Tag Archives: Average Daily Rate

ADR for Indian mid-scale hotels crosses Rs 3,000 for the first time

The Average Daily Rate (ADR) for Indian mid-scale hotels crossed 3,ooo for the first time in 2018, according to a latest report by Horwath on ‘India Hotel Market Review 2018’. Mumbai is the only market at the top right hand corner – unfortunately, it fell back from strong occupancy position, without materially gaining in ADR. Several occupancy shifts have been in the negative direction. Bengaluru, Goa and Jaipur dropped Occ between 2.7 pts and 4 pts. Bengaluru is particularly surprising because there is no supply growth in this segment. Bengaluru and Goa at least made up on the ADR front; the former added over Rs 300 to comfortable cross the Rs 3k level. Goa ADR growth was more modest but is now pushing the Rs 4k level. Jaipur dropped rate as well – only Rs 60 but that’s material when one is in the low Rs 2k level. Delhi, Gurugram, Pune and Chennai moved up to the right, gaining both Occ and ADR. Occupancy gains varied from 0.8 pts to 1.5 pts; while ADR gains spread significantly between 3.3 per cent and 12.6 per cent. Improving product quality at the mid-scale level (e.g. the revitalised Ginger and Park Inn by Radisson) could enable improve performance for this segment. It really needs Occ growth in key markets to compensate softer initial period results from smaller cities and towns in which this segment must penetrate.

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