The hospitality sector witnessed an 89.6% YoY RevPAR growth in Q3, 2022: JLL
The Indian hospitality sector continued to witness strong Year-on-Year (Y-o-Y) growth in performance in Q3, 2022, primarily driven by corporate travel. Last year during the same quarter, the country was struggling to recover from the brutal second wave of the pandemic, which had a significant impact on the performance of the sector. As a result, RevPAR growth of 89.6% Y-o-Y from Q3, 2022 over Q3 2021 seems significant. However, as compared to Q2 2022, the sector witnessed a marginal dip of 3.8% in RevPAR in Q3 2022. This is due to reduced corporate travel amidst long weekends and festivals, according to JLL’s Hotel Momentum India (HMI) Q3, 2022.
The hotel room demand across business cities remained strong during the quarter primarily driven by Meetings, Incentives, Conferences and Exhibitions (MICE) and other business-related travel. Despite long weekends, most business cities performed well with occupancy levels circa 70% and also witnessed strong growth in Average Daily Occupancy (ADR) levels.
The last quarter of the year is expected to remain busy on the back of weddings, domestic leisure as winter vacation sets in. Meanwhile, business travel will continue to remain strong through the end of the year.
54 hotels comprising 4,282 keys were signed in Q3 2022. The hotel signings witnessed a significant increase of 63.2% as compared to signings in Q3 2021. International operators dominated signings over Domestic operators with a 53:47 ratio in terms of inventory volume
All six key markets witnessed strong growth in RevPAR levels in Q3 2022 as compared to Q3 2021, due to the comparable low base of last year amidst travel restrictions post the second wave of the pandemic. Bengaluru emerged as the RevPAR growth leader in Q3 2022 registering a growth of 241.4% over Q3 2021, followed by Hyderabad and Chennai with Y-o-Y growth of 140.9% and 123.6% respectively.
“Demand growth continues to remain strong in Q3 2022. Hotels across major business and leisure destinations are performing either at par or higher than pre-covid RevPAR levels. This stellar recovery has renewed confidence in the sector resulting in increased development and investment activity. We believe this momentum to continue through the year-end. Furthermore, we expect the hotel investment climate to remain buoyant in 2023 as hotel performances further strengthen” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.
Also Read: Indian hospitality sector witnessed a 339.3% YoY growth in Q2
