Hotel occupancy increases in Hyderabad as people resume travel

Hyderabad: The city has recorded an increase in hotel occupancy rates in the third quarter (Q3) of the year between July-September, according to JLL India’s report on hotel momentum in the country.

The report said that Hyderabad had the highest growth in occupancy levels registering a 33.6 percent increase in Q3 2021 compared to the corresponding period last year. Hyderabad is among the cities of Goa, Mumbai, Bengaluru, Delhi, and Chennai which are at 29.6, 29.4, 26.8, 25.5, and 24.1 percent occupancy rates, respectively, said the report.

Hyderabad stood third nationally in terms of increase in Revenue Per Available Room (RevPAR) with a 173.5 percent increase compared to the corresponding period last year. However, Goa re-emerged as the leader in Q3 2021 with a growth of 389.8 percent as compared to the low base during the same time the year before, while Bengaluru witnessed 213.2 percent growth.

Countrywide, the hospitality industry witnessed a growth of 169.4 percent in RevPAR during Q3 2021, says JLL’s Hotel Momentum India (HMI). There has been a 122.9 percent growth in RevPAR in Q3 2021 compared to the second quarter, due to a strong recovery in leisure demand as travel restrictions were eased post the second wave of the COVID-19 pandemic.

Demand and supply of operational inventory in the six major cities increased by 159 percent and 9.5 percent respectively in the third quarter of 2021 as compared to the same period last year.

The Year on Year (Y-o-Y) growth witnessed in the sector during Q3 2021 is due to the low base effect of Q3 2020 as India began to cautiously ease travel restrictions. Post the full and partial lockdowns witnessed in many states during April and May, the sector witnessed a sharp recovery in leisure travel towards the end of the second quarter.

This trend continued into Q3 2021 as inter-state travel restrictions were further eased and an improvement in travellers’ confidence was seen with the large-scale vaccination drive across the nation.

According to JLL, the growth in travel is expected to continue as India ramps up its vaccination rate resulting in improved sentiment towards domestic travel, especially business travel.

IT companies have indicated that their travel expenditure will increase in the coming quarters as they foresee employees returning to the office/campus as well as resuming travel for work. However, there is a lag between returning to work and subsequent business-related travel.

Leisure locations are expected to see a further increase in occupancy and average rates supported mainly by transient leisure and social gatherings the research report indicated.