Hotel Investment in India came down in 2020 to just a sixth of levels in 2019: JLL
New Delhi: Investment in hotels in India came down in 2020 to just a sixth of the levels seen in the previous year. The investment crashed 84 percent in 2020 as compared to 2019.
The Revenue per Available Room (RevPAR) came crashing down to mere 55 percent in 2020 as compared to 2019, closing at Rs 1,675, according to report by JLL.
The Delhi hotel market saw 32 percentage point fall in the occupancy levels and 24 percent decline in Average Daily Rate (ADR), causing the RevPAR to come down to 55 percent in 2020 as against 2019. Bangalore’s hotel market, on the other hand, saw 39 percentage point fall in the occupancy levels accompanies by 23 percent decline in ADR, resulting in 68 percent decrease in RevPAR.
Brand signings fell down by 38 percent across the country in 2020 with just 125 hotels comprising 12,000 keys being signed. The year 2020 witnessed revival of demand initially in leisure destinations in the last quarter of 2020. The maximum volume of brand signings happened in tier 3 cities.
“The post-pandemic world is bound to see more changes. Realignment of source markets, guest preferences, physical space planning will all be more dynamic and will be discussed more often in board rooms and team meetings. Capital assistance has emerged as the focal point and will remain the need of the hour to help hotels sustain till demand picks up.” Said Jaideep Dang, MD-Hotels & Hospitality Gr, JLL India.