OR, ADR and RevPAR Decreases @ Hotels in India

According to STR Global, India's hotel industry has reported year-to-date decreases in the three key performance metrics.

For the period January-to-October 2012, India's hotels on an average saw occupancy fall 0.8% to 57.7%, ADR drop 4.0% to INR6,117.72 and RevPAR decrease 4.8% to INR3,532.54.

"The global economic slowdown and a substantial increase in inventory across cities continues to impact the hotel sector," said Vijay Thacker, director of Horwath HTL India. "The third quarter is typically slow for hoteliers, and this year it was no different. The declining demand and rate conditions throughout the year have proved to be worrisome for hoteliers as we enter into the final quarter of the year."

Among the markets in India, Jaipur enjoyed the highest increase in YTD occupancy, rising 2.7% to 53.6%. Chennai (-7.8% to 60.5%) and Bangalore (-5.0% to 53.7%) reported the largest YTD occupancy decreases.

ADR growth was strongest in Goa, rising 5.8% to INR6,187.82. Bangalore fell 9.7% in ADR to INR6,363.64, experiencing the largest decrease in that metric, followed by Delhi NCR (-6.6% to INR7,504.03).

Goa (+4.7% to INR4,126.45) and Kolkata (+1.3% to INR4,338.99) achieved the only YTD RevPAR increases. Two markets experienced double-digit RevPAR declines: Bangalore (-14.2% to INR 3,414.92) and Chennai (-10.4% to INR 3,580.56).

"Out of the markets tracked by STR Global across India, Mumbai continued to lead in ADR and RevPAR terms," said Elizabeth Randall Winkle, managing director of STR Global. "Reporting YTD ADR and RevPAR of INR 7,933.85 and INR 4,901.86 respectively."

See other recent news regarding: Travel News Asia, STR, India