Hotel occupancy dips to 11% in April, deals for new 3,749 hotel rooms signed in Q1
New Delhi: The hotel room occupancy nosedived to just 11.7 percent in April 2020 due to the coivd19 pandemic in the top 13 cities of the country. This is 62 percentage points down as compared to March 2020 and 81.8 percentage points down as compared to April 2020.
However, things were better in terms new hotel openings in first quarter (Jan-March period) of 2020. About 840 rooms (keys) were opened in as many as 10 hotels in the first quarter. Deals were signed for another 3,749 rooms (keys) in as many as 38 star grade hotels in the top 13 cities, according to a report by HVS-ANAROCK Property Consultants.
HVS-ANAROCK conducted an anonymous survey of the general managers of star grade hotels and found that most general managers (GMs) expect hotel demand to gather pace fourth quarter (Oct-Dec period) of 2020. About 42 percent of the GMs said that occupancy rates in hotels would be 50 percent or higher while 46 percent of the GMs said that the occupancy rates will be below 40 percent. Even with a sizeable fall in occupancy rates, about 71 percent of the GMs do not intend to offer discounts on their rates by more than 20 percent.
The occupancy decline in Singapore hotels was only 29.2 percent in April 2020 as compared to April 2019. The occupancy decline in China was only 48 percent in April 2020 as against April 2019. The occupancy rate drop in Thailand hotels was a whopping 90 percent in April 2020 as compared to April 2019. The occupancy level decline in Malaysio was 71.6 percent in April 2020 as against April 2019.