Horwath HTL have teamed up with STR Global to produce bi-annual market report updates on the Indian Hotel Market
“The first quarter was a major contributor to this decline – January was not a good month; falling demand was exacerbated by shortened effective working in end March due to the holidays. Q2 actually saw demand recovery in some markets, although at the cost of room rate.
In case of Chennai, occupancy declined by over 10 pts and ADR by 3.7%. The somewhat modest ADR decline is attributable to new supply being materially in the upscale and luxury positioning.
RevPAR decline in Hyderabad was occupancy driven – decline of over 4.5 pts, drove H1 2013 occupancies below the 50% level. Occupancies since March 2013 have ranged between 43.3% and 49.3%. Half year ADR declined by 2.2%; ADR for March 2013 went below Rs. 5,000 for the first time since 2007.
RevPAR decline in Delhi NCR, by nearly 1/7th, is a cause for concern particularly considering imminent large supply growth. We have segregated New Delhi and Gurgaon, from the rest of Delhi NCR, to gain a better picture. “