Chennai: Despite GST and demonetisation blues, nationwide occupancy in hotels crossed the 65 per cent mark for the first time since 2007-8, with hotels clocking an overall weighted occupancy of 65.6 per cent in 2016 -17, an increase of 3.5 per cent over the previous fiscal.
The increase in occupancy was complimented with an increase of 2.4 per cent in weighted average rate (Rs 5,658) during the same period.
Growth in both occupancy and average rate resulted in the nationwide RevPAR rising by 6 per cent over the previous fiscal to reach Rs 3,709, according to the annual Trends & Opportunities Report for 2017 on Indian Hotel industry by HVS India.
The report revealed that the overall supply-demand scale is currently tilted in favour of growth in demand outpacing supply and most conducive for significant rate growth. The average rate growth of 2.4 per cent, the report says is marginal compared to the opportunities.
The demand-supply equation today as well as in the next 48 to 60 months is more than likely to present an opportunity for substantial average rate enhancement and hotel operators who “draft strategies to seize the occasion” will be at an advantage.
The previous occasion when the nationwide occupancy breached the 65 per cent mark was in 2007-8.
When viewed by positioning, five-star deluxe and three-star hotels clocked 66.5 per cent occupancy, while four-star hotels achieved 6 5.6 per cent occupancy and two-star hotels managed 62.7 per cent. Therefore, it is apparent that hotels across all positioning benefited from the supply-demand gap in the year 2017.
Among the cities, Mumbai continues to lead in terms of both occupancy (74.2 per cent) and average rate (Rs 7,693) for the third year running while Noida displayed the lowest occupancy (56.9 per cent), and Ahmedabad, the lowest average rate (Rs 3,840).
BJP leaders will convey concerns on GST to Centre
Hailing the recent initiatives on the GST, particularly reduction in the tax rate for several products and the relaxation of norms for filing returns, as well, Union minister of state for finance and shipping Pon Radhakrishnan said the concerns of industrialists and traders would be conveyed to the finance minister.
The minister earlier was greeted by the members of the Erode Powerloom Owners Association who thanked the Central for reducing the GST to 12 per cent from 18 per cent on manmade fibre. “More than 2lacs weavers are getting benefitted from this decision. The members thanked our beloved PM Shri @narendramodiji and @arunjaitleyji,” Mr Radhakrishnan tweeted posting a photo of the association members meeting him to thank the Centre.
