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The last decade has witnessed a high growth in Indian Hospitality Industry on account of growth in Indian economy, improvement in per capita income, increased propensity to consume/spend, expanding business opportunities, popularizing weekend culture, easy access to travel related information and competitive airline prices. However, since past couple of years, Indian Hotel Industry is witnessing a challenging phase due to global economic slowdown and huge inventory addition throughout the country. Continuing the trend, FY13 turned out to be a challenging year for hotel industry with most of the cities witnessing lower RevPAR on account of diminishing occupancy and average rate. With a positive long term outlook on global economy, increasing tourist growth and stabilization of supply in the long run, CARE Research expects Indian Hotel Industry to perform better, though the growth of the past decade may take a little longer time to be achieved.

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Updates

    • Monthly Update July 2014

      Indian Hotel Industry–moderate improvement in ARR and OR in June 2014 on YoY basis....

    • Monthly Update June 2014

      Moderate improvement in ARR and OR in May 2014 on YoY basis....

    • Monthly Update May 2014

      moderate improvement in ARR and OR in April on YoY basis....

    • Monthly Update April 2014

      moderate improvement in ARR and OR in March on YoY basis....

    • Monthly Update February 2014

      Moderate improvement in ARR while OR witnessed decline on YoY basis....

    • Monthly Update January 2014

      Significant improvement in both ARR and OR on mom basis....

    • Monthly Update December 2013

      Marginal improvement in both ARR and OR on mom basis....

    • Monthly Update November 2013

      Significant improvement in both ARR and OR....

    • Monthly Update October 2013

      marginal improvement in both ARR and OR....

    • Monthly Update September 2013

      ARR improved marginally, while OR witnessed a marginal fall on a MoM basis....

    • Monthly Update August 2013

      OR improved marginally, while ARR witnessed a marginal fall on a MoM basis....

    • Monthly Update July 2013

      Poor performance continues, ARR and OR across hotels continues to decline on a MoM basis....

    • Monthly Update June 2013

      Weakness persists, ARR and OR across hotels continues to decline on a MoM basis....

    • Monthly Update May 2013

      April, seasonally a weak month, witnesses decline in ARR and OR across hotels on a MoM basis....

    • Monthly Update April 2013

      ARR and OR continued to remain under pressure on a MoM basis in March 2013....

    • Monthly Update March 2013

      The upscale hotel industry witnessed a fall in ARR and OR on a MoM basis in January 2013....

    • Monthly Update February 2013

      The upscale hotel industry witnessed a fall in ARR and OR on a MoM basis in January 2013....

    • Monthly Update January 2013

      Peak season helped the industry to register an improvement in ARR and OR in the month of December 2012....

    • Monthly Update December 2012

      Showed a good performance on a MoM basis but on YoY basis the performance remained muted on account of stiff competition....

Impact Analysis

  • Huge inventory addition to put an anchor on improvement in the ARR and OR across major cities

    The hotel industry in India witnessed a tremendous boom during the period FY06-08. India has emerged as a one of the most enticing destinations for th.....

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