Mumbai: Indian hotel industry revenue is likely to advance by 9-11 percent in 2015-16 after a subdued growth rate of 5-8 percent in the current fiscal, as per rating agency ICRA.
ICRA said in a report the growth is expected to strengthen in 2015-16 mainly on account of a modest increase in occupancy and small traction in rates. The margins are expected to remain largely flat for the current fiscal 2014-15, while a moderate albeit sub-par expansion is expected in the next financial year. While occupancies are showing signs of improvement, this appears to be driven by few pockets like Mumbai, where occupancies grew by 15 percent year-to-date in December 2014 supported by traffic for large conferences and weddings.
The ICRA report said Bengaluru has also exhibited some stabilisation with incremental supply being slowly absorbed. However, the newer properties launched during 2012-14 continue to struggle with weak revenue. The National Capital Region (NCR) is exhibiting wide variation in performance across Delhi, Noida and Gurgaon, with Delhi showing marginal growth while trends in the Delhi Aerocity area and Gurgaon remained weak.
