Tag Archives: RevPAR

Occupancy rates for five-star hotels witnessed the sharpest growth of about 240 basis points y-o-y during FY18. This was followed by three-star hotels that registered a growth of about 200 basis points and four-star hotels that registered a growth of 180 basis points during FY18, while the five-star hotels witnessed lower growth of only 110 basis points y-o-y. Two-star hotels however, witnessed a decline of about 10 basis points in their occupancy rates during the year. Also, two-star hotels witnessed the maximum growth in the group in average room rates increasing by about 8.5 per cent y-o-y during FY18. This was followed by three-star hotels that registered a growth of about 5 per cent y-o-y in FY18. Four-star and five-star hotels recorded a growth of 3 per cent y-o-y each in average room rates. Apart from that, each star category witnessed a y-o-y increase in RevPAR in FY18, with the three-star category leading the pack, recording a 8.2 per cent growth during the year.

According to the latest monthly data from STR Global, India’s nationwide occupancy increased 5.4 per cent year-on-year to 61.4 per cent last month, which marked the highest absolute occupancy level for a May in India since 2007. And this extra demand is allowing hoteliers to hike their rates; India’s average daily rate (ADR) climbed 3.5 per cent to Rs. 5,406.77 (approx. $84) in May. These two factors combined to raise nationwide revenue per available room (revPAR) by +9.1 per cent to Rs. 3,319.71. RevPAR has now increased 4.2 per cent during the first five months of 2017, driven by strong domestic tourism and rising affluence among India’s growing middle class. Specifically in May, hotel demand was supported by the Indian Premier League cricket and the African Development Bank annual meetings in Ahmedabad.