New Delhi: The results for December quarter have reinforced the positive sentiment building up for the hotel industry. There is a healthy rise in occupancy level as well as revenue per available rooms. The industry has rebounded as a result of this. The Economic Times reports that the leading players in the industry reflect the change in fortunes with industrial growth back on track.
The XIX Commonwealth Games 2010 Delhi to be held in October this year are expected to ensure that the earnings of the hotel industry are further boosted in the next fiscal.
Not only the industry’s biggies will gain from the Commonwealth Games, but mid- and small-sized players would also benefit, thanks to the overall rise in business in the industry.
For the December quarter, all the big players saw a rise of over 50% in their sales while their net profit vaulted by over 100% compared to the year-ago period.
Much of this optimism is also reflected in the rising hotel occupancy figures in the top four cities. In the Mumbai region, for instance, the occupancy levels for Indian Hotels properties shot up to 71% during the third quarter from 55% in the second quarter and 51% in the first quarter.
The company’s revenue per available room (RevPAR) for the Mumbai region jumped to Rs 6,503 in December 2009 quarter from Rs 4,810 in the previous quarter. The industry is on course for a bigger and better quarter as occupancy levels and ReVPAR continues to rise in major centres.
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