Skift India Report: Hotels Hit Rocketship Growth in the Second Quarter

We read HVS Anarock’s Hotels & Hospitality Overview report for the second quarter and this is what we found out about the Indian hotel industry.

Despite a drop of 1 to 3 percentage points in occupancy in the second quarter, the average daily rate experienced 16-18% growth and the revenue per available room grew 13-15%, compared to the same period last year. 

Mandeep S. Lamba, president of South Asia at HVS Anarock attributed this robust double-digit growth to two factors:

Strong demand in the leisure segment  Recovery in corporate travel and meetings, incentives, conferences, and exhibitions Source: HVS Anarock Hotels & Hospitality Overview, July 2023

City-wise Performance: Except New Delhi, Kolkata, Mumbai, Chennai and Kochi, all other cities in the country showed a decline in occupancy levels in June. The cities which performed poorly, as per the report, are Chandigarh, Pune and Bengaluru. 

“Demand patterns are now normalizing after the severe fluctuations of the past three years. As a result, few overheated markets are experiencing some course correction and we expect this trend to continue in the near to mid-term although the overall outlook for the sector continues to remain upbeat,” Lamba told Skift.

Oyo to Add 50 Homestays and Hotels in Rameswaram 

Budget hotel operator and aggregator Oyo said it plans to add 50 hotels and homestays by the end of this year in Rameswaram and Ramanathapuram in the south Indian state of Tamil Nadu.

Purpose of the Plan: Oyo seeks to project and promote Rameswaram as a major tourist attraction while ensuring the preservation of the town's cultural heritage.

Other details: Oyo will also train homestay owners on earning opportunities, besides creating awareness on homestays using various marketing tools. Add