81% Hotel Occupancy Decline in India while Singapore manages with just 29.2%
Occupancies across hotels in key cities witnessed a sharp decline, as travel restrictions intensified and India continued the lockdown. However, as the lockdowns have been lifted in India and domestic air travel has been allowed, the things have started getting better for hotels sector. Many restaurants have opened as well with additional health measures. India should now allow international flights so that people who are stranded abroad and in India, can easily move to their desired destinations.
To understand the pulse of the industry amidst these unprecedented times, STR & HVS Research along with ANAROCK Real Estate conducted an anonymous online survey with Hotel General Managers (GMs) in the last week of April 2020.
Most GMs expect demand to pick up by Q4 2020
Over 42% of the GMs believe that Occupancy would be close to or higher than 50%, while 46% of the GMs believe that occupancy will remain below 40%.
Even with such a drastic fall in occupancy, it is comforting to see that over 71% of the GMs will not discount their rates by more than 20%.
Indian hotel managers are expecting to get back on the track as domestic tourist numbers in India have been rising. Lockdowns would definitely have a temporary impact on their balance sheet but majority of big chain hotels and well-financed small hotels hope to recover from the impact of COVID-19 lockdowns.