Monthly occupancy rates in five of the top 10 key markets declined year-on-year, even as average hotel rates increased, according to a new report by consultancy HVS Anarock.

While not all hotels in New Delhi were occupied, it was the only city to see a rise in average rates during the month due to the G20 summit with rates surpassing ₹11,000, or a 60% year-on-year rise. Demand declined by 5-10% in Bengaluru and Pune. For Delhi, Hyderabad and Chennai occupancy rates fall by 5%.

However, Mumbai, Chandigarh, Goa, Kochi and Kolkata saw 5% growth in occupancies.

Average daily rates—a metric to measure annual earnings per room—increased 27-29% as hotels continued to charge higher rents compared to last year. In September, daily rates were at ₹7,000- ₹7,200 in top markets over the corresponding period of 2019 and 17-19% more than a year ago. In fact room rentals were higher by 5-7% compared to August.

As anticipated, highest average daily rate change, was seen in Delhi hovering at 20% and 65% more than their rates in September 2022, followed by Bengaluru, Mumbai, Kolkata, Hyderabad Pune and Chennai with a rise of 10-20%. Goa and Chandigarh witnessed aw more stable rates during the time.

In the first nine months of 2023, 207 new hotels properties with about 17,500 rooms were signed. About 114 hotels opened between January and September this year, adding close to 8,000 rooms to India’s hospitality sector, according to the report.

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Updated: 31 Oct 2023, 11:03 PM IST