Hospitality Sector Adds 30 New Hotels in September Quarter
Chennai: Hospitality sector saw 30 hotels with around 2000 keys opening in the September quarter. The quarter registered double-digit year-on-year growth as well as sequential growth in revenues in the September quarter and Hyderabad grew fastest at 23.6 per cent.
Around 30 branded hotels with an aggregate 1988 keys opened in the quarter. Of the total number of keys, approximately 80 per cent were located in Tier II and III cities, including Tirupati, Udaipur, Ranchi, and Mussoorie. Karnataka saw the highest number of hotel openings with 280 keys.
In Q3 2024, 96 branded hotels comprising 10,686 rooms were signed. Around 12 hotels signed were conversions of other hotels, accounting for 11 per cent of the inventory signed. Tamil Nadu saw the highest signing for hotels with 1247 keys.
Meanwhile, the Revenue per Available Room (RevPAR) of the hospitality sector recorded 10.8 per cent year-on-year growth in Q3 2024, while continuing to register a sequential growth of 2 per cent, as per the data of JLL.
Hyderabad recorded the highest RevPAR growth of 23.6 per cent, followed by Chennai and Mumbai with YoY growth of 17.7 per cent and 16.8 per cent respectively.
Though occupancy levels remained relatively stable, Average Daily Rate levels improved, leading to an increase in RevPAR across all major markets. The occupancy levels in Hyderabad hotels remained flat at 0.7 per cent, while the ADR grew 16.2 per cent. Similarly, Mumbai saw occupancies stagnant at 0.1 per cent and ADR growing 15.7 per cent. Chennai, however, saw occupancies growing by 4.7 per cent and ADR 11.5 per cent.
According to HVS Anarock, ADR across cities in the month of September ranged between Rs 7,300 – Rs 7,500, marking both yearly and sequential gain.
The fourth quarter of the calendar year is anticipated to benefit from the continued resurgence of corporate travel, festivals, and other corporate and social Meetings, Incentives, Conferences, and Exhibitions (MICE).
“Backed by strong performance of hotels across India, we continue to see investors moving money in this asset class. There is strong momentum on both greenfield developments as well as operating assets across business and leisure markets,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.