A review of Hotels and Hospitality Real Estate in 2016..!

A review of Hotels and Hospitality Real Estate in 2016..!
By Mr. Anuj Puri, Chairman & Country Head, JLL India
 
All major markets across India, with the exception of Ahmedabad, saw RevPAR (revenue per available room) rise in 2016. Players are confident that room rates will continue to inch upwards through 2017 thanks to declining hotel supply and the increasing potential of the domestic travel industry.

The Pan-India RevPAR has gone up by 5% (y-o-y), led by the leisure markets. Two of these markets, Goa and Jaipur, outshone commercial markets in the country - in fact, Goa is becoming the most expensive market in India today in terms of average daily room rate (ADR), and matches Mumbai’s ADR. Pune, Kochi, Chandigarh have also shown excellent growth.

Overall, the outlook for this industry looks bullish because demand will keep increasing while hotel realty supply will continue to remain limited. This is because demonetization has pushed further the deadlines for any new supply that would have come in the next few months.

Ahmedabad is an aberration to the India-wide RevPAR growth story because hotels is this city consolidated room rates in a knee-jerk reaction to the key demand generators not materializing.

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