NEW DELHI: Driven by rising demand for weddings, leisure travel and recovery in corporate travel; the Indian hospitality sector witnessed strong growth in Q1FY2023 (April-June). The industry’s revenue per available room (RevPAR), a measure of a hotel’s ability to fill its available rooms at an average rate, witnessed an exponential growth of 339.3 % year-on-year (YoY) in Q1FY23 over last year’s Covid-hit low-base quarter and 44.6% growth compared to Q4FY22, according to a report issued by consultancy firm JLL.
Domestic operators dominated signings over international operators with a ratio of 52:48 in terms of inventory volume. City-wise Bengaluru emerged as the RevPAR growth leader in Q1 FY23, registering a growth of 660.1% over Q1FY22, followed by Goa and Hyderabad with a YoY growth of 564.5% and 326%, respectively.
“We expect this momentum to continue over the next few quarters on the back of long weekends, festivals, weddings, events, and business travel evenly contributing to this growth story,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, South Asia, JLL.
Top players such as Indian Hotels and ITC had a stellar April -June quarter. ITC’s hotel business revenue jumped three-fold to Rs 580 crore in Q1F23 with an average room rate and occupancy surpassing pre-Covid levels. For Tata Group promoted Indian Hotels, Q1FY23 performance was the best ever in their history.
Its revenue in Q1FY23 stood at Rs 1267 crore, up from Rs 345 crore in the year-ago quarter. Its profit was at Rs 180 crore against a loss of Rs 301.5 crore in Q1FY22. Puneet Chhatwal, MD & CEO of IHCL, said, “We will build a portfolio of 300 hotels, clock 33% EBITDA margin and 35% EBITDA share contribution from new businesses and management fees by FY26.”