Hotels Sector Check - August Industry RevPAR 9% Above Pre-Covid Levels: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.As per HVS Anarock, industry occupancies fell below 50% in January 2022 owing to Omicron impact before recovering to ~55% in February 2022 and 61% in March 2022. This momentum carried forward into April 2022 with occupancies reaching ~65% (same as April-2019) of pre-Covid levels and April-22 revenue per available room at Rs 3,803 or 103% of April-2019 levels. May-2022 industry RevPAR of Rs 3,744 was 10% higher than May-2019 (pre-Covid levels) while June-2022 industry RevPAR of Rs 3,803 was 12% higher than June-2019 levels. In Aug-2022, while industry average room rates were 9% higher than Aug-2019 levels at Rs 5,850, overall occupancy remained flat at 61% in Aug-2022 compared to July-2019 levels resulting in Aug-2022 industry RevPAR of Rs 3,539 or 109% of Aug-2019 levels (July-2022 industry RevPAR was 105% of Jul-2019 levels). As per our channel checks, hotels are now consciously looking to keep rates higher even in the seasonally weakest quarter of the year (July-Sep-2022 period) and sacrifice a bit of occupancy in preparation for a strong demand surge in H2 FY23..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hotels Sector Check - August Industry RevPAR 9% Above Pre-Covid Levels: ICICI Securities

Assuming no further pandemic-induced disruptions we believe that inbound travel demand can surprise on the upside.

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