Resurgence in cases likely to keep most hotel rooms locked

New Delhi: India’s hotels industry is unlikely to recover significantly this year from the disruption caused by the pandemic though the lockdown was lifted for the hospitality sector from June 8 in some states, experts said citing industry estimates and pointing to increasing Covid-19 cases and continued closure in Maharashtra and Delhi. According to HVS Anarock, average occupancy in the organised hotels segment is set to fall to 34.5% in 2020 from 66% in 2019, when the average room rate was Rs 5,997, the highest in the past decade. The hospitality consultancy said demand has not yet revived because corporate travel is on a standstill. Leisure travel has also not seen any uptick in states that have eased restrictions because of increasing Covid-19 cases in the country. Occupancy rates in May 2020 were 13-15% compared to 60-62% a year ago. “Although we have about 40% of inventory now open and others evaluating reopening schedule, demand remains restricted, with most businesses still in the rebooting phase post the lockdown,” said Mandeep Lamba, president, South Asia, at HVS Anarock. Vidhi Godiawala, business development manager for central and South Asia at STR, which provides worldwide market data on the hotel industry, said the company’s data continues to show low occupancy for hotels in India. “Sustained lockdowns have muted occupancy and temporarily closed many properties. Of the trading properties, the past fortnight has shown occupancy lifting slightly in Mumbai and Delhi, with rooms occupied for returning citizens for quarantining and frontline health workers,” she said. As per data shared by RateGain, hotel bookings in the four weeks till June 21 were down 26% on-year in the US, 40% in China, 64% in Germany, 69% in Thailand, 77% in Australia and 74% in Canada. In India, however, the gap stood at 90%. Apurva Chamaria, chief revenue officer, RateGain said occupancies in summer in India are driven by corporate travel, destination management companies and local tour operators, which together provide nearly 60% of the business. “However, due to the ban on large group travel and companies undertaking almost zero travel, this revenue has not come back to the industry,” he said. The grim situation has now begun to take a toll on the mental health of some hoteliers. For instance, Premnath Krishna Shetty, 43, was found hanging in his hotel Raj in Dhayari, Pune, on Thursday. Sukesh Shetty, general secretary, AHAR (Indian Hotel & Restaurant Association) said the association had gathered from police that the suicide note mentioned his situation was “too bad” because of the closure of his hotel during the lockdown and that he was depressed. “Hotels are far more impacted than restaurants because there is no interstate movement of people, and no international travel. We have been requesting the government for some support so that we can stand on our own feet,” said Shetty.

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