JLL’s Hotel Momentum India (HMI) report for quarter one (Q1) of 2021 says, Goa emerged as the (Revenue Per Available Room (RevPAR) leader in absolute terms, even with the single digit decline of RevPAR by 1.1 per cent as compared to the same period last year. The promising performance of the Goan hotels is when hotels in six top cities in the country suffered a huge RevPAR loss of 48 per cent in Q1 compared to Q1 2020. Among the top cities, Bengaluru was the worst hit in RevPAR performance in Q1 of 2021. Bengaluru saw a 60.6 per cent decline compared to the same period of the previous year.
Goa grew to be the RevPAR leader in absolute terms, despite the single digit decline of RevPAR by 1.1 per cent 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 terms.
On the whole, India’s hospitality industry witnessed a decline of 38.7 per cent in RevPAR during 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 per cent 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, says the JLL report.
Demand and supply of operational inventory in six major cities declined by 6.7 per cent and 4.2 per cent respectively in the first quarter of 2021.
“In Q1 2021, the hospitality industry witnessed a revival, with most leisure markets performing exceptionally well. The pace of recovery started picking up due to an increase in corporate travel but it was short lived as the onset of the 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.
