RevPAR for Bengaluru hotels falls 59% in January-July 2020 period of 2020
New Delhi: The RevPAR for Bengaluru hotels fell 59 percent in the January-July period of the current year as compared to the same period do the previous year owing to corona virus led lockdown.
The pccupancy level was down 53 percent in the same periods, according to a JLL report.
The international passenger arrivals stood at 48 lakh in 2019, registering an increase of 13 percent over 2018.
The number of branded keys went up 4 percent at the end of 2019 at 14,987 as compared to 2018.
The RevPAR decline is likely to bottom out in the last quarter of the current calendar year as the government is easing the lockdown.
The Indian hotel transaction market was quite buoyant in 2019. The total deal volume reached a record Rs 5,327 crore. This included acquisitions of four operational Leela Palace Hotels, the “Leela” Brand by Brookfield and a large land piece in Agra.
These transactions represented the largest proportion of the total transaction volume in 2019.
The Silicon Valley of India is likely to see a greater interest from PE players, HNIs and distressed asset funds. They are expected to capitalise on opportunities to make investments in hotel assets that would be valued at a discount to their pre-corona values. But the transactions are expected to occur only once the travel restrictions are further eased. Interestingly, Bengaluru will see limited distressed asset sales.