Delhi witnesses 91% sequential growth in domestic air passenger traffic between Q3 and Q4, 2020: JLL
According to the Hotel Momentum India (HMI) Q4 2020 report, Delhi witnessed a 74.4 per cent decline in Revenue Per Available Room (RevPAR) during Q4 2020, compared to Q4 2019. A dip of 35.7 per cent points(pp) in occupancy and a 52.7 per cent decline in Average Daily Rate (ADR) was observed. Besides, a decline of 57.4 per cent in RevPAR was witnesses by the city in CY 2020, compared to CY 2019.
JLL recently releases the Hotel Momentum India (HMI) Q4 2020 report which reveals that Delhi witnessed a significant decline of 74.4 per cent in RevPAR during Q4 2020 as compared to Q4 2019 . Due to the pandemic, a 35.7pp decline in Occupancy and a 52.7 per cent decline in ADR was reported. Owing to the nationwide lockdown and travel restrictions due to the pandemic, hospitality sector in the city witnessed a 57.4 per cent decline in RevPAR during January to December (CY 2020), compared to CY 2019.
“Post the unlocking of the country, Delhi’s hospitality sector observed a month on month increase in occupancy levels during Q42020. The sector’s revival was driven by staycations, weddings and F&B demand. Additionally, the city witnessed a marginal rise in business travel in the New Year. Furthermore, corporate demand is expected to drive the sector’s recovery in Q2/Q3 of 2021 as companies lift their travel embargos,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, South Asia, JLL.
India’s hospitality industry faced a decline of 54.9 per cent in RevPAR during January to December(CY 2020), compared to CY 2019. With the revival of domestic travel, emergence of recovery indicators has come to the rescue of the sector. The recovery of the sector has been primarily driven by leisure ‘revenge travel’ during weekends and festival season, weddings and food & beverage demand.
Many hotels are trying to find alternative sources of income such as converting meeting rooms into co-working spaces or leasing business centers to corporates for short-term contracts. Delhi has always been a strong hospitality market and hotel owners expect a faster recovery in comparison to other major cities.
Around The World