Hotel industry expects traction in occupancy, room rates in 2022: Study

The hotel industry in the country which bore the brunt during the COVID-19 pandemic is on the path of recovery with higher occupancy, increased average room rates (ARR) and spurt in merger and acquisition deals, a study said on Wednesday.

Domestic leisure travel is the driving force behind the road to recovery coupled with an increase in business travel, and with most organisations gradually resuming to a full or hybrid work-from-office model, it said.

In 2021, the occupancy was 42-45 per cent and the average room rate was Rs 4,300-4,600 which was higher than 2020 but less by 25-28 per cent compared to 2019 levels, it said.

We expect India-wide occupancy to improve to 66 per cent in 2022, along with a 28 per cent increase in ARR during the year. We expect occupancy & average room rates to return to pre-pandemic levels by the end of CY22 (calendar year) and by mid-CY23, respectively, HVS ANAROCK president (South Asia) Mandeep Singh Lamba said in the report.

The year 2022 started .