1. Home
  2. News & Update
  3. Supply-side growth to challenge Mumbai, NCR Delhi hotel market: Cushman & Wakefield

Supply-side growth to challenge Mumbai, NCR Delhi hotel market: Cushman & Wakefield

Two prime markets in India, Delhi NCR and Mumbai, are expected to see an addition of 6,798 rooms by the end of 2015, said Cushman & Wakefield.
The global real estate consultancy reveals that India’s key hospitality markets have shown a downward trend in Average Occupancy Rate (AOR) whilst the Average Daily Rate (ADR) in both cities have recorded an increase of 2 per cent.
Despite hopeful economic outlook on the table, supply-side growth may stifle gains in hotel performance in the short-term. In Mumbai, a 6.6 per cent increase in air arrivals at Chhatrapati Shivaji International Airport in the year ending-June 2014 was boosted by the new airport terminal inaugurated in February 2014.
Despite a slight rise in ADR, a 3.3 per cent fall in Occupancy is expected to push RevPAR in 2014 down by 1.3 per cent over 2013 to ` 4,085. In NCR Delhi, a RevPAR is expected to fall by a larger -6.7 per cent due to a significant drop in Occupancy despite a similar growth story at Indira Gandhi Airport.
PR Srinivas, Director, Hospitality India, Cushman & Wakefield, “The stability of the global market along with the strength of the Indian Rupee would be critical in assuring a healthier performance by these two gateway markets of India. With a stable government at the centre, actively promoting India as a destination, these two markets will be the likely beneficiaries of the expected traffic to India.”

3

Cookie Consent ACE Update

We use cookies to personalize your experience. By continuing to visit this website you agree to our Terms & Conditions, Privacy Policy and Cookie Policy.

Close