Winning Bizness Desk
Mumbai. The restrictions imposed due to the epidemic broke the back of the hotel and tourism industry making this sector as the worst hit of the Corona outbreak. The hotel industry has also benefited the most from the lockdown restrictions removed after the reduction of covid cases in India and now the hotel room booking (Hotel Occupancy rate) has crossed the pre-Covid-19 level as well.
According to Motilal Oswal Financial Services, hotel occupancy has been more than 65 per cent in April 2022. This is 100 basis points (1 percent) more than the figures of April 2019. In this way the booking of hotel rooms has also crossed the pre-Covid-19 level. The maximum number of hotel rooms were booked in the Mumbai region and this region has emerged as the market leader.
Increase in revenue due to increase in booking
The Annual Recurring Revenue (ARR) has also increased by 4 per cent to Rs 5,850 as compared to April 2019, with hotel room bookings reaching 65 per cent. Due to this, the revenue per available room (RevPAR) has also increased by five percent as compared to April 2019 and has reached Rs 3,804. On an annualized basis, the hospitality basket has achieved a growing EBITDA in the fourth quarter of FY 2022. East India Hotels has achieved the highest growth followed by Indian Hotels, Chalet and Lemon Tree. Leisure travel returned to normal in April 2022.
Continues to accelerate
This momentum continues in May 2022. Excess demand versus supply constraints will drive mid to long term ARR growth. The aggregate revenue of major hospitality sector players such as Chalet, East India Hotels, Lemon Tree and Indian Hotels declined by 19 per cent on a quarterly basis, but grew by 41 per cent on a year-on-year basis in the fourth quarter of FY 2022. On an annual basis, Chalet has generated 51 per cent more revenue, Indian Hotels 42 per cent and East India Hotels 40 per cent more revenue.