Hyderabad Records 11.9% RevPAR Growth in Q2 2024, Boosting Hospitality Sector – JLL’s Hotel Momentum India Report
The hospitality sector in India reported a 4.8% year-on-year (YoY) increase in Revenue Per Available Room (RevPAR) for Q2 2024, according to JLL’s Hotel Momentum India (HMI) report. This growth, driven by higher Average Daily Rates (ADR), contrasts with a 15.9% quarter-on-quarter decline due to reduced corporate travel and seasonal dips.
Hyderabad led the RevPAR growth with an impressive 11.9% increase compared to Q2 2023, while Delhi and Bengaluru followed with 11.8% and 10.4% YoY growth, respectively. Despite a decrease in occupancy rates, other markets such as Bengaluru, Chennai, and Mumbai saw substantial ADR and RevPAR improvements, excluding Goa, which experienced a slight ADR drop.
The sector saw 50 new hotel openings, adding 3,755 keys, with about 90% located in Tier II and III cities like Tirupati and Udaipur. Additionally, 15 hotel conversions accounted for 11% of the new inventory in Q2 2024. The industry is set to benefit from a rebound in corporate travel, festivals, and MICE events in the upcoming quarters.
Jaideep Dang, Managing Director of JLL’s Hotels and Hospitality Group in India, stated, “Despite a dip in corporate room night demand during the summer, the sector has shown strong ADR growth. The upcoming festival season and increased corporate travel are expected to drive further improvements.”
The hospitality sector’s performance remains robust, bolstered by ongoing investments and a strong domestic demand outlook.
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