RevPAR in top six Indian cities decreased by 48% YoY in Q1 2021: JLL.
As per STR, Goa emerged as the RevPAR leader in absolute terms, despite the single digit decline of RevPAR by 1.1% in Q1 2021 as compared to Q1 2020
High demand from domestic leisure travelers make Goa the fastest recovering market in absolute RevPAR terms
Bengaluru saw the sharpest decline of 60.6% in RevPAR compared to the same period of the previous year
Total number of hotel signings in Q1 2021 declined by 53% compared to the same period last year
International operators dominated signings over Domestic operators with the ratio of 54:46 in terms of rooms inventory
Mumbai, 20 May 2021 –India’s hospitality industry witnessed a decline of 38.7% in Revenue Per Available Room (RevPAR) during Q1 2021 as compared to Q1 2020, according to JLL’s Hotel Momentum India (HMI) Q1 2021, a quarterly hospitality sector monitor. Additionally, RevPAR in the top six cities has decreased by 48% in Q1 2021 as compared to Q1 2020.
The recovery of the sector has been primarily driven by leisure segment performing notably well. Total number of signings in Q1 2021 stood at 28 hotels comprising of 2,064 keys, recording a decline of 53% compared to the same period last year. International operators dominated signings over domestic operators with the ratio of 54:46 in terms of inventory volume.
Source: STR
Goa grew to be the RevPAR leader in absolute terms, despite the single digit decline of RevPAR by 1.1 percent in Q1 2021 compared to Q1 2020. This was due to a 6.4% increase in occupancy levels. Demand for domestic leisure travel amidst international travel restrictions continues to make Goa the fastest recovering market in absolute term.
Bengaluru saw the sharpest decline in RevPAR in Q1 2021, with a 60.6% decline compared to the same period of the previous year.
Demand and supply of operational inventory in six major cities declined by 6.7% and 4.2% respectively in the first quarter of 2021.
“In Q1 2021, hospitality industry witnessed a revival, with most leisure markets performing exceptionally well. The pace of recovery started picking up due to increase in corporate travel but it was short lived as the onset of second wave brought back travel restrictions and derailed the recovery. We expect that the hospitality sector in India will mostly remain under stress in 2021. However, the hotels are much more nimble and better prepared in terms of their SOPs and cost structures to navigate business interruptions this year. A few trades may emerge in the hotel investment space given the dynamic cash flow situations,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, South Asia, JLL.
