Domestic travel to continue aiding hotel recovery in 2021: JLL
Domestic travel, which is already showing signs of recuperating, will continue to aid recovery for hotels in 2021, according to global real estate consultant JLL.
India's hospitality industry witnessed a decline of 54.9 per cent in revenue per available room (RevPAR) during January to December 2020, as compared to calendar year 2019, JLL's Hotel Momentum India (HMI) Q4 2020 said.
With the revival of domestic travel, emergence of recovery indicators has come to the rescue of the sector. The recovery has been primarily driven by leisure 'revenge travel' during weekends, festival season, weddings and demand of food and beverage, it added in a statement.
"We are already seeing signs of domestic business travel pick up in the new year. We expect that occupancies in business hotels will ramp up from March/April 2021 onwards as companies gradually lift travel embargo", JLL, South Asia, Hotels and Hospitality Group, MD Jaideep Dang said.
Furthermore, domestic leisure travel will continue to drive occupancies across the country. Food and beverage (F&B) demand will continue to grow as eating out will increase albeit cautiously, he added.
"We also expect investment activity to restart with serious investors evaluating quality assets on back of performance cycle uptick", Dang said.
Total number of signings in Q4 2020 stood at 45 hotels comprising 4,326 keys, recording a decline of 43.6 per cent, compared to the same period last year, the statement said.
Goa continues to be the RevPAR leader in absolute terms despite a decline of 33.3 per cent in Q4 2020 compared to Q4 2019. Demand for domestic leisure travel amidst international travel restrictions has made Goa the fastest recovering market in absolute terms, it added.