In all, 54 hotels, with 4,282 rooms were added during the year. While domestic operators signed 34 hotels, international firms were involved in 20 deals, the report added.
The Hotel Momentum India report said occupancies in the current quarter is expected to remain at optimum levels on the back of the wedding season, and leisure travel with the winter holidays expected to boost demand. Business travel, too, will be strong through the year-end, it added.
“We expect the hotel investment climate to remain buoyant in 2023 as hotel performances continue to strengthen. Hotels across major business and leisure destinations are performing either at par or at a higher level than the pre-covid RevPAR (revenue per available room) levels. This recovery has renewed confidence in the sector resulting in more development and investments. We believe this momentum will continue through the year-end," said Jaideep Dang, managing director, hotels and hospitality group, India, JLL.
India currently has around 150,000 branded hotel rooms.
RevPar for the sector saw 89% year-on-year growth in the September quarter, primarily driven by corporate travel. However, revenues per room fell 3.8% sequentially due to a decline in corporate travel in October given long weekends and festivals.
The company, though, said hotel room demand across business cities remained strong during the quarter primarily driven by Meetings, Incentives, Conferences and Exhibitions (MICE) and other business-related travel. Despite long weekends, most business cities performed well with occupancy levels of 70% and also witnessed strong growth in Average Daily Occupancy (ADR) levels.
All six key markets witnessed strong growth in RevPAR levels in Q3 2022 as compared to Q3 2021, due to the comparable low base of last year amidst travel restrictions post the second wave of the pandemic. Bengaluru emerged as the RevPAR growth leader in Q3 2022 registering a growth of 241.4% over Q3 2021, followed by Hyderabad and Chennai with Y-o-Y growth of 140.9% and 123.6% respectively.
