Tag Archives: hotels

Occupancy rates for five-star hotels witnessed the sharpest growth of about 240 basis points y-o-y during FY18. This was followed by three-star hotels that registered a growth of about 200 basis points and four-star hotels that registered a growth of 180 basis points during FY18, while the five-star hotels witnessed lower growth of only 110 basis points y-o-y. Two-star hotels however, witnessed a decline of about 10 basis points in their occupancy rates during the year. Also, two-star hotels witnessed the maximum growth in the group in average room rates increasing by about 8.5 per cent y-o-y during FY18. This was followed by three-star hotels that registered a growth of about 5 per cent y-o-y in FY18. Four-star and five-star hotels recorded a growth of 3 per cent y-o-y each in average room rates. Apart from that, each star category witnessed a y-o-y increase in RevPAR in FY18, with the three-star category leading the pack, recording a 8.2 per cent growth during the year.

The Sikkim Hotels & Restaurants Association (SHRA) recently convened hoteliers’ meeting in Gangtok during which it was unanimously agreed to not continue conducting business with Go-MMT until the concerns were addressed and resolved. Effective January 16, 2019, hotels in the state have indefinitely closed inventory to the OTAs and have decided to not honour any new bookings that might come through. During the meeting, SHRA member hotels also decided to terminate their contracts with Go-MMT immediately. Pema Lamta, President, SHRA, said, “We are in solidarity with the country’s apex hospitality body – Federation of Hotel & Restaurant Associations of India (FHRAI) and also our regional body – Hotel & Restaurant Association of Eastern India (HRAEI) in uniting against the OTAs’ unfair and discriminatory business practices. We have made an official appeal to all our members to not honour Go-MMT bookings from January 16, 2019, and have requested them to terminate their contracts with the OTAs immediately. However, we will accommodate guests who have already been booked through Go-MMT even after the 16th. We do not want our guests to be harassed or inconvenienced. However, they will be requested to make payments directly to the hotel instead of to the OTAs.” Many other hotel Associations across India have accused the said OTAs of charging exorbitant commissions, unfair accounting practices and unauthorised and further discounting of hotel prices set by hoteliers. The boycotting of the two online portals gained momentum after Ahmedabad Hotel Association had first raised the issue, which many other associations and hotels followed on later. “SHRA had earlier written to OTAs with concerns raised by local hotels and even held meeting with them. The association had raised specific concerns …

The Fern Hotels & Resorts is all set to open 20 Fern and Beacon Hotels across India and Nepal in the year 2019, said Suhail Kannampilly, COO, The Fern Hotels & Resorts. Out of these 20 hotels, two will be opened in Nepal – one in Kathmandu and second in Bharatpur, he informed. This will take the tally of the hotels managed by the group to 76, on our target to open 100 hotels by the year 2020, Kannampilly said. The 20 new hotels expected to open in the current year are located in Aurangabad, Bengaluru, Bharatpur (Nepal), Bhopal, Goa (Verna), Indore, Karad, Kathmandu, Kolhapur, Kumbhalgarh, Lonavala (2 hotels), Manali, Morbi, Polo Forest (Gujarat), Sarnath (Varanasi), Satara, Shivamogga, Solapur and Surat. The year 2018 witnessed The Fern successfully foraying into cities like Belgaum, Bhuj, Dwarka, Jamnagar, Madhavpur (Gujarat), New Delhi, Parbhani (Maharashtra), besides taking over the operations of a hotel in Kathmandu. The footprint of the brand was further established in locations like Goa, Jaipur, Rajkot and Udaipur, where the company opened second and third hotels in the same city.

After MakeMyTrip (MMT) group’s chief executive Deep Kalra’s recent comment that the Federation of Hotel and Restaurant Association of India (FHRAI) has no locus standi to determine commercial agreements between MMT and the establishments on its platform, Gurbaxish Singh Kohli, VP, FHRAI, says, “Goibibo and MMT have been exploitive, unethical and adapted divisive business practices, leading to predatory pricing, market distortions and cannibalisation. I fail to see how our letter clearly worded as requesting to “resolve” the situation would be misconstrued as trying to “dictate” terms. India has approximately 100,000 establishments which provide accommodation. Approximately, 65,000 are structured licensed establishments, out of which around 45,000 hotels are stand-alone hotels. “FHRAI has never got involved all these years in any negotiations with standalone vendors but takes a strong stand when the industry faces any outside coercion or intimidation. It is only when 1000’s of hoteliers realised Goibibo and MMT’s arrogant method of pressurising the small hotels in high commissions, more free rooms, started price control on the owners. FHRAI has, in its fiduciary duty stepped in to amicably resolve matters. Please note FHRAI is not here to negotiate as wrongly being projected. It is here to ensure that agencies like MMT and Goibibo do not take the industry for granted by parenting such market conditions in which it would be difficult to do business for one party but a win-win situation for the other.” He further said, “Going back to December 7, 2018, whilst the Ahmedabad Hoteliers blocked GOMMT in the city, Kalra wanted to sit with FHRAI and work out the issues. The team sent to “resolve” arrived but with a fixed agenda of “fixing” only commissions that too by a paltry reduction …

The direct contribution of travel and tourism sector — which reflects the net value of output generated by hotels, airlines, travel agents, other passenger transportation services (excluding commuter services), and restaurants and leisure industries directly supported by tourists — was expected to rise 6.9 per cent YoY in 2017, suggests a FICCI-KPMG report. This accounts for 3.3 per cent of the country’s GDP, and is expected to form 3.5 per cent of it by 2027. In accordance with its GDP contribution, the sector contributes significantly to job creation. The sector directly accounts for 5.8 per cent of the total employment in India. Further, the Indian travel and tourism sector is expected to have attracted capital investment of Rs 2,387.7 billion (USD35.2 billion) in 2017 — accounting for 5.7 per cent of the total national investment.

The nationwide occupancy for all branded hotels was 65.6 per cent in 2016-17 and the hotels that have existed since 2012/13 achieved 68.4% occupancy last year, according to a report by HVS Global Hospitality Services. Similarly, hotels that have been operating since 2013/14 clocked 67.9% occupancy in 2016/17. On the average rate front, while India’s ARR was `5,658 in 2016/17, for hotels in existence since 2012/13, the ARR last year was more than `6,000.

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.

Carlson Wagonlit Travel (CWT) has announced the formal launch of its new business division wholly dedicated to hotel distribution – RoomIt by CWT. The new division is focused on creating and delivering a new and innovative experience to expanding access and providing greater variety to customer accommodations around the world. Scott Brennan, President, hotels, Carlson Wagonlit Travel, says, “RoomIt by CWT simplifies the hotel booking process and puts the most relevant lodging options all in one place. CWT is committed to giving our clients a wide range of global options at the most competitive rates and our investment into RoomIt will enable better, more personalized service to our travelers.” RoomIt is designed with increased functionality and personalization capabilities while equipping companies with the tools to effectively monitor employees’ travel schedules.

In August 2016, the Indian capital’s average occupancy was 61.5 per cent last recording a 7.2 per cent increase compared to the same month the previous year, according to the latest data released by STR. Coupled with a 1.4 per cent rise in average daily rate (ADR) to Rs. 5,376 (approx. $81), Delhi’s revenue per available room (revPAR) rose by 8.7 per cent to Rs. 3,304. The upscale and upper midscale sector reported the strongest revPAR growth in Delhi in August, rising 11.7 per cent. International arrivals to the country increased 12 per cent in August along with consistent double-digit growth in terms of domestic air travel. Delhi Airport alone welcomed more than a quarter (28%) of these inbound visitors.