Good Times Will Come Again

According to the India Hotel Review Report 2017, all India occupancy rose 1.4% to 65.3% – the highest in the last nine years, but ADR grew by a marginal INR 89

The India Hotel Review Report 2017 is a collaborative study by Horwath HTL and STR. The report examines occupancy, average daily rate and revenue per available room for several key markets. Besides assessing the performance of 13 major markets that accounts for almost 70% of India’s branded inventory, this year the report has taken a dipstick on the performance of newer markets across the country.

2017 will be associated with two defining events – the liquor ban for bars located 500m from highways and GST. The first shut down an important element of the travel and hospitality experience – a routine everyday life need for foreign visitors. The latter pushed up the travel bill to the long-term detriment of leisure and MICE travel. Additionally, foreign tourist arrivals crossed 10 million for the first time, up 15.6% from 2016.

All India occupancy rose to 65.3%, the highest in nine years. Growth was foreseen but fell short of expectations. ADR grew by a mere INR 89, and still remains behind the 2013 market; high GST clearly had its impact.