Revenue per room of hotels went up year-on-year by 90% in 2022, says report

16 Feb 2023 , 10:51 AM

According to JLL’s latest Hotel Momentum India (HMI) Q4, 2022, a quarterly hospitality sector monitor, the year 2022 ended with a 90% year-on-year growth in revenue per available room for the hospitality sector, over that of 2021. Quarter four (October-December) registered a 60.9% y-o-y revenue per available room growth over quarter four of 2021.

According to JLL, the hospitality sector continued to perform strongly year on year in quarter four (October-December) of 2022 primarily due to corporate travel, weddings, winter vacations, and festivities.

Furthermore, the sector experienced a 30.1% increase in RevPAR from quarter to quarter in 2022. According to the report, this was due to increased levels of corporate travel in the fourth quarter.

Despite the year-end holidays, most business cities performed well, with occupancy levels around 65% and a significant increase in average daily occupancy (ADR) levels.

According to JLL, the momentum of quarter four of 2022 is expected to continue, with quarter one of this year remaining busy due to weddings and the resumption of business travel following the year-end holidays.

In the fourth quarter of last year, 81 hotels with a total of 6,663 keys were signed. There were also 25 hotels signed that were conversions of other hotels. Conversions accounted for 27% of the inventory signed in the fourth quarter of 2022.

Bengaluru led RevPAR growth in quarter four of 2022 with a 110.6% increase over quarter four of 2021, followed by Mumbai and Delhi with 105.3% and 94.3% year-on-year growth, respectively.

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