Average room rates at branded hotels show moderation in May: HVS Anarock, ET HospitalityWorld

Average room prices at branded hotels show moderation in May: HVS Anarock (representative image)

Although there was a marginal year-over-year increase of 2 to 4 percent in ADR and RevPAR of branded hotels in May 2024, on a month-on-month basis, hotels nationwide saw a decline occupancy rate, ADR and RevPAR.

Compared to April 2024, hotel occupancy rates in May fell by 1 to 3 percentage points, resulting in a 6 to 8% decline in ADRs and a 9 to 11% decline in hotel RevPARs nationwide.

According to the monthly hospitality summary report by leading hospitality consultancy HVS Anarock, contrasting trends were observed in terms of occupancies and ADR in a few cities. While the Kochi hotel market recorded a growth of 6-9 per cent in occupancy on a year-on-year basis in May 2024, the growth in occupancy did not translate into growth in ADR. On the contrary, the ADR of Kochi hotels declined between 6 and 12 per cent in May 2024 compared to the same month last year.

On the contrary, Hyderabad showed a clear divergence between occupancy changes and ADR changes. While occupancy rate saw the highest decline of 3-5 percentage points, the city’s ADR saw the highest increase of 12-14 per cent.

Goa is another hotel market that is witnessing contrasting trends. While occupancy increased year-on-year by 1-3 percentage points, Goa saw average rates decline by 9-11% during the same period.

Although domestic air passenger traffic has continued to increase, crossing 137 lakhs in May 2024, a growth of over 4% compared to May 2023, this increase in air traffic has not translated into demand for hotels.

Despite these mixed trends, the market for branded signings and openings has remained robust. In branded hotels, 49 new hotels have opened to date, adding 3,176 additional rooms. 146 new signings have taken place for a pipeline of 14,311 rooms.

Join the community of over 2 million industry professionals

Subscribe to our newsletter to receive the latest information and analysis.

Download the ETHospitalityWorld app

• Get real-time updates
• Save your favorite articles

Scan to download the app