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Kolkata scores high on hotel occupancy, says survey

By BS Reporter
September 03, 2014 13:29 IST
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Victoria MemorialKolkata retained its position as the best-performing hotel market in terms of occupancy (72 per cent) for FY14, according to a recent HVS Trends & Opportunities Survey report.

While Mumbai (including Navi Mumbai) registered the highest average rate (Rs 7,105), Goa had the highest revenue per available room at Rs 4,778.

Mumbai continues to be in the top position for existing supply of branded rooms, followed by Delhi and Bangalore.

The number of hotels for FY14 rose to 814, showing a 13.5 per cent growth year-on-year, compared to 717 hotels with a growth of 30.1 per cent in FY13.

The number of branded hotel rooms stood at 103,855 for FY14 and it is expected to touch 150,702 by FY19.

The travel & tourism sector’s contribution to India’s GDP was 6.2 per cent (Rs  6,63,100 crore) in 2013, with domestic travel spends contributing 80 per cent of the contribution.

Foreign tourist arrivals grew 5.9 per cent in FY14 at 6.9 million.

The tourism sector’s contribution to the GDP is expected to rise to 7.3 per cent in 2014, according to the World Travel & Tourism Council’s economic impact report for India.

While the occupancy grew between 0.6 per cent and 4.9 per cent for all star hotels, the only exception was the four-star segment, which saw a minuscule decrease of 0.1 per cent.

The overall occupancy rates also showed a marginal increase in FY14, with 58.9 per cent occupancy, an increase of 1.9 per cent from the previous year.

Across all segments of star hotels, the average rate in two-star has shown a marked increase of 7.7 per cent, from Rs 1,849 to Rs 1,991.

The market’s average room rate, calculated by the number of rooms sold throughout the year, stands at Rs 5,531 a night compared to Rs 5,773 in FY13.

Although this is a decreasing trend, there are multiple reasons for the same.

While the organised supply of hotels grew at a compounded annual growth rate of 17.8 per cent over the past five years, the concomitant growth for demand was pegged at 17.6 per cent.

With the marginal supply-demand mismatch, the overall room rates are also driven down, owing to the greater number of budget and mid-market hotels opening up, the low occupancy rates in the initial period for new hotels and the competitive pricing from existing hotels to retain customers.

INDIA CHECK-IN

  • 72% Occupancy of Kolkata, the best performing hotel market
  • Rs 7,105 Average rate of rooms in Mumbai
  • Rs 4,778 Revenue per available room at Goa
  • 13.5% Y-o-y rise in number of hotels in 2013-2014 to 814
  • 1,03,855 Number of branded hotel rooms for FY14
  • Rs 6,63,100 crore Total contribution of travel and tourism to GDP at 6.2% in 2013
  • 80% Contribution of domestic travel spends to direct travel and tourism GDP
  • 6.9 mn Foreign tourist arrivals in FY14, a rise of 5.9%
  • 7.7% The average rise in two-star hotels

Image: The Victoria Memorial. Photograph: Jayanta Shaw/Reuters

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BS Reporter in New Delhi
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