India’s hospitality sector is witnessing a revival in demand as the occupancy rate reached 35% in November on the back of domestic travel, real estate firm JLL said January 5.
Goa, India’s most sought-after leisure market, witnessed considerable growth in recent months achieving a market-wide occupancy level of almost 55% in November 2020.
“Domestic business travel is expected to pick-up pace from March-April 21 onwards, as employees return to workplaces and travel advisories by companies are softened. Additionally, domestic leisure will continue to drive occupancies across the country. F&B demand will continue to grow as eating out will increase albeit cautiously” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, South Asia, JLL.
Leisure markets in close proximity to major source markets including Mumbai, Delhi and Bengaluru are likely to continue to benefit from weekend business, JLL said.
Investment activity is also expected to restart as the performance cycle picks-up and serious investors start evaluating quality assets across the country. Investors are mostly inclined to evaluate operational assets in key markets rather than Greenfield developments. This trend is witnessed across India. Investors will likely firm up investment decisions as performance cycle picks up and fear of missing good deals may drive the investment activity.