Cities that got booked in 2019

Vidhi Godiawala, Business Development Manager, Central & South Asia, STR, talks about how the country performed in 2019 and gave an insight on best-performing cities.

How did India perform last year?

India has faced a challenging 2019 due to job cuts in the automotive industry and IT sector. In general, the country suffered a major economic slowdown with its lowest GDP numbers. However, even in a challenging economic environment, hotel performance has been positive during the year with increases across the three key performance metrics.

Which are the top performing cities of India?

Mumbai and Delhi continue to be the cities with the strongest performance in India due to strong demand. In Delhi, demand has been especially strong due to diplomatic events, M!CE business and weddings.

Through November, the market posted a 5 per cent increase in occupancy, a 4.3 per cent rise in ADR and a 9.4 per cent lift in RevPAR. Mumbai, on the other hand, has seen limited supply growth and strong demand in both the domestic and corporate segments.

Other markets such as Bengaluru and Chennai continue to perform positively as demand has been strong. Hotel performance in Goa, however, has been influenced by alternative accommodations and falling demand. As of November, occupancy (-5.4 per cent) and RevPAR (-4.3 per cent) each decreased in Goa.

How many properties are under construction in the country at the moment and by when will they all be open?

According to our latest AM:PM data from November, there were 379 hotels under construction in India. Over the years, we are seeing more investment with more international branded hotels coming into the market as well as growth in the presence of domestic chains.

Mumbai and Delhi continue to be the cities with the strongest performance in India due to strong demand”