2019 had been one of the strongest performing years for the Indian hotel market in the past decade, uplifting hopes for even better performance in 2020. However, 2020 has been the toughest year in living memory and unfortunately looks to carry on the negative trend for the rest of the year due to the global pandemic. A significant part of the first half of the year was impacted by COVID-19, especially after a complete country wide lockdown was implemented effective 24 March 2020.

The half yearly report by Horwath HTL India and STR portrays the severity of impact on India's hotel sector due to COVID-19.

Key Findings

  • YoY occupancy declined by 30% in the first two weeks of March.
  • Demand decline in the March to June period for the luxury-upper upscale, upscale and up-mid, and midscale-economy segments was 49%, 46% and 44% respectively.
  • The aggregate room revenue loss for March to June 2020, compared to 2019, is Rs. 48.1 bn (Rs. 4,810 crores).
  • Horwath HTL estimates the F&B and other operating revenue decline in this period (March through end June) at about Rs. 32 bn (Rs. 3,200 crores).
  • The total revenue loss for the March to June period is estimated at a massive Rs. 80 bn (Rs. 8,000 crores).

About Horwath HTL

Horwath HTL is focused one hundred percent on hospitality, tourism, and leisure consulting. Our services cover every aspect of hotel real estate investment, tourism, and leisure development. Our clients choose Horwath HTL because we have earned a reputation for impartial advice that will often mean the difference between failure and success. Each client project is unique, and they rely on us to utilize the experience we have gained throughout our 100-year history to assist them in achieving their goals. Being a global firm with 52 offices in 40 countries, we have successfully carried out over 40,000 assignments for both public and private clients. As part of the Crowe Global network, a top-ten accounting, and financial services network, Horwath HTL is the number one choice for companies and financial institutions looking to invest and develop in the industry.

For more information, please visit www.horwathhtl.com.

Stephanie Henley
Horwath

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