New opened hotels in India averaged 45.9% occupancy: Report

Hotels that opened in 2015-16 in India  averaged 42.7 per cent and, new openings of 2016-17 averaged  45.9 per cent occupancy in their very first year, according to a report by HVS Global Hospitality Services. Similarly, while  first year ARRs were successively lower than their  preceding years from 2012-13 to 2014-15, the ARR for  hotels that opened in 2015-16 and 2016-17 have seen  an increase in comparison to their preceding year, the report said.
Both these figures, coupled with the demand-supply  outlook for the next sixty-months, further corroborate our view that most  markets in India are at a point where both occupancy and ARRs can substantially improve. The question is whether the sector’s stakeholders will truly manage to capitalise  on the evident opportunity, or do we still need to live by  the adage, the report said.