Chennai: Hotel investment volume in 2020 witnessed a 60 per cent global decline in comparison to 2019 and in India, the decline in hotel investment trade was even sharper at 84 per cent in 2020 as compared to 2019, according to a study.
Previous years had seen promising and consistent growth in occupancy and average daily rate (ADR) levels across key cities world over. India was no different, said JLL.
It added that India-wide hotel performance registered a decline in RevPAR (Revenue per Available Room) by approximately 55 per cent over the previous year, closing at a RevPAR of Rs 1,675.
Whilst performance of business hotels has yet to fully recover, leisure markets led by domestic travellers showcased some resilience in the last quarter of 2020.
As a result of the pandemic, hotels were compelled to reset their business plans. Standard operating procedures were drastically transformed with adaptation of available technology to encourage social distancing and increased focus on health safety and hygiene practices.
New hotel developments slowed down, and most hotel openings were deferred by at least six months, according to JLL.
According to the STR data, Delhi’s hotel market witnessed a 32 per cent decline in occupancy and a 24.1 per cent decline in Average Daily Rate (ADR), resulting in a 57.3 per cent decline in RevPAR, in 2020 over 2019.