Join hospitality professionals

Enter your email address:

Get all the latest job, news, views, ideas and more FREE!!

Hotel industry growth is expected to strengthen to 9-11% in 2015-16: Icra

Mumbai: Rating agency Icra Ltd on Monday said Indian hotel industry revenue growth is expected
 to strengthen to 9-11% in 2015-16, driven by a modest increase in occupancy and small increase in rates.“Industry wide revenues are expected to grow by 5-8% in 2014-15.
Over the next 12 months, Icra expects RevPAR (revenue per available room) to improve by 7-8% driven by up to 5% pickup in occupancies and 2-3% growth in average room rates (ARR),” Icra said.Further, margins are expected to remain largely flat for 2014-15 while a moderate albeit sub-par expansion is expected in 2015-16.
While occupancies pan India are showing signs of improvement during 2014-15, this appears to be driven by a few pockets such as Mumbai, where occupancies grew by 15% year-to-date in December 2014 supported by traffic for large conferences and weddings.