Indian hotels see the highest level of growth of room rates in ten years. The improvement rises around 8-9% in 2018.Published on : Tuesday, April 10, 2018
Indian hotels see the highest level of growth of room rates in ten years. The improvement rises around 8-9% in 2018.
As the demand for hotel rooms outpaces supply, pan-India average room rates (ARR) are likely to see an improvement of 8-9% this year, the strongest growth in the last one decade.
According to hotel consultant firm Hotelivate, Indian hotel room occupancy has recorded a nine-year high in the financial year ending March 2018, touching over 67%.
There are several hoteliers believe said this strong occupancy level is expected to push average room rates significantly this year.
After the global financial crisis in 2008, the average room rates across major cities in India suffered due to excess supply.
However, the room rates started recovering seeing a consistent growth of around 2-3% on a pan India level in the last three years backed by a strong demand.
There is a big opportunity to increase room rates as all fundamentals are positive including high disposal incomes, rising employment, more upcoming infrastructure and more people travelling.
Ashish Jakhanwala, MD and CEO of hotel investment firm SAMHI, agreed that the consistent growth in occupancy level for the last three years, is a great indicator for an impending room rate growth.
The senior executives of hospitality chain Radisson Hotel Group and hotel developer Chalet Hotels Ltd, part of real estate firm K Raheja group also expect a strong single digit growth of around 8-9% this year.
Tags: Ashish Jakhanwala, Hotel News, India, Radisson Hotel Group