Hotel occupancy dips in June, year on year growth prevails

Hotel occupancy rates across the country experienced a marginal decline in June, albeit showing significant year-on-year growth. Despite remaining above pre-pandemic levels, most major markets observed a 1-3% decrease in average rates compared to May.

The closing quarter of June marked a robust surge in rates compared to the same period in 2022, bolstering revenue per available room, despite a minor downturn in occupancy. According to a report by leading hospitality consultancy HVS, the ongoing year saw the addition of 5,900 new hotel rooms across 84 properties, with an additional 12,500 rooms contracted for approximately 142 hotels.

The average daily rate for hotel rooms in India witnessed a robust year-on-year escalation of 16-18% in the three months leading up to June.

In a year-over-year comparison of June 2023 with figures from 2022, the data indicates an increase of 13-15%, as reported by the hospitality consultancy under the Anarock umbrella. The average daily rate figures demonstrated a remarkable 23-25% surge compared to June 2019, ultimately settling between ₹6,600 and ₹6,800 in contrast to the figures from that year.

For the month, prominent growth in room occupancy was observed in major metropolitan cities such as New Delhi, Mumbai, Kolkata, Chennai, and Kochi, showing a rise of up to 5%. However, there was a notable decline of 5-10% in cities like Pune, Bengaluru, and Chandigarh, while Goa and Hyderabad markets experienced a milder contraction of up to 5%.

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