Hotel occupancy back to pre-Covid levels, rates falling | Ahmedabad News

0


[ad_1]

Ahmedabad: Supported by a dynamic movement of businesses as well as leisure travelers, hotel occupancy rates in Ahmedabad have improved over the past two months, gradually reaching pre-pandemic levels. Despite the recovery, the Average Daily Rate (ADR) of hotels in Ahmedabad remains under pressure. Hoteliers’ estimates suggest that the ADR of five-star hotels in Ahmedabad stood at Rs 3,200 per room per night in August, down 41% from Rs 5,500 per room per night in August 2019.
“At least three new properties have been launched in the Ahmedabad-Gandhinagar market even after the pandemic, when the hospitality industry was hit hard. The city already had an oversupply situation. With fewer events and minimal resumption of business movement, demand is not strong enough and as a result ADR has suffered a severe blow, ”said Narendra Somani, President of the Association of Hotels and restaurants (HRA) – Gujarat. With more supply and less demand, the market has become largely price driven, according to industry players. “Five-star properties are offering competitive rates for gaining business after a downturn in recent months. As a result, ADRs have failed to recover despite sustained demand, ”Somani added.
Hoteliers also attributed the capped ADR to a slow recovery in business movement.
“After the second wave of Covid-19, bookings from corporate customers have slowly started to pick up. Even though occupancy rates are on the rise, demand from corporate clients is slowly accelerating with infrequent travel. The average daily rate is expected to be touched until the corporate movement fully resumes, ”said Deep Preet Bindra, general manager of Courtyard by Marriott.
In the previous months, the city’s hospitality industry received a cushion from weddings for which hotels were preferred destinations. However, without major muhurats before October, hoteliers do their utmost to appeal to business and leisure clients.

FacebookTwitterLinkedinE-mail

[ad_2]

Share.

About Author

Comments are closed.