Hotel industry weathers June slowdown, aviation disruptions
New Delhi, July 1 -- India's hotel industry weathered a typically soft June and aviation disruptions-such as the Air India mishap in Ahmedabad-without major setbacks, as strong pricing in key cities and solid performance in May provided a cushion. While occupancy dipped slightly, operators resisted slashing rates, indicating a growing pricing discipline, according to hospitality consultancy HVS Anarock.
May 2025 saw India's top hotels perform strongly compared to the same period last year, with average room rates holding firm between Rs.7,300 and Rs.7,500. Despite disruptions due to the Pahalgam terror attack in April, rates remained resilient, even as occupancy declined 1-3% year-on-year and 7-9% from April, according to hospitality consultancy HVS Anarock.
Radisson Hotel Group's India portfolio also delivered a strong performance in April-June 2025, said the company. "Despite geopolitical challenges and uncertainties, this quarter (April-June) has reflected growth and resilience for us. We saw a 2% increase in occupancy and a 6% rise in average daily rate (ADR) compared to the same period last year," Nikhil Sharma, managing director and chief operating officer, South Asia, Radisson Hotel Group, toldMint.
This could be the result of sustained hotel room prices, which have grown. "There is a structural shift in room pricing strategy, with hotel operators showing greater rate discipline. They are no longer resorting to deep price cuts in response to short-term demand dips, making business more sustainable in the longer run," Mandeep S. Lamba, president and chief executive officer (South Asia), HVS Anarock, toldMint.
Vikramjit Singh, founder of Ananta Capital-backed Alivaa Hotels, which has 11 operational hotels and another four under development, said, May is traditionally a slower month than April. "There was a slight drop in occupancy over May 2024 because the hotels in North India were impacted for about 15 days due to the terror attack. This was a temporary blip, the business bounced back soon after," Singh said....
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