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Global crunch fails to impact hotels

The global economic turmoil does not seem to have had any major impact on the country’s hospitality sector.

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MUMBAI: The global economic turmoil does not seem to have had any major impact on the country’s hospitality sector. In fact, the premium segment has witnessed considerable increase in business, according to a Crisil report.

Crisil’s hospitality sector analysts Karishma Shetty, Sudip Mukherjee, Binaifer Jehani and head of research Sridhar Chandrasekhar, in their compilation of September 2008 numbers, indicated that the hospitality sector’s average revenue per available room (RevPAR) grew by 17.3% in the last year — to Rs 7,636 from Rs 6,511 in September 2007. The average room rate (ARR) also grew by 21% to Rs 11,330.

However, there was a slight decline in the occupancy levels — to 67% from 69% in September 2007.

Of the cities tracked by the research firm, all but Delhi and Pune, witnessed a southward trend in occupancy levels. Delhi saw the sharpest year-on-year (YoY) increase in occupancy levels — from 72% in September 2007 to 79% this year. Occupancy rates in Pune remained unchanged.

While Delhi recorded the highest occupancy rate, Goa registered the steepest decline. Hotels and resorts in India’s biggest international leisure destination saw a fall in occupancy levels to 49% from 66% in September 2007.

Most cities fared well in terms of ARR, with Bangalore leading from the front. ARRs for the garden city stood at Rs 13,483. The Indian Silicon Valley also registered the highest growth in ARR, at 28%.

The only exception to the positive ARR story was Hyderabad. The city witnessed a fall in ARR — to Rs 7,539 from Rs 8,409 in September 2007 — primarily on account of new room inventory added in the last 12 months.

Premium segment hotels in Delhi also outperformed peers in terms of revenue per available room (RevPAR). It registered the highest RevPAR (in rupee terms) at Rs 10,173 in September 2008.

However, in percentage terms, Bangalore enjoyed the highest RevPAR growth — from Rs 7,952 to Rs 9,841. Hotels and resorts in Goa recorded the sharpest drop in RevPAR, from Rs 3,390 in September 2007 to Rs 2,613 in September 2008.

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