RevPAR and ARR for India’s premium hotel segment is bottoming out. Low numbers are expected for the coming months, before things begin to look positive according to Crisil Research in its July ’09 review.
“We expect RevPAR and ARR to take a further hit in comparison to the July ’09 numbers, primarily due to the H1N1 virus. New inventory is expected in some cities so, so ARR is unlikely to improve in near future. However, we do not expect results to dip any further, even if there is another crisis,” said Sudip Mukherjee, the Crisil Research analyst who co-authored the report.
RevPAR for premium segment hotels in six cities – Mumbai, Delhi, Kolkata, Pune, Bengaluru and Goa – fell by 32.2%, from Rs6,400 in July 2008 to Rs4,400 in July 2009. YOY ARR also edged lower by 23.2% to Rs7,600 in July 2009, whereas YOY occupancy rates declined from 65% to 58%.
Mukherjee feels the margin of decline in Q4 2009 will be much smaller, primarily because the YOY base for the period is significantly lower brought on by the economic recession which started then.
