- The Indian hospitality sector experienced strong growth in the third quarter (Q3) of this year, mainly due to business travel.
- According to the JLL report, the growth in revenue generated per available room (RevPar) in Q3 2022 was recorded as 89.6% compared to Q3 2021.
- Bengaluru saw the highest RevPar growth of 241% in the third quarter of 2022 compared to the same period last year.
India’s hospitality industry experienced strong growth in the third quarter (Q3) of this year, mainly due to business-related bookings, according to a report from JLL India.
“Demand for hotel rooms in business cities remained strong during the quarter, primarily driven by meetings, incentives, conferences and exhibitions (MICE) and other business-related travel,” said JLL’s Hotel Momentum India (HMI) Q3, 2022 report.
According to the report, revenue per available room (RevPar) grew 89.6% in Q3 2022 compared to Q3 2021. However, on a sequential basis, RevPar declined 3.8% compared to Q2 due to reduced business travel amid the long weekends and festivals.
In the same quarter last year, the country struggled to recover from the fatal second wave of the pandemic, which had a significant impact on the performance of the overall hospitality sector. All forms of travel have been on the rise since the lockdowns ended earlier this year.
“Hotels in major business and leisure destinations are performing at or above pre-Covid RevPAR levels. This tremendous recovery has renewed confidence in the sector, leading to increased development and investment activity,” said Jaideep Dang, general manager of hotels and hospitality group, India, JLL.
Bengaluru tops the chart of RevPar growth and average daily rate
According to the report, Bengaluru saw the highest RevPar growth of a whopping 241% in the third quarter of 2022, on a year-over-year basis. The average daily rate (ADR) also grew by 80% in the third quarter.
|Towns||RevPar growth (over the past year)||ADR growth rate (over the past year)|
Source: JLL report
After Bengaluru, Hyderabad and Chennai witnessed the highest RevPar growth in Q3 2022 compared to Q3 2021.
“We believe this momentum will continue through the end of the year. In addition, we expect the hotel investment climate to remain good in 2023 as hotel performance continues to improve,” added Dang.
The last quarter of the year is expected to remain busy due to a hectic wedding season and holiday travel during the winter holidays. Meanwhile, business will remain strong through the end of the calendar year, the report predicts.
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