Hotels in India reported double-digit revPAR (revenue per available room) growth in October 2015.
According to the latest data from STR Global, a 1.2% decline in average daily rates (ADR), to INR5,866.47 (approx. US$88), was offset by a 15.0% jump in occupancy levels, which averaged 62.8%. This allowed India’s nationwide revPAR to surge 13.6% to INR3,683.91.
STR Global noted that October’s performance was driven by a 19.2% spike in demand for Indian hotel rooms — the highest in the country since March 2010. Daily data indicates that Tuesdays, Wednesdays and Thursdays are the main drivers of demand, which is now up 10.7% year-to-date.
But a very different picture is emerging in the Maldives, where a sharp 15.9% drop in demand has impacted hotels. The island nation recorded falling occupancy (-16.3% to 61.3%) and ADR (-5.8% to MVR9,675, or approx. US$618) in October, causing revPAR to slump 21.1% to MVR5,929.
STR Global analysts point to a shift in arrivals from visiting nations and a subsequent decrease in length-of-stay in resorts as key reasons for the drop in performance.
Overall, the Central and South Asian region, which includes India and the Maldives, experienced a 4.0% increase in revPAR in October, to US$70.18. Although this performance balanced a sharp rise in occupancy (+12.4% to 62.6%) with a significant drop in ADR (-7.5% to US$112.18).
And the picture is similar, if less dramatic, for the first 10 months of the year, with rising occupancy (+5.0% to 61.2%) offset by falling ADR (-5.1% to US$111.50), resulting in a slight dip in revPAR (-0.4% to US$68.22).
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