Hospitality Sector Sees 4.8% YoY Growth in RevPAR Driven by Higher ADRs

The hospitality sector experienced a 4.8% year-on-year growth in revenue per available room in the April-June quarter, driven by higher average daily rates (ADR). Despite a dip in occupancy due to summer vacations, markets like Hyderabad and Delhi showed significant RevPAR growth. The upcoming quarter is expected to benefit from increased corporate travel and festive seasons.

The hospitality sector reported a 4.8% year-on-year increase in revenue per available room (RevPAR) for the April-June quarter, primarily fueled by a rise in average daily rates (ADR), according to a report released by JLL's Hotel Momentum India (HMI) Q2.

Despite a sequential decline in occupancy levels due to the onset of summer vacations, cities like Hyderabad, Delhi, and Bengaluru saw substantial gains in ADR and RevPAR. Hyderabad led the growth with an 11.9% year-on-year increase.

The upcoming quarter is anticipated to see further improvement driven by the resurgence of corporate travel, festivals, and other MICE (Meetings, Incentives, Conferences, and Exhibitions) events. Additionally, strong investor interest in branded hotel developments indicates a robust outlook for the sector.

(With inputs from agencies.)