Chennai: The hospitality sector has witnessed a revival in room night demand in the last quarter of 2020, as compared to the previous quarters of the year.
According to a press release by JLL, occupancy levels have grown month on month since September ’20 to cross 35 per cent sector-wide in November ’20 (as per STR data), which is the highest since beginning of the nation-wide lockdown in March’ 20.
The revival of the sector has primarily been driven by leisure ‘revenge travel’ during weekends and the festival season, weddings, food and beverage demand.
Goa, India’s most sought-after leisure market, witnessed considerable growth in recent months achieving a market-wide occupancy level of almost 55 per cent in November ’20.
“Domestic business travel is expected to pick-up pace from March-April 21 onwards, as employees return to workplaces and travel advisories by companies are softened. Additionally, domestic leisure will continue to drive occupancies across the country. F&B demand will continue to grow as eating out will increase albeit cautiously,” said Jaideep Dang, managing director, Hotels and Hospitality Group, South Asia, JLL.
Large restaurants in hotels with all necessary health and hygiene protocols could start seeing the benefits from this demand and weddings ceremonies will likely take centre stage again providing seasonal impetus to the hospitality sector.
Furthermore, repurposing of brownfield hotel assets for alternate uses such as co-living, senior living and student housing facilities may start happening, subject to demand in specific markets, the release said.