Hotel occupancy levels improved to 35% in November 2020 on back of domestic travel: JLL
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With the emergence of recovery indicators, the hospitality sector has also witnessed a revival in room night demand in the last quarter of 2020, as compared to the previous quarters of the year. Occupancy levels have grown month on month since September 20 to cross 35% sector-wide in November 20 (as per STR data), which is the highest since beginning of the nation-wide lockdown in March 20. The revival of the sector has primarily been driven by leisure ‘revenge travel’ during weekends and the festival season, weddings and food & beverage demand.
Goa, India’s most sought-after leisure market, witnessed considerable growth in recent months achieving a market-wide occupancy level of almost 55% in November 20. Luxury and upper upscale hotels in Goa performed well in November 20, achieving healthy occupancy levels ranging between 60% and 70% as compared to occupancy levels in Nov’19 that ranged between 65% and 75%.
“Domestic business travel is expected to pick-up pace from March-April 21 onwards, as employees return to workplaces and travel advisories by companies are softened. Additionally, domestic leisure will continue to drive occupancies across the country. F&B demand will continue to grow as eating out will increase albeit cautiously” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, South Asia, JLL.
