Q2 RevPar garners triple-digit growth
Bengaluru registers the highest growth in RevPAR in Q2 2022 at 660.1 per cent, primarily due to low performance in Q2 2021 resulting from the second wave of the pandemic.
The Indian hospitality sector witnessed strong growth in Q2 2022, primarily driven by demand for weddings and events as well as a stellar recovery in corporate travel. The country was amidst the second wave of the pandemic in Q2 2021, which had a significant impact on the performance of the hospitality sector. As a result, RevPAR witnessed an exponential growth of 339.3 per cent y-o-y in Q2 2022 over Q2 2021. Further, the sector witnessed a stellar 44.6 per cent growth at a pan-India level in RevPAR compared to Q1 2022, as per JLL's Hotel Momentum India Q2, 2022.
The demand across the sector soared during Q2 2022, primarily driven by weddings and M!CE, and business travel. Corporate M!CE demand also saw recovery in the form of corporate off-sites, team meetings, and training. Domestic leisure continued to be a key segment during this period, driven by the pent-up demand of travellers who had not experienced a summer vacation for the past two years.
The next two quarters are expected to remain busy on the back of domestic leisure amidst long weekends and festivals. Business travel will continue to grow and will remain the main demand driver for the sector. While wedding and social function demand will remain a significant driver, M!CE demand is expected to witness an uptick in the coming months, with many corporate meetings and large-format conferences being planned.
The total number of hotel signings in Q2 2022 stood at 47 hotels with 4,010 keys. Hotel signings surged to 90.9 per cent as compared to signings in Q2 2021. Domestic operators dominated signings over international operators with a ratio of 52:48 in terms of inventory volume.
“With exponential growth across all performance indicators in business and leisure destinations, Q2 2022 marks the revival of investor interest and stakeholder profitability in the hotel industry. As business travel and corporate off-sites continued to grow, summer holidays offered a further impetus to the overall demand, resulting in a renewed confidence in the sector. 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.