RevPAR of leisure properties in India outpaces that of urban hotels

In the hotel industry, leisure properties in India continued to outperform their urban counterparts largely as a result of steady demand and higher average rates, as per a latest research by Hotelivate. The RevPAR of Rs 9,235 clocked in 2017-18 by the leisure sub-set was 1.6 times that of the urban sample and 2.4 times the national average. The strong year-on-year performance of the former clearly points towards a healthy demand for such hotels in the country, making investment in leisure properties perceivably more viable than previously thought. The peaks and troughs in demand in leisure locations is smoothening with creative promotions, social events, corporate off-sites, MiCE and group travel serving as fillers. Moreover, the low reliance of leisure hotels on RFPs from corporates that are relatively more sensitive to economic and trade conditions, make them less vulnerable to price wars.

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