NEW DELHI: Hotel occupancy in India has now surpassed pre-Covid levels. While rates in leisure destinations had already crossed this mark a few months ago, business is finally picking up in metro properties as well with room rates in key markets Delhi, Mumbai and Bangalore at 70-80% pre-pandemic levels, Taj parent Puneet Chhatwal, managing director and CEO of Indian Hotels Company Ltd (IHCL), told TOI on Tuesday.
The hotel major, which has 60 properties in the pipeline, will open three new hotels every two months and plans to raise up to Rs 2,000 crore via a QIP after raising a similar amount via a rights issue.
“Business is improving. As we speak, March, April and May 2022 are ahead of the same pre-pandemic 2019 months in terms of occupancy. Fares are also higher, except in some business destinations like Delhi, Mumbai and Bangalore. Mumbai is now showing a very strong recovery in demand. In leisure destinations, fares till May are 30% higher compared to the same pre-pandemic 2019 period,” Chhatwal said in Delhi on the sidelines of IHCL’s Paathya sustainability program.
Previous black swan events like 9/11 and the 2008 economic crisis saw tariff recovery take a long time. However, the industry now expects a quicker return due to supply constraints, as priority will be given to projects already underway and new launches will be staggered. The opening of regular international flights from the end of March could provide a well-deserved break later in the year.
“The April to September period has historically seen demand mainly from domestic travelers due to weather challenges (extreme heat and rains). A certain amount of inbound foreigners occur throughout the year due to the Indian diaspora coming to visit friends and relatives,” Chhatwal said.
About the fundraising, he said the council had recently approved raising up to Rs 2,000 crore through a QIP. “We raised a similar number through a rights issue. We will now take a call on the timing and amount of the QIP,” he said.
As part of Paathya, IHCL will eliminate single-use plastic in hotels by 2030 and ensure that water needs are met through recycled or reused water. It will preserve and promote 50 items of intangible cultural heritage across India in collaboration with UNESCO.
The hotel major, which has 60 properties in the pipeline, will open three new hotels every two months and plans to raise up to Rs 2,000 crore via a QIP after raising a similar amount via a rights issue.
“Business is improving. As we speak, March, April and May 2022 are ahead of the same pre-pandemic 2019 months in terms of occupancy. Fares are also higher, except in some business destinations like Delhi, Mumbai and Bangalore. Mumbai is now showing a very strong recovery in demand. In leisure destinations, fares till May are 30% higher compared to the same pre-pandemic 2019 period,” Chhatwal said in Delhi on the sidelines of IHCL’s Paathya sustainability program.
Previous black swan events like 9/11 and the 2008 economic crisis saw tariff recovery take a long time. However, the industry now expects a quicker return due to supply constraints, as priority will be given to projects already underway and new launches will be staggered. The opening of regular international flights from the end of March could provide a well-deserved break later in the year.
“The April to September period has historically seen demand mainly from domestic travelers due to weather challenges (extreme heat and rains). A certain amount of inbound foreigners occur throughout the year due to the Indian diaspora coming to visit friends and relatives,” Chhatwal said.
About the fundraising, he said the council had recently approved raising up to Rs 2,000 crore through a QIP. “We raised a similar number through a rights issue. We will now take a call on the timing and amount of the QIP,” he said.
As part of Paathya, IHCL will eliminate single-use plastic in hotels by 2030 and ensure that water needs are met through recycled or reused water. It will preserve and promote 50 items of intangible cultural heritage across India in collaboration with UNESCO.
