The coronavirus pandemic has already taken a toll on the hotels and hospitality sector in India. The sector has declined sharply in the first quarter of 2020, as the COVID-19 outbreak impacts various segments of the sector, according to a report titled ‘India Hospitality Industry Review 20109 put out by global real estate consultant JLL.
The extended lockdown announced by the Government post the outbreak have resulted in a severe drop in foreign and domestic travel, across both the tourism and business traveller segments, the report has said. This is after a good performance in 2019.
The occupancy levels in the hotels declined by over 65 percent in the third week of March 2020, compared to the same period last year. At least 30 per cent of hotel and hospitality industry revenue could be impacted if situation doesn’t improve by the end of June 2020.
With more than 60 per cent of organised hotels in India already shut and several others operational with single digit occupancies, a recovery will be gradual, the report said. Industry estimates indicate that in India, branded and organised hotels annual revenue is Rs 38,000 crore, it added.
“As the sector navigates turbulent times through the pandemic, growth and development of hotels in India is also likely to be impacted in the next two years. Any dry powder that is available today will focus more on buying operating assets rather than building new ones,” the report said.