The report indicates that the average revenue per available room (RevPar) fell by 34.4%, from Rs 6,583 ($130) in June 2008 to Rs 4,315 ($86) in June 2009.
Average room rates (ARRs) also came down by 25.5% to Rs 7,639 ($154) in June 2009, whereas occupancy rates fell from 64% to 56%. Despite the drop in ARR Bangalore still remains the costliest destination with an average room rate of Rs 9,137 ($183).The six cities covered in the survey were Mumbai, Delhi, Kolkata, Pune, Bangalore and Goa.
The pressure on business seems to be building up gradually as the hospitality sector's business performance numbers have only declined from May 2009. Interestingly, occupancy rates at leisure destinations such as Goa have fared better compared with business locations.
While the average RevPar in May 2009 stood at Rs 5,171 (Rs 4,315 in June 2009), the premium segment hotels registered average room rates (ARRs) of Rs 8,011 (Rs 7,639 in June 2009). ARR is the average rate of the total number of rooms sold and RevPar is the revenue against the total room inventory in the hotel. Both ARR and RevPar during June were down by 4.64% and 16.55% compared with May 2009. However there was a marginal increase in the occupancy rates of 56% in June 2009 as compared to 55% in the previous month. The numbers are not expected to change much in July.
Pune recorded the sharpest decline in occupancy, while Bangalore saw the highest in the cities surveyed. Occupancy in Pune fell from 66% in June 2008 to 43% in June 2009, while Hyderabad nosedived from 65% to 47%. Bangalore recorded the highest occupancy at 66%, followed by Goa at 61%.
"The fundamentals are still weak and the business environment remains the same. Besides, there is nothing happening in the demand revival side that could stimulate consumption," said the head of Crisil Research, according to the report in DNA Money. |