MUMBAI
India’s hotel industry may see some improvement in the second half of next year after the general elections due to relative stability in domestic politics and global economy, real estate consultancy Cushman & Wakefield has said in a report. The report, ‘Hotel Views – 2014’, which gives an outlook of the industry’s performance in 23 cities in Asia-Pacific region, has attributed the continuing sluggishness in key markets such as Mumbai and National Capital Region (NCR) to economic uncertainty, rupee depreciation and addition of supply.
Mumbai and NCR suffered the highest fall of 7.3% and 7% in Average Daily Rate (ADR) in 2012, according to the report, primarily due to a dip in tourist arrivals and large inventory pipeline. In NCR, the negative trend continued in the first half of this year, with ADR estimated at 7,260 against 8,268 in the year-ago period. The Average Occupancy Rate (AOR) plummeted to 54% between January and June from 66% in the first half of 2012.
“The drop in NCR is due to the three regions — Noida, Greater Noida and Faridabad, apart from Delhi and Gurgaon. We anticipate that by the end of 2013, performance may not show significant improvement but that has also to do with the fact that new inventory has come into the market, including the three large hotels at the airport,” said Akshay Kulkarni, regional director of hospitality, south and Southeast Asia, at Cushman & Wakefield. Similarly, hotels in Mumbai suffered a 23.6% decline in ADR to 7,714 in the first half of the year from 10,100 in the year-ago period. But, the occupancy rate in Mumbai is estimated to have increased by two percentage points to 65% in the first half of this year.
Full report here Times of India
