· Bengaluru witnessed the highest growthof 110.6% in RevPAR in Q4 2022 (Oct-Dec)
· RevPAR in Q4 2022 grew by30.1% compared to Q3 2022 on the back of corporate travel, weddings, year-end holidays and festivities
Mumbai, 15 February 2022:The hospitality sector continued towitness strong Year-on-Year (Y-o-Y) growth in performance in Q4 2022 (Oct-Dec), primarily driven by corporate travel, weddings, winter vacations and festivities. The year ended with a 90% Y-o-Y growth in RevPAR for the calendar year2022 over 2021.The performance in Q4 2021 was strong as well on the back of weddings and domestic leisure travel, however corporate travel was only a fraction of what has been witnessed in Q4 2022. As a result, RevPAR growth of 60.9% Y-o-Y from Q4 2022 over Q4 2021 seems significant. Furthermore, the sector witnessed a RevPAR growth of 30.1% Q-o-Qbetween Q4 2022 and Q3 2022. This is due to higher levels of corporate travel in Q4 2022 compared to Q3 2022, according to JLL’s latest Hotel Momentum India (HMI) Q4, 2022.
The hotel room demand across both business and leisure destinations remained strong during the quarter primarily driven by Meetings, Incentives, Conferences and Exhibitions (MICE), weddings and other business-related travel.Despite the year-end holidays, most business cities performed well with occupancy levels circa 65% and witnessed a strong growth in theAverage Daily Occupancy (ADR) levels. The momentum of Q4 2022 is expected to continue in Q1 2023 remaining busy on the back of weddings, and recommencement of business travel post the year-end holidays. Business travel is expected to grow during Q1 2023 on the back of domestic corporate travel related to critical decisions prior to closure of the financial year.
A total of 81 hotels comprising 6,663 keys were signed in Q4 2022. Additionally, there were 25 hotels signed that were conversions of other hotels. The conversions constituted 27% of the inventory signed in Q4 2022.
All six key markets witnessed strong growth in RevPAR levels in Q4 2022 compared to Q4 2021, due to a comparable low corporate travel base of last year. Bengaluru emerged as the RevPAR growth leader in Q4 2022with 110.6% growth over Q4 2021, followed by Mumbai and Delhi with aYoY growth of 105.3% and 94.3% respectively.
“Hotel room-night demand growth remained strong in Q4 2022 across major business and leisure destinations. Given the looming global head winds, inbound travel may witness a slowdown. However, domestic economic fundamentals remain strong and is expected to keep the domestic business environment stable. Additionally, a significant increase in hotel investment and related activities was witnessedtowards the later part of last year. This momentum is expected to continue in 2023.” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of September 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
JLL is India’s premier and largest professional services firm specialising in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across 10 major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi and Coimbatore) and over 130 tier-II and III markets with a cumulative strength of close to 12,000 professionals. The Firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centres, residential, retail, hospitality, healthcare, senior living, and education.