Q4, 2022 is expected to continue with Q1 of this year remaining busy on the back of weddings, and recommencement of business travel post the year-end holidays. Business travel is expected to grow during Q1 of 2023 on the back of domestic corporate travel related to critical decisions prior to closure of the financial year. A total of 81 hotels comprising 6,663 keys were signed in Q4 of last year.
Additionally, there were 25 hotels signed that were conversions of other hotels. The conversions constituted 27% of the inventory signed in Q4, 2022. Bengaluru emerged as the RevPAR growth leader in Q4 with a 110. 6% growth over Q4 of 2021, followed by Mumbai and Delhi with a year-on-year growth of 105. 3% and 94. 3%, respectively. “Hotel room-night demand growth remained strong in quarter four of 2022 across major business and leisure destinations. Given the looming global head winds, inbound travel may witness a slowdown. However, domestic economic fundamentals remain strong and are expected to keep the domestic business environment stable,” said Jaideep Dang, managing director, hotels and hospitality group, India, JLL. (Source ET)