Hotels, Restaurants & Tourism share price target

As per HVS Anarock, Dec’22 was another strong month for the Indian hotel industry with industry RevPAR being 13% above Dec’19 (pre-Covid levels). Mumbai continued to clock the highest occupancies of over 80% for Dec’22 while Goa clocked its highest ever ARR of over Rs13,000 which is 31% higher than Dec’19 levels.

In this report, we map price of Starbucks (latte), Zara (men shirts) and Domino’s (regular-size pizza) globally (in their respective top 3-5 markets) to understand how their pricing strategies (premium/discount) differ in the respective geographies.

As per our channel checks and commentary from listed hotel companies, hotels continue to follow a strategy of keeping rates higher and sacrifice a bit of occupancy in preparation for a strong “wave” of demand in H2FY23.

Traditionally, July to September is the weakest quarter for the hotel industry, as it is typically the off-season for tourists. Summer vacations are over, and monsoon rains discourage travel.

As per our channel checks and commentary from listed hotel companies, hotels continue to follow a strategy of keeping rates higher and sacrifice a bit of occupancy in preparation for a strong potential demand surge in H2FY23.

As per HVS Anarock, industry occupancies fell below 50% in Jan’22 owing to Omicron impact before recovering to ~55% in Feb’22 and 61% in Mar’22.

As per HVS Anarock, industry occupancies fell below 50% in Jan’22 owing to Omicron impact before recovering to ~55% in Feb’22 and 61% in Mar’22.