Corporate demand boosts hotel demand in Q3: JLL
- The Indian hospitality sector witnessed a strong growth in the third quarter (Q3) this year primarily due to corporate travel.
- According to the JLL report, the revenue generated per available room (RevPar) growth in Q3 2022 was recorded as 89.6% as compared to Q3 2021.
- Bengaluru saw the highest RevPar growth of 241% in the Q3 2022 as compared to the same period last year.
AdvertisementThe Indian hospitality sector witnessed a strong growth in the third quarter (Q3) this year primarily due to corporate-related bookings, says a report by JLL India.
“The hotel room demand across business cities remained strong during the quarter primarily driven by meetings, incentives, conferences and exhibitions (MICE) and other business-related travel,” said the JLL’s Hotel Momentum India (HMI) Q3, 2022 report.
According to the report, the revenue generated per available room (RevPar) grew by 89.6% in Q3 2022 as compared to Q3 2021. On a sequential basis however, compared to Q2, its RevPar dipped by 3.8% due to reduced corporate travel amidst long weekends and festivals.
Last year during the same quarter, the country was struggling to recover from the fatal second wave of the pandemic, which had a significant impact on the performance of the overall hospitality sector. All forms of travel have been picking up ever since lockdowns ended earlier this year.
“Hotels across major business and leisure destinations are performing either at par or higher than pre-Covid RevPAR levels. This stellar recovery has renewed confidence in the sector resulting in increased development and investment activity,” Jaideep Dang, managing director of hotels and hospitality group, India, JLL.
Bengaluru tops the chart of RevPar growth and average daily rate
As per the report, Bengaluru saw the highest RevPar growth of a whopping 241% in the Q3 2022, on a year on year basis. Its average daily rate (ADR) also grew at 80% in Q3.
Source: JLL Report
|Cities||RevPar growth (in last one year)||ADR growth percent (in last one year)|
After Bengaluru, Hyderabad and Chennai witnessed the highest RevPar growth in Q3 2022 over Q3 2021.
“We believe this momentum will continue through the year-end. Furthermore, we expect the hotel investment climate to remain buoyant in 2023 as hotel performances further strengthen,” Dang added.
The last quarter of the year is expected to remain busy due to a hectic wedding season and leisure travel during the winter vacation. Meanwhile, business travel will continue to remain strong through the end of the calendar year, the report predicts.
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