‘Revenue to decline by 90,000 cr’

Overall revenue of the Indian hotel sector is expected to decline by approximately 90,000 crore in 2020 according to revised estimates by HVS ANAROCK of the impact of COVID-19 on the sector.

In a recent report, HVS ANAROCK has shared its revised assumptions on the overall revenue loss that the hotel industry will face in 2020. “The overall revenue of the Indian hotels sector is expected to decline by approximately 90,000 crore in 2020, reflecting an erosion of 57 per cent compared to last year. RevPAR in the organised segment is expected to decline by approximately 58 per cent. The industry has not witnessed such an unprecedented decline in RevPAR in the last two decades, since HVS has been recording this data,” read HVS ANAROCK’s monthly newsletter — Hotels & Hospitality Overview India (April).

The report further mentioned that the unorganised segment, which is 10 times the size of the organised segment, is also anticipated to witness a similar quantum of decline. While the organised sector would see a revenue loss of 40,309 crore, the semi-organised sector would have losses to the tune of 8,379 crore and in the unorganised sector, these losses would be 41,126 crore.

It claims that the Indian hotels sector has come to a standstill in the last one month, with most of the hotels partially or completely shut. The report also reveals that the Average Daily

Rate (ADR) in top 13 markets in India in March was 5,690, which declined by 14 per cent as compared to February 2020, and declined by 6.8 per cent as compared to March 2019. The occupancy in March was 31 per cent, which dipped by 58 per cent from February this year and by 52.9 per cent in March 2019.

The RevPAR was 1,750, a drop of 64 per cent from February this year and 56 per cent from March 2019.

Mandeep Lamba, President (South Asia), HVS ANAROCK, says, “We should now use the learnings from this disruption and plan for the new realities beyond COVID-19, keeping in mind that we need to better prepare ourselves for future events of a similar or even more vicious impact.”