Hotel industry expected to return to pre-Covid levels in FY2023: ICRA

As per an ICRA report the hotel industry witnessed a healthy start to FY2023, with 56-58% occupancy in premium hotels in Q1 FY2023. It was up from ~40-42% in FY2022 and closer to pre-Covid occupancy of 60-62% in Q1 FY2020. Pan-India ARR stood at ~Rs. 4,600 – 4,800 in Q1 FY2023, as against Rs. 4,200-4,400 in FY2022. It still remains at a 16-18% discount to pre-Covid levels on an average, although a few high-end hotels and leisure destinations witnessed ARRs spike to higher than pre-Covid levels in the last few months.