Annual report by HVS shows that Indian Hotels record fall in RevPAR.
Hotels across India witnessed a 5.2 per cent drop in RevPAR in 2012-13 over the previous year with the five-star segment registering the maximum decline, as per The Trends & Opportunities Report, published by HVS India.
Budget and economy hotels registered the highest RevPAR growth at 10.4 per cent on the back of a 14.7 per cent increase in average rate.
The report also noted that India’s supply of rooms in the organised sector has almost quadrupled to over 93,000 at the end of 2012-13 from about 25,000 in 2000-01. Despite supply growing at 17.8 per cent CAGR, demand kept pace and grew at a 17.3 per cent CAGR between 2008-09 and 2012-13. In 2012-13, only five per cent of the country's hotels attained an average rate of over USD 200 and no city hotels in the country attained an average rate in excess of USD 300.
Mr. Manav Thadani, Chairman, HVS South Asia, said, “The last fiscal saw a distinct rise in transaction activity, in addition to a number of hotels being rebranded. This is a clear sign of a maturing industry with investors and operators standing to gain. Enough and more existing hotels across positioning are now available for sale in the market; in fact we have ourselves seen an increase in the number of transaction mandates we are running.”