The HVS Anarock, India Hotel Sector Performance for November 2024 stated that Diwali glow arrived a month later for the Indian hotel sector, with November occupancy rates increasing by 8-10 percentage points year-on-year (y-o-y) and 10-12 percentage points compared to the previous month. The strong growth in ARR, which saw a 11-13% rise compared to the previous year, further bolstered RevPAR, driving overall performance upward. In November 2024, nearly all major markets, except Ahmedabad and Kolkata, recorded an increase in average rates compared to the previous year.
Mumbai continued to lead the market with the highest ARR ranging between INR13,500-15,000, while Hyderabad recoded the most significant growth, with an impressive 28-30% year-on-year increase in average rates. Bengaluru, Kochi and Gurugram also posted strong year-on-year ARR growth, each exceeding 20%.
In contrast, Kolkata and Ahmedabad experienced declines in average rates, with Kolkata recording a modest 1-3% drop, while Ahmedabad saw a substantial 27-29% decrease.
Ahmedabad’s sharp decline is primarily attributed to the exceptionally high rates recorded during the same period last year, driven by the ICC Cricket World Cup Final hosted in the city.
