Mumbai: After a long election season, grounding of Jet Airways and travellers opting for overseas travel to beat the heat during holiday season have resulted in a decline in occupancies across hotel segments in key cities, says a report.
The JLL Hotels and Hospitality Group's half-yearly report noted that the decline in occupancies was more visible in key cities including Goa, Jaipur, Pune and Ahmedabad.
However, it noted that upwardly stable average daily rates (ADR) has helped the hotels to maintain momentum during these first six months.
Nine out of the top 11 markets in the country witnessed a marginal rise in revenue per available room (RevPAR) during this period.
"We expect the room rents to remain stable in the future. Few cities, however, which are high on tourism radar and are business-wise important, are likely to see an upward movement in rents. This trend is likely to keep the performance and growth of the sector intact in coming quarters too," JLL India Hotels and Hospitality Business Managing Director Jaideep Dang said.
"Despite the fact that real estate market in the country is going through a difficult phase, new hotel signings suggest that there are businessmen and entrepreneurs from other trades who are investing in hotels given its long term potential," he added.
During the first six months there were 85 hotel signings, comprising of 8,612 keys. While budget brands looked promising in 2018, upscale and midscale hotel brands have contributed the maximum to the signings in January to June, it said adding that there has been a rise in branded hotel signings in this period.
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