Indian hospitality sector slows growth

The Indian hospitality sector is slowing down and has resulted in poor demand from key source markets such as the US and Europe.

According to HVS, a global hospitality services firm, the average room rate registered during the year (2013-14) was around Rs 5,500 and RevPAR (revenue per available room) of Rs 3,250 which shows that the average occupancy rate hovers around 57 percent which is the lowest in the last several years.

Speaking on the same, MD Kapoor, Secretary General, Federation of Hotel and Restaurant Associations of India (FHRAI), said, “Hotel occupancy and average room rates have been under considerable pressure because the fresh supply of rooms has outpaced the growth in demand.”