ARR up by 8.5% for 2-star hotels

Despite registering a decline in occupancy rates, two-star hotels witnessed maximum growth in average room rates (ARR) and increased by about 8.5 per cent y-o-y during FY18, according to a report by Hotelivate.

Three-star hotels registered a growth of about 5 per cent y-o-y hotels also recorded a growth of 3 per cent y-o-y each in average room rates. Five-star hotels, however, registered the lowest growth about 1.8 per cent y-o-y in the group during the year. This may be attributed to the gradual escalation of commercial activity in Tier II and Tier III cities as well as increased domestic travel.