Chennai: There is a prolonged struggle between supply and demand growth in Chennai's hospitality sector. Over 5,600 rooms were added since 2010; and demand has grown by 3,200 rooms per night. The occupancy in hotels in the city marginally declined to 62.2 %; and has remained flattish for 3 years now.
Occupancy for all key markets and across all segments except the up-upmid segment for Chennai crossed 60 per cent while Mumbai maintained over 70 per cent on market-wide basis and Goa dropped below 70 per cent in 2017. As per the India Hotel Review Report - 2017 prepared by STR and Horwath HTL Delhi & NCR registered 69 % occupancy at about USD 100 (got there only because the Rupee got stronger) is what the capital city reports. Other areas of NCR have occupancy at 60% and Average Daily Rate (ADR) marginally above 4k reflect softness in demand growth. Bengaluru had a good year. The occupancy was up to 68.8 %; ADR with Rs 240 + and 10.6 % RevPAR. bMumbai and Goa continue as leaders. Goa ADR crossed 8k while Mumbai was a shade below 8k and 6k in ADR and RevPar respectively and is the only market in the busy superior rate zone. All the markets except Gurugram, gained RevPar with Pune, Jaipur, Ahmedabad and Bengaluru gaining over 10 per cent.
